What the factors that are driving real estate in Mumbai

Mumbai is one of the most expensive real estate markets in the country. The city is the finance capital of the country and is known to be the maximum city. Many of the central business districts in the market are very expensive. Those who reside in these posh addresses are celebrities and businessmen with a lot of money at their disposal.
So what are those who are on a budget to do when it comes to looking for housing in the city? The answer is moving your property search to the suburban areas of the city. If one looks at the way most of the metros are expanding it is the peripheral and suburban areas which are gaining popularity. These micro markets might not be up there when it comes to infrastructure. But that is changing and changing at a fast pace.

Over all here is a look at what buyers have been look at when it comes to a property search in Mumbai so far in 2015. 1 BHK apartments are the most preferred apartment type here. This is followed 2 and 3 BHKs. Buyers are showing a marked preference for small sized new Mumbai property. This is because space is already very scarce in the city and buyers end up paying quite a bit for these spaces.  The most sought after apartment size falls between 501 to 750 square feet. This is followed by the less than 500 square feet range and the 751 to 1000 square feet. The takers for any residential apartments in Mumbai which is more than 2000 square feet are very few in number.
 
People are looking for affordable properties in this market. The budget range for which property search in Mumbai is happening at a great pace falls between INR 10 to 50 lakhs. There is some interest for properties which fall between the INR 1 to the above 5 crores range as well. Buyers are looking for properties which are priced above INR 10000 per square feet on average. This fact again proves how expensive it is to purchase a new Mumbai property.
One of the infrastructure projects which is set to drive the real estate sector of the city is the metro rail project. Line 1 between Versova–Andheri–Ghatkopar is operational. The impact of the metro on the localities in this Line is already quite visible. The prices for properties here has been steadily on the rise. There are three more lines in the pipeline. Experts suggest that property prices tend to appreciate by at 20 percent for localities which are within a 2 km radius from a metro station.
 
Some of the hot property destinations in the city as Vasai, Badlapur, Nala Sopara, and Kalyan. The one factor that is common across all these micro markets is that they are all affordable property destinations. They are also well connected to the main business districts of the city making them attractive to buyers who are on a budget. 

1 BHK Apartments for sale in Virar, Mumbai

Apartments in Mumbai for Sale, Very much negotiable for buyer if full payment or heavy down payment done in cheque or cash Best buy from direct owner, No agent Just 1.5 km to 2 km from virar railway station 5 minutes by share auto rickshaw and 15 minutes by walk from railway station. Good frequency of share auto rickshaw from railway station Add Paradise complex, Manvel pada road, Virar (East) Garden, Bank, Market, Hospital, Gas agency, Rickshaw stand, School is near just 0.5km by about 5 minutes walking 80% loan from bank, 20% down payment 1 bhk cidco good condition resale residential flat for sale in virar east. Cidco approved with municipal corporation (Vvmc) daily water supply and water storage and 24 hours electricity supply. It is a 1bhk flat it has 1bedroom,1 hall, Kitchen,1bathroom,1 w.C. 5 year old 6 building complex Facing West facing flat Flat available on 3nd floor of 4th floor Possession Immediate Property age 5 years Transaction type Resale Built up area 515 sq.Ft Price =17.90 lac/- Car park

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Property prices in Jaipur face a slump

Jaipur has been the top most cities for investment in the state of Rajasthan. However recent reports suggests otherwise. Yes the price of property sites in Jaipur, especially residential ones have been facing a slump in prices. There has been an average decline of close to 4% each quarter over the past year. And these have been worrying signs for the real estate market. In fact there has been a total of 10% decline in property prices in the past year in some localities in the city. Years leading up to the 2013 saw a sharp rise in prices of properties such as apartments for sale in Jaipur. Property prices those years saw a rise of close to 67% which is a mind boggling number for any Tier I city.

