Mumbai is India’s most populous metropolitan region. As incomes have grown faster than residential prices the city has turned to a new page of affordability in luxury new residential projects. This key factor of abundance and prominent growth has completely revived Mumbai’s real estate market which in turn assures great appreciation value.
Growing Incomes and ROI drives demand
The recent real estate services firm released its property affordability index which states that the average annual household income in Mumbai meets the minimum income required to qualify for a bank loan on a 1,000-square-feet apartment at prevailing market prices. This is primarily due to several new projects spreading in peripheral Mumbai.
Since Mumbai’s ROI growth rate has been one the highest past many years; its major positive impact on the city’s real estate growth can be witnessed through NRI investments. The appreciation value on residential, commercial and rental investments has seen a substantial rise. This phenomenal growth rate on investment returns is motivating NRI investors and potential buyers to make their footprints in projects all across Mumbai.
More Options For Choosing Properties and locations
Most potential buyers and investors prefer viability, luxury, and affordability. Posh locations of Mumbai, which are less congested and chaotic, are also very preferable. Mumbai has expanded deep into suburbs due to developing infrastructure; therefore, the new prime locations have shifted to affordable segments. Suburbs not only offer well-developed localities but also affordable luxurious facilities. This aids increase in demand and to a large extent has revived the real estate market. Potential buyers now easily apply for loans that do not require a very high level of minimum income eligibility further endorsing growth in Mumbai’s real estate sector.
Properties in Mumbai are extremely attractive with world-class designing and amenities drawing astute buyers wanting a work & leisure life. The real estate market in Mumbai, therefore, is seeing a boom also due to its rapid Industrialization and commercial establishments by corporate giants setting up head offices and branches all across this populist city. Commercial growth has propagated the real estate growth driving higher demand for well-equipped residential homes.
Regulation of the prices to an extent by the RERA has been instrumental in encouraging transparent buying and selling of real estate. Whether it is residential or commercial, there are interested investors for both. The much enabled Real estate developers in Mumbai are coming up with premium level projects. These projects have excellent infrastructure, all amenities, extravagant interiors from big designers and more. This is luring many investors to invest in real estate in Mumbai.
Outstanding Connectivity and accessibility
Mumbai is one city with exceptional public transport which can easily help you to reach from point A to point B. For e.g. The Mumbai Local trains can help you reach from CSMT which is one corner of Mumbai to Panvel which is the other corner. Similarly, you can go from Churchgate to Virar too. With other options like local trains, metro, buses, and taxis, etc, Mumbai is well connected to other parts of the city and also to parts outside the city. Commercial real estate consultants credit seamlessness for the growth of commercial real estate in Mumbai.
Due to these favorable factors, real estate advisory firms assure a good investment opportunity as civic infrastructure such as roads and highways are improving day by day, reducing the traffic woes and providing better land solutions.
Also, the city is seeing a rise in particular infrastructure such as the construction of Metros, Monorails, etc. The metro work for the Wadala to Thane Metro Line 4 has made Thane a hot spot for real estate deals. Real estate development consulting firms have advised buyers to buy a property in Mumbai.
Traffic congestion affects the growth of the real estate market
As more people prefer to have their own vehicles, the increasing density of vehicles on the roads, adds to the woes. Owing to traffic congestion, only certain specific pockets of cities witness developments, which affect the growth of commercial realty. This constrained development, results in changing city centers, with newer ones coming up, for e.g. Mumbai witnessed such a shift years ago when Bandra-Kurla Complex (BKC) came up and peripheral suburbs grew extensively.
However, real estate solutions have procured affordability, accessibility and appreciation value that has revived the Mumbai’s real estate demand.
Thus all the above-mentioned parameters provide an impetus to the real estate industry and are significantly instrumental in strengthening Mumbai’s real estate market and driving a positive demand within potential buyers.