Buyers, sellers, and investors may be impacted by the trends and shifts in Mumbai’s real estate market, which is continuously changing. Many people are unsure of what Mumbai’s real estate market will look like in the future due to increasing costs and declining affordability. This piece will examine the market’s current state and what to anticipate in 2023.
We’ll discuss the most recent changes in the Mumbai real estate market, from the rising demand for affordable housing to the emergence of promising suburbs like Navi Mumbai. We’ll also examine how developers respond to shifting customer preferences and why some areas attract more home buyers.
There might be a lot of speculation that you have about the city’s real estate market with so much hustle and bustle going around and non-stop rising expenses in the city. Will there be a surge in real estate prices? How will the real estate market respond in light of the current economic situation?
According to the Knight Frank Affordability Index, affordability has decreased from 93% in 2010 to 53% in 2022, based on the percentage of a household’s income required to pay the monthly installment for a residence in a specific city. On the other hand, according to the report, an apartment’s average price rose by 3% in the second half of 2022. Trends in the real estate market change over time and from city to city. Over the past few years, several trends have been seen in Mumbai. Here are the real estate updates to watch in 2023, regardless of whether you intend to buy, sell, or stay put.
Higher Demand for Affordable Housing
Residential unit demand in Mumbai and the Mumbai Metropolitan Region is increasing for the second consecutive quarter of FY 22. Up to 20,000 new units were introduced throughout the region, with the price range between Rs. 60 lahks and Rs. 1 crore seeing the biggest demand. There is an increasing trend among people to settle outside the city’s limits due to their affordability.
According to one of the housing experts, a lack of resources is to blame for people moving to the suburbs. Homebuyers can no longer obtain loans as easily as they once could. Home loans are selectively given out, which directly impacts the investments that buyers can make.
Many people are becoming interested in Navi Mumbai as a result of the rising cost of real estate in Mumbai. Due to its rapidly expanding regions like Shilphata, Panvel, Taloja, and many others, investing in real estate in Navi Mumbai makes sense. It is not only more economical but also more lucrative. Therefore, you do not need to explore further if you’re wondering when the ideal time is to invest in Navi Mumbai real estate. It is happening!
Choice of Developers
Consumer demand is a tool that real estate developers use to assess their developments. Undoubtedly, affordable housing is a top preference among buyers, as evidenced by the growing attention developers are giving to this market. Compared to the luxury and premium market, affordable townships have a higher demand. Even those developers who still construct luxury projects have moved to Panvel and farther outside.
Advantages of Outer Suburbs
Surprisingly well-developed localities can be found in many Mumbai suburbs, despite the appearance that life there is difficult. They have experienced tremendous growth and development, particularly in the most recent years. Localities that were once overlooked by developers have become viable markets in demand. Localities like Thane, Powai, Andheri, Chembur, and Panvel enjoy excellent connectivity. The Sion Panvel Highway, the Western Expressway, and the Eastern Expressway are all nearby. The city’s strategic location makes it easy for the locals to access any area of Mumbai.
These areas are best positioned to meet the rising demand for homes without sacrificing clean air and lush surroundings. The new international airport and upcoming infrastructure improvements will boost Navi Mumbai’s growth even more. Many of this area’s high-rise towers and buildings have already been redeveloped.
Suburban areas like Powai and Andheri are already changing to become “premium pin code” destinations. Thane has been consistently rated as the most happening and promising real estate hotspot. Panvel is already on its way to becoming a major business destination soon. The Navi Mumbai International Airport, the Mumbai Trans-Harbour Link, the upcoming metro station, and the CSMT-Panvel fast-lane railway link all promise improved connectivity and convenience. A new RORO all-weather craft link will connect South Mumbai to Alibaug across the harbor. This will result in the establishment of a new business and cultural hub in South Mumbai, a minute’s drive from the suburbs. Hospitals, healthcare centers, educational institutions, malls, supermarkets, ATMs, banks, and restaurants are nearby.
All these advantages have naturally increased demand for homes here, and this trend has been slowly but steadily improving. Builders and developers are naturally drawn to these locations due to the high demand among home buyers. Excellent sales and re-launches directly reflect the demand.
Boosted Confidence in Home Buyers
The implementation of the Real Estate Regulation and Development (RERA) Act has altered the real estate market scenario. As a result of the Goods and Services Tax and the Insolvency and Bankruptcy Code have also provided the real estate sector with much-needed transparency and accountability. This has boosted the confidence of home buyers in Mumbai and the MMR. These regulations have made the protection of consumers and equity in real estate sales and purchases possible.
People are optimistic about the MMR’s future development. There are already a number of emerging business districts (EBDs) in this area. Panvel, in particular, is located in the Mumbai-Pune IT corridor. As a result, MNCs and businesses in the BFSI, IT, and ITES sectors are increasingly choosing Panvel as their ideal location for future offices. The existence of these businesses will inevitably improve employment prospects for thousands of job seekers.
Developers can provide a wide range of amenities as well as plenty of space and greenery in these areas because more land is available there. The abundance of features offered at reasonable prices delights homebuyers in turn. A few years ago, people could only dream of living the affluent lifestyles they can now experience.
Economic Growth Potential
Homebuyers conduct extensive research before making informed decisions in the real estate market. The best of everything is what people seek in a place to call home. Thane has undergone significant transformation and unheard-of growth in the last few years. Infrastructure expansion, connectivity, proximity to conveniences, and the surrounding environment all favor it. With a small investment, people can now enjoy benefits that are bound to double for the next generation.
Is this a good moment to make a real estate investment?
Yep. Real estate always has value, regardless of the market’s status. Buy land; they’re not making it anymore. The value of real estate is constantly increasing, despite not rising by the enormous percentages we saw in 2021 and 2022.
Mumbai’s real estate market is booming, and this trend will undoubtedly continue in the coming years. It is all set to develop in newer areas on the outskirts and provide residents with the same level of safety and standard of living. Thanks to the new regulations, people now trust and feel confident in fair deals. Affordable interiors and thoughtful amenities are being provided by developers. Mumbai’s real estate market currently offers a ton of potential for incredible growth and development, particularly in the suburbs. There has never been a better time for homebuyers to invest than right now!