Mumbai tops the list and remains the most expensive real estate market in India. To buy a property in Mumbai is a dream and will remain a dream for many. The real estate market has seen many ups and downs in the recent past but Mumbai real estate market has never seen a fall. According to Anuj Puri from JLL, Mumbai real estate prices are on the up due to certain factors and hence buying and renting is very expensive in Mumbai.
The Geographical factor plays an important role in the growth of Mumbai. Mumbai is surrounded by water on three sides and hence growth is unidirectional, from south to north. Mumbai sees only vertical growth. Developers and builders started moving to the suburbs of Mumbai and now the suburbs are also densely populated. Shortage of available land is another handicap, no land parcels are easily available, and so what you find are small homes. Skyscrapers form the skyline of Mumbai.
Some land is reclaimed land, like parts of Cuffe Parade, Nariman Point, Bandra Reclamation; these are places in south and north Mumbai. The infrastructure build up is taking a long time. The easiest modes of transport in Mumbai are the Mumbai locals and hence people love to live near or in the close vicinity so commuting is not a problem. These areas are densely populated.
Mumbai is the financial hub of India, it is here where all the MNCs and IT/ITTs have their head offices, and so commercial real estate is also on the high. Big business houses are found here and lot of job opportunities, so the demand is more and availability less, hence the rates skyrocket. Government policies are also responsible for an increase in cost and high rates. There is a lot of inward movement due to urbanization; even the upcoming suburbs are congested.
People prefer certain areas and the demand and supply ratio is very steep. Malabar Hill, Napean Sea Road, Marine Drive are some of the pricey property areas. Here sky is the limit and there is no place for new development, only redevelopment is possible and hence to buy a property in the elite areas of Mumbai is practically impossible for the middle class.
Bollywood is also a big attraction, more than half of Bollywood lives in the suburbs of Mumbai, so glamour demands its own rates. Whatever the rates and the glamour, Mumbai has its own charm and a place where most of us would like to live if only it was within everyone’s budget.
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