Parel is one of the most preferred residential locations in South Mumbai and has seen many residential launches in the last decade. Considered one of the city's poshest regions, the neighbourhood around the Arabian Sea is a residential choice for high-profile and elite city people.
The locality was earlier known just for being an industrial hub. But over time, this place has seen an immense transformation. Parel has emerged as a prime real estate destination worthy of your investment. There are ample developed and under-construction options for you to invest in and reap long-term benefits in Parel.
Let’s glimpse some of the long-term benefits you will experience by investing in properties of Parel.
1. Get a Great ROI
The average price per sq. ft for flats in Lower Parel is around Rs. 32,000, which is approximately 2.5% higher than the average in 2022. Hence, offering a high rate of property price appreciation will eventually provide you with a surplus in the long run.
Therefore, if you are investing for a long term in real estate properties of Parel, you will eventually get returns in a very high percentile. A great range of properties is available in Parel, from luxury to premium to mid-segment and affordable types.
The price appreciation might differ depending on your property type, its facilities, the builder who built it and other such factors. If investment and seeking returns is your prime expectation in the long run, then this South Mumbai locality is what would help you reap more benefits.
2. An Optimal Cash Flow through the Rental Income
When you buy a property in an affluent neighbourhood such as Parel, you will also get a good monthly rental payout. Most property owners here own multiple flats in Lower Parel. One is where they stay, while the other is where they let out.
The average rental yield in Parel is around 2 to 4% for residential properties, whereas it is around 6 to 9% for commercial properties. If you are investing in a real estate property in Parel with the idea of setting up a retirement plan, then acquiring rental income, in the long run, will keep your cash flow streamlined.
Buying an office space rather than a residential property is better if you plan on investing in an appreciating property just to generate a passive income source.
3. Your Investment Money is Safe and Secured
Investing in real estate has always been safer than investing in stocks or crypto. And, when you plan on investing in properties in Parel, Mumbai, the security factors are enhanced by 100x. It is because Parel hasn’t witnessed a depreciation in its property prices for more than a decade. Hence, you can be assured that your invested money and profitable returns are safe.
But, the catch is you should invest in properties developed mainly by reputed builders. It becomes an essential consideration if you are investing in an under-construction property. Check their track record and reviews to learn more about them. Look at the price appreciations of flats in Lower Parel for their previous apartment buildings.
The real estate market is never going to drop down in Parel. So, if you have invested with reputed developers, your money is safe!
4. You will be Availing of the Tax Benefits
When you put your money in Parel real estate, you are liable for saving some of your taxes. If you took a home loan to buy the property, you could save up to Rs. 1.5 lakh of tax on the principal amount under Section 80C.
Following that, as per Section 24, there’s a provision for you to save an estimated Rs. 2 lakh worth of tax on the payable interest. Hence, by availing of such benefits, investing in a property or buying a home in Parel will become even more affordable. Moreover, the tax imposed on your income will also be reduced!
Conclusion
So, these are some long-term benefits you will eventually avail yourself of upon investing in flats in Lower Parel. Give time to assess a property's builder, society, facilities and amenities before you put your money into it. They are the contributing factors that help appreciate the value in the long term.
If you are up for investing in Parel, use Blox to find the best properties in the locality and get insight into their builders, facilities and other such aspects. A modern-tech platform to ease your investment and home-buying efforts.
Select the location, developer’s name, budget and property type to get a catalogue of all available options. Pick the one that suits your needs the best, and take the discussion further to make an investment! Hopefully, the above blog has helped you gain an insight into the real estate market of Parel.
