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 someone is looking to buy a house in Mumbai, and the approximate budget is said 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.
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/-
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 up to Rs.40,000/-
The lease markets over the years are poised to grow and Mumbai Residential Lease market will continue to see a robust growth.
Sandeep Sadh – CEO – Mumbai Property Exchange.com