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For most of us, real estate has always been proven to be a sound investment and continues to be a secure avenue to invest for the future. With the rise in demand for homes especially due to the recent infrastructure development namely the Coastal Road, Worli Sewri elevated corridor and the upcoming metro stations in south Mumbai, the prices in prime locations such as the properties in Worli, Prabhadevi and Dadar has considerably risen.
South Mumbai, being well connected by road and rail, has always been a favoured location for its affluent neighbourhood, reputed schools and business districts. Most residents who had offices in south Mumbai, found it viable to live in rented homes around the business districts for lifestyle convenience. The pandemic has now changed the perspective, to finally go ahead and purchase a home for themselves. People have been looking up mainly in the residential properties in Worli & centrally located homes in Mumbai to avoid long distance commute as a precautionary measure keeping the pandemic in mind. Since public transport is no longer a viable as well as a safe option, employees and business communities across the board are looking for residential spaces which are closer to their workplace such as residential flats in Worli, Dadar and Lower Parel.
In the light of these developments, property prices continue to hold the fort and remain stable.
For those who are looking to invest in a property in south Mumbai, namely flats in Worli, it is the best time to invest. For those who are looking to invest in the property purely from financial point of view, it is the right time to invest. This deems true for the NRI community who wish to invest and reside in Mumbai, considering the depreciation of the Rupee to the Dollar as well as other prominent currencies.
Here are some important factors to consider while you decide to choose between renting or buying a property.
Investment backed by hard asset
With the uncertainties caused by the pandemic, the safety of living in one’s own home is a blessing since it provides security of a hard asset along with the assuring monthly cash flow.
Availability of home close to ready inventory
Homes that are close to ready are a viable option to invest since it eliminates the market risk and proves to be a secure choice.
The shrinking gap in interest rate and home loans
With the gap between interest rate on home loan and rental yield shrinking, the upfront cost (i.e. security deposit) and increase in rent in every 3 years (approx. 15 to 20%) irrespective of market condition will contribute to reduce the gap between the two even more subsequently making the price justifiable.
Low interest rate
With every elected government, the interest of the home buyers has always been on top priority. The policies are often designed to ease the burden faced by the consumers. This is witnessed in the form of tax breaks for EMIs and lowered taxes on long term as well as short term capital gains.
With fewer avenues for consumption and spending, as the world grapples with the aftermath of the COVID-19 pandemic, there is a pattern amongst consumers to spend less. This trend will help families to invest the surplus into their dream homes.
The pandemic made everyone realise that there is no place better than home where you spend maximum time. The home schooling, work from home and walk to work becoming significantly normal, individuals are considering upgrading their lifestyle by investing into residential properties in Worli such as the flats in Worli offered by Vraj Tiara, that have ease of commute as well as being well connected to daily essentials for their family’s comfort.
Finally, a plethora of experts have concluded that owning a family home is an assured way to ensure lifelong financial security. Since the markets can be uncertain in the short term, property values will increase over time.