Has Demonetization Impacted the Sale of Property in Mumbai

Demonetization caused a major upheaval in the real estate market in India. Even though the primary sector or sale of fresh inventory has not been affected by this move, the major hit has been experienced in the resale market.

With this new move, sale of property in Mumbai had come to a halt. Enquiry for properties reduced to a great extent. Portals that received around 30 to 50 enquiries a day experienced a big drop. There were predictions that property rates will go down in areas like Santacruz, Bandra, Juhu and Khar. Even in areas like Napean Sea Road and Peddar road there were chances of rates coming down. As far as areas close to commercial hubs are concerned, not much of an impact was seen.

Many developers have dismissed the fact that demonetization has impacted sale of properties. According to them, this move will be having a short-term impact. It was also said that this new change will bring more foreign investors to the market. The most impact will be seen in the secondary, unorganized market. Banks will be flushed with money and this will reduce rate of interest. The GDP will eventually improve, boosting sales of properties.

According to the experts, demonetization will be having a domino effect and the real estate sector will not be able to escape the same. A significant number of developers are concerned about this change even if they are not dealing in cash.

When buying real estate in Mumbai, make sure you are choosing a reliable developer. If you don’t belong to the city, it is strictly recommended to seek help from a real estate agent in Mumbai. Seeking professional help will ensure that you are spending money only on a reliable project and not being scammed.

Trend for Luxury Property in Mumbai

Dynamics of Mumbai’s luxury housing has changed drastically in the last decade. Preference for luxury property in Mumbai has shifted as the CBD and Diamond Market has moved to Bandra Kurla Complex (BKC).

In the desire to be close to the Sea Link for quick access to BKC, people are spending big bucks on buying luxury flats in Worli. Corporate employees wanting to stay close to their offices are looking for properties in the Bandra-Khar-Santacruz belt. With the Diamond Market also moving to BKC, expensive flats are being bought by diamond traders who are shifting to these areas and to Worli for faster access to their shops.

Even the Andheri-Malad-Goregaon-Powai belt is witnessing an increase in demand for premium properties. This is because various Media, FMCG, SME and Pharma companies have shifted their headquarters to this area. Various film and television artists are also spending huge amounts on plush properties in this belt as they wish to live closer to the major studios. Proximity to the airport, Metro stations and highways are some of the key factors due to which the Andheri-Malad-Goregaon belt is seeing a tremendous growth in demand for luxury properties.

The ‘Affordable Luxury’ Trend for the Not-so-Rich Buyers

A new trend of ‘affordable luxury’ is also becoming popular. Developers are catering the not-so-rich with luxurious yet affordable 2 and 3 BHK flats in Mumbai. Suburbs such Goregaon, Vikhroli, Airoli, Malad, Bhandup and Ghodbunder Road in Thane are offering multiple choices in this category to buyers. Overall living standard and growth of these areas is high.

Many families living in South Mumbai who cannot spend much on buying a new expensive flat are opting for Wadala for affordable luxury options. Demand for Wadala properties has increased due to factors like the Eastern Freeway and Monorail.