Mumbai Witnesses Highest Hike in Property Prices
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Mumbai is the most populated city in India. The stress of the population on Mumbai’s real estate has forced the city to push out the surrounding rural areas to make space for the ever-growing city. This has made Mumbai to urban agglomeration comparable to the likes of cities like Tokyo and Beijing. In fact, our financial capital stands second in this aspect just behind the capital of Japan.
The city is increasingly looking at ways to spread out and Navi Mumbai has been the go to location for businesses and residential solutions alike. However, the supply demand gap had actually caused the property market to choke. Add that to the fact that property prices are sky high, the takers for the available property are very less. And what less buyers there are is even further complicated by projects that never see the light of the day when it comes to completion.
Even with all these factors, Mumbai properties has registered the highest hike in prices of plots. The reserve realty rates in Mumbai and its satellite cities has rose up 20-25% in the past year! This however has not deterred a number of multinational organizations and investors to drop their anchor in the financial capital of India. Shopping centers, uber townships, multiplexes and other commercial facilities never fair to spring up around the city which further shoots up the price!
The hike in the reserve rates of the satellite cities will further push the land prices up. In Navi Mumbai, the dream of having affordable houses might still prove to be a distant reality ever since even the base prices of the land have been hiked by 2.5%. Base prices are set by taking into consideration the Floor Space Index and the reserve price which in itself has gone up.
However, even with such factors making property investment seem a distant dream, Mumbai continues to be welcoming to those who would like to invest in real estate. Working class could buy a loft in the shady localities of the city and benefit by leasing out the place. The suburbs still are affordable enough for corporate professionals to invest in as their primary home and drive to and from work. There are satellite towns around Navi Mumbai and ones that dot the Mumbai Pune expressway that are still considerably accessible on a daily basis.
There are more than 2600 completely unsold flats in Mumbai, Thane and Navi Mumbai put together. This could be either seen as an alarming trend but in reality it is just 3.35% of the total number of homes that has been sold in the last quarter of the calendar year. Of the number of homes that are unsold, most of them are under 65 lakhs in price which clearly reinstates the fact that though Mumbai’s real estate has become costly it has still not spiraled out of control. Most of these unsold homes can still be bought by the public if the builders offer attractive deals and if the waiting buyers decide to jump in and invest.
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