Mumbai, India

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Is Mumbai’s Real estate only for the Rich?

Mumbai has recently gained a very important aspect when it comes to global business. This is according to Knight Frank and Citi’s annual wealth report.  In Mumbai, forty percent of residential property markets greatly increased value-wise in the year 2010. But, what does this mean for the lower incomes? In this article a brief overview on the differences between poor and rich and access to newly built property. South Mumbai houses the largest percentage of the famous and wealthy in Mumbai. This area has gained its reputation suddenly.

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The rich next to the poor

This is causing a raise to great values in property deals. All that the rich Mumbai people need to do here is to establish the right properties which are also of the appropriate size according to what they need, and if such properties are located within areas they deem important, the rich will be more than willing to pay premiums of 30% or even 40% to have them. This is certainly not possible for those who are not moneyed enough to pay such premiums.

The aspect of the property market slugging is also a factor that has greatly contributed to the increase in property value in Mumbai. For instance; in 2010, the office of property market went down, and office spaces were bought by the rich Mumbai icons like Mahindra, ICICI Bank , Kotak and many others. This is per JLL Dutt’s report about real estate.

With no signs of this trend stopping, affording homes may become a dream too far to be realized by financially medium sized people considering that the rates for loans will also sky rocket. The issue of loan’s interest increasing is something that the rich Mumbai are not troubled with since they do not have to take loans when buying property and for this reason, any negative effect on loans doesn’t affect them in any way. This is evident when the property markets are low when developing and also owners selling off their property because the rich

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Mumbai's richest reside at Nariman Point and Marine Drive

Mumbai will go right on to purchase the property and the deals will keep increasing. The southern part of Mumbai city is the central part of the city’s business which spreads from the central point to other areas India. Being the richest precinct – (urban wise) in this city, it houses the richest people in Mumbai and also the most elite in the whole town.

This area has uninterrupted supply of electricity. All civic amenities and utility services too, which are necessary for a good flow of commercial trade are present. Transport in this area is very efficient for it has been facilitated by yellow top taxis as the authorized means of transport that should ply within the city to enhance people’s movement in and about their business trades. This makes it possible for business to run round the clock without any sort of interruptions.  The availability of sporting amenities has also contributed to the areas high rates, with the nearby neighborhood’s rates being affordable by the rich Mumbai only.

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