Mumbai, formerly known as Bombay, is the financial capital of India. The metropolitan city has always been the head starter of the indicative property prices of real estate India
The city has always been on the forefront when it comes to residential and commercial property. Recently, the city was categorized amongst the international cities having the highest real estate prices.
With the rising commercial property prices, it has become difficult for even large corporate houses to buy huge lands or buildings. The Government has now decided to grant land to selected industries at a concessional rate. This will further boost the commercial status of the city.
Real Estate in South Mumbai Property rate in South Mumbai is quite high and considered to have the most posh locations. Areas like Cuffe parade, Marine Drive, Napean Sea road, Nariman Point and Colaba have very high prices in both residential and commercial real estate. The price can range from 9000- 55,000 per sq.ft depending on the type f property, location, facilities around the location. These price are sensitive to various factors and hence the market price of the real estate keeps fluctuating.
Real Estate in Western Mumbai Suburbs Real Estate prices in the Western Mumbai suburbs are also high. Locations such as Bandra, Santa Cruz, Vile Parle And Andheri have high commercial and residential real estate rates. The prices range between 5000 to 26,000 per sq.ft, depending on several factors.
Real Estate in Central Mumbai Suburbs The prices in the Central Mumbai are cheap as compared to the Southern and Western parts of the city. The price range is between rupees 1000 to 9000 per sq.ft . There are numerous factors that govern the property rates in this region. The market prices of property fluctuate depending on the location, facilities provided, infrastructure etc.
Reasons of High Real Estate Prices Imbalance in demand and supply side: The first and foremost reason for the rocketing real estate prices in the city can be attributed to the imbalance between the demand and supply side of real estate. This phenomena can be seen in both residential and commercial properties. This also explains the high rental value of accommodations. Being the financial hub of India, Mumbai houses the headquarters of many corporate houses, offices of large MNCs and also Indian companies. The city provides hosts of business and commercial opportunities to individuals and companies.
Host to Various Industries: It is the host to the Indian film industry and generates hundreds of crores every year. Large scale investments by leading MNCs and large Indian Corporate houses is another reason that has increased the real estate prices in the city. Companies have invested in sectors such as BPO, IT and ITES and therefore the growing demand for office space, which has inturn further escalated the already high property prices.
Booming Retail Industry: Another reason that has contributed to the unreal high property price is the booming retail industry. With the emerging retail showroom and malls scenario, there has been an increased demand for retail stores and showrooms, this has further increased the demand of real estate, creating a larger imbalance. Most the retail showrooms and malls are owned by rich business men and corporate houses and are leased on high prices because of the lack of availability.
Development in Real Estate Prominent developers like DLF Ltd., Kalpataru Construction Pvt. Ltd., Group, Unitech Ltd., Hiranandani Developers Pvt. Ltd. and one of the biggest Indian corporate houses, Reliance have shown interest in real estate in the city.
The Government of Maharashtra has taken a unique and first-of-its-kind initiative known as the "Mumbai-Pune Knowledge Corridor" , developing the region as the IT hub of the country. Under this initiative, 3 IT parks will be set each in Mumbai and Pune and also required transport, world-class IT infrastructure, education, housing will be provided.