How is the residential market of Mumbai?

The realty market of Mumbai is a very attractive one and has drawn the interest of both the property buyers and the investors. The market has been sluggish in the recent days due to over pricing of the properties. The commercial market is very active and so the residential market can never remain sluggish and the market is all set to come back on track soon.

There are several reasons for Mumbai being the favourite among the home buyers. The market is driven by both end users and investors equally. The increased investor activity is one of the prime factors which have strongly impacted the property prices. This has driven the prices to unrealistic heights. The realty segment of the market is one of the best options for investment as this offer good returns over the years. This has drawn the interests among the investors in the market. Non-Resident Indians (NRIs) are also major contributors to the growth of the residential market of the city. NRI investors prefer residential projects in Mumbai for a number of reasons. The prime localities of the Mumbai city offer high standards of living which moreover match the international standards. Though the suburbs lack the international standards, the prime micro markets enjoy the best of both physical and social infrastructure.

The suburbs of Mumbai are seeing decent numbers of project launches and this will add to the supply of the residential projects. Developers are seeing fewer takers for under construction projects in Mumbai majorly due to the delays faced. There are a decent number of projects coming up. Recently, Tata Housing Development Company and the prominent developer Neptune Group have entered into an agreement to develop a 10-acre residential project in Mumbai, more precisely in Bhandup, an eastern suburb of Mumbai. Another renowned builder, Ahuja Constructions are getting a fund of Rs. 25 crores from BlackSoil Realty Fund–I to develop a project in Sion (E). There are projects coming up in the suburbs rather than the prime localities.

Though the market remains sluggish, the market will soon be back on its track. The delay in the infrastructure developments is another factor which makes a negative impact on the realty segment. The prime areas are blessed with a good infrastructure and so the prices are far beyond the affordable range. Speeding up the stalled and delayed projects will help the micro markets located in and around.

The property buyers after a prolonged hold on the buying idea are making a comeback. It is observed that the housing registrations increased by 15% with 43, 608 units in the first seven months of 2015 compared to the same period in 2014. The combined effort by the government and the builders by lowering the interest rate and discounts from the builders, the sales are picking up.

People are looking for affordable properties and this is available only in the suburbs of Mumbai. For home buyers, the micro market with good connectivity should be preferred. It is advised to avoid new projects in Mumbai and for home buyers ready to occupy apartments are the best option.

Points to remember while choosing a Real Estate Broker

In India, a real estate agent is often referred to as a broker. The reason being, these real estate broker are not like the ones which you come across abroad. Here, they are just for setting up the deal and have no liability whatsoever about the property. However, in a market as busy and congested as Mumbai or any other urban metro in the country, Real Estate Brokers play a major role in pushing a property to a prospective buyer.

If you are familiar with a broker through any past references or a direct dealing, then you are in safe hands. However, if the broker you are dealing with walked up to you seeing an advertisement or is a person who has found you through contacts, you must be very careful. Here are a few points which you should look out for before trusting your property dealing or buying decisions based on their recommendations,

·         Experience matters! – As it is with most things that are associated with Real Estate, the experience of a broker too matters. If this is his first venture, the probability of him being taken for a ride by the other party is highly likely. Steer clear!

·         Double check contacts – If a real estate broker brings in a contact, do not go blindly by what he says! Check and double check the contact and the claims they make.

·         Check on previous clients – If the broker has introduced you to his / her past clients as a token of his experience, never hesitate to get a piece of advice from them.

·         Do your homework – No matter what the broker says about the buyer or the developer he is showcasing, do your own homework on the authenticity

·         Compare pricing – Do not ever go by the pricing which the broker claims to be the best or is the par rates of property in the locality. Always ask around and decide for yourself if you are getting the best deal

·         License – Though most property brokers in the country are not license to any governing body or organization, there is always no harm in asking them about it. If a broker is licensed to a governing body, he can be held answerable and hence could be more genuine. Some of the certifications available for Real Esate Agents are:

o   CRS – Certified Residential Specialist

o   ABR – Accredited Buyer’s Representative

o   SRES – Senior Real Estate Specialist

·         Tests – There is nothing wrong if you test the skills of a broker yourself. A good agent should have a thorough knowledge of the prices and trends in and around the locality.

·         Other Misc Points:

o   A real estate agent charges a percentage of the value of the property as commission for helping in closing the deal.

o   Never yield to pressure and close a deal. Take your own sweet time.

o   Avoid dealing with brokers who hold power, especially in high political positions.

o   Do not give anything in writing unless you are sure that it is going to work in your favor. Always get a legal opinion.

Kuldeep is a retired Navy Officer who follows politics to the tiniest specifics. He hailsfrom Mumbai and loves the street food there.