Mumbai Realty: Most Affordable Property Option Globally
Mumbai, home to some 24 million people, is among India’s most expensive real estate markets. Yet, owning a piece of realty in this property hotbed is becoming more affordable vis-à-vis similar realty hot spots.
Knight Frank’s latest report on ‘Urban Futures’ names Mumbai as one of the most affordable cities among its global peers. It said the annual household income in Mumbai grew 20.4 per cent during 2014-2018 while housing prices rose about 8 per cent, making houses more affordable.
The reason behind increased affordability is the reduced unit sizes and largely stable prices. It is estimated that on an average, newly-launched homes have become smaller by 25 per cent between 2014 and 2018. The maximum number of launches, especially in last two years, i.e. 2017 and 2018, have been in the affordable, mid-ranged segment with ticket prices not exceeding Rs 75 lakh.
“Despite having India’s most expensive real estate in comparison to its global peers, Mumbai remains more affordable. This should be viewed positively, as it indicates a further possibility of growth of Global and Indian organisations in the city, who are always looking at locations that are strategic and yet within the affordable range,” said ShishirBaijal, Chairman and Managing Director, Knight Frank India.
The rise in housing affordability can be linked to government initiatives such as the credit-linked subsidy scheme (CLSS) and Pradhan MantriAwasYojana (PMAY).