Project approvals in Mumbai finally gain pace

Residential market has witnessed high launch activity across key markets since the beginning of this year (CY13). New project approvals in Mumbai have finally gained momentum and launches have increased significantly over the last few months, after a lull of more than 2 years. Pricing in Mumbai has seen some softening; while prices in other key markets have been firm. Pick up in launch activity in Mumbai/Gurgaon has met with good response; while Bangalore/Chennai markets have maintained their steady run rate.

Number of large new launches have happened in Mumbai over the recent past. Key launches include Indiabulls’ new launches in South Central Mumbai (Sky, Sky Forest, BLU), L&T’s launches in Powai & Parel, Lodha's launches (BLUE MOON) in Parel, Kalapataru and Shaporji launches in suburbs (see table below for details). Most of these launches by reputed developers (Shapoorji, L&T, Lodha etc) have
garnered good response aided by some price discounting and last 2 years pent up demand.

Number of projects in the city are offering 20:80 schemes, which is essentially pre EMI waiver for the buyers till the possession of the unit. Unsold inventory has come down marginally (to 27 months). Deliveries last year were very low given approval delays. However, this year is expected to see some large completions in the suburbs (Oberoi Grande, DB Orchid Woods, HDIL Andheri etc)