The total carpet area of projects registered under MahaRERA (Maharashtra RERA) as per recent data available, was 84.62 million sq ft, of which the total sold area was 43.5 million sq ft - or 51 percent. Thane showed maximum registrations, followed by the Western suburbs, says an analysis by JLL India.
Region-wise analysis of the data shows that the maximum number of units registered are in Thane Municipal Corporation and Thane District (59,516 units registered). This is followed by the Western suburbs, where 28,000 units are registered. The other regions include the Central suburbs (16,852 units), South Mumbai (11,424 units) and the Harbour region (7,502 units), says an analysis by JLL India.
Andheri stood out in the Western suburbs with over 7,500 registered units, Ghatkopar in the Central suburbs with over 3,800 registrations and Chembur in the harbour region with over 5,000 registered units. Interestingly, Malad, too, has approximately 5,000 units registered under MahaRERA, while Goregaon has close to 4,200 units, says the analysis.
Proximity to the Goregaon-Malad New Business District and SBD Andheri could be the reason for the higher number of upcoming projects in Malad, Goregaon and Andheri. Chembur, of course, has been a preferred destination for the past few years, with its proximity to Bandra-Kurla Complex (BKC) which is now the de-facto CBD of Mumbai.
“The total number of units registered as of July 31, 2017 were 1,24,173. However, with a daily update, the number of units registered will go up. The details available for each project will be immense and consumers will be able understand a lot more about the project,” says Ramesh Nair, CEO & Country Head, JLL India.
Buyers across budget bandwidths are behaving similarly: The configuration-wise performance of RERA-registered projects for locations in Mumbai shows that the unsold project performance for 1,2 and 3 BHK flats more or less mirrors the average unsold inventory in Mumbai.
The average unsold inventory is 49 percent and the unsold inventory for 1 BHKs is 49 percent, 2 BHKs 50 percent and 3 BHKs at 51 percent. This means that buyers across different purchasing power categories are displaying similar preferences. The sentiment and thus decision-making for purchasing a house does not vary as per affordability, says the analysis.
Average timeline for completion of projects in key pockets moves forward: “In order to meet RERA guidelines, developers have revised their completion dates forward, in many cases by two years. How will developers manage to keep buyer interest up despite the delayed completion timelines? We are seeing a number of schemes by builders promising sops like zero GST and reduced stamp duty to woo consumers,” says Nair.
While buyers do prefer close-to-completion projects, alignment of product to market demand is equally important: Projects with ill-suited designs are tough to sell, even if they mitigate construction delay risk. This is reflected in the data revealed for projects to be completed in 2018.
Thane Municipal Corporation and adjacent areas are performing well as per the available data as it has the least number of unsold units (15 percent) for the projects to be ready by end of calendar year 2017. However, the situation changes for 2018. For projects to be completed by end of the year 2018, as per the data available, the unsold inventory in Thane is touching 35 percent.
The current data (as of July 31, 2017) shows unsold inventory in Andheri at 36 percent in 2018, compared to 28 percent in 2017. In Borivali, the unsold inventory is shown at 29 percent in 2018 compared to 58 percent in 2017. Chembur is showing unsold inventory at 30 percent in 2018, compared with 69 percent in 2017.