Mumbai has always been the trendsetter across different areas, be it glamour and entertainment or finance and real estate. Being the richest city, it is the costliest in the country popularly known as ‘Manhattan of India’. Real estate in Mumbai has been expanding rapidly and the prices fuelling up every quarter. It seems to an evergreen investment destination for realty investors as development never stops and prices never fall.
There have been some uncertainties in Indian real estate market with some people saying that this boom is rather jacked up. Though, it’s clear that this isn’t some bubble waiting to burst, some investors are still following the ‘wait and watch’ policy. This is especially thought for expensive real estate markets like that of Mumbai and Delhi as prices are constantly spiraling up. Property in Mumbai keeps going out of reach for middle class with time as property values are getting nearly doubled every year. There are various new projects coming up across the entire spectrum- residential, commercial and retail- by the leading developers of the country. Besides launching construction projects, many are working on slum redevelopment schemes to propel Mumbai property market. The constant growth in demand for property is another key reason for skyrocketing prices as the gap between demand and supply keeps widening relentlessly.
According to a real estate index released by a property portal, Mumbai realty has seen highest price escalation in India last year. The property rates in Delhi and other upcoming residential hubs like Hyderabad and Bangalore rose from 2 to 10% whereas Mumbai property witnessed a colossal hike of nearly 25%. Due to the slowdown, developers came forward with affordable housing projects but the shortage of supply has pushed them to the category of premium values. This trend is likely to be continued in coming times due to various reasons like the steady expansion of suburbs around Mumbai, perpetually growing demand, lowered home loan interest rates, etc. It has, in fact, been a common trend in metropolises as well as the newly formed property destinations that when a city gets flooded with new properties, the focus moves to surrounding areas along with launch of new schemes and offers to encourage real estate buying. Property in Mumbai is currently going through a flourishing phase, not new to the city, as its peripheral areas witness a spurt in realty developments.
Mumbai real estate is in huge demand as it caters to all the classes from top notch industrialists and Bollywood biggies (luxurious or premium housing) to middle income group and salaried class (affordable or cost effective housing) to the slum dwellers (in form of their rehabilitation and redevelopment). This is one of the primary reasons why even when its realty segment witnesses such large scale construction activities, the supply always falls short. Now, when its peripheral areas are developing, the realty industry is expanding by leaps and bounds. Some of the popular projects of apartment in Mumbai are Lodha Bellissimo, Ashok Towers and Raheja Vivaria among others. The prices here have been increasing post the exit of slowdown which has now become a prevalent trend across India real estate sector.
According to Jones Lang LaSalle Meghraj (JLLM), housing in Mumbai is set to become more expensive in coming times as investment sentiment has started growing. The supply of property across the entire residential segment (luxury and affordable) has increased with developers focusing more on housing in wake of the constantly multiplying demand. Apparently, commercial and retail realty is also flourishing along with residential property in Mumbai. With property prices soaring high, Mumbai real estate comes across as a trendsetter for other metros.
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