Mumbai is the financial hub of the country, a cosmopolitan city. Earlier, Mumbai’s real estate market was a seller’s market, but after a slump it is soon becoming a buyer’s market. In the last couple of years, Mumbai real estate market had drastically slowed down. The increasing demand, sky-high rocketing prices and the lack in upswing of income caused the Mumbai real estate to take a direct hit. Real estate market showed a downward sloping graph but now gradually the graph is moving upwards and finally the real estate sector is picking up pace. The economy now is picking up and Mumbai real estate finally has something to cheer about.
As compared to the last year, property sales have gone up by 28%. This shows that finally things are moving on the right track and picking up pace. The Mumbai real estate market has mellowed down now; the property builders are offering structured schemes for the buyers. In the past when the prices were hiked up there weren’t any buyers, and hence the inventories piled up. But now as the real estate market has stabilized and trying to win back its luster. The builders are trying every trick in the book to make home buying easy for the buyers.
Since the market is showing an upward trend and turning into a buyer’s market, all schemes and facilities are being made available to entice the buyer. Some of the popular schemes that surfaced were- 10-80-10, 20-80, 25-75, 5-90-5 and 10-90. All these schemes are to get the buyer enter the market where he makes the minimal down payment and does not lose a lot of money on booking a flat. Moreover, the rest of the money is given by the banks which are the safest option for a homebuyer. The rate cut in the bank loan has also given a boost to the real estate in Mumbai.
Experts say that though there hasn’t been much of a price correction as against expectations, even stagnation in rates along with a drop in interest rate could have improved overall affordability for buyers. Pankaj Kapoor, MD of Liases Foras, a Mumbai based real estate research firm said,”Property prices have stopped appreciating and personal income has continued to rise. Home loans have become cheaper and builders are giving a lot of discounts. The cumulative effect of all these factors has resulted in 15% improvement in affordability”.
After seeing a tremendous rise in Mumbai real estate between 2002 to 2008, a slump in the sales and finally now since there has been a stabilization in the price, the home buyer has finally moved in and the sales have picked up, Mumbai real estate is slowly but surely moving towards a positive.
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