Mumbai lease market is set to gain the maximum traction in 2019.
There are various factors which will influence the traction.
Mumbai city due to the Metro work going on is causing disruptions in the lives of office goers. The easy thing what senior management and people who can make the move are doing is to lease their current homes and lease homes closer to their offices depending on their personal needs.
Due to GST on Under Construction projects of around 12% earlier and now 5%, a lot of under construction buildings which are likely to get ready by 2019 – 2021 may not see a huge sale and people may opt for waiting for a year or two and waiting for the occupation certificate and go for ready Possession purchase and in the interim stay on Leave and License basis.
The growing economy and stock market doing well gives disposable incomes to people and we are continuously seeing a trend when young couples are wanting to lease 1 or 2 BHK apartments in suburbs or around CBD’s.
As India has opened up FDI in various sectors and recently also in the Real Estate sector we anticipate a lot of relocation from matured economies to India to set up various real estate related Investments, funds, student housing, mass housing projects and going forward to help build the smart cities.
Mumbai as a city is now staring at 4th generation who is young and aspiring and this aspirational sector which is equally flamboyant wants to enjoy luxury of staying in newer complexes with amenities which may be far flung in a location but offers a lifestyle compared to his older home which may be a older 50 year Plus building with limited amenities etc.
People who are not able to sell their homes are opting to also lease their flats for the interim period and moving on to other parts of the city on lease themselves.
Apart from this there are a lot of other factors like ease of moving, buy vs rent, short term or long term decisions will continue to drive the lease Rent market in Mumbai.