Despite the ‘developing nation’ tag, India is one of the leading property markets worldwide and property builders and developers across the country provide a back bone for this development.
The aim of India Real Estate.org is to help Indian real estate investors across the globe, in learning about good opportunities, and reliable builders/developers. Indian companies are more resilient than ever to a global downturn these days, with lower borrowing costs and healthier debt-equity ratios.
Now coming to the point….Mumbai real estate is among the most expensive in the world – more than that of Tokyo or New York – and there is no shortage of those who can afford to pay. The city also attracts millions of low wage workers every year, and there are ever-expanding slums that house more than half of the city’s population.
Mumbai real estate is a multi-billion dollar market on a daily/weekly trading basis. In addition to sea view penthouses on Marine Drive, Worli, Juhu etc, there are luxurious duplexes across the city….with many new residential projects to fully furnished offices and ‘built-to-suit’ commercial spaces including upscale multi-family apartment communities.
Some analysts say that Mumbai real estate has started seeing a slide in property prices; others may witness the decline gradually. Some experts believe that over the next three to six months, the liquidity crunch will have its full impact on property prices.
Market estimates say many people who had purchased property for investment purposes had a big exposure to the equity market, which is currently 25% down from its high levels in Dec 2007. This means, the turmoil in the stock market may lead to drying up of available free cash, leading to default in paying installments.
That said, Mumbai real estate market has pockets of attractive opportunities even at high P/E levels. Investors have many good reasons to invest in Mumbai property market. Mumbai is the India’s business capital, and the most populous city of India.
Investors and HNIs have been investing in various pre-leased properties having insurance, banking, IT/ ITES, residential and retail sector occupants. Investors should be cautious about any and all stock recommendations and should consider the source of any advice on stock selection. Various factors, including personal or corporate ownership, may influence or factor into an expert’s stock analysis or opinion.
Another interesting trend is the remodeling of commercial spaces to retail spaces. The property values for commercial spaces are touching skies and developers are finding it difficult to sell their commercial/office property. Hence, many of them are positioning their property as retail space in a hope to find more takers.
Investors are targeting Navi Mumbai because the prices here are on the increase. It is a newly developed area just across the harbor.
Unitech, India’s second largest developer, was involved in two such land deals. It snapped up 1,750 acres in Vizag for Rs 3,350 crore last year and won 340 acres in Noida for Rs 1,582 crore in 2006, while India’s biggest real estate developer DLF clinched a 38-acre land deal in the national capital for Rs 1,675 crore. Unitech is expected to close FY08 with revenues of Rs 4,350 crore and a net profit of Rs 1,650 crore.
Developers are constructing properties with facilities and amenities at par with international standards. Yearly appreciation on commercial real estate market across the Indian metro ranges from 9 to 11%. So there are many opportunities there at all levels: residential and commercial real estate.
About the Author: Shankar AVSB of 7Avenues Private Equity, who is an investor in Indian Real Estate. He believes that Mumbai real estate presents great opportunities in both bullish and bearish market sentiments. He is based in London.
