Looking forward to investing in a property in Mumbai? Do not forget to study the market and consider all crucial factors impacting real estate sentiment and yield in the city.
Real estate sector in the country has been going through a sluggish phase for almost five years now, resulting into a lack of growth in property rates for about two to three years. In the opinion of experts, a sharp dip was expected due to the cash-crunch in the market caused by demonetisation. However, the latest budget has given a significant push to the revival of the sector, with lowering of housing loan interest rates by banks, implementation of RERA Act, and a clear agenda of government’s focus on affordable housing, among many others.
Due to the positive reforms it involved, real estate developers have welcomed the Budget 2017 with great warmth and hailed it to be one of the most progressive budgets in the history of the country. While the Budget 2017 was impactful, some other reforms will also soon be ready to be rolled out. The future of Indian real estate, thus, looks bright, making it an opportune time for investments.
Meanwhile, those interested in buying or investing in a property in Mumbai should check the following factors:
Mumbai is a city with multiple residential options in all corners of the city, along with a horde of builders/developers striving to gain a foothold in this competitive market. Some are new developers whereas others are registered with a proven track record for many years in this city. Thus, while buying a property, looking at the potential and credibility of the developer is one of the most important aspects to be kept in mind.
Some key factors to be kept in mind while choosing a developer are:
- His credentials
- Quality of construction
- Transparency provided by the developer at the time of investment/purchase.
- Details on the land clearance received by the developer
- Customer services provided by the developer in existing properties
- Market value of his existing properties
- Built-up area provided by the developer
The city also offers a variety of lifestyles for each one of us. Customers look at these options under multiple aspects; some of them are concerned with healthy living while others with comfortable surroundings. Today, most of the people investing in real estate look at comprehensive society/developments which offer access to schools, hospitals, shopping centres, club houses, fine dining etc.
People investing in Mumbai’s real estate also need to consider several seasonal aspects of the properties, especially the summers and monsoon. It is important to ensure that the structure can remain cool in summer and has water resistance for monsoon. Various technologies have been introduced in constructions to keep the environmental factors under control.
An investment in residential property remains an asset for your entire life. Thus, it is very important to be careful about choosing the location to invest in. Currently, the areas most preferred for residential property investment in Mumbai are Thane, Andheri, Goregaon, and Kandivali. These are the trending hotspots in the list of most preferred destinations in Mumbai.
Regulations in 2017
The regulations that are expected to impact real estate sector in the coming times include RERA and Benami Property Act, amongst others. The RERA Act will be a game changer for the Indian real estate market. It will not only strengthen the association of buyers and developers but will also enhance the credibility of developers. Some aspects that will bring the sector in a whole new light after these regulations come into play will be:
- Better transparency by the developer
- Benami Property Act will enable correction of property prices
- Will provide a credible market for homebuyers
- Builders will not delay properties for longer period
- Buyers will not be able to buy properties in fictitious names
Home loan rates
The marginal costs of fund based lending rates (MCLR) coming into play has enables banks to offer cheaper home loans from the month of January 2017. The dip in MCLRs will shift the existing borrowers from the base rate system to the new MCLR mechanism. As the Equated Monthly Installments (EMI) would come down with MCLR in play, homebuyers would have an edge for investing in real estate sector. This will give a boom to the demand for real estate in the near future.
These factors will help you ensure that the investments are worth your hard-earned money.
Disclaimer: The views expressed in the article are solely of the author and may not represent 99acres.com's opinions on the subject. 99acres.com does not take responsibility for any actions taken based on the information shared by the author.