Mumbai gains most from RERA
The efficient adoption of The Real Estate (Regulation and Development) Act, 2016 (RERA) has benefitted Maximum City-Mumbai the most. The Mumbai Metropolitan Region (MMR) is divided into three areas- Mumbai City, its suburbs, and Thane. JLL India analysis of the residential market as of October 4,2017 reflects that of the 3,465 residential projects registered under RERA, maximum sales were recorded in Mumbai City (24,681 apartments sold out of the 50,329 units available), followed by Thane (86,479 apartments sold out of 1,80,071 units available) and Mumbai Suburbs (87,126 apartments sold out of 1,81,155 available). A distinct observation is that supply is double and clearly outstripping demand.
Ramesh Nair, CEO & Country Head, JLL India said Mumbai prefers living small, as the numbers reflect 2 BHKs to be the configuration of choice. Thane sold the maximum 2 BHKs (bedroom, hall kitchen) (61,145 units) as compared to Mumbai Suburbs which sold marginally lower (60,728 units) with Mumbai city selling the least (11,142 units). One BHKs were the second preference amongst Mumbaikars, with Thane selling most 1BHKs at a count of 29,551 units, while Mumbai City sold 5,295 units and Suburbs sold 19,803 units. However, supply far exceeded demand in Thane with 62,000 1 BHK units available for sale and only 47% recording sales.
Further, the luxury housing market performed better in Mumbai’s Suburbs as compared to the City. While almost 49% of the supply of 4 BHKs and 4 BHK+ sold in the suburbs, the city saw sales at 42% of the total supply in this category for the region.
‘’Post RERA, apartment details are provided only on the basis of carpet area, making it easier to compare one against the other. This ensures that home buyers don’t get tangled up in the confusing and misleading jargon of ‘built-up ’ and ‘super built-up’ area and have a standard area comparison that is also physically measurable,’’ said Nair. He pointed out that RERA not only regulates the capital flow of developers by means of an escrow account but also penalizes delay in delivery timelines, thus ensuring project completion and timely delivery.
According to JLL India analysis, the confusion of selecting an appropriate real estate agent has also been resolved to a certain extent. Only agents who are registered on the Maharashtra Real Estate Regulatory Authority (MahaRERA) site against a specific project are allowed to sell units of the respective projects. Buyers also have access to the names of the contractors, architects and structural engineers associated with their chosen project, and are therefore able to take more informed decisions.