The Revival of Mumbai's Real Estate Market Post-Lockdown

Mumbai's real estate market has been one of the worst hit sectors due to the pandemic; however, there's now a promising revival on the horizon. Post-lockdown, Mumbai's real estate industry is set to benefit from a few key factors that will drive the market towards growth and sustainability.

For starters, the Indian government is taking measures to boost consumption and investment in real estate. In February 2021, the Reserve Bank of India announced that it would keep its benchmark rates unchanged, thereby keeping housing loan interest rates stable. This decision came as a relief to many homebuyers who couldn't afford homes due to higher interest rates.

Moreover, the government's recent announcement of a Union Budget, accompanied by a slew of measures aimed at boosting affordable housing, is another positive development. The budget allocated INR 54,581 crore ($7.5 billion) toward urban infrastructure projects in 2021-22. This would provide an impetus to the development of affordable housing projects in the city, which makes up the bulk of Mumbai's real estate market.

Additionally, the pandemic-induced lockdown has made people realize the importance of having a home that caters to their needs. Buyers are now prioritizing larger homes and are looking for properties suitable for future work-from-home scenarios. According to a recent report by PropTiger, property sales in Mumbai increased by 18% in the last quarter of 2020 due to the gradual easing of lockdown measures.

Another promising sign of the market turning around is that the unsold inventory is down from 103,000 units in March 2020 to around 84,000 units in December 2020. This declining inventory will create a balance between supply and demand, which will boost investor confidence in the industry.

Furthermore, Real estate developers are also offering various discounts and schemes to attract buyers. They have also changed the format of the payment schedule, where buyers can pay in installments, making the purchasing process more convenient. Besides these schemes, developers have also started offering personalized home options in various segments.

In conclusion, Mumbai's real estate industry is seemingly poised for growth and stability in the post-lockdown era. The Indian government's new policies and initiatives, along with an increasing demand for homes and a decline in unsold inventory, has made the industry optimistic for the future. With the developments mentioned above, the Mumbai real estate sector is likely to become a profitable and sustainable market in the coming years.