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The changing landscape of upcoming commercial projects in Mumbai

A white paper on ‘Status of Affordable Housing in Mumbai’ which was released by the Praja Foundation, a city NGO on Tuesday revealed if your monthly income is less than Rs 20,000, it will take you 12 years to have a 269 sq ft house in Mumbai. ‘Affordable’ Housing remains a distant dream a lot of Mumbaikars. However this has not hampered the number of upcoming commercial projects in Mumbai each year. In Mumbai the demand was stable and supply addition was limited in September, as developers plan to launch projects during the festive season to improve sales. For builders in Mumbai affordable housing has gained momentum.

In a city like Mumbai, for the construction industry Floor-Space Index (FSI) has become very valuable. The government’s current discourse on housing strictly revolves around the concepts of Floor-Space Index (FSI) and vertical expansion with no concern whatsoever for the basic amenities and open spaces required to sustain the multiplying population. Higher Floor-Space Index (FSI) is not the solution to Mumbai’s complex housing problem. This will only lead to larger requirement of space. The problem of space crunch will worsen with unplanned development and overcrowding.

Hospitality project construction forms a major part of the upcoming commercial projects in Mumbai. Hotels have been growing their chains in the city. The latest trend in hotel construction projects has been greenfield expansion. Though the possibilities in terms of greenfield, leased rentals or shell conversions are available across the country, companies are currently focused on Mumbai and Delhi. Leased rentals and shell conversion are other options that builders in Mumbai are opting for their expansion drive. Around cities such as Mumbai, Delhi, Chennai, Bangalore, Hyderabad, Pune etc, there could exist around 50-60 micro markets. This offers them to look at the opportunities available in these markets through family-owned operating properties, either by management contract or through franchise model. Tourism figures have benefited the hospitality sector last quarter. Last year, more than 4 million foreign tourists visited Mumbai and other sites. Corporate luxury hotels are in tremendous demands due to copious business travelers.

Quality construction is another considerable facet of upcoming commercial projects in Mumbai. A buyer today considers quality construction to be a top factor for decision making after location. Builders are focusing more and more on security measures and space utilization. A developer’s brand is highly important and it evolves more due to reputation for consistently high quality in offered amenities and construction. Brand reputation spreads by word of mouth by existing users that judge them for quality of the construction.  In a competitive and dynamic market like real estate, this plays a key role and is an important hallmark.

Author bio:
Sumit Kapoor is an experienced author with keen interest on builders in Mumbai topic having a number of articles to his credit based.