Why is real estate so expensive in Mumbai? will the Mumbai real estate market crash?
It will crash sooner or later. Barring a few builders most of em are broke. The Artificial pricing should be corrected
Mehul Shah, Personal Finance Consultant
Real Estate or properties in Mumbai are very expensive because of demand side factors. Properties in Mumbai are in high demand from NRI investors. NRIs comprise a major chunk of resi ntial real estate (especially luxury homes) buyers in Mumbai, since it offers better returns for property investment when compared to cities like London, New York and San Francisco.
Another reason for high demand from NRIs for a property in Mumbai is the fact that few upmarket resi ntial areas in South Bombay like Altamount Road, Carmichael Road, Kemps Corner, Breach Candy, Peddar Road and Nepean Sea Road offers a standard of living that can match what they have grown accustomed to in developed countries like UK and US.
Mumbai based real estate developers like Lodha Group and Oberoi Realty are constantly courting NRI investors in UK and US. In fact Lodha Group’s luxury segment named as Lodha Luxury have deployed their sales manager in UK, US and UAE exclusively for this purpose. Often, as much as half of their inventory is sold to such NRI investors even before local brokers get wind of the launch.
Everyone keeps on talking about Mumbai real estate being extremely expensive and beyond the common man’s reach. This is because builders in Mumbai are not interested in common man these days. Everyone is trying to sell their flats to NRIs and real estate will be always expensive in Mumbai.
印度侨胞对孟买房产需求很大的另一个原因是南孟买的高档住宅区很稀少，只有Altambay路、Carmichael路、Kemps角、Breach Candy、Peddar路和Nepean Sea路房产的生活水准能与英国和美国等发达国家相媲美。
总部位于孟买的房地产开发商，如Lodha Group和Oberoi Realty，不断吸引英国和美国的印度侨胞投资者。事实上，Lodha Group旗下名为Lodha Luxury的豪宅部门为此专门在英国、美国和阿联酋派驻了销售经理。通常情况下，在当地经纪公司听到房产上市风声之前，起码有一半的房产会被出售给这些印度侨胞投资者。
There are many ways to describe Mumbai. India’s financial capital. Mamum city. The city of dreams. The city of seven islands.
Mumbai the city of dreams & seven Islands. Anyone who lives in Mumbai must know the reason behind expensive homes in Mumbai. The strangest reason behind this is huge unsold inventory and rising the demand of having our home. Property in Mumbai (flats) is increased by 6% in 2016.
Mumbai is the best city in India for investing in real estate sector and having own house is the best assets that anyone could dream of here.
Reasons behind this sky rising price is
- Geography is Mumbai's greatest obstruction. Being an island city, and a length-wise one at that, Mumbai has extremely restricted degree for development. Not at all like Delhi, which ventured into Gurgaon and NOIDA to now be called NCR, the further one endeavors to extend Mumbai, the more excruciating driving progresses toward becoming.
- Go nment approach is another factor. Costs are driven by go nment-characterized Ready reckoner rates which characterize least stamp obligation as well as give a base cost. As of late, the rates in Mumbai have been climbed by upto 20%, which is generous and more than whatever remains of the nation.
- Slums fill quite a bit of Mumbai. With immense swathes of land possessed by ghettos, the supply of tenable land is additionally decreased. No ghetto recovery arrangement has prevailing with regards to managing this issue successfully.
lRent Charges additionally influences land supply, since an extensive number of occupants, particularly in prime territories in the city, can live on rentals of under five hundred rupees every month. Go nment direction does not allow proprietors to raise this lease, which implies that the weight on the land that isn't lease controlled to yield incomes is considerably higher.
译文来源：三泰虎 http://www.santaihu.com/47112.html 译者：Joyceliu
In India's most prosperous city, half the population lives in slums. expensive cities in the world, Mumbai was the chest city to live in. Yet, real estate in Mumbai is the most expensive in the world in relation to per-capita income*. At first glance, this is paradocal. But, there is more to this than meets the eye. Property in Mumbai is very expensive because go nment policies have made it so. Half of Mumbai lives in slums because like all prosperous cities in the world, this city attracts people who aspires to live here at any cost, under the most trying conditions.
There are only two ways in which Indians can radically raise their income and be far more productive overnight.
percentile of the world income distribution. But, immigration restrictions in the first world makes it almost impossible for low-skilled Indians to raise their income 10 or 20 times. The best they can do is to move to cities like Mumbai where per capita income was $2,845 in 2009-10. This is nearly twice as much as India's per capita income of $1,570 in 2013. But, Mumbai freezes people into poverty though there is not much restriction on intercity migration.
In most commercial cities in the world, the authorities have gradually raised the floor space index (FSI) to allow greater urbanization and redevelopment of older buildings. But this is not true of Mumbai. In 1964, the FSI in Nariman point was 4.5. Now, in most of the island city, the FSI is 1.33 while in the suburbs, it is 1. As much of property in Mumbai was developed before the FSI was lowered, redevelopment is expensive because it would lower the floor space.
