Mumbai is among India’s leading real estate markets and also one of the best cities to live in across the globe. So, it is no wonder that properties here are expensive and keep getting costlier year after year. If it is a high-end project by a luxury real estate developer in Mumbai, the price will be higher. However, there are various factors that contribute to the soaring property prices in the city.

Once you learn about these factors, you will understand that flats in Mumbai are not overpriced, but fairly priced. Read on to know the reasons behind the high real estate rates in Mumbai, and why you must still consider investing in a property here in spite of it:

What Drives the High Property Prices in Mumbai?

• Financial Capital City

  Mumbai is the country’s financial capital. Hence, it is a major economic hub where several local and multinational companies and leading banks and financial institutions have their headquarters. It is also home to the Bombay Stock Exchange and the entertainment industry. Due to all this commercial activity, skilled professionals can find well-paying jobs here. Many of them look for homes close to key commercial hubs, IT parks, and central business districts. Besides, high net-worth individuals, CEOs, business owners, entrepreneurs, etc., strongly prefer luxury residences by top builders in Mumbai in such areas. Thus, the city’s status as the financial capital considerably boosts its property rates.

• Rising Population Levels

  In addition to the promise of lucrative job prospects and business opportunities, Mumbai also offers high living standards. That’s why hordes of people move here from all over India. This constant influx rapidly increases the city’s population levels, that too with a higher density of residents concentrated in sought-after locations. Due to this massive population growth, the supply of flats in Mumbai is falling short of the ever-rising demand. It means that there are fewer housing units available for sale than there are prospective buyers. As a result, the market is extremely competitive, which shoots up property prices in the city.

• Infrastructure Development

  Infrastructure growth provides convenience to citizens and enhances their daily lives. Mumbai has a number of ongoing infra projects, including Mumbai Metro’s expansion, the proposed Coastal Road, etc. These projects will make connectivity throughout the city even more seamless in the future. Moreover, the public services around metro stations and major roadways are usually much better. Because of these reasons, the demand for properties near them is high. This rapid infrastructure development is a key reason for Mumbai’s rising real estate rates.

• Land Scarcity

  Geographically, mainland Mumbai is just a narrow land strip along the Arabian sea. Due to its natural boundaries, expanding its urban area is not possible beyond certain limits. Therefore, the available land in the island city is scarce. Not only that, most of it is already undergoing development or reserved for future projects. Mumbai’s complex topography also includes flood- prone regions and areas that are tough to develop because of environmental restrictions.

  So, as developers struggle to acquire new construction sites, the competition for available land plots is too high. This limited land availability escalates property prices in the mainland. Hence, many top builders in Mumbai are turning to the suburbs.

• Foreign Investment

  Mumbai is an attractive real estate market for global investors seeking profits. They find it economically stable with high growth potential. Foreign investments increase the competition in the market and raise real estate values.

Why Flats in Mumbai Are Worth Your Investment

• Resilient Property Market

  Mumbai’s property market has been remarkably resilient even in the face of economic downturns or a global pandemic. The demand for properties here remains unabated no matter what. As the city is continuously developing, it has tremendous scope for future growth.

• High ROI Potential

  Buying flats in Mumbai’s prime locations can yield high ROI over the long term. Residential areas close to key transportation and business hubs or major highways are immensely popular. Tenants are keen to rent such properties, so you can earn a good secondary income every month as an investor. Moreover, if the flat you purchase is close to any ongoing infrastructure developments, the property values will keep appreciating through the years. Therefore, you can make substantial capital gains through resale as well!

• Exceptional Facilities & Connectivity Options

  Mumbai has exceptional facilities to satisfy all your essential and leisure needs. Here, you’ll find trusted hospitals, clinics, schools, colleges, restaurants, shopping malls, entertainment centres, public parks, community spaces, art galleries, museums, nature reserves, etc. You don’t have to travel too far off to access anything, especially if you live in a prime locality. The city also has a strong public transport network comprising the metro, local railway, buses, auto-rickshaws, taxis/cabs, etc. Upcoming roadways will make the existing connectivity via road even better!

• Luxury Residential Projects

  Top builders in Mumbai offer premium properties in the city's prime locations. These projects have spacious luxury apartments and various amenities. Such homes will both upgrade your lifestyle and provide promising returns.

Invest in K Raheja Homes in Mumbai for Maximum ROI

K Raheja Realty is a distinguished real estate developer in Mumbai. For those who wish to maximise their ROI, K Raheja’s properties in the suburbs can be an excellent choice.

• Raheja Residency, Goregaon-Malad East: Tower ‘T’ has premium 1 BHK flats, while Tower ‘S’ has 2, 3, and 4 BHK flats. They all come with spacious layouts, scenic views, lavish designs, and high-quality features. There are also 20+ lifestyle amenities here. These include Podium Dream Garden (2 acres approx.), resort-style swimming pool amidst breathtaking landscape, extravagant 20,000 sq. ft. clubhouse (OC-received), pickleball court, banquet hall, etc.
• Raheja Interface Heights, Malad West: Discover premium 2 and 3 BHK flats in Mumbai at Raheja Interface Heights. These homes are spacious, luxurious, look over scenic views, and offer access to 20+ lifestyle amenities, such as a clubhouse (OC-received), banquet hall, swimming pool, restaurant, indoor play area, etc.

Residents will enjoy superior connectivity from both these Raheja projects, thanks to the close proximity to the metro, Western Express Highway, and the local railway station. Top educational institutions, healthcare establishments, retail and commercial hubs, etc., are all nearby. They are also close to the upcoming Goregaon-Mulund Link Road and the proposed Coastal Road project.

Compared to the mainland, you can buy a flat in these premium projects at a low initial investment. Yet, you can earn high long-term profits through rentals or property value appreciation. Besides, as these are OC-received projects with ready-to-move homes, you don’t have to pay GST either!

Conclusion

Purchasing flats in Mumbai may seem costly, but they are not overpriced as the reasons above explain. Though it is a huge financial investment, you can reap maximum profitability if you do it wisely. Connect with K Raheja’s sales office today to check out our outstanding residential projects!

Disclaimer

The content of this blog is based on information available to the public for general use, and any references/sources if mentioned. While we take care to refer to reliable sources as far as possible, we do not claim any responsibility for the accuracy of the given information whatsoever. The article is to be used for general informational purposes only. Please note that it neither constitutes legal advice nor does it intend to. If any individual(s) take/s any decision based on the information in this article without verifying the genuineness of the facts, we expressly disown/disclaim any potential liability that may result due to the same. We encourage readers to get guidance separately pertaining to any specific information given herein.