"The recent assembly and general elections had an impact hurting demand as investors looked for policy cues from the new governments both at the state and Central level. While the buyers' sentiment cannot be described as bearish, expectations have tempered a bit which is normal after a steamy appreciation. But demand will come back in the couple of months before Diwali which will drive the price appreciation. The reduction of the gap between DLC and market rates will lead to stable pricing regime and will curtail the room for black money transactions although there will be some upward pressure on the property prices" said Vinay Joshi, president, Rajasthan Affordable Housing Developers Association said to the media.

As of today close to 40% of the demand generated in the city for commodities such as property sites in Jaipur come from the end user or home buyers. Home buyers dictate the market to a large extend.  And that is probably one of the reasons why there has been such a disparity in the market in the current scenario.  Apartments for sale in Jaipur today have only a few takers due to the hesitation on the buyer’s part. However with the new government and the budget being announced, things are said to show threads of improvement.
 
"If not rising, housing prices have been stable in recent months. But to say that they have declined by 3.8% doesn't seem to be the case on the ground. Pipeline of developments still remains robust and there 500 projects including all segments and sizes are under various stages of planning and development in the city." said N K Gupta, chairman of Manglam group.
 
Next year is said to be a decider for most Tier I and Tier II cities real estate markets in India. With the purchasing power of the residents of the city improving with the improving economy, things are said to have a trickle down effects on various aspects of the economy and the market. With service sector like IT entering the Jaipur market, the demand for affordable homes and mid segments homes are said to rise. One has to wait and watch how the market responds to the recent developments.

Yamuna Expressway turns into an investor’s haven

Yamuna Expressway in the National Capital Region is one of the emerging investment options today. It has become the hub of real estate development since it became operational. The Expressway stretches along 165 km starting from Noida progressing to Greater Noida and Agra. The Yamuna Expressway crossing these two important cities of Noida and Greater Noida has certainly spurred the realty activity in the region. These two areas are well developed and the Expressway adds to the connectivity of the region and appreciating prices of property in Yamuna Expressway.

Areas in Noida are developed and today stands in the forefront of restrictive land availability. The land is becoming exclusive and private and builders have individuals have to pay a hefty price for own a land in Noida. 

As in the case of many developed areas, appreciation of property is dependent on its location and return on investment mostly come through rentals. But with the coming of property in Yamuna Expressway it has opened up many opportunities for individuals and builders to invest in the peripheries of the National Capital Region.

Major developers like Jaypee Builders have already announced projects along the expressway. They have been said to acquire huge plots in Yamuna Expressway for the same. The major attractions that brings investors to this area is the F1 track in the vicinity and its close proximity to one of the most revered tourist spot in the country, Agra. Major developments have been planned keeping in mind its strategic location. 

For now the expressway and the connectivity it provides is the only major infrastructure development in the area. With the successful operation of the opportunities provided by the Yamuna Expressway, government and the development authorities have charted out other major infrastructure projects to cover this region. Although this might take a few more years to come to life, for the ones investing in plots in Yamuna Expressway, this is good news. 

Your property is sure to appreciate by 30 to 50 percent if industry experts are to be believed. Another major attraction factor for the investor remains its close proximity to the developing regions like Greater Noida. There is a lot of real estate activity going on in these regions, which will further translate and expand to its neighbouring territories. Things are surely looking up for the Yamuna Expressway stretch.

Prices of multi storey apartments have remained stable over the over. Today one can buy an apartment for a reasonable cost here. Affordable housing projects also show good prospect in the region. Residential plots however have shown good demand with an appreciation of 30 to 40 percent in the past year. Plots can be considered an ideal investment choice in the region for the ones not looking to reside here. Rental values in the area for now are low and is said to pick up in the following years. The appreciation of rental and capital value will be a slow process and will show a significant change only in the next few years.

Author Bio:

Sulabha Kulkarni is a freelance writer and an avid blogger, following the real estate sector and property in noida closely for many years. Her areas of expertise are finance, apartments in chennai and real estate sector in India