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Mumbai Lease markets to grow by 10-15%

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

About Sandeep Sadh

Mumbai Property Exchange is promoted by Mr.Sandeep Sadh who has been in the real estate business since the year 1993 and has an experience in transacting in Residential Lease & Sale, Commercial Lease & Sale. The experience of transacting and having a practical approach at work in each segments of real estate has given Mumbai Property Exchange an edge over its competition.

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