Categorized | Real Estate

Booming Real Estate of Mumbai – Great Deals Offered By Builders

Builders around the world are always looking for the best opportunities. Mumbai builders have started to find that small homes are giving them the best opportunity to make money due to the want and demand by home buyers. This has changed in recent years, when high-rise apartment buildings were the most profitable, so how have things changed?

No Secure Job Market for the Cost of Apartments

The apartments in the city are expensive – often too expensive for the workers to afford. The job market still remains unsecure and people don’t want to risk a lot of money on something that they may not be able to afford in a couple of years time if they lose their job. This has led to the search for smaller, one-bedroom homes.

These small homes are perfect for single workers or a couple, especially those in retirement. There is no need for the extra space in most cases, and they allow for people to build up the equity to be able to buy something bigger in the future if they need to. The small homes are much cheaper to buy and maintain until the job market becomes more secure. People need something that they can afford right now instead of constantly thinking about the future.

Property Developers See Smaller Margins

The smaller properties are better for profits for the property developers. There are fewer overhead costs to create them, unlike the large apartment blocks. This helps to make more profits and the money can be spent on newer builds. While it isn’t possible to build as much in one space, the profits still work out in favour.

This is also beneficial for the landlords, who are looking for a buy to let. The real estate value of flats in Mumbai for rent is better than most other cities in India. They can make more profits since more people want one of these one-bedroom homes. The high demand has led to more income and the better ability to create a sustainable retirement pot.

There Will Always be This Demand

Even in the future, if the job market becomes more stable, there will always be the demand for these smaller homes. As current owners move on to bigger pastures, there will be younger, first-time buyers or retirees looking for something smaller that they can easily afford. There will also be landlords who want to create more profitable rental income.

There is no point in ignoring this market. However that doesn’t mean that they should ignore other markets available. Property developers need to be diverse and create something for everyone to help increase their profit margins.

Diversity is the key for anyone trying to make money. By focusing on one area only, there is more chance that the profits will dry up as the demand moves somewhere else. By being diverse and offering something for all, it may be slow in some areas at the time but this picks up later on while another market drops, making the income consistent throughout the changes.

 

This guest post was written by Albert martin, a landlord. He has created a large portfolio of properties for everyone at reasonable prices, including houses and flats in Mumbai for rent.

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