Mumbai, renowned as the financial capital of India has offered profitable endeavors as far as property investments are concerned. The city offers high profiled employment prospects which are favorable for a prosperous lifestyle. In order to save up for a certain future, residents who were content staying as tenants are now transitioning to become first-time property owners. This transformation along with evident rise in social and IT infrastructure has paved the way for astonishing rise in residential infrastructure by the market.
With the Mumbai Metropolitan Region (MMR) into the picture that comprises of Greater Mumbai, Navi Mumbai and Thane, the city is witnessing an increase in urbanization. Prominent property developers are reconsidering their options and are preferring to invest their funds in emerging areas around in Mumbai to cater to diverse residential requirements. Statistics prove that Mumbai has contributed to almost 25% of the supply required when compared to other metropolitan cities. 2018 has been a great year for Mumbai as far as residential and commercial infrastructure development is concerned. Recent study shows that close to 3000 residential projects were launched. Last year did see a phenomenal demand in regards to affordable housing spaces. Mumbai, out of the project launched has contributed to almost 48% of affordable infrastructures. Similarly, 34% has catered to the luxurious segment and the rest for the middle-income segment, which are conveniently priced in the range of 40- 70 Lacs* respectively.
The city is close to prim tourist destinations that has helped in land appreciation. Aspiring IT professionals who have relocated to destinations such as Navi Mumbai can now consider investing early to make the most of the current property trends and double on an alternate source of income by renting out the property to prospective tenants. Taking about locations that generally provide low budget homes, areas like Malad, Kandivali, Nerul and Kharghar saw and evident upsurge in residential demands.
Challenges in order to provide timely delivery of projects
New governing bodies and tax reforms can disrupt normal proceedings. With the increase and demand for affordable housing along with the implementation of RERA and tax reforms like GST, property developers are running out of liquid assets which is essential to cater to further demands and release existing inventory. Compared to other metropolitan cities, Mumbai has been the highest contributor to stocked inventory that is left unsold. Recent reports show that as of September’2018, the numbers showcase 283 million sq.ft of space that remains unsold. This isn’t profitable for the industry by any stretch of imagination. However, Mumbai has implemented RERA like no other. The number of projects that are now RERA registered are higher than any metropolitan city. According to Maharashtra Real Estate Regulatory Authority, with 18,492 registered projects, 17,273 registered agents and 4,900 complaints filed against unlawful realty practices, Maharashtra has employed RERA norms and regulations seamlessly.
Transformation of Mumbai property market in 2019
Mumbai, out of all the other metropolitan cities offers high-priced land rates. This isn’t encouraging for lower-level income groups as they wouldn’t be able to figure out affordable budgets for their dream home. In order to fulfill diverse residential needs that are affordable in nature, developers are beginning to transition to offer affordable options across emerging locations. Renowned realty corporations feel that 2019 would be the year for residential spaces that are economical and fulfill prospective residential demands. 2018 was a great year and prime residential projects were specifically directed to sections of the society that are economically weaker. Along with launching affordable projects, realty developers around Mumbai are constructing green buildings to conserve the eco-system. Creating sustainable living spaces is the need of the hour and gives individual developers the credibility and a clear competitive edge.
Connectivity and Proximity Property developers are now set to divert their focus to something worthwhile. Residents who are fairly new to the property investment experience demand seamless connectivity to the rest of the city. The rise in social and IT infrastructure has increased provided connectivity so residents can be sure to go about with their everyday commute with relative ease and comfort. National Highways and Expressways are now used by the majority of the population across locations like Kharghar, Mulund and Kandivali. Considering the progress of the realty market in Mumbai up to March’2019, investing in Mumbai is sure to bring you formidable returns and help you provide a secured environment for your families.