Mumbai Real Estate News: Luxury residential and commercial real estate company Aditya Birla Real Estate Ltd (ABREL) has announced to develop a housing project in Mumbai.

In a statement, Aditya Birla Real Estate said that it will redevelop a housing society in Mumbai. The real estate company expects a revenue of Rs 1,700 crore from the housing project.

The housing project is located in a free-saleable area.

Aditya Birla Real Estate said that the project will be developed by one of its subsidiaries. It said that the subsidiary company, Birla Estates Pvt Ltd, has entered into the redevelopment market with its first project in the Mumbai Metropolitan Region (MMR).

According to a company statement, Birla Estates will redevelop Anmol Co-operative Housing Society and Bhartiya Bhavan Co-operative Housing Society. The two projects are located in the Khar West area of Mumbai's Western Suburbs.

Anmol Co-operative Housing Society and Bhartiya Bhavan Co-operative Housing Society are being developed under a joint redevelopment arrangement with Parinee Real Estate Builders.

"With a saleable area of 2.9 lakh sq ft, the project has an estimated revenue potential of Rs 1,700 crore," ABREL said.

Birla Estates develops premium residential housing in key markets. It also has a commercial portfolio with two grade-A commercial buildings located in Worli, Mumbai, with 6 lakh sq ft of leasable area.
 

Real Estate News: The Middle East war has impacted the real estate industry. According to a report by Anarock, housing sales declined by 7 per cent on a quarterly basis in the fourth quarter (January-March) in the top seven cities.

On an annual basis, the housing sales, however, grew by 9 per cent in the 7 cities, said the Anarock report. The report said that sales increased to 1,01,675 units in the current quarter, compared with 93,280 units sold in the same quarter of the last year.

The 7 cities are: Delhi-NCR, Bengaluru, Pune, Mumbai Metropolitan Region (MMR), Hyderabad, Chennai and Kolkata.

Anarock report said that the fall in housing sales was affected mainly by the global economic uncertainties triggered by the Middle East war.

As per the Anarock report, the sales in value terms grew 6 per cent to Rs 1.51 lakh crore in January to March period. The same figure stood at Rs 1.42 lakh crore in the same quarter a year ago.

In terms of volume, the sales dropped by 7 per cent and 6 per cent value wise.

The Anarock report mentioned that in the fourth quarter of the last calendar year 2025, 1,08,970 units were sold and the value was Rs 1.60 lakh crore.

Anuj Puri, who is the Chairman of Anarock Group, said that though the sales declined, India's housing market fundamentals remain strong.

"The short-term impact was clearly because of the Iran War. The war, which has led to a rise in oil prices and construction prices, has affected the sentiment of the buyers," he said.

As per Puri, the fall in sales by 7 per cent in the quarter aligns with the number of prospective Middle Eastern homebuyers, who invest significantly in Indian real estate. Such buyers have decided to delay their plan due to the war.

Anarock, based in Mumbai, is one of the leading housing brokerage firms in the country.

Real Estate News: The higher input costs, including labour charges, may raise the overall construction cost of real estate projects. According to a report by JLL India -- 'Construction Cost Guide, India - 2026', the costs may surge in the range of 3 to 5 per cent in 2026.

The report said that cement, steel and diesel prices showed a mild decrease of 1-2 per cent, 3-4 per cent and 5-6 per cent, while aluminium and copper costs experienced more significant increases of 8-9 per cent and 9-10 per cent respectively, driven by global demand pressures and supply chain dynamics.

Labour costs increased 5-6 per cent across all categories, driven by skilled labour shortages and infrastructure demand, said that real estate consultant in its report.

JLL said that the GST rate cut by the government offered a critical 10 per cent tax relief on cement. This, in return, allowed savings of 2-3 per cent for real estate developers. Also, property prices remained under check, dropping in the range of 1 to 1.5 per cent.

With the new labour code taking effect from November 2025, JLL said that the labour costs will go up by 5-12 per cent across all skill categories.

"Construction costs in 2026 are expected to rise 3-5 per cent, driven by regulatory changes, skilled labour scarcity, and stricter environmental standards. Digital technologies help offset these pressures by improving efficiency and delivering greater project value," Ashok VS, Head of Cost Management, JLL PDS, India, said.

Recently, CREDAI and NAREDCO said that the real estate companies are facing a short supply of some building materials, and noted that construction costs could rise if tensions continue in the Middle East for a longer period.

Earlier in 2025, the material costs of real estate projects presented a mixed picture.