Affordable housing has been emphasized upon under the mission of Housing for All by 2022 and the PMAY (Pradhan Mantri Awas Yojana) subsidies which have led to the growth of several such projects in and around Mumbai. Affordable housing is already generating higher sales and interest from homebuyers along peripheral zones and suburbs of Mumbai.
The optimism for the affordable housing sector is picking up. And for the first time in many years, the Government has walked the talk on the issue. Industry veterans are also acknowledging the fact that whatever work that has happened in last four years on this front has really galvanised the sector and now it has reached the stage of take-off. The revival of interest in the real estate sector has been primarily driven by the interest shown towards affordable housing especially in cities like Mumbai. The Mumbai metro line expansion, the coastal road, a new international airport and the trans-habour link are some of the driving factors for the change in sentiment of buyers in Mumbai. Thane is a suburban area that has seen a massive boost in real estate growth with large project launches and pricing in ranges where buyers are willing to commit to purchases at the launch stage itself.
The Mumbai Metropolitan Region will see a definite increase in the number of affordable housing projects as there is a larger pool of buyers available for this option. Panvel and Navi Mumbai are also seeing skyrocketing growth in real estate, both in the residential and the commercial sectors. Big developers such as Lodha, Shapoorji Pallonji and Piramal are few of the big real estate firms who are looking to ride the wave of increased interest in real estate purchases.
While the demand for housing has increased this has not had much affect on the prices as they have largely remained stable. Mumbai is the costliest housing market in the country and in many cases builders are offering 10% lower prices in order to clear our stock. This trend is expected to last as long as the available number of units is high. Developers are now eyeing higher sales figures in the renewed environment where homebuyer interest has gone up and hence prices may have to be lowered in the near future.
The introduction of RERA has already cleaned up the sector and made buyers feel more secure when they invest into a residential or commercial property. The home buyers are the happy with this trend as it gives them the chance to find their dream homes in a budget that they are comfortable with.