Property Sales Increase in Mumbai!
Mumbai is the quintessential hub of property business. The city is the financial capital of India and is emerging as a major property destination in the year 2015. This is happening after the policy changes by the current government which is focussed on the commercial development in many parts of the city. As a result of the new tax norms, purchasing properties in certain areas of Mumbai can increase the purchase cost by as much as 40%. Soon after this rule came into effect, the property prices in Mumbai were (justly enough!) compared with the prices of properties in Dubai. It was estimated that the property sales would not rise in the city as much as anticipated. However since the interest rates have been slashed by the banks, the property in Mumbai is back in demand as though the increase in prices has hardly impacted it. There are a number of factors that are responsible for this growth of property in Mumbai and they are highlighted below.
The factors affecting and impacting property growth in Mumbai
Cost is not the prime constraint in sales of property in Mumbai. However it is a major constraint when accessibility of housing in Mumbai is to be taken into account. This means that no matter how high the cost of apartment is in Mumbai, there would always be some buyer or the other. However offering low cost apartments in the city is not an option. The reason for this is the space constraint. The opportunities for growth of Mumbai are limited to none. The only way the city can grow is over water. That is how Nariman Point came into being. But given the density of establishments and the demand for new property in the city, a profitable landfill is not possible. Additionally, it would degrade the ecosystem even further. Therefore the major issue in property pricing is the price of land. The cost of acquisition of land in most of the cases is higher than the rest of cost of the project. Therefore there is no scope of price revision. This is what keeps the properties out of the reach of masses.
However alternatives have been developed over the years. There are suburban areas in the city where the property development is minimal. There is ample scope and localities like Mulund and Mira Road along with Kalyan are evolving for the same reason. Real estate builders like Tata Housing has invested in the Mulund and is offering a luxury project in the locality. This shows the promise exhibited by the locality in the times to come. This is also why there is a high acceptability of residential projects in Mumbai suburban areas.
What has changed in the year 2015?
The reason why the Mumbai property is back in demand despite the high prices primarily lies in the reduction of interest rates. Every base point matters if the property prices are among the highest in the country. Now that the property seekers are able to find better home loan options, they are willing to opt for both new as well resale properties in the city.
Property portal housing.com has a marked presence in Mumbai. It can help you buy property in Mumbai with considerable ease and reliability while searching online.