Mumbai the commercial and entertainment centre of India

The market in the Mumbai real estate is getting back to shape. Mumbai is the commercial and entertainment centre of India, generating 5% of India’s overall GDP and accounting for 25% of industrial output, 40% of maritime trade, and 70% of capital transactions to the economy of India. We all know that Mumbai is the financial hub of India. Mumbai real estate is a very huge market and has a very good potential.

There was a slight doubt in the investors, advertisers and buyers about the market conditions, but now the real estate market is growing at a fast pace. There is a lot of interest shown for the property market in Mumbai. The stock markets are doing really well after the new government and the sensex is very good. Real estate market is directly proportional to the Mumbai stock exchange.

Mumbai Real Estate market lists the maximum number of Real Estate Builders and Developers in India. The real estate prices in Mumbai are skyrocketing but still the supply of quality constructions falls way short of the demand. The Real Estate Market News in Mumbai clearly indicates a market trend of an exceptional increase in offices and commercial unit’s requirements. The foreign investment is also directly proportional to the Real Estate in Mumbai. The other big factor is the recession factor with the economy slump down globally this will have an impact on the Mumbai real estate market.

The prices of the property rates have come down by 5% due to the global recession. The other problems faced by the market are the rise of operational cost. This is a factor which we need to look into a lot .The operational costs include labour cost raw material cost and transportation cost. The government also needs to take effort in giving benefits to the Mumbai Properties.

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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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