Home Buyers Delaying Purchase Due to Higher Price in Mumba

Home Buyers in Mumbai

Real Estate is one of the biggest and most globally recognized sectors and in India it is said to be the second largest employer after agriculture and is poised to grow about 30% in the next few years. The Indian real estate market has become one of the most preferred destinations in the Asia Pacific as overseas funds accounted for more than 50% of total investment activities. The real estate sector has 4 sub sectors namely housing, retail, hospitality, and commercial. Mumbai is a fast growing city and is a hub for many things. It is also ahead in the terms of real estate matters as lot of people from all over the country are residing there and even lot of people who come here to live their dreams.

Rising Prices Slowing Down the Real Estate of Mumbai

The real estate deals in Mumbai have seen recent slowdown especially the housing sector of this grand city. The main reason of this slowdown is the rising prices of the properties and houses in the different areas of the city. The escalating prices are the major reason due to which people are postponing their buying decision. There is an inventory pile up of 46 months in the Mumbai metropolitan region well above the accepted 8 to 12 months mark which is mainly due to the high pricing in the region and it has also caused in the postponement in the buying of various properties and houses.

As we all know about Mumbai, and its hi-fi life there are various places in Mumbai which are awesome and even worth living. The famous and top investment destinations across the city are Panvel, Kalyan, Nalasopara, Kharghar, Mira Road, Dombivli, Kamothe, Ulwe and Sanpada where most of the people like to invest their money. During the first half of the year 2015, the government had initiated a number of infrastructure projects to drive the sales across the Mumbai region like the Coastal Road Project from Nariman point to Kandivali, clearance of the Navi Mumbai Airport, which is expected to drive the sales in these regions, and thus resulting in hiking of the prices.

The Maharashtrian government has already planned to develop Mumbai as a gaming and animation industry hub thus increasing the job opportunities and investment in different regions which will increase the demand for residential and commercial units. As per the reports, an additional 200% FSI for IT parks will further reduce the rentals for commercial units. According to a survey which was conducted, it was reported that 76% of the home buyers prefer investing in properties that are upcoming projects and are in under construction phase. When you are planning to buy a new house you always see the cost of that house and the area.

Government Plans to Drive the Demand for Residential Properties

Around 71% of the people always prefer to buy properties and houses that cost up to 30 lakh which is the major problem in many areas of Mumbai city. The approval of elevatedrailway line from CST to Panvel with a six lane road is expected to reduce the commute time and this has driven the higher demand for properties in these localities. In the Kalyan region nearly 71% of people prefer 1 BHK compact houses and a report says that the price of the properties in these regions have risen about 12% in the last 2 years. The government has taken various measures to increase the property demand and has been developing these regions by providing much better infrastructure. The government here is further planning to attract more investments and provide more jobs to people which will further drive the demand for residential real estate.