We are bullish on Oberoi Realty and Godrej Properties with target price of Rs 685 and Rs 950 respectively, says Sumit Bilgaiyan, Founder of Equity99.
The new development plan for Mumbai will spur construction of properties and make home prices more affordable. The ‘Development Plan 2034’ has put the focus on growth of affordable housing and commercial properties. Mumbai Development Plan 2034 opens up 3,700 hectares of land that was earlier designated as no-development zone for construction of residential real estate, especially affordable housing and commercial complexes in the city.
As many as 2,100 hectares will be released for affordable housing under the Plan. It sets a target to construct 10 lakh affordable homes through unlocking of No Development Zone. This will prove to be a major push for the affordable housing segment, and much needed to accommodate the ever increasing population in the city. It is perhaps the largest addition to the city’s developable land banks in recent history.
The plan has increased the floor space index (FSI), or the extent of construction allowed on a piece of land, for both commercial and residential buildings. In the island city, the FSI has been increased from 1.33 to 3 and 5 for residential and commercial properties, respectively.
In the suburbs, it has been increased from 2 to 2.5 for residential properties and from 2.5 to 5 for commercial properties. We are bullish on Oberoi Realty and Godrej Properties with target price of Rs 685 and Rs 950 respectively.Disclaimer: The author is Founder of Equity99. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.