Investment Advice: Is It The Right Time To Invest In Mumbai?

Several media reports have recently claimed that the uber-famous Mumbai real estate market is headed for a crash, what with the rise of property prices and a sharp increase in the number of builders’ inventories.

But despite all the sluggish growth prospects, Mumbai, the economic capital of India still remains one of the hottest real estate investment destinations in India. Read on to know if investing in the ever-so-expensive Mumbai real estate is the right decision for you at present.

The Market is Expected to Grow

Yes. The Mumbai realty market is expected to grow as buyers’ sentiments seems to have been on the rise over the last few months. In fact the data revealed by the Inspector General of Registrations has suggested a market growth of 15% over the last few months of the current financial year, a massive growth when compared to the same period last year.

But don’t be surprised by the developments because it isn’t the government that has spurred the growth, the catalyst lies elsewhere. In actuality, the state government has done very little to reignite the business and turn the trend. The main reason for the upswing in the market, however, are the consumers.

You heard it right. It is the consumers. But how did this happen?

Well, for starters all the prospective investors who were waiting for ‘better times ’ and anticipating a price correction, have now realised that no such step is ever going to be taken. This is why investors have decided to buy property in India when the prices are still at their reach, rather than risk the prices reaching even dearer heights. One can safely say that investors have concluded that the better time to invest money is the present as the future remains rather uncertain with the prices still increasing slowly.

So, keeping this in mind, it would be the right time for you to invest in a property in Mumbai, which come with some limited period offers.

RBI’s Interest Rate Cut

Back in September, RBI Governor Raghuram Rajan took an unprecedented step. In that, he cut the base rate on loans by 50 basis points (bps). Following this move several banks too reduced their lending rates by up to 30-40 bps. Take for instance the case of State Bank Of India. The nationalized entity cut down the rates by 40 bps, which brought their rates from an effective 9.75% to 9.35%. ICICI Bank, on the other hand, reduced its rates by 35 bps from 9.9% to 9.55%.

However, these rates are not what they seem because the aforementioned rates only apply for existing customers while new loanees will have to shell out 10-20% bps more on interests.

Even though the banks have begun to take advantage of the latest RBI directive, the reduction of interest rates come as a welcome move for most of the aspiring, middle-class families who are dreaming about owning a house in metropolitan cities like Mumbai and others.

The interest rate cut is yet another factor which suggests that if you are planning to invest in Mumbai, you must probably go ahead with it.

To sum it up, the volatility of the Indian market always remains more or less the same, but between these volatile periods come brief moments of respite, which you can make the best of by investing in a property.

from http://monalisaofblogging.com/investment-advice-is-it-the-right-time-to-invest-in-mumbai