Mumbai real estate is one of the most expensive in the world - it currently ranks 16th on Knight Frank’s Prime International Residential Index. This is understandable, given that property values rise consistently in Mumbai, in comparison to other cities in India. For instance, irrespective of slumps and recessions, a flat purchased in Andheri in 1990 will keep just ahead of inflation in terms of property value in 2000, 2010, 2020 and beyond. This is what makes it such a great investment.
Home ownership is where you begin to build wealth from, particularly if you didn't inherit one and don't expect to. Once you own your home, particularly one in Mumbai, your legacy is assured, as is your passive income (in the form of rent) should you choose to move out of the city or buy another dwelling home.
Mumbai's Real Estate Market is Overdue for an Upturn
Fortunately, there has never been a better time to buy property in Mumbai. Property prices are at an all-time low, home loan interest rates are accessible, and with all the protections MahaRERA offers, the option to buy under construction property has never been more tempting. As a general rule, under construction properties are usually priced 10-20% lower than other completed / Ready to move-in properties in the area. This can mean that most Mumbaikars can afford homes in localities that used to be out of their budget.
Home loans on under construction properties can turn out to be cheaper still, depending on how the loan is structured: many loans only charge interest on the amount disbursed to the builder. This means that even if your total home loan value is Rs 1Cr, but only 30% of that value has been disbursed, you're only paying interest on 30 Lakhs. Moreover, until you get possession of your house, you only have to pay the interet component of your housing loan, which is termed the Pre EMI Interest.
Another way that under construction properties help owners make the most of their investment is because of the appreciation in property values. An underestimated property in 2022, particularly in a good locality, will fetch a much higher price in 2026, when the owner gets possession. The developer’s reputation also plays a role in the perception of the property's value - the better the reputation of the developers, the more trust they inspire, the more demand for the property.
Analysis: Nahar's Amaryllis Towers and Plaza Project by Nahar Group
Amaryllis Towers & Plaza, for instance, makes for a great study. The Nahar Group is a well-respected brand, with a strong presence in Mumbai since 1973. The group has developed over 20 million square feet of prime real estate across Mumbai, Pune, Chennai and Rajasthan.
In Mumbai, one of Nahar's most recognisable projects is Nahar’s Amrit Shakti, an award-winning integrated township located in Chandivali, Andheri East, which houses over 4500 families, and boasts of state-of-the-art amenities, in addition to the reputed Nahar International School, Nahar Medical Centre, Nahar Business Centre, Club Nectarfield and several retail projects.
In Nahar Group’s latest offering - Amaryllis Towers & Plaza, one of the first ever ‘Convenient Homes’ projects, the group combines the two most important facets of their customers' lives: ready infrastructure and affordability. Situated in the central micro-market of Chandivali, and in close proximity to Powai and Saki Naka, home owners can avail ready infrastructure that surrounds the project: healthcare services, corporate parks, educational institutes, outdoor sporting facilities, fine dining restaurants, cafes, and supermarkets. The 3-wing residential project offers its residents abundant space in spacious 1BHK, 2BHK and 3BHK apartments in multiple floor plan configurations, as well as its own multi-sports court, a rooftop café, a gymnasium, and a host of open amenities. Green spaces make for dream homes: Amaryllis is located a stone’s throw away from the Nahar’s Amrit Shakti Udyan. Soon, residents can embark on relaxing nature walks as they find themselves in close proximity to the Nahar’s Amrit Shakti Udyan. The group has implemented the Miyawaki method for forest creation at Nahar’s Amrit Shakti Udyan as it will help improve the green cover and found this method to be more useful than parks and gardens. The soon to be opened 34,000sq.mt Nahar’s Amrit Shakti Udyan in the heart of the Chandivali, Mumbai will be by far one of the most unique and comforting urban forests that the city has experienced.
The location, with its existing ecosystem of health and educational facilities, residential projects, amenities and convenience stores, also offers significant advantages to small business owners. The frontage of the project accommodates over 20 duplex retail stores equipped with a double height glass facade within the complex and a dedicated shopping lane with more than 70 high street shops.
The newly launched project offers excellent connectivity to suburban Mumbai be it the Western Express Highway via JVLR, Andheri Railway Station, Ghatkopar Railway Station, Saki Naka Metro Station, the proposed Ram Baug Metro Station, CSMIA International Airport and even the Eastern Expressways.
The development offers home options which are competitively priced from Rs 1.09Cr*(All inclusive) only for peaceful living with uninterrupted urban views. What makes this really affordable, however, is the 25/75 Flexi plan, and the waiver of Stamp Duty and Registration charges. The Stamp Duty (6% of the property value for men, 5% for women) and registration (1% of property value) which immediately saves homeowners up to 7 Lakhs on a property valued at 1Cr. The Flexi plan translates into further savings as the owners only need to pay 25% at the time of booking. The rest is due in June 2026, when they get possession of their apartment.
Who Does It Work For?
With the recent hike in the repo rate, there has been a considerable increase in the home loan rates as well. Looking at this scenario, developers are offering a flexible payment plan which will help continue to keep homebuyers inclined towards under-construction homes, which made up for 80% of the home sales in 2021, as per a recent Proptiger report.
A flexible-payment plan is one of the most popular property payment plans. This payment scheme is a right blend of two payment modes - Down Payment Plan and Construction-Linked Plan. With a lump-sum payment at the beginning, the flexi-payment plan helps homebuyers save 5-6 percent of the total amount of the property. It also helps buyer to shell out less money upfront, than in a down payment plan.
While homebuyers prefer the flexi-payment mode over other available payment plans, its actual benefit depends on your requirements. If you have started paying under a plan, there is an option to switch to another one; however, it may come at a cost. So, evaluate your choices in the beginning and analyze the cost-break ups before zeroing-in on your property payment plan.
Conclusion
Real estate markets in Mumbai have historically been a good bet, and all market estimates say it is heading into another bullish cycle. As with all investments, the opportunities to 'buy low' are few and far between. As of this writing, the Mumbai real estate market is primed for good deals for buyers, particularly in the under construction segment. For those looking to own an aspirational home without breaking the bank, this is probably as good as it's going to get for the foreseeable future.
Maha RERA No P51800028801
Email id: sales@nahargroup.co.in
Location: Nahar's Amrit Shakti, Off Chandivali Farm Road, Jain Mandir Road, Opp. Nahar Business Center, Chandivali, Andheri East, Mumbai - 400 072
Call us: 7734 888 111
Website: https://amaryllis.nahargroup.co.in/
Moneycontrol journalists were not involved in the creation of the article
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