Navi Mumbai real estate very strong and not much affected by reforms: BANM
The Builders’ Association of Navi Mumbai (CREDAI BANM) sees a huge potential in the Navi Mumbai property market and said that it has grown strong despite of the recent regulatory changes. BANM announced its 18th Mega Property Exhibition from 26th January to 29th January to be held at CIDCO Exhibition Center in Vashi, Navi Mumbai. BANM informed that around 100 developers will participate in the expo along with many financial institutions setting up their stalls. A large variety of properties will be offered by the developers ranging from the affordable housing to luxury housing to bungalows. The flat sizes will be from 300 sq. ft to 10,000 sq. ft. and the price will range from about Rs. 12 lakh onwards.
Mr. Bhupendra Shah, Member, BANM informed that the exhibition will be inaugurated by Joint MD of CIDCO. Bollywood superstar Karishma Kapoor will also be present at the inauguration. He informed that around Rs. 1 lakh crore infrastructure projects are coming up in Navi Mumbai.
Talking to Realty Plus, Mr. Haresh Chheda, President, BANM and Managing Director of Shah & Chheda Group said, “The developers are realigning their sales strategies after the introduction of RERA. In the long run, RERA and GST both are going to be very rewarding to the developers. As far as RERA is concerned, it is very positive and there is transparency in the market.”
“Navi Mumbai property market is not much affected by RERA. It is because entire Navi Mumbai is occupied and very less flats are vacate. Secondly, there is no supply of land in Navi Mumbai and the demand is huge. Lastly, the infrastructure here is very strong to cater all the basic facilities of a homebuyer,” Mr. Chheda added.
He said, “After the reforms, there is a change in the real estate market. The developers who are able to adapt to the change, want to aggressively market their products. Those who cannot adapt to the change are sidelined. The developers are very enthusiastic and we will see a huge turnout in the expo.”
Talking about the GST rates, Mr. Chheda informed, “CREDAI has also recommended the government to come with an exemption scheme for affordable housing and soon we may see a reduction in the GST for affordable housing.”
When asked about the finances of the developers, Mr. Devang Trivedi, Member, BANM told Realty Plus, “The entire business model of the developers have changed and they are being more disciplined. More investors and banking finances have come into the market. The number of projects by builders will reduce but they will be done in a disciplined way.”
“Navi Mumbai builders are not over leveraged from bank finance or investor finance as compared to the builders of Mumbai and Delhi NCR. This makes them the more financially disciplined. We also recommend the government that there should be a lump sum 6% GST rate equal to what it was earlier as the cost to the customer is increasing now,” Mr. Trivedi added.