Real Estate Developers

Thursday, 27 August 2015

Are there Buyers for New Residential Property in Mumbai

According to Mumbai real estate report, developers are launching new projects in the city; however, buyers are delaying the purchase of new residential property in Mumbai due to skyrocketing rates.

Some property portals said in a report that an inventory pile-up of 46 months is being seen in the MMR (Mumbai Metropolitan Area) because customers continue to delay their buying decisions. The rates have shot up in certain areas, especially due to the initiation of certain infrastructure projects by the government, such as the clearance of Navi Mumbai Airport and the Coastal Road Project from Nariman Point to Kandivali.

As per reports, Mumbai will be developed as an animation industry hub by the Maharashtra government, which is expected to drive the demand for residential as well as commercial properties in the city. An additional 200% FSI (Floor Space Index) will be provided for IT parks which will bring down the rental rates for commercial properties in Mumbai.

Currently, the top property investment destinations in the city are Kalyan, Panvel, Ulwe, Sanpada, Kamothe, Kharghar, Mira Road, Nalasopara, Dombivli. Demand for residential real estate has grown in Panvel due to the approval of an elevated railways line from CST to Panvel. The six lane road is expected to reduce the time it takes to commute from Panvel to CST. Kalyan has also emerged as a sought-after destination for realty investment. Property rates in this region went up by 12% in the last two years.

Many buyers prefer buying a house in Mumbai that is under construction phase. This is because an under construction property is available at a low rate compared to a ready-to-possess property. As per the property portal survey, 76% home buyers in Panvel prefer to buy an under construction property.