Resale of flat in Mumbai ensures your returns on investment
Resale of flat in Mumbai ensures your return on investment
Taking a look at what’s currently happening in the resale flat market might help with the decision making. Before selling off your old flat, you need to know whether it is the right time to sell or not. The resale property markets mainly depend on the new supply. If there is a short supply of new houses, the resale market in that region grows. Almost every part of Mumbai where availability of land is a concern, there are many areas where demand is high and new supply is poor or limited.
Due to limited supply in Mumbai, there are high risks that people looking for resale of the flat will get the right and attractive price. On the other hand, in areas where new supply is significantly high, the property seller should wait for the right time to get a good return on their investment.
There are hardly any pre-used flats or old flats available in a place like Napean Sea Road, Malabar Hill, Mahalaxmi, Bandra, and Juhu. As a result, property prices in these locations are very high and almost constant. Some other places like Bandra-Kurla Complex, Andheri, Powai, Santacruz, Vile Parle, Dahisar, Mira Road, parts of Thane and Navi Mumbai have also experienced higher property rates. These areas are witnessing a huge growth in commercial centers, recreational places, and infrastructure development. Owing to affordability and connectivity to major business hubs, the appreciation of prices remains constant. Most of the people are on the lookout for affordable housing options and these areas offer majorly to the sales volume of affordable flats.
If anyone is planning to resale their flat, first consider how old it is, location, new supply in the region, and return on investment among others. The age of the building should not negatively hit the price of the flat. People who owned a flat for more than a decade should definitely look at an exit and reinvest in some new project. But those who have bought their flats 5 years back, then the returns won’t be good enough as prices have remained stagnant for this period. If the owner of the property wanted to sell a flat urgently due to reasons like poor maintenance of the building, ineffective housing society, etc., then the owner of the property needs to make sure that he gets a return on investment of at least 10% for each year.
Recent judgments and benefits on resale properties:
In December 2018, the Bombay High Court ordered that stamp duty authorities can not seek stamp duty on past transactions for resold flat.
Maharashtra government allows resale of MHADA’s 5% quota flats.