The Property market in Worli and Bandra is having a great clash. Bandra is known to be an expensive real estate market and with prices quoted @50000/- PSF to @100,000/- PSF on Pali Hill and Bandstand on Carpet Area basis it is even becoming tough for a Home Buyer to find a quality home with designer finishes or a Brand.
On the other hand, Worli and Lower Parel market quoted at say @45000/- for a good quality apartment on Carpet Area and going up to @70000 PSF gives you a great choice with a staggered payment plan.
Bandra – Khar the trend is more bullish with a smaller block to be ready in a couple of years and the payment pressure is typically on the buyer to part with nearly 50% odd in a few months of the initial booking.
Worli and Lower Parel are the emerging markets and with names like Trump Towers, World Towers, Omkar 1973, World Crest, One Avighna Park, Oberoi Oasis, India Bulls Skysuites, Sky Forests, HBS Realtors etc..the drift is seemingly more towards the New Launches.
With apartment blocks starting from 10 CR onwards, the Bandra or Worli market seems to have the Rich and Famous of the city. Connectivity to South Mumbai and Suburbs through the Bandra Worli Sea Link has thrown options open in the market.
With developers continuing to increase prices after every successful marketing campaigns, the market is looking pretty strong especially in Worli. Bandra on the other hand has a dearth of Land and redevelopment is the only option in Bandra and while it looks that the entire building is coming up, the truth remains that majority of the existing members come back to the Society and only the developer gets a few floors to sell to recover his margins.
It be interesting to see how things shape up in Worli and Lower Parel with tall towers coming up enriching the Skyline of Mumbai city…
The 20:80 Subvention Schemes are back in the market with a full force with Top Builders wanting traction in the Projects. It is a win win situation for all, but this time purely the consumer is the winner, if the Developer has not put the entire burden on the Client.
Till Mid 2013, the 20:80 subvention scheme meant that the Developers could get 80% of the Total Consideration Value of each flat sold funded in advance from the Bank and the developer would service the Pre-EMI till Possession or till the time he has opted for. The RBI put a stop to this, seeing irregularity and the risks involved if the Developer would take all the money upfront and leverage against other property funding etc.
The Home Buyers were at an absolute benefit in such schemes and since the time it stopped, the Mumbai Property Market saw less traction.
In December 2014, suddenly, we see an increased Traction in the Property Market owing to the New 20:70, 25:75 and 30:70 Schemes. The Banks who are funding these projects are working strictly as per the RBI Policies, where in they will give to the Developer funding which is Construction Linked. They will only be able to get funds from the Bank once they complete a slab and mostly Top Developers qualify for most of these schemes.
This is again very good for Home Buyers or Investors as by putting their own 20 to 30% amount they are not investing any more and then the rest of EMI starts at the time of Possession. At the time of Possession, one can close the loan and pay with own funding depending on each individuals needs.
Also, the Buyers Risk for delayed possession gets mitigated under such schemes.
As per an estimate there are currently 15-20 such schemes in the market. Please feel free to call us or mail us for more information.