Is This the Right Time for NRIs to Buy Property in Mumbai?
- # buying property in India as NRIs
- # housing projects in Mumbai
- # property in mumbai
- # real estate in Mumbai
A city of mangroves and flamingos; a seaside metropolis steeped in commerce; a powerhouse of arts and culture: Mumbai’s eclectic appeal draws people from across the world. Among them are many NRIs (non-resident Indians) who aspire to own real estate in Mumbai. And if you’re one of them, there’s good news—Snapping up your dream house in Maximum City just got a lot easier.
Acquiring a home in Mumbai has traditionally been challenging due to the high prices and the lack of living spaces near the city’s business districts. However, things have been changing rapidly. Coming out of a pandemic, home prices in India’s financial capital are currently at tantalising levels. A citywide infrastructural makeover and a plethora of newly-launched upscale housing projects in Mumbai also enhance its appeal for NRIs sifting through residential projects in India.
Reasons to Make a Property Investment in Mumbai Right Now
Stamp Duty Relief:
To boost demand, the Maharashtra government has slashed stamp duty on residential property in Mumbai from 5% to 2% till December 31, 2020, and 3% from January-March 2021. This has contributed to a jump in home sales, as many hitherto-undecided buyers take advantage of this temporary rate relaxation.
The rupee’s devaluation over the years has made it easier for those buying property in India as NRIs. To illustrate, a US dollar which was worth ~Rs.63 in January 2018 is worth ~Rs.74 in December 2020. Given the premium prices commanded by housing projects in Mumbai, it makes good sense for NRIs to avail themselves of the current exchange rates and get greater value for every dollar spent.
Attractive Interest Rates:
With property sales dropping due to COVID-19, and to make the most of the ongoing festive season, banks are offering home loans at interest rates of around 7%—the cheapest rate in nearly 15 years! The resulting reduction in loan instalments will benefit both NRI and domestic buyers seeking to finance their home purchase.
Large developers are also sweetening the deal for buyers with flexible payment plans, complimentary perks (e.g. free parking), reimbursement of GST/stamp duty, and more. So, if you are an NRI scouting for a property for sale in India, make sure to research and compare the schemes offered by different developers in your target location.
Homecoming for NRI’s:
Many NRIs have returned to India after their employment contracts and/or visa status abroad were hit by the global slowdown. For such individuals, a property investment in Mumbai is a great idea. With an unparalleled economy, immense business and career opportunities, and world-class social amenities, Mumbai is one of the best options for those looking to (re)settle in India.
Housing projects in Mumbai will also get a boost with the completion of Metro transit projects in the near future. The Metro-2A and Metro-7 routes connecting Dahisar and Andheri should be operational in the next year. Metro-3, from Cuffe Parade to SEEPZ, is slated to be finished by June 2022. This will likely be followed by the launch of other routes, particularly Thane-Wadala and Vikhroli-Lokhandwala. Between them, these projects will revolutionise north-south and east-west connectivity in Mumbai.
Real estate in Mumbai has become steadily more affordable in recent years. A recent report by Knight Frank says that prices for luxury homes in Mumbai are set to stay flat in 2021, triggering a significant rise in demand. So, whether you’re moving to the city or just planning to make a property investment in Mumbai, this is a great time to buy that home in an upper-crust neighbourhood.
New Business Hubs:
The outward expansion of Mumbai has given rise to new business districts in Navi Mumbai and Thane. Swanky offices and small and large industrial units dot places like Airoli, Vashi, Ghansoli, Bhiwandi, Kalyan and Ghodbunder road. All these districts are superbly connected via rail and road to each other and the rest of the city. They are also located near affluent residential neighborhoods combining abundant space with amenities like pools, gyms, jogging parks etc. at affordable rates.
Upcoming International Airport:
Mumbai’s second international airport at Ulwe in Navi Mumbai is expected to commence operations in 2023. Once it opens, it will reduce the strain on the city’s lone international airport, boost regional and global connectivity, and also drive up demand for property in Mumbai—especially in the vicinity of Navi Mumbai.
With all these advantages, Mumbai is unquestionably a destination of choice for Indians around the world. And offering these buyers the ultimate ‘global living’ experience is Piramal Realty, which has four residential projects in the Mumbai Metropolitan Region. These world-class homes, located in some of the city’s most iconic spots, have been unlocked by Piramal with new schemes and never-before value for buyers. For NRIs seeking to invest in one of the world’s most exciting and vibrant housing markets, Mumbai has come calling at last.