During the recessionary period of the second half of 2008-09, the supply of residential apartments fell by almost 100% due to liquidity crunch faced by developers. Since Q2 2009-10, the actual supply of residential properties started picking up as builders looked at completing under-construction properties, apart from launching new projects as well. Ghulam Zia, national director research and advisory services, Knight Frank India Private Ltd told FE, About 4,000 to 5,000 new premium residential apartments are expected to be launched in South Mumbai in the next 12 to 18 months. Areas in South Mumbai includes Churchgate, Colaba, Marine Drive, Cuffe Parade, Malabar Hill, Worli, Nariman Point, Breach Candy, Walkeshwar, Nepeansea Road and Prabhadevi.
Since traditional hubs of South Mumbai already command a price of Rs 40,000 per sq ft, real estate prices in Mumbai will remain stable in the short-term. However, in the long-term with huge supply of residential apartments coming up, the prices may either drop by about 10% or remain stable, Zia added. Mumbai-based Indiabulls Real Estate has recently converted their commercial projects in Lower Parel and launched Indiabulls Sky, Indiabulls Forest and Indiabulls Suites, South Mumbais high rise residential buildings. Earlier, the project was meant to be a commercial property.
Meanwhile, Orbit Corporation Ltd too has converted its IT park project at Andheri East, a Mumbai suburb, into a residential project called Orbit Residency Park. Akruti City is already in the process of launching Akruti Orchid Park.
Dynamix Balwas (DB) Group has launched Orchid Heights in Worli, Orchid Turf in Mahalaxmi, and Orchid Crown in Prabhadevi through which 400 new apartments are currently being launched. In the next five years, DB Group is all set to offer 5,000 new apartments.