The Mumbai real estate market is enjoying a high time. There is a real estate boom in India and after Gurgaon and Delhi, Mumbai is the next most popular hub where people are moving into in great numbers. There has been a marked enhancement in the supply and demand in the micro markets. The investors have been trying to foray into the real estate scenario investing into retail sectors, residential sectors, and banking, insurance and IT/ITES sectors too.

The Mumbai property sector is actually very transparent if we look into it closely. There has been a marked improvement in the cash component lately in the transactions. Land prices have suddenly sky-rocketed to meteoric heights due to the demand of the state-of-art apartments in the posh localities of Mumbai as well as in the outskirts of the metropolitan cities. There has been a considerable boom in the investment markets which has experienced promising returns in the recent years.

There is this investor whose case is a classic example. He had invested in some property in Lower Parel a couple of years ago. This has enjoyed a return of 70 per cent in two years by a rental yield of 12 per cent annually. Currently, the investors for the Mumbai properties are the HNIs and much institutional money would flow into the sector.

With the coming up malls due to the inflation in the retail market and also with the upswing in the commercial establishment’s arena there has been a boost in the construction activities in many areas of the metropolitan city. This has, in turn, led to the investment opportunities in the retail, commercial and the real estate sectors. Lower Parel and Bandra Kurla complexes have seen a swell in the office construction work.

In the Naiman Point and the Andheri East locations, there has been a spurt in the recent months. The rate of occupancy is 95 per cent and it is considered to be quite high. There is a new trend in Mumbai, considering letting out of apartments and commercial areas very recently. People invest in the buildings only for the sake of lending it to a tenant paying a high amount of money as rent. Pre-leased real estate with tenants of high profile is the most favored option in real estate investment in Mumbai, these days.

Properties that fall under the high end category are experiencing an upsurge due to factors like greater affordability, facilities for double income and also rising deplorable income. The demand for Mumbai property will further escalate as long as the interest rates on housing loans remain within means.