Thursday, July 05, 2012

Mumbai home sales growth stagnates in June

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A situation of plenty continues to plague the Mumbai real estate market with unsold inventory amounting to 80,000 units which forms 37 per cent of the total residential supply under construction.
The market stagnated in June due to high prices and most buyers having stayed away expecting an imminent drop in prices in the near future. 

The report indicates prices have been moving in a narrow range in the past four quarters as a virtual stoppage of new launches over the past year has constrained supply and cushioned prices from dropping in spite of absorption levels steadily trending downward.
Absorption numbers in FY2012 are estimated to have dropped more than 60 per cent from its 2007 heydays and 35 per cent from FY2011, to an estimated 45,000 units. This steep drop in absorption levels should have resulted in a similar correction in prices.

Sunday, July 01, 2012

FSI for slum schemes hiked to 4 from 2.5

Times of India has the scoop on all this. More good news for builders as they get to build more floors. Bad news for prices as supply increases. Anybody care to comment on the fact that increasing FSI will cause prices to increase ?

MUMBAI: The state government has formally increased the floor space index (FSI) for slum rehabilitation projects from 2.5 to a maximum of 4.

The state urban development department issued a notification on Friday after it got an approval from chief minister Prithviraj Chavan, who also heads the department.

As per the notification, projects involving all high-density slums-those having over 650 tenements per hectare-are entitled to an FSI of 4, whereas those with lower tenement density are entitled to 3.

Senior officials from the urban development department said that the notification highlights that all procedural formalities concerning the higher FSI move are now complete.

After the move to increase size of each rehabilitation tenement for slum dwellers from 225 sq ft to 269 sq ft in 2009, slum redevelopment projects were allowed higher FSI.

A notification under section 154 of the Maharashtra Regional and Town Planning Act ( MRTP), 1966, was issued at that time to allow it to implement the provision pending completion of procedural formalities, including invitation of suggestions and objections from citizens.

These procedural formalities have now been completed and a formal notification issued, a senior state official said.

FSI is a development tool that determines the extent of construction permitted on a plot. It is a ratio of permissible built-up to the total area of the plot. A higher FSI would allow developers additional construction on slum land.