Realty Wrap 2016: Check Out What Made Mumbai Realty Look Promising In 2016

The year 2016 has been a very positive one for the Mumbai real estate market. The state government and private developers have collectively contributed to the overall growth of the state.

• As per a survey by Urban Land Institute, supported by data from PricewaterhouseCoopers LLP, the financial capital of India has been ranked along with Bengaluru as one of the most promising investment destinations in the coming year.

• The demonetisation move by the government had given a jolt to the entire market towards the year end. However, the period prior to that saw business booming.

PropGuide takes you through the year that had gone by for Mumbai city.

Mega infrastructure plans conceptualised

Mumbai saw some prestigious infrastructural projects, worth over Rs. 70,000 crore taking shape. They include Mumbai Coastal Road, Mumbai Trans Harbour Link (MTHL) and Navi Mumbai International Airport. Mumbai Metro Rail Corporation, a collaboration between state and central government had planned to launch three metro corridors spanning 68.5 kilometres which will take at least three years to be fully operational.

Also read: Mumbai On Course Correction To Curb Illegal Constructions

Overview of residential project launches

The city had noticed a healthy number of new launches of housing properties. In fact, the city solely outperformed the total contribution of three cities —Ahmedabad, Pune and Mumbai itself, by 82 per cent in May 2016. Mumbai's share of new launches in the west was 71 per cent in July 2016, 47 per cent in August 2016 and 26 per cent in September 2016. The new launches augmented by 71per cent in October 2016 and 14 per cent in Nov 2016.

The areas which saw maximum action

The micro-markets which witnessed plenty of development works include Thane West, Kalyan West, Dombivali, Neral, Ulwe, Undri and Mira Road East. These localities were consistently performing well and were cited in monthly reports published by PropTiger Datalabs.

Price Trends

Prices of residential apartments in Mumbai, barring few localities, remained steady across the year with least variations. The localities like Mahim, Saphale and Byculla witnessed a price appreciation of 20 per cent over past year.

Builders who made an impact

Tata Housing invested Rs. 150 Crore for a project in Kalyan. Lodha Group through a debt transaction from Piramal Fund Management generated an amount of Rs. 2,320 Crore for projects in south and central Mumbai.

Other developers who made noteworthy contributions to the industry include Ajmera Realty who plan to create 10,000 affordable homes by 2026 in Mumbai Metropolitan region (MMR). Kanakia Group obtained development rights on Powai from Skyline Developers worth Rs. 400 Crore. The group also acquired a land parcel in Kanjurmarg from Windsor Realty for a consideration of Rs 125 crore.