Mumbai region unsold housing stock eases 8% in Q1, highest drop in 7 years – ET RealEstate

Mumbai Metropolitan Region (MMR) has emerged as one of the most buoyant residential property markets in the country in the first quarter of 2021 with seven-year high decline in unsold units led by sales momentum despite new launches, showed data from Anarock Property Consultants.

The Mumbai region including the country’s financial capital and neighbouring Thane and Navi Mumbai saw the highest yearly decline of 8% in total unsold housing stock by the end of this quarter to 1,97,040 units.

This is the highest on-year reduction in unsold housing inventory in the last seven years. In previous years, MMR’s stock either increased y-o-y or declined by no more than 3%.

Interestingly, the overall stock fell despite ample new supply hitting the market during this and the preceding quarter. MMR saw 14,820 new units added during the quarter – the highest among the top 7 cities – yet robust sales in the last two quarters significantly helped reduction in the overall unsold stock.

Housing sales are driven by bottomed-out property prices, limited-period stamp duty cuts, developer discounts and lowest-best home loan rates.

During the quarter, around 20,350 apartments were sold in MMR, of which 68% were sold in Mumbai, 18% in Navi Mumbai and 14% in Thane.

“Mumbai is one of the most expensive real estate markets in the world. A reduction in overall acquisition cost by anything between 5-15% made a huge difference in buyer sentiments. Low home loan interest rates and developer discounts, and timely intervention of the government by ways of stamp duty reductions and a 50% cut in premium charges also helped the region get its mojo back even during COVID-19,” said Anuj Puri, Chairman, Anarock Property Consultants.

While overall unsold stock in MMR declined by 8%, individually, Thane reported the highest yearly decline of 14%, followed by Navi Mumbai with 12% and Mumbai with a 5% reduction. Mumbai saw the least decline among the three despite increased housing sales because it was the only city in MMR that added ample new supply in the first quarter this year and the preceding quarter.

Mumbai saw its unsold stock declined by 5% in the year to around 1.33 lakh units as of the first quarter of 2021. The city recorded robust sales of 13,750 units during the quarter, increasing by 51%. As for new supply, in contrast to other cities in the region, Mumbai saw a 132% yearly jump to 12,920 units.

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MHADA to redevelop Thane police colony, build 1,000 homes – ET RealEstate

MUMBAI: Maharashtra government on Tuesday cleared a long-pending proposal to redevelop dilapidated police colony at Vartak Nagar in Thane, and task MHADA to redevelop these 47-year-old buildings, and construct 1000 homes, some of which will be sold by MHADA in its lottery.

The decision was taken at a meeting chaired by state Housing Minister Jitendra Awhad in Mantralaya. Thane Shiv Sena MLA Pratap Sarnaik, Additional Chief Secretary (Home) Sitaram Kunte, Principal Secretary, Housing SVR Srinivasan, and newly appointed MHADA Vice President and Chief Executive Officer Anil Diggikar were present at the meeting.

MHADA had created housing for different sections in the 1960s out of which 10 buildings were handed to Thane police in 1973 for housing its personnel. Some of these buildings were declared dangerous to live and were demolished. Police personnel and their families continue to live in other dilapidated structures. Some police families were moved out into a state rental housing scheme. The previous government had announced cleared a similar redevelopment proposal with 4 FSI, but it continued to be pending.

The existing buildings have 40 tenements of 474 sq ft carpet area for the middle-income group (MIG), 120 tenements of 365 sq ft area for the lower-income group (LIG), and 400 tenements of 160 sq ft area.

According to the proposal, the total area available for redevelopment would be 61,166.94 sq metres and 5.26 FSI could be applicable as per February 2009 government resolution for the project. If implemented with 5.26 FSI, the 120 low-income group tenements could get a larger carpet area of 484 sq ft, and 400 LIG tenements could 322 sq ft carpet area.

The proposal also said MHADA will construct 1000 homes and after handing over 560, the remaining tenements will be sold by MHADA through its lottery at prevailing market rates. Police personnel will be given priority in the lottery distribution, the proposal said. 30-storey towers are proposed to be built over a three year construction period.

MHADA will have to get environment clearance as the 10 buildings are located in three clusters, and two of the clusters have more than 20,000 sq ft developable area which requires mandatory environment clearance. It will also have to apply for a No Objection Certificate from the National Wildlife Board of India.

