Why Mumbai is considered to be one of the most interesting real estate destination in India

Mumbai which is the commercial and entertainment hub of India has been growing in leaps and bounds for past many years. The economic development of this mega city in the past years has caused the property rates in Mumbai to soar higher and higher. Mumbai for long has been the home for many Bollywood stars and some of the richest businessmen in the country due to which the real estate prices in this mega city have always been higher as compared to other metropolitan cities of India.

However, the real estate market overall in India has not seen that kind of a positive momentum in last one year or so. Even a city as popular as Mumbai has not been able to buck the trend and has seen relatively slow down in the real estate market. Even though the government has been coming out with initiatives such as housing for all, however, analysts still predict that it make take some more time for the real estate market to resume the uptrend which it was witnessing for the past many years. In fact, the bold step of demonetization taken by the government is expected to further delay this recovery process of  real estate in Mumbai.

Current scenario of the Mumbai real estate market

In spite of the relative slowdown in real estate market, prices for apartments in Mumbai is over the crore marker which makes it extremely difficult for the salaried individual to own an apartment. Even with the existence of various housing finance companies eager to provide finance for these highly priced apartments, it is certainly not easy for the salaried class to bear the burden of EMIs which will be in lakhs. This affordability problem in Mumbai is a major problem which has left many houses unsold, thus leading to a slowdown in the real estate market. The dismal performances of the listed developers like Orbit Corporation and Housing Development and Infrastructure Ltd (HDIL) in Indian stock exchanges are a testimony to the slowing real estate market of Mumbai.

While on one side we see the increasing prices of  propertiesin Mumbai, on the other side we see a stagnant demand. People are waiting on the sidelines to invest their money in the properties but are waiting for the first sign of a drop in the rates.