According to studies conducted on the Mumbai real estate market in 2022, there is still a strong interest in purchasing a property, which is supported by job stability and financial resilience. In Mumbai, there is a rising demand for houses in both the mid-segment and the high-end segments of the housing market. The analysis is as follows:
The most recent increases in the repo rate can be expected to discourage purchasers from pursuing their goals of purchasing their dream houses. But the truth is far different from this. Despite the fact that interest rates have increased, purchasers are still looking for the greatest possible discounts on housing alternatives, according to the most recent trends that have emerged from the residential sales market in Mumbai.
Let us look at the major real estate updates in Mumbai and understand the many kinds of homes that are attracting the attention of potential purchasers.
The rise of residential real estate is being driven by a variety of factors, including rapid industrialization, large-scale employment in critical industries, an increasing number of nucleat families, and increasing urbanisation. The steady ascent of the Indian service class to the position of preeminent socioeconomic group, which accounts for a sizeable portion of the market share of primary homebuyers, has followed closely on the heels of these developments. According to the research, after the reforms and the Pandemic, 90% of the Indian housing market is now being driven by end-users. This is due to the fact that prices have been range-bound for a significant amount of time. While buyers from the service class account for 68 percent of pan-overall India's housing demand, purchasers from the business class and professionals account for almost 26 percent of the entire housing demand.
A shift for the better in residential real estate has come about as a result of stability in the employment market, the success of newly established businesses, and an increase in hiring.
These variables are giving the proper kind of encouragement for new buyers to take the plunge and purchase the house of their dreams. According to the statistics, important pan-India patterns in homebuying may be identified, and these trends suggest a preference for diverse groups depending on the price tag and the size of the house.
At the national level, the units that fall into the middle to upper-end price range are the ones that are most in demand, accounting for 79% of the overall demand. The market was led by the demand for 2-BHK units, which held a share of 38 percent, followed by 3-BHK units, which held a share of 26 percent, and 1-BHK units, which held a share of 13 percent. "There is a significant demand for residences in the mid-range and high-end price categories as a result of the urban expansion in the Mumbai Metropolitan Region (MMR) and the busy market activity in outlying places. According to Prasad Joovekar, chief business officer of a real estate company, "the desire for 2-BH-K flats is growing, accounting for 50 per cent of the demand."
As the epidemic progressed, worries about people's health in general turned the spotlight upon homeownership. With the passage of time, increased market dynamics and stable financial conditions in the commercial and service sectors established an environment that was favourable to purchasers. The study provides an insight of the price range preference that house buyers throughout India (including Mumbai) are selecting for depending on their financial appetite and affordability, and it does so by providing an overview of the price range preference.
Due to its status as the country's financial hub, Mumbai accurately represents the sentiment of the average purchaser. Statistics provide a different picture of the typical serious purchaser in the city, despite the fact that the city is notorious for having extraordinarily high property costs. Buyers in the middle- to high-tier price range in the Mumbai Metropolitan Region are mostly responsible for driving this demand.
Shreniik Tyagi, proprietor of a leading real estate development company in Mumbai, is of the opinion that the emerging micromarkets in MMR offer solutions that serve a range of socio-economic levels. This fact makes the area a desirable investment choice for people who are looking to either increase the value of their money or make it their permanent home. Kandivali, Chembur, the Wadala-Sewri corridor, Dahisar, Navi Mumbai, and Shahapur are some of the most notable rising micromarkets in the MMR.
As per Gorchand Raajput, a real estate agent in Mumbai 'These micro marketplaces have garnered a good bit of popularity among customers as a result of their affordability and return on investment (RoI) and the dream run phase of the Indian residential real estate market has arrived despite the shift in mood towards the purchase of homes." According to his opinion, "Since the fourth quarter of 2020, it has been functioning extremely well, and it is anticipated that it will be in growth mode for the next three to five years."
Because it affects the typical buyer's income levels and, as a result, home demand, the success of the larger economy will have a bigger consequence on the momentum of the real estate market for the balance of the year. According to the present state of affairs, with the RBI maintaining its current projection for GDP growth in FY23, industry professionals predict that residential demand would not be considerably affected in the year 2022.
The second half of 2022 has been a good one for the Mumbai real estate market and it is predicted that with the onset of the home buying season post monsoon, the home sales momentum will increase for the better. Most of the real estate developers in Mumbai and the real estate agents in Mumbai have got their ears to the ground and are working extra time to ensure that they the most of this Mumbai real estate run.
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