NAREDCO Maharashtra NextGen recently conducted Excelerate 3.0, a one-day event with insightful discussions and a glimpse into the future of real estate in India. Expert panellists and stakeholders interacted to deliver ideas for debates, leading to innovation in construction.
The event witnessed the presence of Dr. Niranjan Hiranandani, Chairman, NAREDCO National; Rajan Bandelkar, Vice-Chairman, NAREDCO National; Prashant Sharma, President, NAREDCO Maharashtra; Ridham Gada, President, NAREDCO Maharashtra NextGen and Rajesh Doshi, Secretary, NAREDCO Maharashtra, amongst other industry leaders.
1 Finance, the Research Partner for the event, collaborated with NAREDCO Maharashtra NextGen for a research report titled ‘The Reality of Mumbai Realty’, which was unveiled in the presence of the dignitaries.
The research report provides a detailed examination of Greater Mumbai’s current real estate landscape, including pricing trends, transaction volumes, and inventory levels. Its key highlights articulate India’s residential real estate sector undergoing a significant transformation over the past decade, shaped by economic shifts, regulatory changes, and evolving consumer preferences. This evolution forms the bedrock of the current market dynamics and challenges that have been observed, particularly in Greater Mumbai and other major metropolitan areas.
While the challenges in Greater Mumbai’s real estate market are evident, it is crucial to view real estate investment through a broader lens. Real estate, as an asset class, has consistently delivered competitive returns compared to other traditional investments such as equities, debt, and gold. Over the past decade, real estate (including rental yield) has provided an average return of 12%, which is comparable to gold and higher than debt, which averaged 7%. Furthermore, real estate offers unique advantages that set it apart from traditional investments, providing a balance of returns and security, making it an ideal asset for diversification.
For people looking to buy homes in Greater Mumbai, the key lies in thorough research, a long-term perspective, and an understanding of the local market dynamics. By focusing on high-potential micro markets, leveraging the inherent advantages of real estate, and aligning with reputable developers, they can own a home in Greater Mumbai while potentially reaping the rewards of this enduring and multifaceted investment option.
Commenting on the unveiling of the research report, Prashant Sharma, President, NAREDCO Maharashtra, said, “The report makes a compelling case for regulatory reforms, including the rationalism of premiums and streamlining of approval processes. To succeed, we need strong collaboration between the public and private sectors. NAREDCO Maharashtra is committed to working closely with government bodies, financial institutions, and other stakeholders to create a more efficient and inclusive real estate ecosystem. Our focus remains on driving the ‘Housing for All’ and ‘Affordable Housing’ initiatives.”
Sharing his vision through this report, Keval Bhanushali, Co-founder & CEO at 1 Finance, said, “We are proud to introduce India’s first unbiased real estate price indices for top cities. At 1 Finance, we believe that real estate advisory should be standard practice in India’s financial planning ecosystem. Our goal is to elevate real estate to its rightful place as a legitimate investment class, alongside other traditional options. This report is a significant step towards that objective, offering a comprehensive view of the market that will benefit homeowners, developers, and policymakers alike.”
Ridham Gada, President, NAREDCO NextGen Maharashtra said, “This research highlights the pressing affordability challenges in Greater Mumbai’s real estate market. To address these, we need a collaborative approach between developers, policymakers, and financial institutions. NAREDCO Maharashtra NextGen is committed to driving innovation, supporting regulatory reforms, and advocating for affordable housing to ensure Mumbai remains a thriving global metropolis with accessible homeownership for all.”
The affordability issue in Greater Mumbai due to high property prices is deeply linked with government policies and premiums. These policies, while aimed at regulating development and generating revenue for urban infrastructure, have become a double-edged sword, particularly in the Mumbai context. This affordability challenge has not only affected property prices but also led to a significant reduction in apartment sizes, a trend that carries profound implications for the quality of urban life.
The path to a more affordable and sustainable real estate market in Mumbai is clear. It requires bold action, collaboration between the public and private sectors, and commitment to long-term urban planning. By addressing these crucial areas, Mumbai can not only solve its housing challenges but also reinforce its position as India’s premier metropolis, setting a benchmark for urban development across the nation.
