Saturday, December 29, 2012

Is investment in Mumbai's real estate lucrative?


Mumbai is financial capital of India. It is also the richest city in west and central Asia. The very status of the city attracted various real estate investors over the years. Majority of the investment is made in small real estate projects with aim to capitalize on them in future.

The real estate sector in Mumbai witnessed a major boom with the rise of IT industry with several multinational companies coming to the city attracting lakhs of IT professionals from across the country. This created a considerable size of customers for real estate in Mumbai as the neo rich people went on rampage to invest in real estate which was mainly demand driven. With the boom in early 2000, real estate companies launched major projects since it was highly lucrative. The real estate rates in Mumbai went shooting through sky from 2000 to 2006 taking it out of reach of the common man. However, the real estate prices in Mumbai came down crashing by half in 2008 due to global melt down.

The year 2009 saw an all time low investments in real estate in Mumbai; still the decrease was not as low as compared to other cities in the world. There was gradual but steady increase in real estate prices in Mumbai post 2010.

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