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Mortgage Rates post Demonitisation – Mumbai Commercial Property

Mumbai commercial property for sale will surely find support from lower mortgage rates, but don’t hold your breath – it will take quite some time per our forecast.

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Mortgage Rates post Demonitisation – Mumbai Commercial Property

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  1. Mortgage Rates post Demonitisation – Mumbai Commercial Property Team Jagaha

  2. Mumbai commercial property for sale will surely find support from lower mortgage rates, but don’t hold your breath – it will take quite some time per our forecast. The RBI kept rates unchanged yesterday surprising most where the majority believed there would be a 25 basis point (bps) cut and even some thought there would be a 50 bps cut. This doesn’t help short term, but have no fear, rates will surely be cut in the next RBI meeting or two which will only lead to mortgage rates coming off.

  3. Since December 5th, INR 11.8 trillion worth of old 500 and 1000 notes have been returned to the banking system. What does this mean for those looking for Mumbai commercial property for sale? In short, there is an ample amount of money back in the banking system where banks will have to lend this money out and will be in competition with each other which will lead to mortgage rates for commercial real estate in Mumbai & all of India for that matter to come off (and of course for residential mortgage rates as well) from the current mortgage rate of about 9% to our projections of below 7.5% in 2017 and below 7% in 2018. Needless to say, for mortgage rates to get to below 7% there can’t be a massive unexpected uptick in inflation. It’s always hard to forecast that far in the future… Oil prices? Monsoon? Fed tightening Global macro situation?

  4. However, we recommend focusing on timing when to buy your Mumbai commercial office space for sale or your Mumbai commercial shop for sale rather than timing when the bottom of mortgage rates will be! As per our last article, the bulk of analysts believe property prices will come off around 30% in the coming year in the re-sale market on the back of demonitisation – we agree (but we view prices in the primary market to come off as well, far more than most analysts believe). With that said, if you are looking for Mumbai commercial property for sale, it is far better to buy at a 30% discount to current rates rather than improving your mortgage rates by 1 to 2%! We recommend starting the process of buying Mumbai commercial real estate sooner than later, learn, get to know the market – it is a buyers market and will be for the foreseeable future where buyers should be able to buy excellent Mumbai commercial properties for sale at more reasonable prices.

  5. THANK YOU, JAGAHA.COM

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