Real Estate News - Mumbai - Page 3

House of Hiranandani to Redevelop 5 Mumbai Societies

Realty firm House of Hiranandani will invest Rs 3,200 crore to redevelop five housing societies in Mumbai.

The company has presence in Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad and Chennai.

The company said it has signed additional redevelopment projects of 17 lakh square feet with a GDV (Gross Development Value) of Rs 5,000 crore.

"The company has entered into registered development agreements with five major housing societies in Chembur and plans to invest Rs 3,200 crore," House of Hiranandani said in a statement.

These five housing societies in Chembur comprising 459 tenants include redevelopment of Maitri Park in Chembur East, admeasuring about 9 acres and Shrinagar Society in Chembur West, a cluster of four societies admeasuring about six acres.

The company said it is in the process of securing necessary approvals and plans to complete the redevelopment within the next 4-5 years.

Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani said, "Redevelopment of established societies is a new opportunity that House of Hiranandani would like to explore. Today, Mumbai city has no space for expansion. The older regions of Mumbai are full of old and dilapidated buildings with insufficient infrastructure."

"Considering the scarcity of space, redevelopment of these buildings is an ideal solution that can unlock the potential of these spaces, create world class infrastructure and amenities for the residents and also transform the clogged spaces into planned sustainable and liveable communities," he said.

House of Hiranandani has an experience of over four decades in the real estate industry.

Along with residential, House of Hiranandani has also constructed over 12 mn square feet of area in the commercial sector.

Till date, House of Hiranandani has delivered 25,375 homes and developed 45.82 million square feet of residential and commercial real estate.

Source: PTI

As Mumbai suburban rents soar, experts call for key housing policy changes

https://www.moneycontrol.com/news/business/real-estate/as-mumbai-suburban-rents-soar-experts-call-for-key-housing-policy-changes-12819058.html

In Mumbai’s transformation journey, slum rehabilitation is being left behind

Mumbai, one of India's most dynamic urban centres, is undergoing a transformation as redevelopment projects surge across both the island city and the suburbs.

Despite one in every three residential launches now coming from redevelopment efforts, a key issue remains unresolved—slum rehabilitation. Conducted largely under the Slum Rehabilitation Authority (SRA), slum redevelopment remains dominated by smaller, local developers.

Large real estate companies, with greater financial capacity, tend to shy away, citing the complexity of dealing with slum dwellers, political interference, and unresolved land issues as major hurdles.

Mumbai’s branded developers, such as Rustomjee, Mahindra Lifespace Developers, Godrej Properties, and Raymond Realty, have focused primarily on redevelopment projects in non-slum areas.

The incentive for developers lies in the “free-sale component”, which allows them to sell a portion of the project in the open market. However, despite this incentive, large developers mostly remain hesitant to engage in slum rehabilitation.

Credit: Moneycontrol

Slum clusters across Mumbai

According to SRA data, Mumbai's urban landscape is dotted with around 2,600 slum clusters. They stretch from the southern tip of the city in Colaba to Dahisar in the north-west and include major slum areas in the central and eastern suburbs of Sion, Ghatkopar, Kanjurmarg, and Mulund.

The SRA lists roughly 1,700 ongoing rehabilitation projects, with over 500 believed to be stuck at various stages of development, as per industry estimates. Since SRA's inception in 1995, more than 2,300 slum rehabilitation projects have been completed, housing more than 2.5 lakh families.

The challenge is enormous. More than half of Mumbai’s population lives in slums or slum-like accommodations, including the historic chawls, group housing built in the early 20th century for factory workers. However, exact data on the number of slum dwellers is unavailable, as the most recent Census was conducted over a decade ago

Rs 45,000 rent for 1BHK 'chawl' in Mumbai?

https://www.ndtv.com/offbeat/rs-45k-for-a-1bhk-viral-post-sparks-outrage-over-mumbais-soaring-rent-6706599/amp/1

Top real estate deal in Mumbai's suburbs: 4 BHK apartment in Borivali sells for Rs. 14 crore at Rs. 56,000 per sq ft

In perhaps the most expensive real estate deal in Mumbai’s suburb Borivali, a 4 BHK luxury apartment was sold for Rs 14 crore with the per sq ft rate amounting to Rs. 56,000 per sq ft, according to the property registration documents accessed by IndexTap.com.

This is historically the highest rate at which a property has been sold in Borivali and the price is at par with other locations like Andheri, Vile Parle, Dadar and Mahim of Mumbai, real estate experts told HT.com

The deal sets a new benchmark for the Borivali property market.

The 4 BHK apartment spread across 2,497 sq ft is located in a Grade A residential building named Aquaria Grande constructed by the Wadhwa Group. The apartment was purchased by a Mumbai Metropolitan Region (MMR)- based businessman Hemant Patil.

The apartment comes with two parking spaces and is located on the 27th floor, according to the documents. The transaction registered on June 21, 2024 involved a stamp duty of Rs. 84 lakh, the documents added.

The highest per sq ft rate for Borivali until now was for apartments in Oberoi Sky City where an apartment was sold for Rs. 48,800 per sq ft by Oberoi Realty, according to data accessed by IndexTap.com

"This deal in Aquaria Grande at 56,000 per sq ft is the highest traded price till date in Borivali west, clearly indicating the appetite for luxury homes even in the furthest northern suburb of Mumbai," said Abhishek Kiran Gupta, CEO and co-founder, IndexpTap.com

Average price of apartments in Borivali range from Rs. 25,000 to Rs. 40,000 per sq ft with most projects trading at Rs. 30,000 per sq ft, local brokers said.

