Mumbai’s real estate market is seeing robust demand for residential properties guided by the work-from-home scenario. Families are now looking out for an upgrade as space has become a crucial factor. The rationalisation in pricing and low interest rates have further catalysed the housing demand in the city, which is likely to continue till the end of 2021. With the ongoing pandemic scenario here to stay for some time, people are looking to buy homes that provide larger spaces.
The growth factors
The state government’s decision to lower the stamp duty significantly benefitted the industry, and Mumbai saw record sales during the Sept to Dec 20 period. The momentum continued during the Jan to March quarter to take advantage of the stamp duty rebate. This led to a revival for the residential sector considering the increasing need for liveable space.
The ongoing demand for homes witnessed in Mumbai is primarily due to a buyer’s wanting to capitalise on the existing benefits in terms of property affordability being all-time high, lowest ever interest rates of 6.9%, and the continued industry offers.
The buyers
The additional home demand is coming from Mumbai’s working-class considering work from home. These buyers are eyeing projects of a reputed developer, which not only offers better amenities, open spaces, and social infrastructure but are located suitably offering excellent connectivity in their desired budgets.
Markets to watch out for
Micro-markets like Goregaon, Malad, Borivli in the west, and Kanjurmarg, Chandivali, Vikhroli, and Bhandup in the central-eastern area of Mumbai is witnessing amplified housing demand. The reasons? Well, these markets offer ample options at a comfortable price. Additionally, all these localities have excellent connectivity and social infrastructure.
The demand for homes in all these micro-markets is also due to the commercial and business hubs making it a preferred location closer to the workplace. Further, the upcoming metro corridors and infrastructure projects, once completed, will improve connectivity between these newer micro-markets and the rest of the city.
What’s available?
Developers in these micro-markets offer multiple options in the compact home segment with convenient pricing, location, and space catering to work from home culture.
1, 2, and 3BHK are popular bedroom configurations. The size of a typical 1BHK apartment is about 370-400 sq. ft, while 2BHK and 3BHKs are in the range of 560-580 sq. ft. and 800 – 1,000 sq. ft. respectively. On average, these units are priced anywhere between Rs 1-2.25 Crore.
This article is contributed by Manju Yagnik, Vice-Chairperson (Nahar Group) and Sr. Vice President NAREDCO (Maharashtra).
(The views expressed here are solely those of the author and do not necessarily represent or reflect the views of RoofandFloor)