Mumbai’s Real Estate Launches Dip By 24% In January To March: Survey

Mumbai: The real estate project launches in Mumbai dropped by 24 per cent in the first quarter of 2017, a recent survey said.

Launches dropped by 24 per cent at 4,900 units against 6,500 a year ago, a study conducted by the property consultancy firm Colliers International found.

The trend may continue for a short term as developers are adjusting to the new Real Estate Regulation and Development Act (RERA) rules, it said.

Mumbai's Real Estate Launches Dip By 24% In January To March: Survey

“The developers have been selling projects and units based on the marketing plan and layouts, and super built-up areas often represent a loading on the nature of amenities a project offers. Since the FSI norms and rules have been differed from sale plan and chargeable areas of projects, it is posing a challenge for developers,” Colliers International Executive Director, Office Services and Investment Sales, Ravi Ahuja said.

Developers now have to upload on website all sanctioned and approved plans and the buyer can do diligence and be privy to artificial mark-ups in such super built-up areas that sometimes go as much as 40-60 per cent higher than carpet area.

“There is hesitation of under-construction projects sold prior to RERA to follow RERA rules,” Ahuja added.

The rules stipulate that all new under-construction projects must register with the authority by July 31, 2017.

After that date, developers without registration won’t be allowed to advertise or sell projects in the market.

“With the RERA becoming a reality now, it is important for developers to prepare for the changes promptly. The change in the real estate cycle may act as an entry barrier for small players and speculators. We believe improved project planning will help developers avoid delays and manage project funds efficiently,” Colliers International Senior Associate Director, Research, Surabhi Arora said.


Minors can easily buy cigarettes in Mumbai, survey finds

On the eve of World No Tobacco Day , a survey has pointed towards the rampant sale of loose cigarettes in the city in blatant violation of the Cigarette and Other Tobacco Products Act (COTPA). It also found that minors can easily buy cigarettes from shops, most of which did not display warning boards.
Under Section 6(a) of COTPA, it is an offence to sell cigarettes to a minor. The section also mandates the display of prominent signboards with pictorial warnings at the point of sale.The survey, by NGO Salaam Bombay Foundation, found that out of 313 tobacco vendors surveyed outside railway stations and schools, 97% sold loose cigarettes. More than 100 of the shops were outside schools and loose cigarettes were readily available. Head and neck cancer surgeon Dr Pankaj Chaturvedi said selling single cigarettes defeats four important tobacco control strategies: Protecting minors, pictorial warnings, quitting and effective taxation. The survey said the 17 agencies supposed to implement the Act are not doing their job. “Police, state health department, Food and Drug Administration and several agencies can penalize but it’s not done,” he said.

Tobacco kills more than 9 lakh Indians every year. “It is responsible for 60% heart problems. The deaths are preventable,” said Dr Rajendra Badwe, director, Tata Memorial Hospital. Statistics suggest around 70% people who die of tobacco use are aged 30-69. Smoking is responsible for one in 20 deaths in women, and one in 5 in men.

The fight against tobacco has got more structured with 40 NGOs and citizens joining hands to form a collaboration. Ratan Tata, who chairs the Tata Trust, said many non-communicable diseases can be atrributed to tobacco. “We support the government’s efforts to control this social evil,” he said. Reliance Industries chairman Mukesh Ambani stated that more people need to be educated about ill-effects of tobacco.