According to the Knight Frank’s report, the real estate market in Mumbai is doing considerably well despite facing challenges that arose due to COVID-19. It is expected to perform even better in 2021. Considering how every other industry contributing to the country’s economy faced difficulties in keeping up with last year’s numbers, real estate has piqued investors’ interests.
Thousands of people are currently searching for any opportunity to buy one of the many South Mumbai flats available for sale. Not only are they available for very affordable prices, but they also promise high returns on their values. Moreover, the fact that the migrating populations to the metropolitan are always in search of rental flats is enough for investors to understand the appeal in this opportunity.
Apart from this, here are few reasons why you should buy real estate in Mumbai right now:
The Attractive Incentives
The government of India has proven itself to be very supportive in favour of investors and buyers. The attractive loan-to-value ratios that are specified for first-time buyers have encouraged many to step forward. People have been lining up to book registrations for flats, apartments and even bigger residences that are available for sale.
In addition to LTV ratios, the interest rates for loans have decreased dramatically, coming down to almost 7%. As per experts, after the GFC of 2008, the economy of India has come to a point where it’s easier for banks to lend money. Therefore, the current crisis of the pandemic isn’t going to bring everything down so quickly. The market has shifted towards being buyer-friendly rather than being in favour of the seller like it was before.
Experts also highlight the fact that the current tax regime that the economy is working under is more benevolent than others. This adds to the list of reasons why real estate prices aren’t out of reach yet.
It’s the City of Developments
Earlier, Ahmedabad and Bangalore were among the top cities that garnered the interest of investors. However, now, it’s gradually shifting to Mumbai.
This is largely due to the infrastructural developments that are to be completed in the coming years. There’s more to look forward to than just another residential development of a community.
As per Knight Frank’s report of the MMR infrastructural projects, at least two metro lines connecting the outskirts of the city with the mainland along with a trans harbour link to connect Mumbai’s Islands are due for construction. Furthermore, the construction of the Navi Mumbai Airport is also scheduled to begin in the coming years.
What this means for investors who’re looking into Mumbai real estate is that a future of opportunities is ripe for the taking. Smart investors understand the value of developments in terms of real estate. To put it simply, these infrastructural projects will not just tackle the problems of traffic and pollution, but they’ll also result in the city’s development as well.
For example, any and every slum surrounding the metro station areas will need to be developed into either a commercial or residential sector. Developers will take this opportunity to bring about more inventory additions with massive projects in the supply line. More inventory additions will ultimately mean more investment opportunities for those who want to make the most of this time.
The Era of High-Rises
Contemporary infrastructural designs for developed metropolises rely on high-rise towers and skyscrapers. This isn’t just for aesthetic reasons. Constructing bigger buildings that rise to commendable heights means that you’re conserving space and accommodating more people.
A simple case in point can be of how sea view apartments in Mumbai will provide more residences than traditional villas and/or townhouses in the same place. Although a big-time developer like Piramal Realty will have to take the initiative to construct such a project, it will ultimately be handing over residences to investors. And considering how the current market is favouring end-users more than developers, it’s going to be a buyer’s heaven.
The Most Stable Asset
Over the years, it’s safe to say that other industries including the stock market have done everything they can to disappoint investors. The fact that almost everything is volatile and subject to unpredictability plays a crucial role in disenfranchising people from opportunities to invest.
On the other hand, real estate investment has done nothing but gain confidence over the years. Considering other alternatives to generating income, most prefer rental incomes. Not only are they consistent in a market like Mumbai that is overflowing with migrants, but it’s also reliable. This is why a lot of people have sentiments about real estate being a favourable and stable investment.