Investment on property in Mumbai

Real estate prices in Mumbai have shot sky high in the past decade or so, fueled primarily by the globalization of the Indian economy and NRI (Non-Resident Indian) investment. Land in the Mumbai suburbs, which used to sell as low as Rs 750/square feet. Prior to 1991, is now priced at over Rs 2200/square feet in certain prime areas. Although the booming real estate market is said to have now reached its saturation point, prices continue to stay strong, supported by an economy that continues to grow despite fears of a slowdown.

Before 1991, India was a rather closed economy. Even Coke and Pepsi were not available anywhere in the country. But from 1991 onwards, the government began to slowly open its doors to foreign national companies. The real estate in Mumbai market did see a downtrend around 1995, but again picked up momentum towards the end of the nineties. Ever since then, real estate in India has been mostly heading upward. Mumbai real estate has played a part in inflating the property market but several fundamental factors were also at play.

Globalization and privatization of several industries led to a lot of foreign investment for Mumbai properties. At about the same time, NRIs began to invest in real estate back home. There are NRIs in almost every country in the world, with USA, UK, Canada, Australia, Singapore, South Africa, some European countries, and the Gulf countries having the largest number of Indians. The US alone has over 2 million Indians, most of whom are doctors, scientists, engineers, and other professionals. Apart from the money got by Indians living overseas, another major factor for the booming real estate market, especially in urban areas, was population growth. India is a country of over 1 billion people. Recent years have seen more people migrating to cities from the rural areas in search of better jobs. And of course there is also the migration of professionals from various parts of India as well as the world to financial hubs like Mumbai, which further adds to the demand for living space in such cities.

Mumbai properties have a big demand by foreign firms, especially those in the Information Technology sector and financial sectors. It helped that Mumbai properties have a pleasant, relatively moderate climate which is good for the people. The culture is a bit more cosmopolitan than other south Indian cities, which makes it slightly easier for foreigners to live there.

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