I recently started my real estate business a few months ago. I was in touch with a couple of big Developers. So I thought I could identify cooperative societies which are looking for a developer and get them connected. I also reached out to the business development teams of all the major developers in Mumbai. The business development team takes care of land acquisition. After identifying and showing around forty properties in a span of six months to the developers here is what I learnt.
- The redevelopment market in Mumbai is very hot and active.
- Practically the whole of Mumbai wants a facelift.
- Top builders are vying for large land parcels (> 1 Acre) in prominent locations in Mumbai where the market price for the final product is more than forty thousand rupees per square feet.
- Builders do not show much interest for the central suburbs and northern suburbs of Mumbai because the market price for their inventory is low.
- Most Builders prefer redevelopment of property over buying the property outright as it turns out to be a cheaper alternative.
- Most Builders do not show interest in SRA projects because it is difficult to vacate the premises and there is some political pressure for extra compensation or other benefits to the tenants.
- Large developers do not show any interest for small societies (< 1 acres).
- Most societies prefer to work with a branded developer.
- South Mumbai is the hottest destination with most of the builders wanting to work in this location.
- The South Mumbai landscape is changing fast with several new redevelopment projects happening between Dadar and Churchgate/CST.
I see a completely new Mumbai coming up in the next ten years. It will be interesting to see whether the demand for these new residential properties keeps up with all the inventory that is coming up. Also even if the builders inventory is sold it will be interesting to see if the investors get a good return on their investment in the form of rental income and resale of these properties. Whatever the outcome, I am sure it will be a completely new Mumbai by the time India celebrates its hundredth independence day in 2047!!
You can read more about redevelopment laws at: Redevelopment Laws in Mumbai – A Legal Overview https://share.google/KbtVKkSxXoAFH14Zz
Mungekar Wealth 