Are you looking to purchase a home in Mumbai for ₹1 crore? Recognize how much you must set away

By Bricksnwall | 2024-12-28

Mumbai real estate news: According to experts, banks often finance the entire agreement value of a property purchase, and buyers are responsible for paying taxes out of pocket.

High-end deals involving residences costing ranging from ₹4 crore to more than ₹100 crore make news in Mumbai's real estate market, which is among the most expensive in the nation. That being said, most people can afford suburban homes that cost between ₹1 crore and ₹2 crore.

While Bandra, Worli, Lower Parel, Malabar Hill, Peddar Road, and Marine Drive are the most expensive neighborhoods in Mumbai, Dahisar, Borivali, Kandivali, Malad, Mulund, Bhandup, and Vikhroli are the most reasonably priced, with prices ranging from ₹20,000 to ₹35,000 per square foot.

In order to cover other costs related to buying a home, a buyer with a ₹1BHK budget wishing to purchase an apartment in Mumbai for ₹1 crore would want a corpus of at least 10% to 20% of the unit's total cost.

Experts estimate that, if banks finance the purchase, owners of a ₹1 crore property in Mumbai will need at least ₹10 to ₹20 lakh.

90% to 95% of the agreement value is often financed by banks as a home loan. Even 100% of the agreement value has, nevertheless, occasionally been paid out as a home loan.When buying a home, one must also account for additional expenses including stamp duty, registration fees, developer-imposed development charges, and GST if the project is still under construction.," said Sandeep Doshi, a real estate consultant in Mumbai's western suburbs that registers highest number of property registrations in Mumbai.

"The buyer must pay taxes out of pocket, and the bank frequently funds the agreed value of a home transaction.t. Therefore, purchasers will need an extra ₹10 to ₹20 lakh in cash to buy a one-bedroom property in Mumbai that costs ₹1 crore," Doshi continued.

Taxes that need to be paid at the time of purchase must be taken into account by homebuyers.

The current stamp duty slab in Maharashtra ranges from 5% to 7% of the entire agreement value. To buy a ₹1 crore apartment, a buyer may need to pay ₹5 lakh to ₹7 lakh in stamp duty. Women who purchase homes are eligible for a 1% stamp duty rebate from the government.

The ₹30,000 registration costs are another expense the buyer must take into account. At the time of purchase, buyers of homes in under-construction projects would also be required to pay 5% GST. GST is not charged at the time of purchase, but, if the project has an occupation certificate (OC) or if it is a secondary sale.

Mumbai property registration information

Knight Frank India, a real estate consulting business, estimates that approximately 80% of the 10,000 properties registered each month in the Mumbai real estate market are residential properties.

Approximately 75% to 80% of all properties registered in Mumbai fall into the ₹2 crore slab, with 10% to 15% of properties worth ₹2 crore to ₹5 crore and the remaining properties in the ₹5 crore bracket.

Source: Hindustan Times