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Monday, 28 August 2017

Explore the Mumbai Real Estate Market…The Source of Hidden Potential!

Mumbai, the most populous city of India is located on the coast of Maharashtra. It is a city opted by many to fulfill their dreams. Thus the real estate market here is of great importance. Let us explore the real estate market of Mumbai.

Real estate, as we know, is one of the most recognized sectors globally, providing job opportunities to many people and ranks second in India in terms of employment, the first being agriculture. Real estate market size in India is expected to touch US$180 billion by 2020. 5-6% of India’s GDP is contributed alone by the housing sector. For commercial real estate investment in India, it is found that Mumbai is the best, with returns likely to be 12-19% in coming five years.

But the demonetization has made a serious impact on the real estate market, Mumbai market also being affected. It is said that stagnation point was reached by this sector and many players were unable to crack a single deal for a span of time. The effects of demonetization still being there, another factor has been implemented by our Government that is GST. This also has its effects on this market, the rate being 12% on under construction properties. Thus implementation of GST is considered as a benefit to the property buyers.

Investors decide whether it is the correct time to invest funds to buy or sell properties in Mumbai based on the current price trends of Mumbai’s real estate market. Price of properties in Mumbai starts from around US$150.452 currently, the average price of properties being US$216666.52. This helps a huge number of foreign investors to invest in properties in Mumbai. Properties which are showing an upward trend in price are spread across nearly 278 localities, while those reflecting a downward trend in price comprise 157 localities.

Over the last six months, the overall price trend of properties in Mumbai has considerably come down.

Information on various properties for sale in Mumbai, provided by different websites, helps us to know about the price trends available. When market starts recovering, it is considered one of the best time to buy properties in Mumbai; however it is quite difficult to predict when the lowest price of properties hits the market. According to some newspaper reports, a 20% discount may be offered to home buyers by real estate developers soon, in Mumbai. The reason for it is probably the new norm implemented which reduced the number of permissions which are required for a project to start. Due to this reason, the overall budget for projects will come down, thus enabling the builders to pass on the benefits to their customers. Also in the Mumbai Metropolitan Region, there are certain real estate markets, which have potential to give high returns in future. The key is to identify such locations; areas like Vasai, Virar, Dahisar, Borivali etc have high potential, once they have improved connectivity. Thus we can say that investing funds on properties in Mumbai will not be a wrong decision, in fact a great decision one can make!