Is It Right Time to Invest in Property in Mumbai?

My brother recently moved to Mumbai. He was fascinated with the charm of this city. Hence, he started enquiring whether is it right time to invest in property in Mumbai.

We are aware that with 22 million people, Mumbai is considered one of Asia's most populated cities and draws visitors from all over the world. 

Is it right time to invest in real estate in Mumbai?

There is no straight forward Yes or No answer for this question. According to my research I discovered factors that makes it the right time for real estate investments in Mumbai. As well as there are factors which might prevent buyers to invest in the real estate market of Mumbai. I’d like to share a few factors citing the positive and negative side;

• High ROI in real estate in Mumbai:

Mumbai's real estate market offers a wide variety of investment projects and destinations, with a focus on layout, location, and return on investment. 

From sea-facing exotic apartments to duplex homes to affordable apartments, the city of Mumbai and its surroundings have a wealth of chances to provide the finest returns on real estate investments. 

• The current city-wide Infrastructure Projects impacting real estate in Mumbai:

Due to the growth of significant infrastructural projects, Mumbai offers a promising future for real estate investors. These are like the Colaba-Bandra-Seepz Line, Mumbai and Navi Mumbai will be connected by the future Mumbai Trans Harbour Sea Link (MTHL), this will offer direct access to the Mumbai - Pune expressway, the Mumbai - Goa Highway, and the Nhava Sea Port. 

These numerous touchpoints would greatly enhance overall connection, which would be extremely beneficial for the Mumbai real estate market.

• Employment opportunities are linked to real estate development:

Residential real estate in Mumbai is significantly influenced by employment. Employment has a significant impact on residential real estate. According to Naukri.com research, hiring activity increased by 41% in the fourth quarter of 2022 compared to the fourth quarter of 2021. Housing demand has significantly increased. 

• Rise in Stamp duty charges:

The Maharashtra government lowered the stamp tax in September 2020 to boost demand in the real estate industry, which had been severely impacted by the COVID-19 outbreak and cyclone Tauktae. However, as of 2023, the stamp duty in Maharashtra has raised from the current 6 percent to 7 percent. Additionally, stamp duty would increase to 8% in Navi Mumbai, Thane, and Pune.

• Hike in prices of raw material disrupts construction of ongoing projects:

The negative impact of COVID 19 has ultimately increased the prices of steel, cement, and other construction material. Hence the project’s construction cost also increased. This prevents a lot of buyers to halt before investing in the real estate market.

• High rate of interest:

The interest rates on mortgage loans range from 8.15% to 11.80% p.a. Usually, the amount of funding you can avail will be up to 60% of the registered value of the property. Real estate demand is declining as a result of skyrocketing property prices and increasing interest rates. 

Despite all of this, it is anticipated that the real estate market will do well in 2023 since local activities have resumed and the government is taking steps to encourage the ongoing expansion of tier-2 cities. I hope this answer suffices your query about why is it right time to invest in property in Mumbai. I hope this helps:)

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