Land prices set to stabilise in the long run
It’s celebration time for real estate hunters. The state government’s decision to scrap the Ulcra is likely to bring in some kind of price stability to Mumbai’s real estate market.
By TNN |
MUMBAI: It’s celebration time for real estate hunters. The state government’s decision to scrap the Ulcra is likely to bring in some kind of price stability to Mumbai’s real estate market, say industry officials. “Immediately, there may not be any price correction due to the Ulcra repeal. But, as and when more land gets released, the current zooming prices in the city will come down and stabilise,” said Starwood Capital managing director Balaji Rao.
Recently, the international property consultant CB Richard Ellis said the tenants in Mumbai and London paid the highest for high-quality offices this year. Mumbai had reported the second-most expensive leases at $189.51 (Rs 7,580.4) per sq ft per annum, CB Richard Ellis said in its semi-annual Global Market Rents survey. Early this week, three plots of MMRDA land were auctioned for a record price of over Rs 2,900 crore.
“Scrapping Ulcra will act as a dampener as far as real estate prices are concerned. The prices in the city have already touched historic levels. Repealing Ulcra will release large tracts of land in the city, and help stabilise prices in the years to come,” said Knight Frank India chairman Pranay Vakil.
“Though in densely populated areas prices have moved up 50-60%, in far-off areas, where major land will be released, the price appreciation has been around 3-4 times. So, this supply of land will now provide a lot of opportunity to the middle income group housing buyers,” Orbit Corporation head of finance & strategy Ram Yadav said.
An industry analyst said whatever land the government has already acquired under the Ulcra can now be brought into development immediately.
Recently, the international property consultant CB Richard Ellis said the tenants in Mumbai and London paid the highest for high-quality offices this year. Mumbai had reported the second-most expensive leases at $189.51 (Rs 7,580.4) per sq ft per annum, CB Richard Ellis said in its semi-annual Global Market Rents survey. Early this week, three plots of MMRDA land were auctioned for a record price of over Rs 2,900 crore.
“Scrapping Ulcra will act as a dampener as far as real estate prices are concerned. The prices in the city have already touched historic levels. Repealing Ulcra will release large tracts of land in the city, and help stabilise prices in the years to come,” said Knight Frank India chairman Pranay Vakil.
“Though in densely populated areas prices have moved up 50-60%, in far-off areas, where major land will be released, the price appreciation has been around 3-4 times. So, this supply of land will now provide a lot of opportunity to the middle income group housing buyers,” Orbit Corporation head of finance & strategy Ram Yadav said.
An industry analyst said whatever land the government has already acquired under the Ulcra can now be brought into development immediately.
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