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Homeownership in Mumbai: The buy vs rent debate demystified
Updated On: 31 March, 2024 08:20 AM IST | Mumbai | Aakanksha Ahire
For newly married couples, buying a house of their own in the city of dreams can be challenging, but experts say it is not impossible. Mid-day.com spoke to experts who explore ways in which young couples can build their sweet home in Mumbai
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Independent couples in their late 20s or 30s are increasingly leaning towards purchasing a house of their own rather than staying in a rented home. File Photo
The statement, ‘Mumbai is a city of dreams,’ has to be one of the most cliched yet true statements. People from far-off places come to this ‘Maya Nagri’ to make it big. What’s more, they settle here and never return to where they originally came from. While some bring along their family, some start building one here. Is it easy? Never. Is it possible? That depends on the kind of decisions one makes.
Mumbai is one of the most expensive cities in not just India, but the world. Hence, lucky are those who already own a property in the city that they call home. Popular opinion is that it takes a common man’s whole life to be able to afford to buy a house in Mumbai. Yet, couples, young and old, aspire to own a house here but many opt to stay in rented apartments instead.
“Mumbai is one of the most expensive cities in India, especially in terms of housing. With skyrocketing real estate prices and high rental rates, it poses significant challenges for residents. Today, independent couples in their late 20s or 30s are increasingly opting to stay in rented homes due to the exorbitant property prices in Mumbai and the flexibility that renting offers,” says Mahima Vacchharajani, chartered accountant and finance content creator.
On the contrary, Shivani Priyam Patel, director, Assotech Group (real estate builders and developers) says, “Newly married couples in Mumbai face a significant decision-making challenge regarding whether to buy a house or continue renting. While the answer depends on various factors such as financial stability, long-term plans, and personal preferences, I believe that both options have their merits. Purchasing a house provides stability and the opportunity for long-term investment while renting offers flexibility and freedom from maintenance responsibilities.”
She adds, “Based on my observation, independent couples in their late 20s or 30s are increasingly leaning towards purchasing a house of their own rather than staying in a rented home. This shift in preference can be attributed to several factors, including the desire for long-term stability, investment opportunities, and the availability of affordable housing finance options. Additionally, owning a home provides a sense of pride and security, which appeals to many young couples as they plan for their future together.”
Also Read: Renting in Mumbai? Your guide to budget-friendly home decor
Amidst figuring out a definite and stable career path and trying to work towards a secure future with their partner, newly married or soon-to-be married couples often find themselves in a pickle. Midday.com sat down with Vacchharajani and Patel to help you and your partner navigate the right path towards housing in Mumbai.
Cost of renting and buying a house in Mumbai
The cost of living in Mumbai is a primary concern for many envisioning life in India’s bustling city of dreams. Patel tells us, “A 1-BHK rental property in Mumbai can cost you in the range of Rs 25,000-2.5 lakh per month. In case you plan to purchase a property, Mumbai is one of the most expensive cities in India, with prices in core areas starting from around Rs 1.5 crore for a 1-BHK apartment measuring 350-400 sq ft.”
The real estate market in Mumbai is characterised by high demand and limited supply, driving property prices to exorbitant levels. Recent statistics consistently place Mumbai among the top cities globally in terms of property prices per square foot. Additionally, the overall cost of living in Mumbai, inclusive of housing expenses, surpasses that of many other cities in India, presenting a formidable challenge for numerous residents.
Determining factors to buy or rent
Whether to stay in a rented house or to directly purchase a flat is a personal decision and depends on the cumulative income of the couple, financial backing from the family, job security and other such factors.
However, according to Vacchharajani, “It`s advisable for soon-to-be-married couples in Mumbai to initially stay in rented homes to assess their financial situation, career stability, and long-term goals before committing to a property purchase. Individuals or couples with stable incomes, long-term residency plans, and a desire for property ownership should consider purchasing property in Mumbai.”
Sharing her piece of advice, Patel states, “It can be wise for soon-to-be-married couples with a decent or good enough salary to consider purchasing a house in Mumbai. Owning a home offers numerous advantages, including long-term financial stability, potential appreciation in property value, and the freedom to customise and personalise living spaces according to one`s preferences. Moreover, with the availability of various home loan options and favourable interest rates, coupled with the emotional significance of homeownership, investing in a property can be a prudent decision for such couples.”
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