Mumbai property – top tips

Tip one

This particular space constraint places proximity to the city’s southerly commercial centre at even more of a premium than is usual.

Tip two

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.

Tip three

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.

Tip four

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.

Tip five

The main super luxury addresses in Mumbai are Nariman Point, Cuffe Parade, Napeansea Road, Colaba, Carmichael Road, Altamount Road and Worli.

Tip six

Land is at a premium in Mumbai, which means property sales involving anything other than a condominium unit are extremely rare.

Tip seven

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.

Tip eight

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.

Tip nine

Investors have opted for a wait-and-see attitude in recent times to cope with economic uncertainties and rising inflation. However, they cannot prolong this strategy over the long term due to the inherent need for housing and commercial properties.

Tip ten

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.

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