In an attempt to revive the growth of the real estate sector in the state, the Maharashtra government has appealed to the Planning Commission to introduce ‘National Projects for Mega Cities.’ The project would involve receiving 90% funding from the Centre for the city and other mega cities across the country that are witnessing major transition towards urbanisation.
A strong opinion has already developed regarding the need for creating a separate line of funding in order to address the challenges of mega cities. The state, as it is known has requested the Planning Commission for a separate dedicated pool of funds, the access to which is expected to be governed by a totally different set of reforms.
Expansion of Mumbai real estate
Real estate has emerged as a potential investment destination for the city of Mumbai. Not only has there been rapid pressure of urbanisation that has led to the importance of building mega cities but there has also been rapid growth in the office space as well.
According to Ramesh Nair, managing director - west of Jones Lang LaSalle India, “Over the last few years, the number of HNI investors and corporates who are seriously looking at investing into Indian office space has increased manifold. Mumbai continues to hold its own as India's numero uno office space investment destination, with companies from all over the world unerringly zeroing in on the financial capital.”
The overall outlook for the coming year for the real estate sector also remains quite positive. Jeremy Sheldon, managing director, Markets Asia Pacific Jones Lang LaSalle says, “As inter-regional trade continues to grow and domestic Asian companies perform, we remain positive for the full year.”
The biggest challenge for the Maharashtra government however continues to be to make the Mumbai Metropolitan Region a slum free region within a reasonable period of time. The government will also be seeking support of various agencies in order to solve this problem.