March 2, 2024


Mad about real estate

Property Trends in Mumbai

Mumbai is one of the most important cities in India being the financial capital of the country. It is the glamour city that houses hundreds of celebrities from film industry and top notch industrialists. The standard of living and affordability of Mumbai-ites is very high as it is one of the richest cities in the world.

Mumbai real estate has been rising ever since the economy of India revived after the global slowdown. Not only the demand, the rates of property in Mumbai have also spiraled up in both residential and commercial sectors. The prices of residential property in Mumbai are expected to upswing further as sales keep growing along with strengthening of investor sentiments. According to a latest real estate report by Jones Lang LaSalle Meghraj (JLLM), the position of commercial property will continue to grow as the demand in terms of leases and outright purchases also improve.

As per the recent reports, there is enough supply for all segments-residential, commercial and retail. This will help to keep the market going and yield good results in coming years for property investors and developers. The residential segment will particularly see luxury to mass housing and lots of other activities in wake of the strong demand for the same.

Residential sector is in vogue not only in the city of Mumbai but across the country as well, as it has become the area of focus for both property builders and investors. Also, the property trends observed by real estate experts show that due to the limited space available in the central city, real estate market boundaries are constantly extending into newer peripheral areas. Other infrastructural projects including developing of the metro, monorail and flyovers also boost accessibility and reduce commuting time. This fast paced urbanization plays an extremely important role in upsurge in realty sector of India across tier-I to IV cities.

Even as the prices of property in Mumbai are rising consistently from last six months, its location advantage allows investors to still reap high profits. According to the observations made in the Wealth Report 2010 by the leading international property consultancy, Knight Frank and Citi private Bank, Mumbai and Delhi property markets hold significant level of future potential. Both Mumbai and Delhi will continue to enjoy better property absorption and stability in prices owing to them being hubs of property related activities. This will continue to work in favor of property investors even when price correction happens in these cities.

The first half of the financial year has shown volumes of improvement in residential segment after the severe crash of 2008 due to the agenda of increased affordability taken up by property developers. Now, this prospering will get carried forward to the second half of the year only if there is stable increase in prices and monthly volumes in major cities like Delhi and Mumbai. Following the property growth in Mumbai and Delhi are other cities namely Bangalore, Chennai and Hyderabad.

The improvement in residential property in Mumbai has outgrown the ones in commercial sector. After the considerable drop of 25-30{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} during the period of slowdown, Mumbai property market has picked up well and is very close to reaching the same levels of highs again. But property developers are taking a cautious approach toward property pricing as any irrelevant increase or tightening of policies would render a negative impact on future demand.

The property trends in Mumbai say that its border areas will remain in high demand as builders come up with affordable housing plans. Meanwhile, the central city and especially South Mumbai will see a further hike in realty rates.