Mumbai is a city that never sleeps. It is constantly buzzing with all sorts of activities. Being the driver for economic growth of the country, it was deservingly named as the alpha city in 2009. With currency worth billions trading hands everyday in stocks and through other mediums, Mumbai is certainly one of the richest, if not the richest cities of whole South East Asia. These factors make it a lucrative destination for immigrants and investors. This article is meant to provide an insight into the way Mumbai real estate is going to head in the next few years.
When we talk about the most important areas of Mumbai, from an investor’s point of view, these stretches are what come to mind:
The rise and the fall
Mumbai’s rise on the real estate graph is preceded by India’s growing clout as a leading IT/ITeS service provider. With liberalization opening doors to new opportunities, Indian IT sector became one of the biggest contributors to the national economy. Government’s relaxed FDI norms prompted many foreign players to invest in Indian firms and taste the fruits of a exploding real estate market. Many of these companies did not found a better choice than Mumbai, the financial capital of India and in no time, Mumbai found itself sitting on the top of the best investment destinations list. This was early 2000s, when investors were earning huge profits over their purchase in the city and affordability was still a word that end buyers could recognize with. Regions like Mira Road were most sought after and a Flat in Mira Road was considered a sound investment decision. From the period of 2002 to 2006, residential real estate saw a sudden boom as the demand-supply balance was maintained. Suburbs were still an unknown or rather an unexplored phenomenon and most of the real estate activity was taking place in the central business district and other areas listed above.
However, with no regulatory methods in place, soon the situation seemed to swirl out of hands and by 2006 the prices had reached 100 times more than the average income of a middle class individual. In 2008, the inevitable happened as the global economy plunged into depths of despair. Mumbai’s realty bubble finally busted leaving many high and dry. Investments went to an all time low and there were no takers for new projects with vacancy rates almost quadrupling in the existing projects.
Current Scenario: Suburbs taking the centre-stage
As effects of the economic slowdown started wearing out, Mumbai’s realty market is again picking up pace, with IT sector again being at the driver’s seat. However, learning from previous mistakes this time realty builders are keeping things under control. Suburbs like Thane, Badlapur and adjoining regions which were earlier ignored are now being noticed. Flat in Badlapur is a hot property these days, and people are looking to invest in these affordable options rather than go for pricier options in the city itself.