Mumbai’s real estate opens wide for potential buyers
The trend for real estate in India has always been set by the Mumbai realty market. However, stagnant sales figures of the city’s real estate market for the last few years suggest that it is the perfect time to invest in residential properties before the prices escalate.
Due to a rise in tax and sudden increase in steel and cement prices, the real estate market of the city has witnessed a severe blow in the past few years. According to JLL, Mumbai real estate market is not likely to witness any price correction soon. Hence, it is the perfect time for potential buyers to invest in housing projects, before the prices hit the roof.
Major property consultants further confirm that after the financial crunch in 2008, the residential market of Mumbai has seen a gradual growth. The latest JLL report further confirms that between second quarter of 2009 to 2013, prices for residential properties has mounted by 66%. This has served as a treat for the realty developers and promoters. Other prime locations of Mumbai which has witnessed simultaneous growth are Thane(71%) and Navi Mumbai(75%) respectively.
One of the major reasons for the lack in price correction is the desire of the government and municipal corporations to expand the revenue by increasing taxes and premiums. Enactment of additional lease rentals, cess, premium, material and labor cost has further delayed the growth of the Mumbai realty sector. To add to it, unnecessary delaying of the NOCs further triggers the cost.
The prices for residential properties in Mumbai has risen significantly due to several reasons. Lack of supply of residential apartments is one of the many reasons for hike in land prices. It is considered a good time to invest in Mumbai residential properties, since the prices are likely to increase in future. With increased cost of construction due to rise in cement prices by almost 50%, there is no possibility that the prices for residential properties will go down anytime soon. Moreover, the new rules implemented by DCR (Department of Control and Reservation) has made future developments very difficult in the city. Developers find it extremely difficult to offer gardens, decks and balconies to the home buyers in regard to FSI. In such a case, the FSI can be taken inside the apartment rather than providing the buyers with a balcony or deck.
Upcoming infrastructural developments such as expressways, sea-link, monorail, expressways also stand out as one of the prime reasons why the price for residential plots will be stagnant in the city. Places which are far away from Mumbai (such as Ulwe, Titwala, Kalyan and Diva) have seen an escalation in infrastructural growth due to lack of land in the city. According to realty consultants, rapid infrastructural growth of the city will keep on increasing the rate of residential plots to a great extent, in the coming days. Hence, it is the ideal time for home buyers to invest in housing projects before the prices reach the sky.
