Declining Home Ownership: Why Fewer People Are Buying Homes in Mumbai

The traditional view of owning a home is not only financial but also emotional. Many people spend all their hard-earned money to make their dream of owning a home a reality and take home loans from banks. However, the latest reports indicate that people are losing interest in buying their own homes. There has been a notable decline in house sales in Mumbai compared to the previous year.

There has been a 25 percent decline in sales when compared to the number of houses sold in April-June last year. One of the main reasons for this decline is the concern that the international conflict situation will lead to an economic recession. However, experts in the field say that this is not the only problem.

Another observation is that people are hesitant to spend their entire savings on a house and pay EMIs throughout their lives. The real estate expenses in cities like Mumbai are significantly higher than in cities in Kerala. Those in the real estate sector expect that sales will increase following the Reserve Bank of India's reduction in the repo rate. Meanwhile, the number of people renting buildings is increasing significantly in Mumbai.

Rental rates in Mumbai have surged with the opening of Metro 3. Rents for residential complexes and office spaces have increased by up to 20 percent. The increase in rents is close to 30 percent compared to the figures from the last three years. It is estimated that this rate hike, which has started in Mumbai, will gradually spread to other metro cities.

The shift from buying to renting is also influenced by the changing lifestyle preferences of the younger generation. Many young professionals prefer the flexibility and lower financial burden of renting. This trend is expected to continue as economic uncertainties persist and the cost of living in major cities continues to rise.