Some parts of Mumbai may see a correction in the
price of land of up to 25 per cent, if the new initiatives
planned by the Maharashtra government to improve land
supply in the city come through.
initiatives being taken to increase the supply of land
include; repeal of the Urban Land Ceiling Act (ULCA);
redevelopment of Dharavi; salt pan redevelopment and
a new housing policy with incentives for rental housing
and carpet area norms.
to a study by international property consultant Knight
Frank, the per-capita land availability for housing
in Mumbai is 103 sq feet, which is one-tenth of international
study pointed out that out of the 475.07 sq km land
mass in Mumbai, only 120.55 sq km is available for housing,
which is 25.26 per cent of the total.
announcement of the redevelopment of Dharavi has already
led to softening of land prices. The project, expected
to cost Rs9,300 crore will help the government develop
14 million sq feet of commercial space and 30 million
sq feet of residential space in the next seven years.
observers believe that once developed, the area could
have a cooling effect on the surrounding areas including
the Bandra Kurla Complex, Sion Bandra, Khar and Santacruz.
Frank chairman Pranay Vakil said the mere announcement
of Dharavi redevelopment itself would have a salutary
effect on the sobering of prices and the impact on prices
would be felt in 7-8 days. Vakil said that with the
Dharavi redevelopment, in Bandra Kurla Complex (BKC),
where prices are as high as Rs30,000 per sq ft the prices
could slump to Rs7,000 per sq ft.
next major factor, which could contribute to land supply,
is repeal of Urban Land Ceiling and Regulation Act (ULCRA)
in the monsoon session of the legislature. Mumbai alongwith
its suburbs could see around 25,000 acres of land being
freed up for development.
analysts expect a 25 per cent to 30 per cent price correction
when this kind of land supply hits the market.
pans land development is also expected to free up 5,500
acres of land in the island city and could see a correction
of up to 15 per cent-20 per cent in surrounding areas.