Multiple Property Investment Options for Mumbaikars
If you are planning to invest in a property in Mumbai, the most common options may seem like buying an apartment and renting it out or buying an empty plot in a developing locality and hold it till its value appreciates. The ultimate idea of investing in real estate usually is to have an additional income in the short term and to leave a legacy in the long term. However, there are several options opening up for the average investor today.
1. Buy an apartment
Besides demand for property buying in Mumbai, there is also a significant demand for rental properties. Hence, if you are looking to add a good additional income to your existing income, buying an apartment and renting it out may be a good option. Buying a property within the mainland of Mumbai is currently difficult with the prices skyrocketing in the city. However, there are localities in the northern and eastern suburbs, as well as in Navi Mumbai and Thane that are available at a lower cost. There is a significant development in terms of connectivity and infrastructure in most localities. There are also several business centres coming up in various parts of the city. Hence, one can buy an apartment in a strategic location and rent it out.
2. Buy a plot
Buying a plot is not usually the most sought-after option in Mumbai. However, having an empty plot of land can be useful in several ways. One use is that, if the plot is in a developing locality, you can expect the price to appreciate within 5-7 years. You can either sell it later, or build a property on that and rent it out. Another use is that, you can build a house on this plot and use it as your second home, away from the city. There is an increasing demand for open space in Mumbai, due to the congestion within the city. People with higher income prefer to opt for a second home out of the city. Hence, building a property on a spacious plot outside the city is not a bad idea.
3. Invest in commercial property
If you have higher capital available for investment and expect a better return on investment (ROI), investing in a commercial property may be a good idea. You can expect higher capital appreciation in the long term apart from higher rentals compared to a residential property. The maintenance costs are mostly paid by the lessee unlike a residential flat where, at times, maintenance cost is borne by the owner.
However, the key to this is buying the building from a reputed builder and the right location. While one can expect good returns from a residential property even in the peripheral areas, commercial property works best within the vicinity of other business and commercial centres. The best locations to invest in a commercial property in the current scenario are within the vicinity of Bandra Kurla Complex and Lower Parel in Mumbai, Ghodbunder Road in Thane and Vashi, Belapur and Airoli in Navi Mumbai.
4.Invest in other cities
Earlier, the best investment destinations were the eight major cities. Also, the fastest growing cities were Mumbai and Delhi. Hence, it would make much sense to invest within the city. However, in the past 4-5 years, other cities such as Bangalore, Ahmedabad and Hyderabad have seen rapid growth and development in infrastructure. Cities such as Bangalore are currently the real estate investment hot spots. Not only tier-I cities, but tier-II and III cities such as Chandigarh, Lucknow, Kochi and Coimbatore are also witnessing rapid growth. Hence, the options available for long-term investment has expanded multi-fold. If you are not afraid of exploring these options, investing in other cities may also be a very good option.
With more development happening across various real estate markets across the country, the options available for investment has grown in recent years. Hence, if you are open to explore newer options, the opportunities are abound.
