Mumbai
Mumbai, previously known as Bombay, was originally a conglomeration of seven islands on the Konkan coastline which over time were joined to form the present day island city. Mumbai is now the largest city in India with an estimated metropolitan population of 17 million. It is also one of India’s largest port cities and is the undisputed financial capital of the south-Asian nation. Mumbai has come to be known as the most culturally eclectic and cosmopolitan Indian city.
Mumbai real estate guide
Mumbai is emerging from almost a decade of uninterrupted growth in its real estate market, fuelled by both exploding end-user demand and international speculation. The city’s geographical location has constrained growth to an extent, given that it is surrounded by the Indian Ocean on three sides, so the circular urban sprawl common to most major cities has been limited to a linear northwards expansion. This particular space constraint places proximity to the city’s southerly commercial centre at even more of a premium than is usual.
Most new real estate developments in Mumbai are firmly aimed at long-term investors looking for impressive returns, with modern high-end high-rise offices, hotels and apartment blocks all key new features of the city’s burgeoning skyline. Yet although lucrative profit potential has attracted plenty of international interest, the reality of purchasing property under Indian law is far from straightforward. Since 1973 the Foreign Exchange Regulations Act has in fact restricted the right to own property to Indian citizens (including non-residents) and ex-pats able to prove direct Indian origin. For other foreign nationals, eligibility is determined by residency. However, although the annual residency requirement is 183 days, tourist visas expire after 180 – a well-documented bureaucratic catch-22. Five-year leases are one way to partially sideline this issue, yet they necessitate costly renewal of tourist visas by re-entry every six months.
Prior to the recent Mumbai terror attacks, India was beginning to feel the effects of the global credit crisis and investor interest was slowing. Many experts now believe the attacks could have a massive impact on the city’s real estate market, with a decline in cross-border business visits set to register immediately.
If any area of the property market is remain untouched by the slowdown it will be the ultra-high end. In November, when the international financial slowdown was already biting, a four-bedroom apartment in Mumbai broke the previous national record price paid after securing a bid of US$8.62 million at a private auction. The apartment, which is located near the centre of Indian’s financial capital in the Nariman Point region, sits on the seventh-floor of an apartment block and faces out over the Arabian Sea. The buyer is believed to be a British-based non-resident Indian who fought off strong interest from at least four other bidders.
The transaction is the latest in a series of high-value property deals for huge, sea-facing apartments in south Mumbai’s up-market residential enclaves. The apartment’s panoramic view is seen as its main asset and the shoreline is visible for miles in two directions.
And the sale is not a one-of. Demand for ‘Super Luxury’ developments appears to be largely unfazed by in the way that other market segments have been. Super premium housing is growing at 25-30 per cent while luxury housing has already grabbed a 10 per cent of the housing market in value terms. The main super luxury addresses in Mumbai are Nariman Point, Cuffe Parade, Napeansea Road, Colaba, Carmichael Road, Altamount Road and Worli.
Condos in Mumbai
India is coming off the back of a 20.5 per cent increase in its number of High Net Worth Individuals (HNWIs). The HNWIs are now competing with overseas investors for units hitting the market in the ultra-high end of the condominium market, a fact developers have been keen to exploit. More on buying condos in Mumbai.
Houses and land in Mumbai
Land is at a premium in Mumbai, which means property sales involving anything other than a condominium unit are extremely rare. Land ownership is also an issue for those looking to invest in this area. More on buying houses and land in Mumbai.
Top tips for Mumbai property
Guide to buying condos in Mumbai
Guide to buying houses and land in Mumbai
