ULCA repeal to increase land supply; no lowering of prices: Realtors
Repeal of Urban Land Ceiling Act by the Maharashtra government would make large parcels of land available for development, but property prices are not likely to come down in the near future.
By PTI |
MUMBAI: Repeal of Urban Land Ceiling Act (ULCA) by the Maharashtra government would make large parcels of land available for development, but property prices are not likely to come down in the near future, feel realtors.
Prices may at best stabilise in the near-term and even if a downward movement takes place, it would be only after two-three years when some of the land released due to ULCA's repeal gets developed, they said.
"One must not presume that there will be an immediate excess supply of land. I expect land to become available in phases and hence, I don't envisage an immediate correction or fall in prices of real estate," Housing Development and Infrastructure Limited's (HDIL) Managing Director Sarang Wadhawan told reporters here.
Across Maharashtra, the impact of ULCA repeal will be minimal in terms of prices, he said.
Citing the example of the NTC land which was opened up sometime back, Wadhawan said that one thought that land prices would soften but this did not happen. Besides, much of this land was used for the commercial segment, he said.
Hence, even if some of the land now held by a few big corporates were to become available for development, it may not help soften prices, he said.
Realty developers felt that while prices were unrealistically high in Mumbai and to some extent in Pune, shortage of commercial space in Mumbai would keep prices firm.
Prices may at best stabilise in the near-term and even if a downward movement takes place, it would be only after two-three years when some of the land released due to ULCA's repeal gets developed, they said.
"One must not presume that there will be an immediate excess supply of land. I expect land to become available in phases and hence, I don't envisage an immediate correction or fall in prices of real estate," Housing Development and Infrastructure Limited's (HDIL) Managing Director Sarang Wadhawan told reporters here.
Across Maharashtra, the impact of ULCA repeal will be minimal in terms of prices, he said.
Citing the example of the NTC land which was opened up sometime back, Wadhawan said that one thought that land prices would soften but this did not happen. Besides, much of this land was used for the commercial segment, he said.
Hence, even if some of the land now held by a few big corporates were to become available for development, it may not help soften prices, he said.
Realty developers felt that while prices were unrealistically high in Mumbai and to some extent in Pune, shortage of commercial space in Mumbai would keep prices firm.
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