Home buyers alert! Is this the right time to buy a house in Mumbai? Find out
The demand for housing is increasing at a high pace because of trust and transparency RERA has brought into the industry, also investors are coming back to the industry due to lower currency rate. Also, there are other factors too which increase property prices like the high cost of construction, Ready Reckoner Rate, Tax etc. If these factors keep shooting up, there are chances of increase in property prices in 2019.
Over the past 5 years, there have been humungous changes witnessed in Mumbai realty market. The sector since the implementation of reforms like RERA and GST have gained better transparency. This can be seen as a good time for buying dream houses, due to policy repo rate coming down to 6% and many banks following a reduction in their home loan interest rates. Affordable housing developments taken by RBI and the government has played a major role in the middle class and others in buying homes. Hence, sentiments of homebuyers have been boosted in the past few years drastically.
A recently concluded study by global property consultancy Knight Frank India, Mumbai showed maximum progress in affordability since 2010.
Amit Ruparel, MD, Ruparel Realty said, Mumbai has emerged as one of the top residential investments destinations owing to its rapid infrastructural development.
As per the Home Purchase Affordability Index, which assesses housing loan eligibility of a household with average annual income to buy a 1,000 sq ft house at prevailing market rate, affordability levels have improved over the last five years? There are lots of new Flexi payment schemes floating in the market to give homebuyers cooling period for the payment. The demand for housing is increasing at a high pace because of trust and transparency RERA has brought into the industry, also investors are coming back to the industry due to lower currency rate. Also, there are other factors too which increase property prices like the high cost of construction, Ready Reckoner Rate, Tax etc. If these factors keep shooting up, there are chances of increase in property prices in 2019.
Accordingly, Ruparel highlights that the establishment of RERA has further put emphasis on their need to stick to construction timelines and has further compelled developers to reduce prices to push sales. Affordable housing segment has been actively backed up by various housing schemes by the public sector and now with the introduction of Mumbai Development Plan (MDP) 2034, there is long-due boost given to the private and corporate sector.
In consequence of massive infrastructure push by the government to ease commuting in western and eastern corridors of Mumbai, the northern region will continue to be at the epicentre of real estate activities in future. In the western suburbs, Kandivali is becoming the most preferred location amongst home buyers due to proposed New Sea Link between Versova and Virar, implementation of Metro Line 2 and Mumbai Coastal Road (MCR).
Thereby, Ruparel reiterates saying, "Compact and affordable homes are a growing trend in Mumbai real estate sector from consumer’s standpoint."
From a real estate developer’s perspective, Ruparel says, "The current circumstance is the ideal state to plan and act upon constructing affordable functional homes in the city centre. Real estate developers need to change their approach and adopt smarter strategies to tap this opportunity. The best way to capitalize on the situation is by adopting and enhancing the concept of ‘Space rationalisation’. The market strikes equilibrium from a design standpoint if both the needs are met."
Looking forward, Ruparel said, "We see Chembur as future growth corridor for homebuyers in Mumbai. The locality is seeing growing connectivity to the business hubs through The Santacruz–Chembur Link Road (SCLR), Eastern Freeway, hence there is demand coming in from the working professionals who are looking at residential investment. The real estate sector in India has been witnessing prolonged sluggishness over the last few years and the property prices have gone down. And homebuyers should certainly take advantage of the situation."