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!

Property in Mumbai to be subjected to a price correction soon!

For those picking their pockets to buy real estate in Mumbai, here’s news that’ll give you a little respite. Property rates in Mumbai have stopped rising and a price correction could indeed be just around the corner! As per reports, prices dropped 2-5% in the October-December period from the previous quarter, giving prospective home buyers in Mumbai an opportunity to purchase their dream home without blowing up their bank accounts!

Anshuman Magazine, the chairman and managing director for South Asia of the property consultancy CBRE, says, “Pressure is building up. We are likely to see a correction soon if the sentiment remains the same.” A decrease in property sales is termed as one of the reasons for a decrease in price. Reports by CBRE also state that a few real estate launches in Mumbai have started off at lower prices, causing competition to significantly lower price tags to keep up with the pressure. Also, price correction has indeed occurred in some areas of Mumbai while the rest have remained torpid.

There have been indications of sales of property in Mumbai decreasing due to high interest rates and an impending economic slowdown. Anuj Puri, the chairman of the property advisor Jones Lang La-Salle India said, “Developers with large projects in Mumbai are offering lower prices. These prices, which went as discounts earlier, were always available for investors and are now being offered to retail customers too.”

And it isn’t just property advisors who are heralding a correction in prices of property in Mumbai. Prominent bankers have mentioned the same too, confirming a drop in real estate prices in the near future. This perhaps is one of the best times to invest wisely in real-estate and buy property in Mumbai, before the prices begin soaring through roof-tops yet again!

To know more about the best deals in the city and affordable housing on offer, visit www.snapghar.com   today

Budget 2013 brings changes in prices of property in Mumbai

The announcement of the 2013 budget has been long awaited and has indeed brought about significant changes in the Indian market, deciding how much you shell out with the purchase of products and services, property included. With the new budget, property in Mumbai could turn a little more expensive, particularly in areas centered in the suburbs down south. As per the new budget, buyers of property in Mumbai who purchase more than 2,000 sq ft or real estate above Rs. 1 crore will now have to pay marginally extra! Service tax on property as such has increased from 3% to 3.6%, owing to the reduction in abetment from 75% to 70%.

But all’s not bleak with the dawn of the new budget. Those looking to purchase affordable property in Mumbai can now do so at lower costs, thanks to the additional benefit of Rs. 1 Lakh on home loans up to Rs. 25 Lakh for first time property buyers however, this is applicable only to individuals who seek to buy a home below the Rs. 40 Lakh. “This would mostly be helpful for people who want to buy a house in smaller cities or distant suburbs where the ticket size is lower,” says Niranjan Hiranandani, chairman of the Hiranandani Group.

Prospective buyers of property in Mumbai have awaited the new budget and those looking for affordable housing options have indeed benefited from the same. People planning to buy property at the expensive end of the scale will have to pay more, but this sum isn’t too large, compared to the price being paid for the property. “This would not make much of a difference for an individual shelling out Rs1 crore for a flat,” says Pranay Vakil, chairman of Praron Consultancy.

To find a home that best suits your budget, visit www.snapghar.com. View some of the best property deals and avail fantastic discounts here. Also, keep yourself updated by connecting with SnapGhar on Facebook.

Registered property documents can now be downloaded at home!

Things have become a lot simpler for those looking to purchase or rent property in Mumbai. Recently, the Maharashtra Government has done a huge favor to home buyers and tenants with its new e-governance initiative by making registered property documents downloadable. Citizens can now log on to an online platform and download relevant documents from the comfort of their home. This beats the need to step into a registration office or rope in the services of an estate agent. 

According to the inspector general, S Chockalingam, the service has kicked off for documents registered in 14 of the 23 registration offices in Mumbai. After the pilot testing phase is completed, the initiative will spread across more registration offices in the city. Also, the online service is currently available for documents registered from January 1, 2002, to December 31, 2011. In the future, expect to see documents from the years before 2002 and in 2012 too. This is the first time in India an initiative like this has been setup to benefit citizens looking to purchase and rent property in Mumbai. 

