The commercial and financial center of India, Mumbai is also India’s most populous city, with an estimated population close to 2 crores.
With such an abundance of people living in the burgeoning megacity, the demand for property in Mumbai is very high. Even though there are many builders in Mumbai, the demand for property in Mumbai shall for the foreseeable future easily outstrip demand.
As the city has little room for expansion, property in Mumbai is expensive and flats on average are much smaller than those in other large Indian cities. Prices for property in Mumbai have appreciated slightly over the last three years from an average of about 40000 Rupees a square foot to little more than 45000 Rupees a square foot. Hence if one were to analyze real estate trends in Mumbai, we would find a moderately more expensive real estate market from the one three years ago.
Even owning a 1 BHK flat in Mumbai is no mean feat as demand always exceeds supply driving property prices skyward. A 1 BHK Flat in Mumbai is likely to cost upwards of at least 25 Lakhs, and other better quality homes of the same size may cost almost twice as much. The size of such flats in Mumbai may vary from 550 square feet to 800 square feet.
Property rates in Mumbai have delivered a an annual price growth close to 10%, the size of the city coupled with limited space to expand and an ever increasing immigrant population have led to a deficit of affordable housing in Mumbai.
One of the builders in Mumbai, Lodha, offers 2 BHK apartments in Mumbai at Thane West for just under a crore. The apartments in question are a little more than 1000 square feet in size and have 2 bathrooms. What really makes them out of reach of the vast number of Mumbai’s residents is that even if the buyer were to take a loan, they would still be paying an EMI of close to 1 Lakh a month. Compare this with Gurgaon where a buyer can purchase a property of nearly twice the size at the same or slightly higher EMI.
Rahejas is definitely one of the top builders in Mumbai. Upcoming projects in Mumbai under constructed by the group cost well over 1.5 crores but are still dwarfed in living area by similarly priced properties in the NCR.
Residential projects in Mumbai are expensive, no one would ever say otherwise. Three to four thousand square foot luxury flats in Mumbai could cost you to the tune of 6 crores. To their credit however such luxury flats in Mumbai may have more innovative design being designed by more skilled architects than those in other major cities in India, making them a great place to live.
All in all flats in Mumbai cost the customer much more per square feet than real estate in other major urban centers in the country. While we would never say not to buy property in Mumbai, we would say that when buying real estate in Mumbai, your long term intention should most certainly be to live in your flat and not to simply look for appreciation; there are others parts of the country better suited for that.