Frequently Asked Questions
Your Mumbai Real Estate Guide
Property prices vary significantly across Mumbai. Prime locations like South Mumbai (Colaba, Nariman Point) range from ₹50,000-₹1,00,000 per sq ft. Bandra, Juhu command ₹30,000-₹60,000 per sq ft. Emerging areas like Powai, Thane range from ₹12,000-₹25,000 per sq ft. Prices fluctuate based on exact location, amenities, and market conditions.
Essential documents include:
- Sale Deed and Title Deed
- Approved building plans
- Occupancy Certificate (OC)
- No Objection Certificate (NOC) from society
- Property Tax receipts
- Encumbrance Certificate
- RERA registration certificate
- Buyer's ID, address proof, and PAN card
Conduct a thorough due diligence including title search, checking encumbrance certificate for 30 years, verifying approved plans with BMC, ensuring RERA registration, checking for any pending litigation, and confirming all taxes are paid. Always engage a qualified lawyer for legal verification.
Real Estate Regulatory Authority (RERA) is a regulatory body that ensures transparency and accountability in real estate. It mandates project registration, protects buyer deposits in escrow accounts, ensures timely delivery, provides grievance redressal, and standardizes carpet area calculations. All projects above 500 sq meters must be RERA registered.
Stamp duty in Maharashtra is 5% for men and 4% for women. Registration charges are 1% of property value. Additional charges include municipal taxes, society transfer fees, and legal charges. These rates may change, so confirm current rates before purchase.
Emerging investment hotspots include Navi Mumbai (good connectivity), Thane (affordable pricing), BKC (commercial hub), Powai (IT corridor), and areas along metro lines. Consider factors like infrastructure development, connectivity, future growth potential, and rental yields when choosing investment locations.
Carpet area is the actual usable area within walls. Built-up area includes carpet area plus walls and balcony. Super built-up area includes built-up area plus proportionate common areas like lobby, staircase, and amenities. RERA mandates pricing based on carpet area for transparency.
Apply with banks/NBFCs with documents like income proof, property papers, ID proofs. Banks offer up to 80-90% financing. Interest rates vary from 8-12%. Consider factors like processing fees, prepayment charges, and loan tenure. Compare offers from multiple lenders for the best deal.
Hidden costs include stamp duty, registration, legal fees, home loan processing charges, property insurance, maintenance deposits, utility connections, interior costs, GST on under-construction properties, parking charges, and society membership fees. Budget 8-12% of property value for these additional costs.
Under-construction offers lower prices, payment flexibility, and customization options but carries completion risk. Ready-to-move properties offer immediate possession, no construction delays, and clear legal status but cost more. Choose based on your timeline, risk tolerance, and budget.
Research the builder's track record, previous projects, delivery timelines, financial stability, RERA registrations, customer reviews, legal compliances, and awards. Visit their completed projects, speak with existing customers, and check with local authorities for any pending issues.
After agreement execution, pay stamp duty, visit sub-registrar office with all parties, submit required documents, verify identities, complete registration formalities, and obtain registered sale deed. The process typically takes 1-2 hours at the registration office.
Yes, NRIs can purchase residential and commercial properties in Mumbai under RBI guidelines. They need NRE/NRO accounts, cannot buy agricultural land, must report to RBI for transactions above $250,000, and can repatriate sale proceeds with proper documentation.
Tax implications include stamp duty (4-5%), TDS on purchase (1% if above ₹50 lakhs), property tax, capital gains tax on sale, income tax on rental income, and GST on under-construction properties (5-12%). Consult a CA for specific tax planning.
Rental yield = (Annual rental income / Property cost) × 100. Mumbai typically offers 2-4% gross rental yields. Consider maintenance costs, vacancy periods, and appreciation potential. Areas like Andheri, Powai, and Thane often provide better rental yields than South Mumbai.
Check structural quality, water supply, electrical fittings, ventilation, natural light, security systems, parking availability, society amenities, neighborhood infrastructure, noise levels, and compliance certificates. Consider hiring a professional inspector for technical evaluation.
Extremely important. Delays can cost EMIs without possession, rental expenses, and price escalation. RERA mandates penalty for delays. Check builder's track record, project status, approvals in place, and realistic timelines. Include penalty clauses in agreements for delays.
Floor Space Index (FSI) determines how much construction is allowed on a plot. Higher FSI allows more construction, potentially more units and amenities. Mumbai's FSI ranges from 1.33 to 4 depending on location. Higher FSI areas generally command premium prices due to better infrastructure.
Research market rates, check comparable properties, understand seller's urgency, negotiate beyond base price (include parking, amenities), consider total cost including hidden charges, and be prepared to walk away. Professional brokers can provide market insights and negotiation expertise.
Brokers offer market expertise, property screening, price negotiation, legal guidance, documentation support, time saving, access to exclusive listings, and post-purchase services. They can navigate complex processes and help avoid costly mistakes, especially for first-time buyers.
Visit the concerned BMC ward office, check online portal, verify building permissions, ensure construction matches approved plans, check for any violations or unauthorized modifications, and confirm occupancy certificate is issued. This prevents legal complications later.
Society NOC confirms no dues pending, approves the transfer, ensures membership eligibility, and allows access to amenities. Without NOC, you cannot get society membership, leading to issues with utilities, amenities, and future resale. It's mandatory for flat purchases.
Development plans impact infrastructure, FSI, zoning changes, and connectivity projects. Areas earmarked for metro, highways, or commercial development see price appreciation. The Draft Development Plan 2034 identifies growth corridors and can influence long-term investment decisions.
BMC mandates minimum parking requirements: 1 space per flat up to 40 sq m, 2 spaces for larger flats. Many buildings offer additional paid parking. Parking is often sold separately and can cost ₹8-25 lakhs in premium areas. Verify parking allocation before purchase.
For property disputes, approach consumer forums, RERA authority, civil courts, or mediation centers depending on the nature. Maintain all documentation, engage qualified lawyers, explore out-of-court settlements first, and understand the legal process and timelines involved.
Consider home insurance covering structure and contents, fire insurance (mandatory for home loans), natural disaster coverage, and public liability insurance. Given Mumbai's monsoons and urban risks, comprehensive coverage is advisable. Compare policies and exclusions carefully.
Total cost includes purchase price, registration charges, stamp duty, loan interest, maintenance charges, property tax, insurance, repairs, and opportunity cost of capital. Factor in appreciation and rental income if applicable. Use online calculators or consult financial advisors for accurate assessment.
Exit strategies include direct sale, rental income generation, property development, joint ventures, or converting to commercial use where permitted. Consider market timing, capital gains implications, and transaction costs. Mumbai's liquidity makes exit relatively easier than other cities.
COVID-19 led to temporary price corrections, increased demand for larger homes, preference for suburban locations, digital property searches, flexible payment terms, and renewed focus on health amenities. The market has shown resilience with recovery in sales volumes and prices stabilizing.
Major projects include Metro expansions, Coastal Road, Trans-Harbour Link, Bullet Train, airport expansions, and smart city initiatives. These will enhance connectivity, reduce travel times, and boost property values in connected areas. Eastern suburbs and Navi Mumbai are major beneficiaries.