The 5 top ranking cities for realty investment in India would be Delhi, Mumbai, Pune, Bangalore and Chennai. It could be a bit difficult to narrow down the list further from here and state the best one for the given purpose but adequate research suggests that Mumbai can be the best option for investing your capital.
The major reasons for behind keeping Mumbai at the top rank here is its ability to provide unmatched ROI with higher capital value appreciation along with increased rate of development in areas like New Worli, Chembur, etc with various projects like Eastern Freeway Project.
There are several reasons that make Mumbai, a preferred destination for making an investment. Here are some of them:
1. High rate of return
Mumbai is not just India’s tinsel town but is also the biggest commercial hub of the country. In past four to five years, areas close to Mumbai like Navi Mumbai and Thane have developed a lot and thus are proffering a huge rate of return. During the same span of four years, from 2009 to 2013, the price of properties in these areas increased by 84-85 percent.
2. Favorable Destination for Businesses
The recent times see Mumbai providing the best environment for favoring business growth. Moreover, the city attracts business conglomerates from across the globe to setup their operations here. Referred to as ‘Manhattan of India’, the city houses some of the major financial institutions and their headquarters. Moreover, the real estate market is already flourishing with commercial projects on a good high. Therefore, making an investment from a viewpoint of setting up a business can be a good deal.
3. Luxurious High-end homes
If you are someone who is looking out for luxurious homes at a very affordable price then Mumbai is a good deal for you. In Mumbai, one of the major drivers for realty demand is the luxury homes. Mumbai is the pick for buyers looking to get a plush apartment or luxuries villa to live in. The luxury properties that are being developed in Mumbai include facilities like swimming pool, business center, preview theatre and concierge services.
4. Foreseen Infrastructure development Projects
Mumbai also promises a huge development in terms of infrastructure. There are projects that have been strategized by the state government that provide investors the incentive to park their money in the real estate market of Mumbai. One such foreseen infrastructural makeover is the ongoing construction of international airport in Navi Mumbai.
• Apart from this, there are other potential projects that are lined up:
• Metro Rail services to be commenced between Versova-Andheri-Ghatkopar
• The Santa Cruz to Chembur Link Road is another example of the infrastructural development in Mumbai.
• Development of this 6-laned expressway of 6.5 km length
All these projects are surely going to take the Mumbai realty market to next level and will create options for you to make investments.
5. End user driven demand
In 2014 a large number of realty projects in Mumbai are likely to get completed. As a result, the more numbers of properties would become ready for possession, which would allow property owners to move-in by the end of this year. As a result, the demand in the real estate market of Mumbai is most likely to be driven by the end-users.
In the past few years, the demand in the realty sector was mainly driven by the investors. The investors are most likely to dispose their properties and end users to buy them. As a result, the prices are likely to be set high. The prices in an end user driven market is generally higher than in an investor driven market.
Conclusion
Other than the above factors, the favorable conditions for overall growth of the Indian real estate market also supported the growth of the realty market of Mumbai. The realty in India remained in a stable position in 2013 but now with union budget supporting the real estate sector a growth is likely to hit the Mumbai realty market.