This is changing now as rules are being gradually being changed. American journalist Matthew Yglesias was not exaggerating when he said the important urban policy story in the worldmost is happening in India. According to the much opposed Mumbai's draft Development Plan (DP) 2034, FSI in Mumbai is expected to range from 2.5 to 8. On May 20, Thane Municipal Corporation is slated discuss a proposal to raise the FSI for 30-year-old buildings in the city to 1.55. If the FSI is raised in Mumbai suburbs from 1 to 8, property owners would be able to construct 8,000 sq.m. on a plot as ag inst 1,000 sq. m. currently.
This is significant because according to Bloomberg, the average Indian has to work for 308 years to buy a deluxe home in Mumbai. In Singapore, where FSI is 8 to 15 in the Central Business District (CBD) and resi ntial FSI ranges from 1.5 to 6, it takes merely 43 years for an average citizen to buy a deluxe home. In New York City, where FSI is 15 in CBD, and resi ntial FSI ranges from 0.6 to 10, it takes 48 years. Building height restrictions barely est in . It is not surprising that in 2009, the average Mumbai resi nt had 48 sq.ft. of resi ntial space while in Shanghai, it was 365. The low FSI levels make resi ntial property so expensive that many people have to live far from the city or in slums. It is not surprising that Mumbai has one of the largest slums in the world.
Every day, on an average, three people die while traveling in trains in Mumbai. Much of the city's population lives in congested spaces where diseases spread too quickly. This is not true of comparable cities in the world where density is very high. In New York City, for instance, people who commute to work are far less than in any other city in the US because high FSI levels allow them to live closer to office. When builders go for vertical development, diseases would not spread easily because it is easier to ensure that water supply and other utilities are working properly. People in Mumbai would live longer and far more comfortably in more spacious homes. The local authorities merely have to raise the FSI figures manifold.
As we all know Mumbai is one of the top cities in India. When it comes to metropolitan then only Mumbai come to our mind. Here Bollywood industry and real estate industry lies at large scale so it is common that real estate price is high here. Every year countless people invest their money in Mumbai real estate, then because of large property investment here real estate prices remain always expensive.
But if you are finding any property according to your budget then you can consult any reliable real estate agent who can help you in this and provide the best property according to your budget. I will suggest Spacio Realtors as they are ISO certified real estate agents and working in Mumbai real estate more than the decade. Else you can invest with real estate updates and information.
Mumbai is the financial capital of India with almost about 12 million people living in the city and many are dreaming to own a home here. Also NRI’s go for buying property in Mumbai. The city is one of the most beautiful cities in India. Also the bollywood indusry makes it a attraction. The real estate propety in Mumbai provides a good return of investment. This all factors makes the the real estate cost going high in Mumbai.
Though there are many renowned developers that are coming up with various projects in Mumbai with a cost well suiting to middle class people. One such developer is Lodha Group announcing its project named Lodha Codename Mega Star. The project is offering 1,2 BHK apts of price range Rs. 57.15 Lacs - 82.71 Lacs .which is a reasonable cost for you
但孟买有许多著名的开发商正在开发各种各样的项目，成本非常适合中产阶级。Lodha Group就是这样一家开发商，该公司公开了其名为Lodha Codename Mega Star的项目。该项目的价格范围571.5万 - 827.1万，这个价格还算合理。
Mumbai is a hub of expensive resi ntial properties. Be it costly properties in South Mumbai or basic bedroom-hall-kitchen in the suburbs, its real estate is always under limelight. But, what makes these properties so very expensive is its go nment policies, geography, and heavy-inward migration. Moreover, high investor activity also plays a major role in driving up real estate prices. Apart from this, slow infra development has also led to the increase in real estate prices. The slow progress has not allowed the city authorities to open up new land parcels for the development, which has resulted in the rise in property prices in Mumbai. Besides, the fundamentals that drive demand for properties in the city are the reason for Mumbai developers to keep their property prices so high.
So, if you are looking for world-class commercial and resi ntial projects in and around Mumbai at affordable prices, then I would suggest you to go for Lodha Group.
HousingMan, Associated with Real Estate Industry
If there is any city with high cost of living in India, it would be none other than Mumbai. Mumbai is the industrial capital of India and have almost all the big industry process happens there. Also, it is home to Bollywood industry. Many film actors and celebrities are staying in Mumbai.
Even many NRI are investing in Mumbai real estate cause the cost of living is high and earning pential is high in Mumbai when compared to other cities. It is one of the highest population city in India.
Another strategic advantage is that it is near to the shore, so it is good for industries to move the goods to respective locations. Also, the IT companies adds so many software jobs in the market along with the manufacturing industries. Taking all these factors into account, Mumbai is expensive in real estate segment.
