The real estate market in Mumbai will eventually get a boost from the ambitious redevelopment project for the Dharavi slum under the special project vehicles model. This has already been passed by the State Cabinet and more than 7 lakh 2 BHK units will be added to the housing inventory of Mumbai. This will lead to eventual lowering of property prices in Mumbai which have skyrocketed to unaffordable levels in several areas and will boost the real estate market due to renewed buyer demand and construction activity.
As per reports, Dharavi will offer more than 5 crore sq. ft. of construction space with approximately 60-80, 000 housing units. The rehabilitation costs will surpass Rs. 22, 000 crore according to reports and home prices will come down by around 25-30% as a result. The project was stuck due to 70 acres of land being held by the Indian Railways. However, the Railway Minister, Piyush Goyal, has assured the Government that this land will be given to the State Government while another 20 acres have been acquired on saltpan land for building transit camps.
Along with Dharavi, 94 acres of the BBD chawl redevelopment project will also lead to more than 8, 000 2 BHK housing units being added for sale. The SRA (Slum Rehabilitation Authority) has already given its approval to various projects which could lead to 2.35 lakh more homes being added in Mumbai. Additionally MHADA and private developers are expected to build more than 3 lakh housing units. Over the next 5 years, around 7 lakh added homes will come up in Mumbai as a result.
Lowered property prices will naturally spark more interest in the Mumbai real estate market since more buyers will then be able to afford their own homes. This will lead to growth of the property market here in the long run. Several premium residential projects are already located near Dharavi. Some of these include Kalpataru Royale, Rajesh Raj Spectrum, Kalpataru Harmony, Sheth Beaumonte and Raheja Regency to name a few.
