There is demand for property in Mumbai from fund managers. The fund managers are eager to invest in real estate in Mumbai. A recent report shows that the fund managers are moving away from investing in markets like Japan and Australia as compared to the emerging markets such as Vietnam, China and India.
The Growing Mumbai market
In India, Mumbai is position as the second most attractive destination for investment after Bangalore. The Silicon Valley of India, Bangalore, stands as the most attractive destination for investment due to its status as India’s IT hub. However, the demand for real estate in Mumbai has also caught the eye of foreign investors. Many companies are opening offices and research centres in Mumbai. A common pattern, which has been observed in the Mumbai market, is that as more office space will develop, there will be greater demand for properties in the city. There may be more demand for apartments in Mumbai and investors will be interested in investing more.
Infrastructure and Growth
A major rail and road project in Mumbai will lead to a smoother flow of traffic in Mumbai and improve the connectivity within the city. Major projects are expected to be completed over the next three years. Mumbai is regarded as the most expensive city in the country. Mumbai was also ranked second in India in terms of “Historical Investment Prospect Ranking” for 2017. As the central government has removed many regulatory obstacles, the investors believe that the government is eager to welcome foreign funds in Indian real estate market. Many who work in the real estate industry in India has hailed the establishment of a REIT (Real Estate Investment Trust) framework in the near future. They, however, feel that new issues need to be addressed before such a framework can be successfully created.
The report suggests that any type of investment in Mumbai will be beneficial to the market in the end. There is a need to take potential measures to remove red-tapism and other bottlenecks. It will help to improve investment in Mumbai property market and make it safe for investors.
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