Mumbai has seen a huge population growth in the past few decades. Many people from all over the country have migrated to Mumbai for various reasons. Some have migrated for studies, whereas others have migrated for job opportunities, which has left Mumbai over-populated. Due to high demand, residential property in Mumbai has reached sky-high prices. The prices of realty have gone so high that the average price of flats in Mumbai starts from INR 60 to INR 75 lakh.
Affordable Houses in Mumbai:
The houses in Mumbai can be described as luxurious which have amenities like Jacuzzis, golf courses, parks, etc. However, these luxurious houses are expensive and are not easily affordable for most people. This has caused the natives of Mumbai to move to other parts of the city where they can buy houses at affordable rates. But finally, the builders have planned to make modest apartments within Mumbai which will be affordable for people with a smaller budget.
These houses will come under the segment of affordable housing in Mumbai and will be in the range of INR 30 lakh. After learning about the tax exemptions on the segment, the builders have already started investing in the affordable housing segment in this year.
Also, the banks have started providing home loans at a cheaper rate. According to the financial institutions, the home loan applications rose to 21 percent in the month of January, whereas the month of March saw more than 44 percent rise than the previous month.
How Government’s Schemes can be used to buy a House in Mumbai:
The housing finance companies are expecting the affordable housing segment to grow at 25 percent under the Pradhan Mantri Awas Yojana. The scheme provides INR 9 lakh subsidy for people who earn up to 12 lakh a year and provides INR 12 lakh subsidy for people earning up to INR 18 lakh per year.
One of the most popular realtors in India, Niranjan Hiranandani, claims that his sales in Thane project for flats below 600 sq. ft. have been a remarkable success. According to him, the surge is expected to increase when new projects start hitting the market with people gaining tax benefits on their property purchases. The companies are providing finance to the housing units which have the price below INR 12 lakh.
There are many housing finance companies which are offering loans to the applicants who were not getting loans before. Earlier, credit evaluation was carried out by examining the documents, salary slips, and Income Tax returns, whereas, the credit firms now provide loans to the people who even have other ways of earning like, daily wages or freelancing. Hence, the housing finance companies use a different method and mechanism for people like these.
The real estate market in Mumbai is on a slow but a progressive speed. People are trying to buy homes in the affordable housing segment which offer houses at a lower rate. As the lenders are offering loans with attractive offers on the flats for sale in Mumbai under this scheme, it is the opportune moment for investment in property. You can apply for a home loan and get your loan processed along with the various government schemes which can help you repay the loan easily.