subject: Factors Contributing To The Rising Rates Of Property In Mumbai [print this page] The city has earned so many names a city that never sleeps or city of dreams, even hottest real estate market! Everyone wants to be in Mumbai and own atleast one property here. But like all good things, this can take time, courtesy of the ever escalating property rates. The rates may stabilize for a while but never do they drop simply because the factors that are contributing to the phenomenon wont or cannot back down. Common ones are -
Development of Infrastructure
One of the busiest railway networks along with the BEST buses, ST buses, private transport services, corporate transport services ensure good accessibility throughout the city. Yet more is done. Flyovers, bridges, metro-rail, mono-rail, another airport and speculations about water transport development are on as well. Properties in Mumbai are all the more in demand especially around the fast appearing malls.
Land Availability
The scarce the land, the more is the value placed on it. This is absolutely true for Mumbai, especially in areas such as South Mumbai, whereas prices of Navi Mumbai properties continue to grow slowly.
Commercial Development
As more and more offices, IT parks and SEZs show up the market sees new optimism in those areas. Example - Flats in Chennai on old Mahabalipuram road moved up both in demand and prices due to their proximity to IT parks.
Disposable Income
This is the only factor where the nature of the population expected to reside or use the estate is taken into account. Hence IT parks neighbourhoods tend to be priced higher than agricultural ones.
Connectivity
People prefer easy connectivity to entertainment, medical, educational, etc. services. The more such connectivity, the higher are the property rates. Flats in Pune are in demand now due to the arrival of market cities and growth of reputed universities.
Mumbai Special
Other than the above five universal factors, Mumbai has its own special reasons for being so desirable when it comes to real estate. The film industry is at an all time high boosting dependant business and producing many more jobs. It is currently the largest film industry and hence the property in Mumbai on the stretch from Goregaon to Andheri west can feel the high rates heat.
Some other industries buzzing here are fashion, art, apparel, services like branding, designing, theatre and music, and so on. The over-crowded streets dont seem to discourage anyone from taking a bite from what we know as Mumbai!
