Mumbai with a population of more than 19 million people is one of the biggest cities in India. It is also called ‘Fashion Capital of India’ as it has a home of film fraternity called Bollywood. Mumbai is also India’s major financial capital city because many important financial institutions like Bombay Stock Exchange, the National Stock Exchange and Reserve Bank of India have their roots here. People from various corners of the country come to Mumbai to fulfill their dreams of getting good job, pursuing professional courses, becoming an actor etc. Therefore, residential property in Mumbai is always in demand in the city.
The property prices vary from location to location in the city. The property rates at Bandra (E) is Rs.15, 000 per sq ft; Rs.12, 000 sq ft at Andheri (E), Rs.4, 000 at Borivilli etc. If one can’t afford buying or investing in a property at the heart of the city, Navi Mumbai and urban belt could be the best options as prices here are quite affordable. Prices in these areas range between Rs.4, 000 to Rs.5000 per sq ft and realtors predict that in future prices will rise more. Also, extension of Sion-Pannel highway connecting Vaishi, Matunga and Dadar reducing commuting time, approval of Navi Mumbai Airport by Ministry of civil Aviation, IT space of two million being occupied by MNCs, expansion plans of Jawhar-lal-nehru trust increasing warehouse and wholesale activities thus boasting trading etc, are some factors which can drive buyers and realtors to invest in the property in this city.
With the increase in investments by IT/BPO and ITES sector, demand for commercial property is also increasing. With the growth in retail sector more malls, showrooms etc are coming up thus creating demand for more office space and commercial space. The most sought after locations for commercial real estate in city are Bandra Kurla Complex, Lower Parel , Powai,centeral Business District, Narman Point etc but now focus is shifting to suburbs like Thane, Parel ,Navi Mumbai etc as one can get offices or floor spaces at affordable rates.
Like residential property, the prices of commercial property also vary according to the location. At Nariman Point Rs.21000 to 35000,Lower Parel Rs.14000 to 23000,Bandra / Santacruz Rs.21000 to 12000 to 20000,Bandra Kurla Complex Rs.20000 to 30000,Vakola Rs.14000 to 25000,Andheri (E)Rs.5000 to 13000,Andheri (W) 6000 to 13000. Not only local builders and developers have invested in commercial real estate in Mumbai but also International brands like Fishman Holdings have invested $330 million in Thane, north of Mumbai.
Like other tier-II and tier-III cities, concept of affordable housing has also come in being in Mumbai. Many builders and developers are launching these budget houses for lower and middle income group people to boost sales.
The rental value of Mumbai property is quiet high as compared to other metropolitan cities. According to a report by Cushman & Wakefield, there was 3 percent growth in rental rates on average compared to 36 percent in the previous year while rental rates in Mumbai CBD were down by 9 percent and Central and suburban locations in Mumbai witnessed a significant rental rate correction.