- 29 December 2017
As Mumbai attracts an increasing number of expatriates, the demand for rental housing continues to rise. We explain why you need to capitalise on your Mumbai property.
For decades now, Mumbai has been the proverbial magnet for people from all over India. Migrants from across India are drawn to Mumbai, the country’ leading financial and entertainment hub, in search of economic, social and creative opportunities. Mumbai's urban population is estimated to be well over 20 million, and the densely populated city is one of India’s busiest, in terms of trade activity and business.
Going back to the India of the early 90’s, when the country’s economic liberalisation had been initiated, several international businesses began investing and setting up base in Mumbai at the time. This resulted in many expats making their way to Mumbai on temporary deputation. Today, Mumbai is acknowledged the world over as a truly cosmopolitan city, where people from around the world visit, work and live. In fact, a recent survey placed Mumbai as India’s most expensive city for expatriates, inching closer to a place on the list of 50 most expensive cities in the world. However, though already bursting at the seams, Mumbai has been very accommodating of its expat population, who choose the city for its after-work lifestyle and glamour quotient.
So those buying flats in Mumbai can consider rental income from this segment of tenants. Leasing a home in Mumbai can be a good option on account of several factors:
* There’s always a high demand for rental housing, because Mumbai’s real estate is amongst the most expensive in India (and the world). Many people are unable to afford buying a home in Mumbai, and those who do, often have no choice but to move to far flung suburbs or areas that are on the fringes of the Mumbai Metropolitan Region (MMR). Expats, in particular, are keen on living in well-connected localities with good social infrastructure and often prefer to rent apartments, given the transient nature of their stay in Mumbai/India.
There was a time when single people and young couples would live on rent while they scouted for permanent homes; today, however, many families are choosing to live on rent in Mumbai. This translates into improved opportunities for home owners in Mumbai to monetise their properties by leasing out. Flats in upmarket localities naturally fetch higher rentals.
* Rising property prices, despite a slowdown in the real estate market. Cynics are known to be sceptical about Mumbai’s real estate market, calling it ‘saturated’ and ‘not open to further growth’. However, it is hard to ignore the fact that for as long as people continue to migrate to the city in search of employment and career growth, there will always be demand for housing. Flats for sale in Mumbai are lapped up quickly, especially if they are located in emerging, fast-growing residential hubs.
* The best residential projects are being created in Mumbai. Some of India’s best-known corporate developer brands are headquartered in Mumbai. In other words, Mumbai is home to some of the country’s best developers, who have created landmark residential projects in the city. In addition to mass housing colonies and mid-income homes, Mumbai is also home to a spate of luxury housing projects dotting various parts of the city.
* Mumbai’s stature as a business hub is set to consolidate further. The city continues to draw significant FDI and domestic investment for its large companies and start-ups alike. Plans to increase