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Flat buyers up in arms after Thane civic body converts building into Covid-19 facility – ET RealEstate

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MUMBAI: Nearly six years after they booked their flats, buyers of a recently constructed property in Thane waiting to take possession now face another setback after the municipality recently declared the building a quarantine centre.

The civic body had received an application in February, seeking an occupancy certificate to begin possession at the C1 Tower at Bharat Ecovista in Shilphata, which was nearing completion at the time. However, on May 30, former civic commissioner Vijay Singhal passed an order converting the structure into a quarantine/isolation facility.

However, buyers and residents who live in the two other towers in the same compound have been up in arms against the move, which they claim is endangering lives of residents of the existing towers, including pregnant women and the elderly.

Radhika Disale, who purchased a flat in the new building in 2015, has been renting a flat in a neighbouring tower and has been fighting the decision to convert the building into a facility. The project, already delayed by three years (possession was expected in 2017), has been giving buyers like her a rough time as they not only have loan instalments to pay, but also monthly rent.

Disale told Mirror that the TMC had not responded to multiple calls and emails from the buyers, prompting the 100-odd future owners to attempt to contact both TMC Commissioner Dr Vipin Sharma and Chief Minister Uddhav Thackeray, she said.

Sarang Bhumkar, another buyer, shared a letter from the property’s developer to the TMC dated June 6, informing them that many labourers had left during the lockdown, and that the building was nearly ready – except some wiring and plumbing work, which would take an additional 90 days to complete. “The builder has not opposed our demand that the occupancy be granted to us at the earliest,” he added.

“The new building is an integral part of the common entry and exit gated society, which has over 300 families who have been residing here since 2017, and there has not been a single detected case of Covid-19 so far,” said another buyer on condition of anonymity. “We have not only been dealing with monthly rent and EMIs but also recently announced salary cuts,” he added.

“There are a lot of open spaces under the TMC’s jurisdiction, including a big ground right opposite Thane Jail, where no residential buildings are around. This space was given on rent for exhibitions before the lockdown. The TMC thinks it is fair and justified to acquire newly constructed houses of monetarily suffering residents, without their consent and without paying them a penny,” the buyer said.

When Mirror contacted local assistant municipal commissioner Sunil More about the civic body’s order to turn the building into a quarantine facility, he stated that the TMC’s town planning department was answerable for the delay. However, town planning official Ravindra Kasar stated that there was nothing the department could do until the civic body rescinded the order.

As a result, the project has been stuck in limbo since the TMC’s order, as the building lacks the facilities to begin operations as a quarantine centre and the civic body has not shown any inclination to revoke the order declaring it an isolation facility. “I was told during one conversation that I should ‘forget about it’ as nothing has happened since May 31,” Disale said.

She added that the residents were planning to approach the high court, but were advised to support a writ petition likely to be moved by the residents of the neighbouring towers. “Some of our members are worried that once the court is involved we will be stuck in months of litigation,” she said.

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Process on to evacuate residents from ‘dangerous’ buildings in Thane – ET RealEstate

THANE: Residents of all buildings classified as ‘very dangerous’ in Maharashtra‘s Thane city are being evacuated in view of the current monsoon season and the process would be completed in a couple of days, civic commissioner Vipin Sharma said on Sunday.

As many as 79 buildings in the city are under the C1 category (which means very dangerous and need to be vacated immediately), while 123 buildings fall under the C2 category, Sharma told reporters.

The C2A buildings are those that can be structurally repaired after which residents can reoccupy it, while C2B are those that can be repaired without residents having to evacuate it. Besides, the buildings under C3 category are those that require minor repairs.

“The buildings classified as C1 are being vacated and the entire process would be completed within a day or two. The monsoon has already set in, and we cannot take another risk as we are already fighting a battle against COVID-19,” Sharma told reporters.

Some 150 families were yet to be shifted out of these buildings, he said, adding that the work will be completed at the earliest.

Each ward committee has published a list of the dangerous buildings falling under its jurisdiction, he said.

In the previous years, there have been incidents of building collapse in the city during the rainy season.

Sharma also said that the budget committed for tackling the COVID-19 pandemic has gone up in view of the rising number of cases in Thane.

Under these circumstances, the civic body’s priority is to tackle the coronavirus crisis and pay salaries to its employees on time, he added.

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