Mumbai is the financial capital of India and nearly most of the Fortune 500 Companies and India's top Corporate Houses have a base here in some form or the other. With Real Estate prices becoming higher and reaching the highest peak point it may be difficult for a lot of people to buy property here.
For instance, if some one is looking to buy a house in Mumbai, and the approximate budget is say 1 CR and he is Salaried then the following are the financial needs.
Assuming he goes for a ready possession home, he has to pay.
> Around 30 Lacs Down Payment which includes 20% Down Payment, 5% Stamp Duty, 1% Vat, Rs.35000/- Registration and 3.09% Service Tax etc.
> Balance Rs.70 Lacs Loan will cost him approximately Rs.75,000/- as EMI per month.
Which typically means, the Individual or even considering a Business Man, Salaried Employee, even with a spouse working, must earn close to Rs.150,000/- per month to survive the next 10-20 years.
Owing to this the current market is reeling under pressure and also in coming times the lease rental market will grow at a healthy place. The current returns in the real estate market are around 3 to 5% depending on where your apartment is.
A few indicative capital values and the rents today :
1. Oberoi Splendor - Jogeshwari East - Capital value - Rs.2.50 to 2.75 CR - Rental Value - Rs.65,000 to Rs.80,000/-
2. Oberoi Springs - Andheri West - Capital Value - Rs.2.75 to Rs.3.25CR - Rental Value - Rs.75,000/- to Rs.100,000/-
3. Lodha Bellissimo - Parel - Capital value - 9 Cr + Rental Value - Rs.225,000/- to Rs.300,000/-
4. Raheja Vivarea - Mahalaxmi - Capital Value - 12 CR + Rental Value - Rs.300,000/- to Rs.375,000/-
It has also been witnessed that in the current market scenario the Exclusive properties are yielding a return of around 2% on the current market value, however, most investors or home buyers have bought the property at least 30 to 60% cheaper or more and hence the returns come to around 5 to 7% or even more in cases where apartments are done up well and given to Expats.
The moving ticket size is the 1 and 2 BHK Transactions in any suburb today, where in the rent values start from a mere Rs.7000/- going upto Rs.40,000/-
The lease markets over the years is poised to grow and Mumbai Residential Lease market will continue to see a robust growth.
Sandeep Sadh - CEO - Mumbai Property Exchange.com