Mumbai Realty Happenings

Last year, a study conducted by ECA International, an international human resource organisation, declared that India's financial capital, Mumbai, is the world's seventh most expensive city, thanks to its ever-increasing property cost. This year, experts predict that the demand for real estate in Mumbai will increase by 30% to 50% from the month of March. This will eventually result in an enormous hike in the property prices in the city.

The feared hike in the property prices is being attributed to two major factors: increase in internal demand for residential property and overburdening of other popular business destinations in India. Industry experts predict an increase in the demand for residential property by 30% from this month, hence a substantial increase in the property cost. As India sets a promising stage for commercial prospects, business destinations like Delhi, National Capital Region (NCR), Bangalore, and recently, Chennai have been overburdened with property demand, hence construction, thereby causing an increased demand for commercial space in Mumbai. An increase by 50% has been predicted in the commercial property costs.

In its recent report, Office Space across the World 2008, real estate services firm Cushman & Wakefield declare that Mumbai's Central Business District (CBD) is the fourth most expensive office location in the world, superseding its fifth rank in the report in 2007. Its rental growth has been calculated to a whopping 60%. The total occupancy cost has been calculated at USD 166.04 per square feet per annum.

Reinstating its reputation of being the commercial hub of the country, a 9,250 crore plan has been put in place to revamp the slums of Dharavi to what is being forecast as the biggest economic centre around. The Dharavi Redevelopment Plan proposes to rehabilitate the slum dwellers and convert the slum into a technologically advanced and economically prosperous region.

With the property prices in Mumbai touching the sky, a recent announcement from the real estate firm, Matheran Realty Pvt Ltd (MRPL) may come as a relief for consumers from the low-income groups. Recently, MRPL announced its mega township project in Karjat, about 100 km from Mumbai. This project is targeted at the low-income groups.