The pandemic has changed people’s idea of real estate property ownership significantly. Those who already own a house are looking to buy a bigger one, with work from home set to become the new norm. But is this the right time to invest in real estate properties? The significant improvement in the economy after the vaccination drives show good traffic in terms of real estate investments. In the last few months, online house search portals have seen a lot of growth in traffic for buying properties. People now want bigger homes. Previously, the best-selling used to be 1BHK or 2BHK flats. Now, 2BHK+study or 3BHK apartments are more in demand.
If you’re ready to take the plunge, then 2021 can prove to be a great year for real estate investment. Especially metropolitan cities like Mumbai have seen a sudden spike in the number of real estate investors this year. The hike of raw material prices used right now in the real estate industry means that the property values are going to increase after mid-2021 which makes real estate investment the most ideal choice right now…
Property values are seeing an appreciation and the trend is likely to continue over a few years, starting this month itself. Also on the buyer’s part, the consumer affordability is at peak high due to steady income, lowest ever interest rates & low registry cost with benefits in many states. Adding on to the favours on the buyer’s side, the real estate industry hasn’t actually seen a price increase in over 4-5 years, making it the best time to invest.
Real estate right now is considered one of the safest sectors to invest in and will grant you better returns in the long run. Developers in Mumbai offer a range of luxury developments in the city as well as the suburbs. Most of the real estate in Mumbai offers a wholesome living. These properties come with state-of-the-art amenities that cater to every age group and with security and parking facilities to facilitate the way of life in a populous city like Mumbai. The way we think of investing in gold to secure our future, similarly, real estate is the ideal investment of the year 2021 because of the high returns on investment. Developers and builders in Mumbai know that the most significant benefit of owning real estate property is that it generates regular rental income with complete certainty. You are assured a stable cash flow and regular monthly income that only increases over time.
2021 is the perfect time for investing in the real estate sector mainly because developers are offering economical rates for even top-notch properties in order to ensure the clearance of already existing unsold inventories.
This period is in fact the most plausible time even for NRIs to invest in residential real estate property as there has been a considerable drop in the property rates in most places after demonetization. Plus, the implementation of GST and RERA have brought in more trust, transparency, and accountability into the real estate sector. They have only made the market more equitable, thus increasing the number of buyers interested in investing.
Lately, there has been an increasing number of NRI investments for commercial properties as they offer a longer lease period, promising a more stable and regular income.
The Atmanirbhar Bharat campaign has drawn a lot of policy support from the government. Also, the heightened increase in Foreign Direct Investment has led to a speedy recovery of the real estate in Mumbai and all over India and this has motivated a large group of builders in Mumbai to keep innovating technologies and upgrading lifestyles in the majority of the residential properties in Mumbai.
The pandemic may have caused a lot of disruption but this crisis definitely has had its positives. The commercial sector of India has continued to attract a large number of investors who are thinking of long-term benefits. The 2021-2022 budget is nearing and several relaxations from the government are expected which will usher people to invest in this sector and boost the demand for real estate property in India.
As 2021 matures, there will be an even more uniform flow of real estate investments as the easy liquidity by global central banks has kept a firm leash on interest rates and so real estate investments will assure higher yields.
A trend of private equity investment has also been noticed in the Indian real estate sector and this may bring a huge influx as big as 6 billion dollars in 2021.
There have been constant development measures undertaken by the government and that has led to a stable recovery of the economy. This helped stabilize the real estate prices in metropolitan localities, particularly for luxury properties in Mumbai.
According to a report by Savills India, private equity investment in the Indian realty sector may recover tremendously and may bring an influx of $6 billion in 2021, registering a 30% year-on-year growth.
As the economy recovers and development measures are undertaken by the government, the real estate prices in metropolitan areas will stabilize and may register an upward demand in certain key locations for lucrative upcoming residential projects in Mumbai.
Another benefit of investing in real estate in 2021 is an increased tax deduction. There has been a temporary stamp-duty cut by the Maharashtra government and that itself led to significant growth in demand. There might be a further cut on GST rates and ease of taxes in the new budget and this will most definitely aid the healthy growth of the real estate sector.
The much-needed support from the government has also been influential in driving consumer demand for bigger homes in Mumbai. Mumbai has been historically characterized by a higher preference towards small-sized 1BHK flats but now it has been observing a high demand for mid-sized and larger homes.
If you are actively looking out to buy a home in Mumbai in 2021, then localities such as Goregaon (East), Andheri (East), Kandivali (East), Vasai, Virar, and Malad (West) could be your best and most lucrative bets. These addresses not only have well-developed housing developments but also enjoy the progressive infrastructure and close proximity to commercial and business centres.
In conclusion, we see that in the year 2021, property valuations are at realistic levels, mortgage rates are at the lowest, some states have started reducing the stamp duty and developers are offering flexible payment schemes and GST waivers. Investing in Real Estate in Mumbai can be really fruitful right now. Considering all of the points above, we can claim with a high degree of certainty that the real estate sector is on the road to recovery in 2021 and has a lot to offer to all of those aspirational investors out there, especially for those investors who are seeking long-term returns and gains.