As the Bharatiya Janata Party-led Mahayuti alliance prepares to re-take power in Maharashtra after a decisive mandate, developers and real estate industry insiders say that time has come for the new government to accelerate infrastructure development in the state, especially in Mumbai, and streamline regulations to foster the development of affordable housing.
"With such a strong mandate, the government's focus should be on ensuring strong infrastructure growth, fulfilling the promise of a slum-free Mumbai, and helping develop more affordable housing. In terms of regulatory payments, builders in Mumbai have to pay 20 times the construction premium than those in Bengaluru. That should also be looked at by the new government," said Boman Irani, Managing Director of listed real estate firm Rustomjee.
Domnic Rommell, president of CREDAI-MCHI, the Mumbai-based developers' advocacy forum, stressed on the importance of the ease of doing business in real estate, particularly in regard to affordable housing.
"The government has an opportunity to maintain continuity and sustain the momentum in the real estate sector, while addressing the ease of doing business, affordability, and sustainable urban development. We are hopeful that the government will continue to drive affordable housing initiatives to address the demand for homes among various income groups," Rommell said in a statement.
Other than regulatory issues, most industry insiders said that the development of infrastructure, especially in Mumbai and Pune, needs to be expedited in order to drive real estate demand across various parts of the cities. One observer cited the significant number of road and metro railway projects in Mumbai and Pune which need to be taken to completion by the new government. Some of these have been stuck in various stages of construction and planning owing to funding difficulties, clashes between various planning authorities and contractors, allotment of land, and a number of other factors.
The projects include a number of lines of the Mumbai metro, especially the pink line from Lokhandwala to Vikhroli, the green line from Wadala to Thane, the remaining work on the aqua line from Bandra Kurla Complex to Cuffe Parade, as well as extensions to the operational yellow and red lines. Besides, developers said that connectivity needs to be ensured in the city's fringes, which have seen major infrastructure development such as the Navi Mumbai international airport.
"We urge the government to strategically plan the hinterland areas across Panvel-Karjat, ensuring that connectivity and civic infrastructure are developed prior to real estate initiatives to avoid unorganised development. Additionally, promoting the adoption of green energy and sustainable development through incentives will be crucial for fostering environmentally responsible growth," said Niranjan Hiranandani, Managing Director of the Hiranandani Group, and Chairman, NAREDCO.
The lack of viable public transit options in and around the under-construction Navi Mumbai airport has been cited as a reason why developers have been cautious in launching projects in the area, even though the airport may be operational in mid-2025, and the trans-harbour Atal Setu has already opened.
In Pune, developers added that work should be expedited on the Pune Ring Road as well as on line 3 of the Pune metro, which is slated to connect Shivajinagar, located in the heart of the city, to Hinjawadi, the city's main technology hub as well as a fast-emerging residential area.
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