Gulam Zia of Knight Frank India Discusses Mumbai’s Real Estate Shift towards Renting!
Throughout the past several years, there has been a change in tendencies in Mumbai’s real estate market. While demand for rental houses has surged, demand for home purchases has fallen. Experts like Gulam Zia of Knight Frank India have commented on the causes of this tendency, which is becoming more and more obvious.
The high cost of real estate in Mumbai is one of the main causes of this trend. Several purchasers have struggled to afford a house in the city as a result of the recent rise in property prices. However, it is now much more difficult for prospective purchasers to fund a house purchase due to the high-interest rates on mortgages.
The freedom that renting provides is another element influencing this tendency. Renting, as opposed to purchasing a home, enables people to move about without the hassle of property ownership. Younger generations, who want greater freedom and mobility in their lifestyles, find this to be particularly enticing.
Individuals are now comparing the costs and advantages of renting vs owning a house, and many are discovering that renting makes more sense for their present lifestyle and financial circumstances, according to Gulam Zia in an interview with the Economic Times.
Zia continued by pointing out that despite rising demand, there remains a shortage of rental homes on the market. Rents are increasing as a result, which might eventually cause a market slump. In Mumbai, the rental industry is still mostly unstructured, which makes it challenging for renters to obtain high-quality houses at fair costs, he added.
Notwithstanding these difficulties, the movement in Mumbai is being driven by some benefits of renting as opposed to owning. Renting gives people the freedom to move about with ease, which is crucial for those who are unsure of where they want to settle down. Also, renting lets people avoid the expense of buying a home, which may be especially useful during difficult economic times.
Renting also gives you access to nicer places and facilities than you would be able to afford as a buyer. Rents are becoming more reasonably priced, enabling people to live comfortably without financial strain while yet enjoying the same standard of living as if they had bought a home.
While renting appears to be on the rise in Mumbai, it’s crucial to remember that this does not always indicate that purchasing real estate is a terrible investment. Zia stated that purchasing a home is still a wise financial decision, especially for individuals seeking a long-term investment with steady profits.
In the end, a person’s lifestyle, financial condition, and long-term objectives determine whether they should rent or purchase a home in Mumbai. Renting could be a better choice for people who want freedom and mobility. Yet, purchasing a house can still be the preferable option for individuals seeking a long-term investment with steady profits.
In conclusion, several variables, such as the high cost of real estate and the freedom that renting offers, are responsible for Mumbai’s inclination towards renting rather than purchasing. Despite the possibility that this tendency could cause a market correction, it is crucial to remember that purchasing real estate can still be a wise investment for people seeking consistent profits. Eventually, a person’s situation and long-term objectives will determine whether they choose to rent or buy a home.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
