Mumbai's real estate market is witnessing an unprecedented surge, according to Domnic Romell, President of CREDAI-MCHI. Speaking at the FPJ Dialogue event, Romell highlighted the growing demand for both commercial and residential properties, signaling a vibrant and resilient market. Despite challenges like rising interest rates and stamp duties, he emphasized that this is the best time to invest in Mumbai's real estate.
Romell observed a surge in interest across both upscale properties and suburban developments. The demand for residential properties in areas like Goregaon and Andheri has risen significantly, with rental prices in some suburbs nearing those in premium locations like Bandra. This shift, according to Romell, is largely due to the growing popularity of the 'walk-to-work' concept. People are prioritizing convenience and proximity to their workplaces, making suburban properties more attractive.
While the demand for properties is soaring, affordability remains a significant issue, especially in South Mumbai. Prime properties here can command over Rs 1 lakh per square foot, leaving few affordable options for average buyers. However, the demand for 2BHK apartments in the suburbs is growing as families look for more spacious homes within their budgets.
Romell also addressed the challenges faced by developers, especially in the context of redevelopment projects in older buildings. Regulatory hurdles, including approvals from various authorities, have made it difficult for developers to deliver on time. Redevelopment margins are thin, and only a few developers, like Oberoi Realty, have been able to deliver strong returns.
Despite these obstacles, Romell is optimistic about the future. He pointed to large infrastructure projects, such as the Dharavi redevelopment, as key drivers for Mumbai's real estate sector. The introduction of technology and platforms like RERA has made the market more transparent, empowering buyers to make informed decisions. With continued growth in infrastructure and suburban development, Mumbai's real estate market is expected to thrive in the coming years.
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