Mumbai property developers see smaller homes as good investment options

Makaan.com

It will not be wrong to say that Mumbai is the most expensive city in India. Purchasing and renting properties in Mumbai seems to be distant dream as the prices keep surging every year. Compared to other cities, the home prices in Mumbai have appreciated by an average 66%, a report says. Because of the continuous price rise of real estate in Mumbai, the city has become a favourite investment destination for investors.

In the recent years, the prices of Mumbai real estate have skyrocketed because of the limited land supply and also people are looking for luxurious residential units that could provide standard lifestyle. On the other side, the absorption rate is getting better as salaries of individuals have increased over the years which is a major factor that are helping home buyers to take a decision on purchasing Mumbai properties.

Mumbai real estate is a highly preferred investment destination as it might offer impressive returns. Not only the premium residential units are a hit but small homes are also in great demand. Singletons or expats always prefer to rent small houses as it easily comes within their budget and also serve their purpose. So, developers see an opportunity in the smaller houses irrespective of the rising prices of premium residential units.

The urban working class are well aware that finding a Mumbai property at a reasonable price might be a dream but they are confident that they can easily afford to buy at least two-bedroom apartments.

Property developers are also coming up with smaller residential units to meet the housing demand of the working class. Developers are trying to meet the demands by offering least two bedrooms possible. And to woo home buyers they are offering schemes and discounts which smart home buyers are taking advantage.

There are home buyers who are cautious while buying a property in Mumbai and take help of realty portals to collate information on trending properties and prices. Through real estate Mumbai portals, home buyers can easily find developers and builders who are offering residential units at highly competitive prices. For instance, Makaan.com, a leading property website that connects buyers and sellers, offers property listings making it easier for home buyers to find featured properties and apartments with specific to location.

Mumbai property developers who earlier believed that smaller residential segment gives lower margins now have realised that they are good investments in a one-bedroom category.

Real estate India a lucrative investment destination

Real estate is considered to be a lucrative investment option. The property investment market in India has recorded a growth signalling to be a good future. According to Cushman & Wakefield report International Investment Atlas, Indian real estate was among the top 20 real estate investment markets during 2012.

Many realty market experts view that buying a property in India is similar to buying gold and putting it in bank. Not only investors but even urban working class highly prefer to invest in real estate as they believe the investment would definitely give good returns. 

Compared to buying shares & stocks, many consider real estate to be a safer investment option. Moreover, buying a plot or house signifies financial security for a family. Many view it to be a wise and long-term investment with practical utility. But the fact property as a lucrative investment needs time to give good returns.

With the rising market of Real estate in India, investors are eyeing to invest in residential units and commercial development sites, leases and more. Smart investors and home buyers are browsing the realty sites trying to spot good deals across the country or in all major cities. The realty sites are indeed helpful in finding potential property with specific to location, budget, locality, space and other amenities. Home buyers or sellers even post their requirements on realty sites such as Makaan.com to find properties that perfectly match their requirements.

In India, it is seen the urban working class are more inclined towards making investment in emerging Tier-II and Tier-III cities such as Chandigarh, Pune, Bhiwadi and more. 

Reports say that huge investors or professional investors choose properties from Tier-I such as Bangalore, Hyderabad, Mumbai, Chennai, Delhi, Noida and more. However, a survey reports Mumbai realty market continues to be most unaffordable because of the city’s under construction units are priced at over the whopping amount of Rs 1 crore.

Indian real estate is attracting not only domestic investors but also NRIs who are looking for a safe investment option to invest their money or thinking of settling down a few years later. 

Though the prices of real estate in India are incessantly increasing because of the premium projects and new infra projects the absorption rate has hardly been affected. More and more developers are coming up with luxury residential projects which will only create a positive impact on the realty market of India.