Real Estate Daily Updates
Mumbai: A lot is at stake in real estate industry, say developers
The Supreme Court's extension on the Bombay High Court's construction ban till October 23, has come as a relief for real estate developers. However, they feel that a month's time is not enough since a lot is at stake in the real estate business.
"The Supreme Court extending the stay of the High Court's order till October 23 is a welcome relief for the housing industry, especially in Mumbai. Real estate developers and other stakeholders will get a breathing space not only for identification of new sites but also complying with the requirements of the Supreme Court. Though some more time would have been preferred. However, we at CREDAI-MCHI would try our best to ensure these issues are resolved during this intervening period," said Rajesh Prajapati, P R Committee Chairman of CREDAI-MCHI.
Meanwhile, housing experts say that a lot is at state in the real estate industry, especially in terms of money and employment. According to Pankaj Kapoor, Managing Director of Liases Foras, a real estate research firm, in Mumbai Metropolitan area alone, there are 4,200 projects, comprising of 627 million sq ft area. The number of units is 6.11 lakh and the money involved is Rs 7, 91,451 crores. Kapoor says that around 35 per cent of the 6.11 lakh units are in Mumbai and the money involved will be 50-60 per cent of Rs 7, 91,451 crores.
"If the stay on construction ban is lifted, around 3 lakh labours who are employed on daily basis will lose their jobs. Also, today's real estate market is a very thin margin market, even a slight delay makes the project unviable. Thus, a lot is at stake," he said.
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