Mumbai (earlier Bombay) is the commercial capital of India. Besides, it is also one of the world’s top 10 centres of commerce when it comes to global financial flow. However, let us keep the commercial aspect aside for now. To put in simple words, the city has multiple names. To mention a few, ‘city that never sleeps’, ‘land of opportunities’ and the ‘city of dreams’. Most importantly, the state is also popular as the country’s movie capital.
This blog intends to explain why Mumbai real estate market remains lucrative for individuals.
Mumbai- The Land of Opportunities
To begin with, migrants from different parts of the country have made the city their home. They have come with multiple dreams in their eyes. In spite of the challenges, the real estate market of the city remains cost-effective for individuals, corporates and business owners.
In 2020, the real estate sector faced quite a lot of challenges. To explain, the liquidity crunch on account of the pandemic affected several projects. Besides, some projects were put back. This is because of the late approval process. Furthermore, the sector is also reeling under the bang of GST and input tax credit. To put in simple words, these resulted in high construction costs for the developers.
Most importantly, the increased connectivity and ongoing infrastructure raised the demand for housing in Mumbai. Consumers are eagerly looking to buying homes in neighbourhoods that are economical. There a number of newly launched projects in Thane, Dadar, Chembur, Kalyan-Dombivali-Taloja and so on. Micro-markets such as Vikhroli, Powai, Kurla along with Goregaon have been favoured investment destinations.
Most importantly, the city is well-connected with local trains. This has accordingly increased the demand of the place. Besides, elevated roads have led to growth in demand for multiple upcoming projects. The nearness to the commercial areas is fuelling demand for residential buying in the city. The city has also seen a rise in integrated townships.
Similarly, the metro connectivity between Ghatkopar and Versova has given a boost to the real estate market along this corridor. Chembur too is seeing the coming out of many residential projects.
Insights and Trends: Real Estate The Land of Opportunities
The demand for reasonably priced housing is rising in the suburbs and cities. The sector waits to gain momentum. It can accordingly make way for affordable housing projects.
Undeniably, Covid-19 hotspots, containment zones, and lockdown troubled the real estate market. However, there has been a spectacular sales recovery recently. India’s most high-priced real estate market is seeing a boom.
To put in simple words, post-pandemic, customers who were initially looking for small flats. They were looking for 1 BHK or 2 BHK etc. However, now they are looking for a 2.5 BHK or higher. This is considering the need for extra space for work from home.
Wrapping up
People from across the country and even from abroad come to try luck in the city of Mumbai. Fast urbanisation and high employment opportunities make this the land of opportunities for many. However, understand the market well before you invest. It is important to compare area wise property rates across Mumbai. It is better to then invest. Investment in real estate is a way to get around against price rise.
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