There are some things that happen only in Mumbai and one such instance is match-box size apartments that come with a luxury apartment price tag. While this is not a new problem, recent developments have further fuelled the crisis.
Redevelopment projects, promising modern living spaces, are making properties pricier and driving a surge in rental costs. These recent changes in the property buying and renting landscape calls one to proceed with caution.
Redevelopment Boom, Rising Rentals
Before diving into the market, Chintan Vasani, partner at Wisebiz Developers, advises a thorough process to check documents.
The most striking impact of this redevelopment boom is on Mumbai's rental market. "Rentals have gone up by 40%," reveals Vasani, painting a clear picture of the cost crisis. This surge is directly linked to the volume of ongoing and impending projects.
"According to data, there are about 3,000 buildings that are already under re-development," he states, adding, "according to my knowledge, there are 6,000–7,000 buildings that are set to go into re-development."
"This translates to a figure of basically around 10,000 buildings undergoing construction and people looking to rent," he said.
This creates a very interesting 10-year cycle for Mumbaikars, he said. This phenomenon is largely unique to the city and a few pockets of Pune compared to other Tier I urban centres.
Checklist Before Buying Or Renting Property
Now, coming to the things to keep in mind while buying or renting properties, there is quite a long checklist.
"One of the first things to look out for is the chain document, which tracks the ownership right from the developer of the estate," he explains. Equally crucial is the encumbrance certificate, which confirms that the property is free of any legal dues or clarifies the liability.
"Finally, one needs to obtain a no objection letter from the society or the bank," he said. Vasani strongly recommends getting guidance. "It's always good to go through a lawyer and a chartered accountant as they can go into the details."
For those considering a home loan, the bank's sanction can serve as an informal green light. "A bank will run through checks and if they are sanctioning the loan, then that might signal that the ground is well set," he notes.
Beyond legalities, understanding the market's pulse is vital. "Before buying any property, one needs to understand how that market has grown in the last few months," Vasani said. This includes knowing the prevailing rates in a specific area and assessing the potential for redevelopment as well.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
