The real estate in India is slowly picking up pace and id getting better month-by-month. Though not yet on the pre-Covid levels, nevertheless, it is better than what it was at the start of the Covid-19 pandemic in India and the world. As per reports, the property registration collections in the financial capital of India, Mumbai, stood at 242 crores in July. It was Rs 470 crores in February before the start of the countrywide lockdown. It slipped to 169 crores in June. Also, the site visits are converting into purchase decisions. It is clearly visible that the real estate sector in on the path to its recovery.
Reasons why investing in a real estate in Mumbai now is a good option-
The lockdown restrictions are easing and the booking and registration offices have started to function normally. This will help in easy transactions without having to wait for too long for the documentation and registration processes. Also, the site tours from real estate agents have resumed instead of the virtual ones with safety precautions in place.
Many real estate developers are offering discounts or incentives in the form of zero stamp duty costs and likewise. Since this is mainly to lure customers, it is better that the prospective house-seekers take full advantage of this that may help save them money and get better deals at discounted rates.
In the backdrop of the pandemic, the house property rates, stamp duty rates and all other important real estate dynamics have remained unchanged. The government has kept the determiner rate change decisions pending and this is proving to be a benefit to customers in selecting good bargain flats in Mumbai.
For people looking to upgrade their homes, it is the best time now since builders are offering sweet deals for homes that will be ready within 6 months to a year.
Also, for people living on rent and who are keen to purchase a home, this is the time to have a house of their own, if they are able to arrange for the down payment. In fact, many have gone ahead with some changes in their plans and have opted for 1 BHK flat in Mumbai instead of 2 BHK thinking about the financial stability during this crisis, but nevertheless have opted to buy a home due to the lucrative offers.
Tips to buy a flat in Mumbai during Covid-19 pandemic
Do not opt for under-construction flats from less-reputed or struggling builders- A considerable amount of inventory remains unsold. This means that projects from small builders may get stalled if they cannot arrange for proper financing. So, even if the projects that are under-construction from less-reputed builders may have good offers and discounts, we would advise you to stay far from them, lest you lose your entire money later.
Try to purchase move-in houses- Given the tough times, it is a no-brainer that most of the inventory is the under-construction houses. With no steady supply of raw materials, shortage of labourers and cautious consumers, it is better that the home buyers opt for homes that are ready for possession.
Book under-construction houses of reputed builders- The under-construction houses may come cheaper than the ready-to-move houses and also, the consumers get time to pay the money in installments. The builders who have been in the real-estate business for long know how to weather the storm and come out of it without halting projects. Before consumers book an under-construction house, it is better to study the reputation of the builder in the market, their past, current & future projects, their financial status and so on. Also, the government has approved the last-mile funding for some projects so that they can be completed. Always buy under-construction homes from reputed builders and if you are confused about it, you can always seek advice from any good real estate agent in Mumbai.
Do I buy a flat in Mumbai now or wait for prices to go down?
If you are worried about the question “Should I book a flat in Mumbai now or wait for the prices to still fall?”, we would suggest that this is the best time to buy a flat in Mumbai since the prices have bottomed out and the coming days would see a renewed interest in buying after the lockdown easing.
If you want to buy a house in the luxury segment, there is a possibility that the prices may drop further since people would be cautious about flexible spending.
The mid-level projects have already suffered setbacks and price drops. In this segment, the home buyers can seek some discounts but a further drastic price drop is not expected. The new projects may not be announced for some time until the real estate market picks up again.
The low-income projects are seeing increased traction after the lockdown easing. The remaining inventory may get sold without any difficulty at this level. Also, there may not be any further price drop since the demand will balance the supply in the coming months.
It is a golden opportunity for those wanting to move from a rented option to their own home or those wanting to invest in real estate. The real estate market has hit rock bottom and is offering incentives to home seekers. There are many reputed real estate agencies in Mumbai guiding the home-seekers and offering them advice on the best homes based on their budget and requirements.
If you are looking for an option to buy a flat in Mumbai, ask yourself a question- If not now, then when?