When it comes to price trends and investment in real estate, Mumbai is right there at the top among other major international cities. South Mumbai â€“ best known as the heart of Mumbai, acts as the central business district of Mumbai. Stating that itâ€™s the richest zone in Mumbai, it is home to some of the most affluent and celebrated families in the country. Being the most elite town in Mumbai, it houses Mumbaiâ€™s richest families and has been attracting loads of investors from all over the world.
The Trend of Building Palatial homes
The homes of some of the most prominent celebrities - Mukesh Ambani, Sachin Tendulkar, the Bachchans, and Shah Rukh Khan are the biggest landmarks in Mumbai. Tourists flock outside their gates to get a glimpse of their favorite celebrity.
Mukesh Ambaniâ€™s Antillia in Altamount Road is being considered as the most expensive home in the world at present. Sajjan Jindalâ€™s Maheshwari Mansion at Nepean Sea Road is worth around Rs 500 crore.
Anand Mahindraâ€™s Gulistan, again at Napean Sea Road is worth Rs 250 crore. The list does not end here; there are many other big names who have bought palatial houses in Mumbai worth a million bucks.
Homes of the Rich â€™n Famous â€“ Itâ€™s Effect on Real Estate Prices
Thereâ€™s no doubt that the properties of these super-rich somehow create an upward pressure on the real estate prices in and around Mumbai. Especially the premium properties those are located in the immediate vicinity. Brokers tend to sell the houses in proximity to such towns stating â€˜next to Amitabhâ€™s bungalowâ€™ or â€˜in proximity to Ambaniâ€™s houseâ€™. However, thereâ€™s no denying the fact that more often than not, the overall Mumbai real estate prices remain unaffected, as these elite housing groups are only a microscopic segment of Mumbai as a whole.
Not to forget, the Mumbai real estate operates on three basic levels â€“affordable, budget, and premium. The affordable and budget properties are constantly in demand and the most sought after in a crowded city like Mumbai. You wonâ€™t find such properties in premium locations of South Mumbai because thatâ€™s where the HNIs build their homes.
Whatâ€™s So Special about These Residences?
Thereâ€™s more to these homes than just the prices. Why these high net worth individuals in Mumbai are investing in Mumbai Real Estate needs to be analyzed closely. It can have various angles to it. Of course, one of the various reasons is making a lifestyle statement. This comes from the fact that the individual is not an ordinary person and that he desires to be counted among the wealthiest and the most influential people of the country.
The capital price of the property along with the inspirational quotient is what inspires the HNIs to buy that property. A higher ticket size is valued more and promises excellent returns in future, mainly due to the esteemed value attached to it and the exclusivity. Most of the HNIS have also managed to get profitable returns.
Investing in real estate therefore, has always been their top choices. They believe in preserving their wealth by putting in their money in exotic investments which include luxury villas and palatial properties. For the rich and famous, showing off their money and lifestyle is of prime importance for image and status building.
How Does It Affect An Average Citizen?
The average citizens tend to discard the super-luxury housing segment by considering their over-hyped properties as irrational splurging. But the fact remains that it is the homes of the most affluent that really make jaws drop. Keeping everything in mind, you will still see that a major part of the real estate industry is still concerned with the needs of the masses and not just the classes.
Therefore the ownership, value, and the returns associated with these high-ticket properties donâ€™t really matter to an average citizen, and hence are not exceptional. Thatâ€™s the only difference between an average citizen and the rich and famous. For an average citizen, investing in a premium flat in areas like Worli, Cuffe Parade or Bandra etc will cost a bomb. Besides, the returns that they would gain out of it would not be as great as the returns on a premium flat in any of the central suburbs in Mumbai. For any average citizen, affordability over luxury is the most ideal investment option especially in a space-crunched city like Mumbai. Going by the current real estate scenario, the possibility of having an affordable house in Mumbai might remain a dream.
About the Author â€“
Suraj Deshpande is a real estate writer and contributor with immense knowledge and experience in the field of real estate. He regularly writes about various properties, property trends, property listings and about Real Estate market in general. Although he shares his views on all major property markets in India, his main focus is keeping a track on all the news and happenings related to Real Estate in Tier I cities of India. For more information about properties in Mumbai, visit our website.