“Mumbai is infectious. Once you start living in Mumbai, working in Mumbai, you can’t think of living somewhere else”
2017 is going to be a landmark and bumper year for the Indian real estate industry and the economy as a whole. The recent controversial ‘demonetization’ drive will have positive and long terms effects on the property in India. It shall imbibe the much needed transparency in the system and will help regain the buyer’s confidence.
Property in Mumbai has always been making headlines, whether it is due to the rising prices or the plethora of options available across all types of realty segments. For commercial property investments, Mumbai is supposed to be the best place with 12-19% returns expected in the next five years, ahead of Bangalore and NCR. The major demand for office space comes from sectors like IT/ITES, consultation, retail and e-commerce. The city plays a major and appreciable role in enhancing the real estate sector of the nation. Its ever increasing population results in a growing demand in both residential and commercial segments.
Mumbai is one of the most expensive cities in India which though has a high cost of living but also assures good returns on the investments made. It is an investors’ paradise and this is one of the prime reasons why property investors from across the country are eyeing the place for making investments. Several MNC’s and other corporate biggies have their head offices in Mumbai and many others are planning to set up here, which indicates that the property prices in the city are on an upward trend.
As per the recent reports of the “City Wealth Index”, Mumbai stands on the 21st rank, followed by Toronto, Washington DC and Moscow. The capital city, Delhi is on the 35th rank, ahead of Bangkok, Seattle and Jakarta. This report is released after tracking the increasing super-rich population across 125 cities in 89 countries and puts light on the factors influencing the investment and lifestyle decisions of the ultrahigh net worth individuals (UHNWI).
UHNWIs are those who own net assets worth Rs 200 crores, approximately. ($ 30 million)
These results are based on the feedback given by over 900 world's top private bankers and wealth advisors. The reports indicate that the “ultra-high-net-worth individuals” in India have increased by 290% during the last ten years. India is a home to approximately 13.6 million (2% of the world's millionaires) and 2024 billionaires (5% of world's billionaires).
Mumbai is on the leading edge housing over 1,340 UHNWIs, the highest in the country, with Delhi (680), Kolkata (280) and Hyderabad (260) following the race. The Indian cities that have witnessed a hike in housing such individuals in comparison to 2015 are Pune (18%), Hyderabad (15%), Bangalore (15%) and Mumbai (12%).
At an international level, out of the 40 cities, Mumbai sits on the 11th position under the “future wealth” category, leaving behind Chicago, Sydney, Paris, Seoul and Dubai.
Further, it is anticipated that an appreciable percent of wealthy Indians are expected to make investments in the residential realty space in the coming two years - 40% within country and 25% abroad. In such cases no doubt that the office space is on top priority but even the logistics has seen a three-fold growth.
Talking about overseas, the Indian HNWIs prefer buying properties at places like UK, USA, Singapore, UAE, and Hong Kong whereas the global wealthy have interests in European countries. In the “most expensive prime residential city”, category, Mumbai ranks 15th leaving behind Istanbul, Melbourne and Dubai.
27% of Indian UHNWIs have made investments in luxury assets like classic cars, art, wine, motor yacht followed by sailing yacht, race horse, private jet and sports team.