So you are attempting to understand the real estate position in Mumbai, but you are not clear in your mind the market picture of real estate in massive Mumbai? To help you, here is a preview of real estate market in Mumbai. Mumbai is going to be the town of the potential. According to the facts & figures, the real estate sector is growing at a blistering 30 per cent annually. Mumbai real estate is among the most expensive in the world – more than that of Tokyo or New York – and there is no shortage of those who can afford to pay. Some of the few successfully completed real estate projects in Mumbai are new airport at Navi Mumbai, New Suburban Trains Project, Bandra-Worli Sealink Project, Santacruz-Chembur Link Project, De -congestion of Prime CBD areas, Current Transportation systems, New Bridges Project, Sprawling Townships Project, Shopping Malls, IT Software Parks, Office complexes and development of Property investment proposition. Now, the city is undergoing redevelopment and restructuring. Various big real estate developers & constructors like DLF, Akruti, Parasvnath are bidding for the redevelopment of Dharavi which is Asia’s biggest slum and Mumbai’s biggest mess. Another interesting trend taking place in Mumbai is the remodeling of commercial spaces to retail spaces. With the property values of commercial spaces touching the sky, developers find it difficult to sell their commercial/office property. Hence, many of them are positioning their property as retail space in a hope to find more takers. Mumbai property market is a case in point. This market needs to be studied carefully as most the property trends arise from this market.For more view- realtydigest.blogspot.com
Crazy city Bombay is!! Seems like the laws of economics do not hold true in India, especially Bombay. Until demand/supply curves don’t meet in equilibrium and prices don’t come down enough, this melting pot of a city will not shine. Personally, I feel a 50% downturn all over Bombay (especially south Bombay) will be healthy and cause some buying activity. STAY AWAY until then is my advice to all.
True guys,well real estate is a booming industry,as of now the price would be going up by the rate of 30 to 40 % at mumbai…..its great time of sell off,but yes later on stage the price will more increase,so this is time when we people thought to buy the house….
All r speaking Bullshit……………specailly reena singh.
Don’t understand the basic of marketing in realstate, just puting Copy,cut,paste, thinking she can understand the whole scenarioa of Mumbai proprety. Ask her what she know about CRZ and it unquie under changes made by govt….Whather it will be helpful or not our our Builder community?????????????
Navi Mumbai is the world’s largest planned city with 163 square kilometres (63 sq mi). It was developed in 1972 as a twin city of Mumbai. Navi Mumbai lies on the mainland on the eastern shore of Thane Creek. The length of the city is almost the same as that of Mumbai. The Vashi and the Airoli Bridges connect Navi Mumbai to Mumbai. A new link between Nerul and Uran is under construction. The costliest real estate and most highly developed areas of Navi Mumbai are Vashi and Nerul, while Kharghar and Panvel are experiencing major infrastructural developments due to their proximity to the proposed Navi Mumbai International Airport. South Navi Mumbai is being developed rapidly with its class infrastructure and modern nodes of Kharghar, Kamothe, New Panvel and Kalamboli.
The City and Industrial Development Corporation (CIDCO) was formed on 17 March 1971, under the Indian Companies Act, 1956. It was given the mandate of converting about 344 square kilometres (133 sq mi) of marshy land lying between the village of Dighe in Thane district and the village of Kalundre of Raigad district into a new city. CIDCO planned and constructed all the railway stations in Navi Mumbai and developed nearby areas commercially.
Vashi Bridge, was opened to the public for residents of Vashi, Belapur and Nerul. The Sion Panvel Expressway was built to reduce the time taken to travel from Sion to Panvel. Initially there was not much response to the new city. The 2.4 kilometres (1.5 mi) long Airoli Bridge was built over the Thane Creek between Airoli and Mulund, an eastern suburb of Mumbai.
There are adequate utility services, banks, restaurants, malls, multiplexes and other prime Property in Navi Mumbai. Throughout Navi Mumbai supermarkets and malls like Apnaa Bazaar, Dmart, More, Spencer’s, Reliance Fresh, Spinach and Fairprice cater to the shopping needs of the residents.
Most of the software companies in Maharashtra have their offices in Navi Mumbai. The Reliance group of industries have had a major presence, and DAKC in Kopar Khairane and Mahape. Most of them are located in an area called the Millenium Business Park in Mahape. As a part of long-term planning, major commodity markets have begun moving from the heart of Mumbai city to Navi Mumbai. This has attracting more people to buy flats thus, rising the Navi Mumbai properties rates. The Navi Mumbai Special Economic Zone (SEZ) located in the nodes of Dronagiri and Kalamboli are planned to provide commercial growth and employment to the city.
These developments caused a sudden growth in economic activities and in Navi Mumbai Real Estate.