Mumbai is the dream city of India. People from all across the Country as well as abroad come here in the quest to realize their unfulfilled dreams. For some it is a pleasant experience but for quite a few a nightmare. It is no doubt the business capital of India and also the Mecca of glamour world. From the highest building to the largest slum, Mumbai has it all.
The city for obvious reasons has the highest population density in India of 20, 700 per KM2. With the ever increasing population on a daily basis the infrastructure in Mumbai is outstretched and it is a challenge to survive in the city. Real estate property in Mumbai have been the biggest gainer in the past few years of this hyperbolic growth. The real estate prices in areas like Malabar Hill, Colaba and Bandra West are unimaginable and mind boggling; ranging from 1 to 1.5 lacs per square feet. Price tags like these have thrown the real estate market in Mumbai into a tizzy; Mumbai real estate has earned itself the tag of being in the top 10 costliest residential destinations in the World.
The silver lining for real estate in Mumbai has been its spread to the satellite towns, like Navi Mumbai and Thane. With good road connectivity and Metro being extended to these towns the travel time has drastically reduced. Areas like Mira Bhayandar, Bhandup, Mulund and Nala Sopara have come up within Greater Mumbai and offer property in the affordable as well as mid-segment range. Areas like Powai and Parel which earlier used to form part of the mid-segment property in Mumbai, have slowly moved out of range. Real estate in Mumbai has not been insulated from the property market crash in India in the last 2 to 3 years. The property prices in some areas have stagnated and have also gone down by almost 15%. The main issue in Mumbai real estate market has been the non-availability of liquidity. The property prices may have stagnated, however a bigger worry is that buyers are not available and on ground sales are not taking place.
This is not a very good sign for any property market and is an indicator that the worst is not yet over; as being presumed by certain experts and analytic companies. The individual investor is not sure whether to buy property in Mumbai or wait for some more time. This, wait and watch game is making the real estate market in Mumbai unpredictable and insecure. A decline of market sentiment in any sector takes time to revive, especially in real estate. As of now it real estate and property market in Mumbai remains a volatile venture, with much hope for the future.