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Home Buyers Delaying Purchase Due to Higher Price in Mumbai: Report

Mumbai: Owing to escalating property prices and a slowdown in sales, mainly due to consumers postponing their buying decisions, there is an inventory pile-up of 46 months in the Mumbai Metropolitan Region (MMR), property portal has said in a report.

"Mumbai has an inventory pile up of 46 months, well above the accepted 8 to 12 months mark. This is a result of high pricing in the MMR. Inflated pricing has also postponed the buying decision considerably," chief executive officer Ganesh Vasudevan said in a statement.

The top investment destinations across the Mumbai region are Panvel, Kalyan, Nalasopara, Kharghar, Mira Road, Dombivli, Kamothe, Ulwe and Sanpada, the report noted.

During the first half of 2015, the government has initiated a number of infrastructure projects that will drive sales across Mumbai region like the Coastal Road Project from Nariman Point to Kandivali, clearance of Navi Mumbai Airport, which are expected to drive the investments in these regions, resulting in skyrocketing of property prices.

"The Maharashtra government plans to develop Mumbai as a gaming and animation industry hub - leading to job creation and investment opportunities, thereby increasing the demand for residential and commercial units. An additional 200 per cent FSI for IT parks will further reduce the rentals for commercial properties," Mr Vasudevan said.

According to the survey, in Panvel, 76 per cent home buyers prefer investing in properties that are in under construction phase. Nearly 71 per cent home buyers are looking for properties up to 30 lakh.

"The approval of elevated railway line from CST to Panvel with a six lane road is expected to reduce the commute time. This has driven the higher demand for properties in these localities," he said.

In Kalyan, nearly 71 per cent of respondents preferred one BHK compact housing unit. Statistics indicate that there has been a rise in property price by 12 per cent in the last two years in this region.

"MMRDA has planned a 29 km Kalyan Ring Road to connect Kalyan and its neighbouring localities. Thus, increasing demand in this locality," Mr Vasudevan said.

According to the study, home buyers in Nalasopara also prefer one BHK compact housing units and are looking at properties (nearly 91 per cent) up to Rs 30 lakh.

"The area is well planned and developed by CIDCO and provides better infrastructure for its residents. This is driving the increasing demand in this locality," he said.

Mr Vasudevan further said the government's vision to attract Rs 50,000 crore investment to create one million jobs in the next five years will improve the demand for residential real estate in and around these commercial zones in turn improving the social viability of the region.

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Realty Trends

Home prices near most-affordable levels in over 30 years: HDFC

Home prices may have been on an upward spiral for many years, but the cost of owning a house in India remains near the most affordable level in over three decades, shows data compiled by mortgage giant HDFC Ltd.

The average price of a home, purchased with a housing loan, rose to over Rs. 45 lakh in the 2012-13 fiscal year -- marking the fourth consecutive year of uptrend from about Rs. 25 lakh in the year 2008-09, HDFC has said in a presentation.

However, factors like an even greater surge in the personal income levels, tax incentives and lower interest rates, have resulted into houses becoming more affordable to purchase, it said.



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India Property Investment Gyan

Major schemes for affordable housing to be modified: Girija Vyas

NEW DELHI: Major schemes meant for providing affordable housing to urban poor will soon be modified to make them more people-friendly, the government said today and invited the private sector to contribute more actively in this area. 

Speaking to reporters here, Housing and Urban Poverty Alleviation (HUPA) ministerGirija Vyas today said her ministry is modifying all the major schemes including the Rajiv Awas Yojana (RAY), Rajiv Rinn Yojana and the, Affordable Housing in Partnership scheme and added enormous budgetary support has been earmarked during the current plan period. 

Secretary HUPA Arun Kumar Misra told reporters that a fund of Rs 35,000 crore had been allocated to the ministry for the implementation of three major schemes, including RAY, which was being run in as a pilot project earlier under 12th five- year plan. 

He said the ministry would require approval from the cabinet for the implementation of these schemes and efforts would be made that through these funds 2 million affordable houses are encouraged. 

He said that in addition to the central government funds, banks and credit institutions would be providing funds for construction of affordable houses. 

Vyas said that with urbanisation, the number of urban homeless and area under slums had grown. 

Vyas said there was a need for private developers to develop economic models to foster affordable housing for economically weaker sections and lower income group households in urban areas as government efforts in this direction needed to be supplemented. 

Vyas also said a technical group, set up by her ministry, had shown that out of 18.78 million housing shortage in the country, 96 percent shortage is in EWS and LIG category and for this huge investments and private sector participation were required. 

Misra said the group set up by the ministry has suggested incentives for the affordable housing sector included concessions to development-related charges and service taxexemptions. 

It also sought direct tax rebates for affordable housing projects and inclusion of the sector in the 'infrastructure facility' he said and added the task force had felt that governments need to still provide direct capital grant support to affordable housing projects. 

Misra said that in the symposium held today where states, experts and private sector representatives were present, there was unanimity on many of the suggestions.

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Green Property- Eco Homes

Reclaim your city space: Projects in Delhi, Mumbai and Kolkata aim to transform lives

Three projects in three cities aim to transform the lives of people who live close by. The one in Mumbai hopes to transform a congested area into a green precinct; the one in Delhi converted an open drain into a walkway, while Kolkata hopes to bring the crowds back...