Real estate in Mumbai to go through a price correction!

Talk of a correction in pricing of property in Mumbai has been doing the rounds constantly nowadays. Given the fact that the supply-demand gap has increased and there are more homes than the people of Mumbai require, several properties around the cities are lying empty and unoccupied. Developers have realized the need to pull down the prices to have these homes sold as soon as possible.

Today, some of the least expensive homes are priced at nearly Rs. 10,000 per sq ft, in the heart of the city. Prices drop as one moves towards the outskirts and further north of Mumbai. A 2BHK home in Mumbai costs approximately Rs. 1.5 crore, making such property accessible only to people earning more than Rs. 35 lakh a year! Abhishek Kiran Gupta, Real Estate Analyst at Bank of America Merrill Lynch, says, “This trend is unsustainable and prices in Mumbai will have to correct and remain subdued over the next 2-3 years. This will allow improvement in affordability as income levels catch up with residential prices. Most of the new launches during Jan-Mar 2013 have been at a discount to average market prices.”

Also, developers have come up with better ways to attract new customers and are constantly offering discounts on property prices in Mumbai. Builders have begun offering discounts through 20:80 schemes, stamp duty waivers, floor rise waivers and other such crowd-pullers. Pankaj Kapoor, MD at real estate firm Liases Foras adds, “Prices and land values have to go through a correction in Mumbai. Ready-to-move-in property is cheaper than those under construction. If you look at the secondary market, price correction has already taken place as resale apartments are being offered at least 15-20 per cent below the market price.”
This news is bound to work as good tidings for those looking to move into the city or invest in real estate in Mumbai. To know more about the best real estate deals in Mumbai, visit  www.snapghar.com  today!

Real-estate investments, your pot of gold!

A shaky world economy and rising prices have led people to steer clear of high-risk investment options. Many of those looking to grow their money have begun indulging in safer ways like real estate. Investing in real-estate requires more than just a substantial amount of money. Carefully and strategically investing in real estate can lead to great returns, particularly when property bought is rented out. Renting out property particularly in major cities like Mumbai, Bangalore and Delhi is assured to bring in a regular income.

Essentially there are two types of property in Mumbai investors can buy and then rent out; residential properties and commercial properties. When it comes to the latter, commercial offices and shops are available for sale in Mumbai. These can then be rented out, raking in a substantial amount on a regular basis.
However, investing in property in Mumbai certainly isn’t a fool-proof investment option. When it comes to residential property investments, rentals are usually low and range from 4% and 6% pre-tax. These numbers are known to drop further after tax. Also, buying property before the development phase begins can also prove risky and disappointing at times given that final specifications of a flat or commercial area can vary from that shown on a brochure!

Investing in a commercial property in Mumbai is a wiser choice given the fact that the city’s commercial sector is constantly growing. Also, rentals from commercial properties soar higher at 8 - 12%, making it a wiser investment than residential properties. Buying office space or retail space could further prove advantageous as most multinational companies seek to rent out commercial properties with a larger floor space.
If buying a residential or commercial property isn’t your route to a perfect real estate investment, you can directly invest in shares of developers via the stock market. Apart from that, investors are also known to invest in real estate projects along with others.

Invest wisely in real estate and watch your money grow! Visit www.snapghar.com  for a closer look at what’s up for the picking in the real estate market today!

 

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