Market Value of Property in Mumbai

In the first quarter of 2014, real estate market in Mumbai saw a negligible increase of 2%. In any case, there has been no critical change in capitalization rates between first quarter of 2013 and 2014. As per a report delivered by a reputed real estate company, first quarter of 2014 additionally saw a 3% increase in rentals of 3BHK homes in the city.

Buyers are even now holding up at some cost adjustment because of which property deals in Mumbai and other metropolitan urban areas have gotten to be stagnant. According to a review by Liases Foras, Mumbai saw an 18% drop in property sales in 2014. Regardless of low deals, rates have not been reduced by the developers. Rather, they are providing some relief to the buyers by waiving off stamp duty and registration charges.

The development of ultra-luxury housing has increased in the city in the previous few years. Average rates of residential property in Mumbai have run up with a 2BHK costing between 2.5 to 3 Crore rupees.

Shortage of Reasonable Housing

The new offer is coming on the market; but, reasonable housing can still be restricted in the city. Since the market in Mumbai is determined by investors. Central Mumbai and Colaba areas have shown some improvement in terms of reasonable housing however the rates still to be high because of which numerous buyers prefer cities such as Bangalore and Pune for property investment.

Whether you are looking for an apartment in Goregaon or Worli, developers are left with no choice yet to build property rates in the city. This can be as a result of the value of land is extremely high and that they even have to pay certain government taxes. Once calculated, approximately 10-15% of the overall price of a flat is spent on additional tax, stamp duty, service tax and registration. Several real estate companies are on view that the government has to cut back taxes so as to make housing affordable in Mumbai.

As per the American real estate tycoon Donald Trump, Mumbai's property market is quite under-valued considering the investment and buying power of the people. Due to the changing profile of home buyers, the super luxury property section saw a significant development in the last five years. With the opening of NTC factories in the city, lots of land parcels were released. This brought about the improvement of a few luxury residential projects in Lower Parel and Worli areas. Development work in these areas can become restricted within the coming years because the land parcels can keep obtaining exhausted.

Luxury Flats and Bungalows in India that Attracts NRLs

Luxury property in the city is pulling in buyers from India as well as NRIs from everywhere throughout the world. Today, every home buyer searches for a world class amenities and international lifestyle. Buyers look for numerous facilities together with, strong power backup and 24/7 security.

Jennifer Johner is a real estate blogger who loves to write about upcoming residential projects in Mumbai, Pune.