Improvement in Mumbai’s Infrastructure…Spells Boom in Property Market

Since the 1990's, the property market in the Indian subcontinent has witnessed a vast change. In the early 90s, people in India, especially those residing in the tinsel town could not even afford to dream of purchasing a property but with the gradual increase of income and the home loans made easy for all, the property market in Mumbai saw a sharp rise.

The inhabitants of Mumbai were reluctant to buy a home in the suburbs due to its deteriorating conditions but then the improvement of the infrastructural conditions happened and that saw the flow of people who were willing to settle down in the suburbs. The increasing rate of the stock in Mumbai really supported the property market of India to gain impetus at one point of time but in the following period this hike also saw a major downfall in the importance that this city had over the other most preferred cities like Delhi, Hyderabad and Bangalore.

As of now the property market in Mumbai is soaring at a rate of 100% every year despite the crucial facts like crumbling infrastructure and the recent bomb blasts have taken a toll on the city mass. The foreign companies are also cashing in on the economic boom that is taking place there and the real estate developers always seem to be busy raising funds in the stock market. The areas in Mumbai which stand testimony to the steep rise in the real estate market prices are Bandra, Nariman Point and Parel. Recently one of the residential apartments of Mumbai has fetched a price of 60,000 INR per square feet. The prices of the property in the suburbs also have also shot up. According to one State Government official, “Mumbai continues to attract business despite all odds”.

The corporate biggies like Lehman Brothers have purchased property in Worli paying a price much higher than the prevailing rates. Thus it is evident that the real estate companies would experience a win-win situation in the coming times as well.