Recently the daily tabloids were flooded with news that property rates may witness a significant fall. But reality is quite different. Mumbai’s property rates are still constant and won’t be seeing a decline anytime soon. Even the RBI Governor commented that if real estate developers lower the prices and clear the unsold stock, it will help the demand pick up in the market. Unfortunately, it is not that simple.
Let’s explore the reason why the property rates are still high
Though RBI Governor made a suggestion, the developers from around the country had already slashed their prices. However, it is sad that no one acknowledges the fact that any more cut down in rates would just hamper the economy and employment at large.
Instead, there should be a rate cut in the home loans if we are looking to make it easier for the buyers. It can be said that the responsibility doesn’t lie only on the developers. The government too needs to share the responsibility. They should rationalise taxes, ready reckoner rates and streamline the approval process to bring down property prices and provide relief to home buyers. This will be a huge help to ease the burden of EMIs. Developers need support from the government to successfully execute and complete its ambition of housing for all in 2022.
The government urgently needs to provide single window clearance and allow reputed developers to ramp up volumes. Once that happens, sufficient quantity of quality homes will translate into reasonable prices and ‘housing for all’ can become a reality.
Though the developers are being said to reduce the apartment sizes and still demand the same prices, on the other hand, they are not comprising on the kind of lifestyle their projects offer. According to a report released by real-estate consultancy JLL India on August 17, the Mumbai Metropolitan Region (MMR), which includes Mumbai, Thane and Navi Mumbai, witnessed a 26.4% fall in apartment sizes — the maximum in the country, before that of Bengaluru, Chennai and Kolkata.
Buyers today are opting for amenities in their residential complexes that can integrate their fast paced lives. Also, location is their first preference before buying a house. Hence, developers are coming up with projects that are situated in the prime locations, cutting down their travel time to work and amenities like clubhouse, gym, or crèche for kids so it would decrease their hassles.
Looking at all the factors, it doesn’t seem that property rates are going to witness a nosedive anytime soon.