Mumbai real estate sees fall in new launches |
Posted: August 25, 2016 |
Mumbai real estate will not be seeing new project launches for a year or so. This is because the realty market there is under quite a bit of confusion regarding some new real estate related laws that have come into effect. Until this confusion is not sorted out no developer will willing step into the housing market and launch projects here. Some of them are in fact trying to sort out issues with their existing projects so that they are compliant with new laws that have some into force. So what exactly is driving the developers away from launching new projects? Here’s a brief look at some of the issues that is keeping them away from doing business in the real estate sector of India’s biggest financial market. In February of this year the Bombay High Court had ruled that no new construction can come up in Mumbai city. This is because the city is facing a waste management crisis of sorts. There are two dumping yards in the city located at Deonar and Mulund. The people who are living in these areas had filed a public interest litigation asking for the dump yard to be shifted out of their locality. This lead to the court ruling which asked the state government and the Municipal Corporation of Greater Mumbai to not allow any new construction till this issue was resolved satisfactorily. This ruling has made life difficult for builders. They cannot plan any new projects for the time being. They say that their hands have been tied by the court’s order. Many of them are afraid that the upcoming festive season which is one of the few times in the year where builders can show profits might get affected by this ruling. The new Real Estate Act has also made life a tad bit more difficult for builders in this market. New launches will have to comply with the rules laid down through this act. If they don’t comply then they can very well be dragged to a court by the buyers. Projects which are currently in the under construction stage are also working towards being fully compliant with the rules laid down under the Real Estate Act. Dharti Pressidio located in Malad West is an under construction project. Dharti Pressidio by Aaditya Realtors is expected to come into possession by January 2017. Under the Real Estate Act projects like Dharti Pressidio will have to stick to the timelines promised to their buyers. If the builder does not comply, then legal action can be taken against him. So a project like Dharti Pressidio by Aaditya Realtors will have to be doubly careful even though it was launched well before this act came into force. With such an atmosphere of uncertainty prevailing, it is no wonder that builders have become wary. But some of them are optimistic and say that it is only a matter of time before these problems are sorted and they get back to doing business in this metro. By Indiaproperty.com
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