Real estate in Mumbai is always a hot topic! Whether it is to discuss the incredible soaring prices of property, to lament the high rent and deposit amounts, or discover the newest investment opportunities, this mega metropolis is always under the radar of the real estate sector.
Despite the high realty prices that the city is famed for, there are ample opportunities for investment in the coming years. Not surprisingly, the list of favourable areas for investment in the city mostly feature suburban localities. However, owing to city-wide redevelopment schemes, there are now more opportunities to invest in the traditionally expensive parts of the city as well.
Here are five reasons why you should consider buying or investing in property in Mumbai:
1) High ROI in the near future
Mumbai features at the top in the list of favourable investment destinations in the country, because of the scope for high ROI many of its localities offer. Areas like Goregaon (East), Chembur East, Vile Parle (East) & Bandra (East) have seen around 20% ROI in the last financial year. Thane and Navi Mumbai are also popular with investors looking for affordable investment options, with the promise of high returns. Due to the considerable overhang of unsold inventory, and delays in approvals for new projects, property prices in the city have stabilised.
2) City-wide Infrastructure Initiatives
The lack of infrastructure, and low maintenance of existing infrastructure has always been a problem in Mumbai. However, there is an increased focus on improving it in the newer, less populated parts of the city, thus giving an impetus to affordable real estate in these areas.
Wadala is a prime example of a locality in which growth of real estate is being driven primarily by multiple infrastructure projects, mainly the Chembur-Wadala monorail, and the Eastern Freeway. Due to its proximity to the Bandra-Kurla Complex (BKC), and fast and easy connectivity to other commercial areas in the city, the prices of property in Wadala have almost doubled in the last 3 years.
3) Redevelopment schemes leading to affordable housing
With an increase in demand in residential property, but low land supply, developers are increasingly undertaking redevelopment projects. This is most evident in Bandra East. While property in Bandra West has always been in great demand because of the elite lifestyle, great connectivity and social infrastructure it offers, it now suffers from traffic congestion, and low supply of land. The large population that works in the BKC demands residences that are not more than a half an hour’s travel away; and Bandra East is where it’s flocking to now.
Redevelopment projects have picked up in the last few years, and is slated to bring a sea change to residential real estate in Bandra in the next 5 years. Since several corporate houses are now moving from Lower Parel to BKC, this area is definitely one to watch out for.
4) Real estate development tied to Employment opportunities
South Mumbai is no longer the only commercial part of the city, and as employment opportunities all over the city grow, so does the demand for real estate nearby. Employment is a big driver of residential real estate, and other than areas in and around BKC, Kanjurmarg on the Central Line has seen a significant increase in demand. As an emerging business district, and with proximity to others like Vikhroli and Powai, Kanjurmarg is fast becoming a preferred location for business complexes, and residential ones alike. Property costs here are also currently 10-20% lesser than in areas like Powai, Vikhroli and Thane.
Other areas that are seeing an upward trend in real estate tied to job opportunities nearby are Mulund, Chembur, Bandra East and Wadala.
5) Premium residential projects
Affordable luxury seems to be the new mantra of developers in the upcoming areas of the city. With several suburban areas like Ghodbunder Road in Thane, and the satellite township of Navi Mumbai (specifically Kopar Khairane) offering ample opportunities for investment, as well as residential property, developers are flocking to these areas with offers of world-class architecture, interiors by renowned designers, a multitude of amenities, and so on, all at highly competitive rates. Mulund is also currently a favourable locality to consider buying property in. While it has mainly catered to mid-segment buyers until recently, the ‘Prince of the Suburbs’ as it is often referred to, now also offers several prime residential options.
Real estate in Mumbai is as mercurial as the city itself! As people continue to flock to this dynamic and exciting metropolis, the government is taking steps to ensure a strong physical and social infrastructure for its citizens, while developers are more than willing to up the ante to provide great opportunities for investment and residence.
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