Mumbai’s real estate market is buzzing with activity following the results of the 2024 Maharashtra assembly elections, where homebuyers have voiced their hopes and expectations from the newly elected government. This optimism is especially palpable as the festive season has proven to be beneficial for India's real estate sector. Statistics show buyer activity has surged, leading to Mumbai's property market experiencing over ₹1000 crores in sales, marking a 22% year-on-year increase.
The state has long been recognized as the most expensive real estate market nationwide, with residential prices ranging from ₹20,000 to ₹1.50 lakh per square foot, depending on the locality. The high cost of living combined with limited housing options means many buyers are now feeling the pressure, leading to significant calls for reform.
With hopes pinned on the new government, Mumbai homebuyers are particularly focused on five pressing issues: reducing stamp duty and rationalizing GST, increasing the number of MHADA (Maharashtra Housing and Area Development Authority) housing units, improving infrastructure, speeding up the resolution of complaints under the Maharashtra Real Estate Regulatory Authority (MahaRERA), and reviving stalled projects.
First on the list is the urgent need to reduce property-related taxes. Current buyers lament the hefty load of stamp duty, registration fees, and added GST on under-construction properties. Owais Mirza, a resident from South Mumbai, highlights, "I think there is scope for the government to bring down stamp duty from six percent to three percent so it saves costs. Also, why should GST be levied on an under-construction apartment?" Stamp duties vary across the state, with rates between 5% to 7%, creating discontent among people struggling to afford homes.
Next, buyers are eyeing the role of MHADA as the nodal agency for affordable housing. Currently strained under overwhelming demand, MHADA has received over 200,000 applications, but can only offer around 6,000 homes through its lottery system annually. Vishnu Parab, another hopeful buyer, noted, "Homebuyers with a ₹1 crore budget have options, but others are left hanging". This paints a stark picture, where economic disparity is made glaringly evident.
Infrastructure remains another sticking point. Buyers frequently cite poor conditions of roads and public transport, which have diminished quality of life expectations. Zeeshan Shaikh from Pune expressed frustration with the traffic conditions, stating, "The condition of roads and the traffic situation has gone from bad to worse." With the demand for housing increasing, the cries for improved infrastructure grow ever louder.
The resolution of complaints through MahaRERA is also lagging. Residents have reported long waiting periods for hearing complaints against developers concerning delayed possession of their properties. Affected individuals have found themselves waiting years for responses. Trupti Daphtary, a Mumbai-based advocate, stresses, "Maharashtra government needs to appoint more members to hear complaints to avoid delays". Such words echo the sentiments of many who have invested their life savings.
Finally, the revival of stalled real estate projects is top of mind. An analysis by PropEquity revealed almost 2000 under-construction projects, totaling over 500,000 units, have been stalled due to various issues. Mumbai alone harbors 234 projects with nearly 38,000 units trapped. Buyers fear this stagnation impedes their aspirations and calls for immediate intervention from the new government.
The backdrop to these updates reveals a broader picture of the Indian real estate market amid increased activity and changing government dynamics. Notably, the 2024 festive season brought hungry investors and buyers to the forefront, reflecting newfound confidence. With the hope of enhancements across regulatory frameworks, improved infrastructure, and stalled projects, Mumbai homebuyers have set their expectations high.
While many are cautiously optimistic, the challenge remains whether these demands will be met and how swiftly the government can act on these priorities. For many, the outcome of these elections now holds considerable weight, and the new government’s decisions will play a significant role moving forward. Stay tuned as the situation develops, where the hopes of many hinge on the decisive actions taken by their elected representatives.