Gaurav Verma, Internet marketing expert. I love reading , watching movies and some interest in Indian real estate trends..
Real Estate is so expensive in Mumbai Just because of this is metro city . This is fourth most populous city in the world. Mumbai, India’s financial hub and home to Bollywood-- one of the largest movie industries in the world . One of the reason of property price increase in Mumbai might be a combination of a lack of supply, regulatory hurdles that have come in the way of new launches and an infleble lease market have all contributed to the city’s sky-high prices.
Yogini Bhambhani, Writes reviews on Real Estate Projects BuildersOfMumbai.com
I agree that there are several high priced real estate projects in Mumbai. However, there is no dearth of affordable housing too.. If you do not believe me, then check out these top 10 flats that are available for less than 15 lakhs in Mumbai…
Gaurav Verma, studied at Master of Computer Applicatioin
I think this is Metro City and job opportunities . This is India's Financial hub and home to bollywood.Mumbai is most expensive city in the Country.
Jaydeep Vyas, worked at Mumbai, Maharashtra, India
There is nothing called Overpricing in this market. Pricing always depends on demand of the particular product. In a sed area you can find various properties available at different prices.
In Prabhadevi you can buy property at Rs. 22,000/- sq.ft upto Rs. 40,000/- sq.ft.
No one wants to overprice their customers when markets are bad.
Rajeev Raghav, lives in Mumbai, Maharashtra, India (2008-present)
According to what a layman would think, the market seems overpriced. But the fact is that the Mumbai Real Estate Market is booming. And whatever arena or filed is booming, the valuation is on the rise.
But so are the opportunities! Today in Mumbai, one would find an under-construction space in every lane. Builders are realizing the importance of land value and are utilizing their best resources for getting the best of constructions into place.
Ramesh Shah, studied Soul at Divine Public School
There are few possibilities some might have sudden impact in short term while some would take longer to apply:
1.Natural cmities like Tsunami, Earthquake that would destroy the buildings and infrastructure.
3.Atomic reactor explosion in trombay.
4.Comet falling from outer space.
5.Go nment enforcing some rules like taxation on vacant flats.
1.New develo areas offering better lifestyle and infrastructure at lower prices leading to migration of population from Mumbai to outskirts.
2.Mumbai becomes so crowded and polluted to a point where it becomes inhabitable.
3.Cluster redevelopment of Dharavi
4.Multiple Affordable Mass housing projects
Pratik Mantri, Passionate Indian.
I don't think we'll be able to see a 'heavy crash'. There may be signs of de-growth or lesser than expected growth but a heavy crash is ruled out in my understanding of the matter. My reasons for this are;
- Mumbai Real Estate Market is still witnessing decent demand from various sections of the society.
- Mumbai is the financial capital of the country and the population mix is such that there is bound to be consistent demand. And when there is a consistent demand there's no scope for a heavy crash.
- Every year, the sries for professionals or income for business-men rise; with that the change in lifestyle can be safely assumed. The culture, the lifestyle makes you want to spend a bit more than normal. The increase in number of High Net worth Individuals (HNIs) in Mumbai has also contributed to demand.
- The inflation level or the cost of living in Mumbai is very high and the construction related pricing set by Go nment of Maharashtra has also seen an increase. Therefore, even a decline is ruled out.
- A lot of people from different parts of the country move to Mumbai for employment/studies. This leads to further more demand.
- Builders/Real Estate companies are bullish.
In short, there is demand and in some of the high end areas people are willing to pay a premium too. So a heavy crash is unlikely.
Ricky CI, Have a lot of clients in real estate and we help them market their properties
I do not see a heavy crash coming. I have been looking for a flat in mumbai over the last couple of years and played the waiting came. My analysis is as follows :
- Realty companies would never advertise a lower price as that kills the market sentiments. They will give offers like EMI, downpayment , free car etc.
- No area in mumbai has a fixed price. It depends on how the locality perceives their area and prices are based on that.
- Distressed Sales, Small Builders are the ones that can give good discounts ag inst better payment terms.
Overall there should be a correction of 10 % but I do not see a crash coming soon
Sagarkumar Jain, lives in Mumbai, Maharashtra, India
I don't think there will be crash in Real Estate as it happened in 2008 in US.
Because the commuters to Mumbai have been increasing day by day and Mumbai has expanded in all the possible manners. So to accommodate such a huge population, Real Estate will be a huge factor.
And as Mumbai is surrounded by Sea on three sides,it is difficult to expand.
The real estate market in Mumbai is very stable and will soon be on the rise. The market indicates good opportunity for property investors. Preferably going with well established builders will be profitable in terms of good ROI. I personally like position held by Mahindra Lifespaces in real estate market in Mumbai. They are offering state of the art infrastructure and amenities. And with the name, there is an assurity of good appreciation values