New flats in Mumbai are on the rise after a prolonged lull, but it is unlikely that it will reclaim the dramatic rates of growth it saw in the middle of the previous decade. A big reason is the shift in the minds of young professionals. Many are deferring purchases and many others prefer to stay in rented apartments.
The reasons are many apartments are no longer affordable. And affordable ones tend to be far from places of work, and involvetedious commutes. Also, many youngsters are not sure whether their work will keep them in Mumbai for long. They worry their “asset might turn into a liability” so why buy flats in Mumbai.
“Young people are waiting more than before as the properties within their budget are in the fringes of the city from wherecommuting is a problem. They prefer to stay on rented flats in Mumbai, closer to their workplace,” MD of a housing firm says.
High costs, long commutes dampen property purchase home. Loan conditions have also become onerous for youths Manasi Shah, 35, is from Ahmedabad and works in Mumbai. She has been in Mumbai for five years, but still does not feel the need to buy a flat in Mumbai. “My father has been telling me to buy a house considering my steady job. I checked a few properties and figured out how to finance it, but it still does not feel right,” she says.
Owning a new flat in Mumbai does not figure in Manasi’s priority list. “Our work is such that I do not know which city I will end up in after a few years. If I buy one, I’ll feel bound to the city. I do not want this inflexibility,” she says.
There is also the commute issue. The 2BHK apartments in gated communities that Manasi liked were priced between Rs 65 lakhand Rs 85 lakh. “I will end up in some interiors, where there are no good roads or social infrastructure. I would rather pay some Rs 17,000 a month and stay right behind my office than shell out Rs 50,000 or more in EMIs,” she says.
A decade ago, it was difficult to find someone who was not looking to buy flats in Mumbai — even those who were fresh into thejob market. Any gathering would inevitably involve discussions about property. But those were days when Real Estate property in Mumbai was more affordable, loans were easy to obtain, traffic wasn’t so bad, and the income-tax rebate on housing loan interest
was a huge attraction.
But then came the global financial recession, jobs became uncertain, salary increments slowed down, and banks tightened loanconditions. Today, if you are buying a Rs 50-lakh house, a bank won’t finance more than 80% of it, which means you need to putin Rs 10 lakh from your pocket. Not easy for youngsters.
Mumbai recorded a year-on-year rental inflation of 18%, according to the study by property search portal NoBroker.com.Water supply has emerged on top of the list of priorities for tenants in Mumbai. The survey also pointed to very high security deposits in Mumbai. But as some wise old man said, owning a new flat in Mumbai is the dream investment you can make and youngsters better heed!
Visit: www.uniqueshanti.com where you can find 1 BHK flats developed by Unique Shanti Developers with flexible payments options.
The reasons are many apartments are no longer affordable. And affordable ones tend to be far from places of work, and involvetedious commutes. Also, many youngsters are not sure whether their work will keep them in Mumbai for long. They worry their “asset might turn into a liability” so why buy flats in Mumbai.
“Young people are waiting more than before as the properties within their budget are in the fringes of the city from wherecommuting is a problem. They prefer to stay on rented flats in Mumbai, closer to their workplace,” MD of a housing firm says.
High costs, long commutes dampen property purchase home. Loan conditions have also become onerous for youths Manasi Shah, 35, is from Ahmedabad and works in Mumbai. She has been in Mumbai for five years, but still does not feel the need to buy a flat in Mumbai. “My father has been telling me to buy a house considering my steady job. I checked a few properties and figured out how to finance it, but it still does not feel right,” she says.
Owning a new flat in Mumbai does not figure in Manasi’s priority list. “Our work is such that I do not know which city I will end up in after a few years. If I buy one, I’ll feel bound to the city. I do not want this inflexibility,” she says.
There is also the commute issue. The 2BHK apartments in gated communities that Manasi liked were priced between Rs 65 lakhand Rs 85 lakh. “I will end up in some interiors, where there are no good roads or social infrastructure. I would rather pay some Rs 17,000 a month and stay right behind my office than shell out Rs 50,000 or more in EMIs,” she says.
A decade ago, it was difficult to find someone who was not looking to buy flats in Mumbai — even those who were fresh into thejob market. Any gathering would inevitably involve discussions about property. But those were days when Real Estate property in Mumbai was more affordable, loans were easy to obtain, traffic wasn’t so bad, and the income-tax rebate on housing loan interest
was a huge attraction.
But then came the global financial recession, jobs became uncertain, salary increments slowed down, and banks tightened loanconditions. Today, if you are buying a Rs 50-lakh house, a bank won’t finance more than 80% of it, which means you need to putin Rs 10 lakh from your pocket. Not easy for youngsters.
Mumbai recorded a year-on-year rental inflation of 18%, according to the study by property search portal NoBroker.com.Water supply has emerged on top of the list of priorities for tenants in Mumbai. The survey also pointed to very high security deposits in Mumbai. But as some wise old man said, owning a new flat in Mumbai is the dream investment you can make and youngsters better heed!
Visit: www.uniqueshanti.com where you can find 1 BHK flats developed by Unique Shanti Developers with flexible payments options.
