Real estate sector is one of the major contributors of Indian economy. India has a viable market for residential as well as commercial projects in real estate. According to a report by Jones Lang LaSalle (JLL), from 2006 to 2011, about US$ 2.7 billion has been invested in residential projects and US$ 2.4 billion to township projects. And when it comes to investing one’s money in real estate, Mumbai is the hottest place. Buying or renting a home in Mumbai is a dream for many. Mumbai, the financial capital of the country, has been the most favourite for industrialists as well as commoners. It is the trend setter in the indicative real estate prices of India. Mumbai tops the charts when it comes to prices of real estate property but investing in real estate gives high returns. According to a report, it has been estimated that there would be shortage of 26.53 million houses during the year 2007-12. This provides a big investment opportunity.
Bunglaw, Farm-house, Pent-house, Row-House, Duplex, Apartment-flat, Serviced apartments and chawls are the types of property in Mumbai. The most common is the apartment-flat. Mira Road, Vasai Road, Thane, Kalyan and Navi Mumbai are the areas which can give high returns. In western suburbs, 2-BHK, 1160 Sq. ft. apartment-flat at Mira Road will be around Rs. 64 lakhs. Apartment at reasonable rates are available in Virar(W) and Nalasopara. 1-BHK apartment-flat in Virar(W) will cost around Rs. 20 Lakhs while in Nalasopara it will cost around Rs. 17.46 Lakhs. While property rates in Central Suburbs will a bit high. A 2-BHK apartment-flat in Mulund (W) will cost about Rs. 1.13 cr. An apartment-flat, 2-3 BHK, 854-1773 Sq. ft in Ghatkopar (W) will be around Rs. 89.67 Lakhs- Rs. 1.86 Cr. South Mumbai is the costliest of all with 1-BHK flat of Rs. 1.9 Cr in Colaba. Last year, in a property exhibition in Navi Mumbai, nearly 5,000 flats were sold in just three days. 1- BHK apartment flat in Kharghar of Navi Mumbai area will cost around Rs. 36.68 Lakhs while in Vashi it will be around Rs. 31 Lakhs. A 10-15 yr old, partly furnished 3-BHK bunglaw in Bandra(W) will cost around Rs. 30 cr. A 4-BHK bunglaw in Kandivali(W) will be around Rs. 1.4 cr.
When you buy or rent a property, do not haste. Avoid three common errors:
- Paying too much
- Losing your dream home to another buyer
- Buying or renting a wrong home
Times Property Expo 2011, from 9th to 11th Dec. in Mumbai would be a good opportunity to explore the market in real estate. According to the Confederation of Real Estate Developers’ Associations of India, the affordable housing segment is expected to play a crucial role in the growth of the real estate sector in India in 2011.
Note: The information is collected through secondary research