Mumbai Real Estate Still Growing Strong

Last year 2011 has been a complete roller coaster ride for the Mumbai real estate industry

. The year started on a positive note and the first quarter witnessed a great demand among the residential segment. The real estate market looked quiet promising not only for residential but also for commercial real estate. There was a great demand for all the extended suburbs like Andheri, Borivali, Thane, Navi Mumbai and particularly Panvel which witnessed strong demand due to the proposed international airport.

Incidentally, one of the trends witnessed last year was the rapid sale of ready-possession flats as compared to under-construction buildings. Another unexpected trends witnessed in Mumbai was the launch of a few premium residential projects in the third quarter of the year. Some big ticket deals were recorded too in the city. Year 2011 has been extremely challenging for the real estate sector. Some of the major factors that have slowed the pace of growth in this sector are very few project launches, procedural delays in getting approvals, shortage of skilled labor and slow pace in infrastructural growth along with the continuously rising inflation. Price of real estate have been spiraling upwards due to charge like Stamp Duty, VAT (Value Added Tax) Service Tax plus Labor Tax coupled with delayed approvals thus compounding coasts for the buyers.

Increasingly, Non-Resident Indians have also begun to consider investing in property in India. An interesting fact observed was increase in demand from NRI's. As the rupee depreciated it gathered attention from NRI's who invested in the Indian Real Estate sector. The real estate industry is the second largest contributor to GDP and in generating employment. It is also known fact instruments due to high housing demand versus current housing stock and land availability for development. At present, the demand for property in Mumbai is expected to rise by over 50% in the upcoming year.

Mumbai, the financial capital of India, has grown as a favorite commercial destination for leading Indians and multinational companies. The city is undergoing a massive construction and real estate boom, with hundreds of high-rises and more than 85 skyscrapers under construction. The villas and bungalows are giving way rapidly to high-rises. Though real estate prices across India are still smooth, Mumbai 's real estate market has surely started heading north. Realtors in Mumbai have hiked prices for their developments by 5-15% depending upon the location.

Parts of Mumbai is seeing the rapid growth in real estate market such as Navi Mumbai witnesses rapid development in real estate prices here have gone up in the last few years thanks to the good connectivity to Pune and Mumbai apart from the opportunities available within the city. What with several government offices, private sector companies and industrial units operating from here. Mumbai real estate still strong despite terror attack. Residential property in Mumbai continued to maintain the growth momentum as foreign investors still considered this market to be extremely viable. Property watchers and developers believe that the attacks have in no way shaken confidence in the city. It's a strength that is reflected in the real estate industry, which is actively involved in the creation of this global city.

by: lokeshmanu24

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