Credit: Hindustan Times

Property rates in Vile Parle, Juhu, Dadar and Mahim

According to developers who have several under construction projects in Borivali, prices of a few properties are almost at par with apartments in Juhu, Vile Parle, Dadar and Mahim.

"There is a healthy demand for well-planned gated complexes that are equipped with amenities and foster a sense of community, as is the case with properties such as Oberoi Sky City and Wadhwa Aquaria Grande. In our project named Paradigm Anantara in Borivali, we are commanding in excess of ₹32,000 per sq ft. Our higher floors, which comprise premium 4 BHK residences will be launched with a per square foot price tag of ₹40,000 by next year," said Parth Mehta, CMD, Paradigm Realty.

"The rising demand from within the business community as well as the higher spending power of homebuyers in this area are the most prominent reasons for properties in Borivali commanding a good premium in the suburban market. This market is willing to pay more for a high-quality, well-structured and designed product that offers ample fresh air and daylight, a good ceiling height, and excellent amenities," Mehta added.

Currently, areas such as Pali Hill in Bandra and Worli are the most expensive locations in Mumbai where several luxury apartments are priced more than ₹1.50 lakh and ₹1.60 lakh per sq ft, according to brokers.

In one such transaction, Ashley Nagpal, promoter of Ebco Pvt Ltd, a furniture fittings and accessories firm, and his wife Bianca Nagpal had purchased a 7,139 sq ft apartment in Mumbai's Worli area for ₹115 crore in August this year, according to the documents accessed by Zapkey. The apartment in Worli located on the 60th floor of Oberoi Three Sixty West project of Oberoi Realty was sold for ₹1.60 lakh per sq ft, according to the documents.

Six landlords who control more than 10% of Mumbai’s land

Mumbai is a city where land is scarce and perhaps the most expensive in the country. So, who are the biggest landowners of the city? A survey carried out by the Slum Rehabilitation Authority (SRA) had said that the financial capital is home to some of the biggest landowners who own almost 20% of the total land parcels in the financial capital.

https://www.hindustantimes.com/real-estate/six-landlords-who-control-more-than-10-of-mumbai-s-land-101728997670609.html

Mumbai Housing Rent Reaches Over 43,150 per Month for 1BHK: 'May Lead to Brain Drain'

Mumbai is one of India’s priciest cities for rental housing, with the average annual rent for a 1 BHK apartment reaching Rs 5.18 lakh (Rs 43,167 per month), according to a report by CREDAI-MCHI, an industry body for real estate developers. This rent surpasses the average annual salary of junior-level employees, which stands at around Rs 4.49 lakh. According to the rent, the high rental costs in Mumbai may lead to a ‘brain drain’, as professionals might relocate to more affordable cities for financial stability.

Comparatively, the annual rent for a 1 BHK in Bengaluru and Delhi-NCR is almost half, at Rs.2.32 lakh and Rs.2.29 lakh, respectively. While junior-level employees in these cities earn annual salaries of Rs.5.27 lakh and Rs.4.29 lakh, respectively, Mumbai’s negative disposable income poses challenges for covering basic living costs.

Impact on Mid-Level Employees

Mid-level professionals in Mumbai, who typically rent 2 BHK apartments, earn an average salary of Rs 15.07 lakh per year, but spend roughly Rs7.5 lakh on rent. In Bengaluru, similar employees earn Rs 16.45 lakh annually and spend Rs 3.90 lakh on rent, while in Delhi-NCR, the average salary is Rs14.07 lakh with rent costs around Rs3.55 lakh. The financial burden in Mumbai forces many mid-level employees to spend significant portions of their salaries on rent, leaving little for savings, and requires long commutes that negatively affect work-life balance and productivity.

Challenges for Senior-Level Employees

Senior employees in Mumbai, who typically rent 3 BHK apartments, earn an average salary of Rs.33.95 lakh, but face annual rent costs of Rs.14.05 lakh. In contrast, senior professionals in Bengaluru earn Rs.35.35 lakh, spending Rs.6.25 lakh on rent, while in Delhi-NCR, they earn Rs.30.73 lakh and pay Rs.5.78 lakh in rent. As a result, many senior employees are migrating to more affordable cities for a higher quality of life and increased disposable income. This trend could potentially cause a talent drain, challenging businesses in Mumbai to attract and retain skilled professionals.

High Costs in Mumbai’s Real Estate Market

The report notes that Mumbai’s approval costs for residential real estate projects are 25 times higher than in Delhi-NCR, 50 times more than Hyderabad, 47 times higher than Bengaluru, and 9 times more than Chennai and Pune. Developers pay an average of Rs.54,221 in premiums to develop one square meter in Mumbai, compared to Rs.2,166 in Delhi-NCR and between Rs.1,071 and Rs.5,466 in other major cities.

These high approval costs make affordable housing projects unfeasible for developers, contributing to Mumbai’s unaffordable housing landscape and reducing real estate investment.

Credit: News18

Potential Risks for the Mumbai's Future

Mumbai currently has over 1,671 ongoing infrastructure projects, including the metro rail, Trans Harbor Sea Link, and Coastal Road, with estimated costs nearing ₹25.56 lakh crore. However, if the cost of living remains prohibitive, residents might relocate to more affordable cities, potentially leading to underutilization of these projects.

Niranjan Hiranandani, a prominent real estate developer, recently highlighted on social media that homebuyers in Mumbai pay nearly 50% of the property cost in taxes, including GST, stamp duty, and FSI rates. This heavy tax burden makes it challenging to offer affordable housing in the city.