In the modern multifaceted investment scene in today’s world, most investors are faced with a tough choice when it comes to where to make their investments and how to get the most out of them. Unlike the early 2000s, investing in the equity and stock markets is no longer a guaranteed or lucrative option, making real estate a very convincing choice for investors.
However, investing in real estate is not a simple matter anymore, compared to say during the 2005-2008 real estate boom. Many new factors have come into play, and investors now need to make a much greater effort into researching the potential real estate options before investing.
When it comes to India, Mumbai is one of the more obvious choices for investors to safely put their money down and rest assured that it will pay off well with time. Though it is generally true that a real estate investment will almost always ensure that your money grows with time, this applies even more strongly in the financial and economic capital of the country.
So, if you’re looking to invest in property in Mumbai, here are a few reasons why you should, and a few things to keep in mind before you go ahead –
Because Mumbai is the Biggest Commercial Hub in the Country –
Mumbai is, and has been for the last few decades, one of the fastest developing cities in the country, and home to most of the country’s commercial and economic activity. The sheer density of industry, ranging from manufacturing, finance and IT to entertainment, automatically means a lot of people continue to flock to the city and the requirement for property near the workplaces keeps rising.
Because Mumbai is Also the Leading Cultural Hub in India –
Be it Film, TV, Music, Art, Fashion or the party scene, Mumbai is the hottest place to be for the younger generations of India’s population. This automatically makes it a very lucrative city to seek residential property in, and hence investing in property now can assure great prospects for profit.
Additionally, the great mix of several cultures from all over the country allows all the disparate cultural activities and festivals to thrive together in great resonance, creating an even greater demand for residential property in Mumbai.
Due to the Development of General Infrastructure –
Gone are the days when the image of Mumbai was represented as cluttered and heartless, full of closely packed and low-aesthetic households. With the large expansion of the city boundaries and the inclusion of more and more land, large open residential spaces and related infrastructure like streets, water and electricity supply, drainage and landscaping are quickly being developed.
Alongside these developments, the connectivity of these new spaces to the old commercial and cultural centers of the city is also developing, and transport is being upgraded significantly, making the city easier to live in. Multiple bus services, extensive local train coverage, and 24×7 taxi services make it easier for the residents to get about and enjoy what the city has to offer.
For the falling cost of real estate and a shift of focus to lower-income populations
There has always been a general notion that Mumbai is a city for the rich people of the country, especially in the sector of buying real estate. While this was generally true, there has been a strong trend of late in shifting the focus from posh and expensive real estate to affordable and low-cost residential projects.
Many real estate giants have started concentrating on low-income populations and developing real estate projects and redevelopment projects aimed to cater to the common man and their budget.
Recent research has shown that the highest growth in demand within the real estate sector has shifted from posh bungalows and estates to the simple 2 BHK flats in Mumbai. As an investor, it makes much more sense now to look for such affordable residential property as compared to extravagant posh property.
Where in Mumbai?
As a potential investor in real estate in Mumbai, the next most important topic of consideration is obviously the location, within the vast city, where the investment may pay off most, and makes the most sense to go for. In congruence with the trends mentioned earlier, the locations most suitable for investment have also shifted in recent years. Let's have a look at some of the best places in the city for a real estate investment.
Navi Mumbai – The recent developments in the connectivity of Navi Mumbai to the main city have made real estate in the area far more lucrative and the investment potential is rapidly growing. The newly constructed sea-link makes the drive from Mumbai to Navi Mumbai a very short one, within 20 to 30 minutes, and hence a lot of buyers are looking at Navi Mumbai to provide low-cost housing that is proximal to their workplace in Mumbai.
Malad – The erstwhile undeveloped area of Malad has seen huge development over the years and has risen to become one of the more lucrative yet affordable residential areas around the main city of Mumbai. The proximity to many giant corporate business hubs also makes it a top pick for employees.
Andheri – One of the most famous and in-demand locations in the city, Andheri is a great investment option of late as it is going through a real estate boom while simultaneously experiencing lower costs. Though it is a posh area with very high prices for property traditionally, there have been recent drops in residential property prices, which investors are already keeping track of.
The prospects of investing in real estate in Mumbai have always been very high, but it was always known to be a very high-end market, open to only top-level investors with gigantic capitals and buying power. Recent trends, especially since the implementation of the RERA (Real Estate Regulations Act), have changed, however, and though many places are still beyond the reach of regular investors, many new sectors of property have been developed that are well within the investment capacity of everyday investors.
Mumbai is no longer out of reach, and as an enthusiastic and upcoming investor, you would do really well to consider it a good option and look to Mumbai as a solution for your property investment aspirations.