To begin with, downloads will be made free for the first test-run of the website. After this, a fee will be charged to download registered property documents from the website. The online platform is extremely simple to use and is expected to reduce footfalls at the registration offices across Mumbai. Also, this initiative will enable employees at these registration offices to work more efficiently, without needing to attend to citizens stepping in for documents.

While the initiative is new and seems promising, the platform’s ultimate fate depends on how well it is maintained and updated. The feature is available under the eSearch facility on www.igrmaharashtra.gov.in. The website also allows users to look through records of property they wish to purchase or rent. Also, make sure you visit www.snapghar.com to check out the latest deals on real estates in Mumbai.

Mumbai turns into hot property for companies looking for office space

Property in Mumbai is currently being considered as one of the best places in the country to operate businesses. Major businesses and corporate houses have begun moving to Mumbai in search of office-space, making the city that never sleeps a sought-after location. “Gradually, major business corporations are returning to the market in most of the key cities across the globe. India is now talking about growth of over 5%, which may be lower than earlier estimates. However, this is a big number if we consider it in the context of Europe and some other markets,” said Alistair Elliott, the senior partner and newly-appointed group chairman of global property consultancy firm Knight Frank.

Office space absorption levels in India are expected to rise from the 33 million square feet mark in 2012 to 34 million square feet in 2013. These numbers are predicted to rise further to 37 million square feet in 2014. Also, as per reports, fewer projects will be completed in this time frame. This will result in fewer vacancies in the future. Vacancies will decrease to 18% in 2014 from the initial 20% recorded at the end of the year 2012. Commercial sectors like manufacturing, banking financial services and insurance, information technology, pharmaceutical and media sectors will cause the increase in demand of office space.
And that isn’t all. Property in Mumbai could also undergo a price correction. Sales could also dwindle if prices aren’t corrected and brought down. This particularly applies to residential property in Mumbai. Quoting Alistair Elliott, “The irony of the situation in India is that while the country has a high housing shortage of 19 million units, we have witnessed a slowdown in residential sales leading to a high quantum of unsold inventory.”

That apart, Mumbai is bound to be the next biggest commercial hub in the world and will soon play home to more corporate houses and companies. To know more about the best commercial property in Mumbai available for rent and purchase, visit www.snapghar.com today!

Inexpensive property in Mumbai is now more than just a dream!

Buying property in Mumbai might be a pocket-burning affair more often than not. However, a few major developers have realized the potential of developing less-expensive real estate in Mumbai. Some of the biggest players in the real estate industry including Tata Housing, Neptune Developers, Sanghvi Group, etc. have begun developing areas located on the outskirts of Mumbai. Localities such as Boisar, Asangaon, Dombivali, Ambivali and Karjat are transitioning into well-developed areas that could soon match some of Mumbai’s prime suburban destinations.

Quoting Shailesh Sanghvi, director, Sanghvi Group and secretary, MCHI Mira Virar unit, “Rates are lower for projects located in far flung developing suburbs due to lower land prices.” Approvals are easier to obtain in areas such as these, decreasing the building time and costs. This in turn leads to inexpensive production costs, eventually pulling down price tags. Developers understand the need for less-expensive property in Mumbai given the fact that this certainly helps hold the real estate market in place while subsequently providing inexpensive houses closer to the city.

Tata Housing, one of the many developers indulging in affordable housing development, is also subsequently developing high-end projects. “Both segments are growing and thus important to the company. As far as the affordable segment is concerned irrespective of what happens in the economy, the end-user would come. There would never be a correction in the prices of an affordable project as it is already so low. And thus there is no dearth for demand. One can sell affordable housing as long as your product is good and it is situated at a good location,” says Rajeeb Dash, the marketing head at Tata Housing Development.

Currently, affordable apartments in Mumbai such as these come with price tags ranging from as low as Rs. 500,000, rising up to Rs. 3,000,000. Also, these apartments aren’t particularly small and space-deprived. Most of these come with modern-day amenities and are designed and built meticulously, keeping quality in mind. To know more about these fantastically inexpensive housing options by renowned real estate developers 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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