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Mumbai developer tests waters in post-Rera age

dubai - Omkar Realtors is seeking NRI buyers for township on Western Express highway

A Mumbai-based developer is tapping the NRI market in the UAE for its new township project located on the Western Express highway of Andheri-Jogeshwari east corridor. Omkar Realtors is seeking buyers for 1,200-plus apartments in phase one of its Rs17 billion community tentatively titled 'Passcode Andheri Highway'.

This is one of the biggest residential project launches in India after the implementation of the Real Estate (Regulation and Development) Act. However, the developer is confident of selling out the units, a feat it accomplished for its earlier Malad project launched in May this year.

One-bedroom apartments at the project cost Rs8.7 million, two-beds Rs12 million and three-beds Rs16 million. Buyers can initially pay a down payment of five per cent of the property value and the rest on possession.

The developer is funding the project with its own equity and from financial institutions.

Says Rahul Maroo, senior vice-president, Omkar Realtors: "We are targeting 12 to 14 countries for sales. In a project like this, NRIs contribute at last eight to 10 per cent of sales. There is huge demand for housing in India, specifically Mumbai. If you have a branded developer who is offering a boutique, well-planned product that suits your pocket, people grab it."

The land for the 65-acre project was acquired from a slum and the community will be ready by 2022. Construction will commence in 30 to 45 days.

"While offtake in most of Mumbai's residential markets has been slow, numbers show that sales have been good in projects which offer value for money and good location. Andheri East and Jogeshwari East have an inherent location advantage, and the time is ripe for residential townships which can provide a much-needed work-life balance in India's busiest metropolis," observes Ashutosh Limaye, national director - research, JLL India.

The project will have a Metro station within walking distance and offices will be added in subsequent phases. The developer is expecting rental yield of 3.5 to four per cent.

Commenting on the impact of Rera, Maroo adds: "Rera has differentiated professional developers from Tier 2 and 3 players - or say, the men from the boys. Twelve years ago, there was a consolidation phase among banks, later among e-commerce portals and now the time is ripe for real estate."

The executive explains that appetite for luxury housing (from Rs50 million to Rs60 million) has taken a big hit.

Omkar Realtors has over 300 acres of land bank in Mumbai. It has already delivered 15 projects in Mumbai.

- deepthi@khaleejtimes.com