10 Factors That Affect Property Rates In Mumbai

The property rates keep increasing; salary slips don’t. Owing to high rate of inflation and low returns on investments, owning a flat in Mumbai is unthinkable- not just by the middle-class, but also by the crème de la crème. However, the rich and the famous find their ways to push themselves higher on the lines of standard of living. The true sufferers are the middle class who have to make a tough choice between a car and a house but due to costly overheads have the affordability of a bike. Owning one’s own house is a necessity; owning a house in Mumbai is a dream.
Read on to know more about factors affecting property rates in Mumbai:
1)    Location: Well developed areas, closer to town side demand a higher rate per square foot; while areas moderately away from the heart are relatively cheaper. Time is money. The closer you are to the city, its charm and amenities, the more you’ll have to pay while the farther away you are, lesser is the price paid.
2)    Facilities: It’s not just the four walls and a roof overhead that we pay the price for. Amenities like better infrastructure, proper sewage system and drainage facilities, children’s park, swimming pool, gymnasium, etc. increase both, the price and the standard of living.
3)    Infrastructure: No one likes to live in isolation. Before purchasing a house, one of the most important factors considered is the infrastructural connectivity of the place. Better roads, flyovers, malls, etc. increase the price of a locality. It is the most important factor of improvement.
4)    Area: Houses that are surrounded by agricultural areas or areas of industries and manufacturing units are cheaper than those surrounded by shopping malls, hospitals and IT hubs.
5)    Demand and supply relationship: Higher the demand of the houses, the lesser is the supply. Lower the demand of the houses, the greater is the supply. This explains the inverse relations between the demand and supply of houses.
6)    Affordability: With an increasing standard of living, the affordability of people increases. This results in greater demands and hike in prices.
7)    Appreciation: Property rates are fast appreciating, especially in Mumbai. Mumbai is the fastest appreciating city in India, which results in exorbitant housing expenses and overheads.  
8)    Purchasing power: The amount of disposable income in hand is the key to the purchasing power of a person. It certainly determines the property rates in Mumbai.
9)    Customization: Many customers have their own demands- choice of verandah, modular kitchens, design, durability, layout, quality of paint, life cycle of the property, etc. such high-end customisations come at a price.
10)                       Home loan rates: High rate of interest charged by banks results in lesser buyers as not many would want to spend such a huge amount as interest. To encourage the buyers during such times, house rates start to deplete. Whereas, when the rate of interest of banks provided by banks is low, the number of buyers rises, which results in a hike in the price of the houses.