The city of Mumbai is the financial capital of India. Being the financial capital it attracts a large number of investors and talent. Mumbai is like no other city.

Due to its burgeoning population and history of migrants coming from all over the country, the real estate scenario in Mumbai has always been very hot. Mumbai real estate has been one of the most sought-after and costliest in the country.

Though it is a no-brainer to invest in Mumbai, people still look for reasons. If you are one of those who want to know why you should buy a property in Mumbai, then we list the reasons and the benefits.

1. Economic Importance and Growth Potential

The main reason for the growth of Mumbai's real estate market is the economic importance of the city and the growth potential it offers.

A. Financial Hub

We all know that Mumbai is the financial capital of India. People come here to make money and send it back to their hometowns and villages. Mumbai has always been an attractive destination for the livelihood of people in India.

People from various states come to Mumbai to find suitable jobs or to start their businesses on a small scale. Looking at the earning potential that Mumbai offers, it is the most attractive place for people to work in India.

Mumbai being the financial hub is one of the main reasons its real estate is one of the costliest. People come here to earn money and live here. The demand for housing in Mumbai as a financial hub is higher than many other cities in India and hence its real estate is costlier.

People come here to make money. They have the spending capacity. When you are earning money, you can spend in numbers. Hence, the rents in Mumbai are also higher than many other cities in India.

B. Growth Prospects

Mumbai has grown in leaps and bounds over the decades. The growth of Mumbai in terms of population, housing and infrastructure has always been phenomenal.

Due to the opportunities it offers and the talent it attracts Mumbai's growth prospects have always been on the brighter side. Also, it has to be noted that the property market in Mumbai has always risen and never fallen.

Many developments take place in Mumbai from time to time. Being the financial capital, it houses the Reserve Bank of India, which is the central bank. Mumbai also is home to the film industry, the diamond market, the wholesale businesses, and many others.

Even if a new industry, is invented, it will mostly start in Mumbai or be headquartered in Mumbai. The growth prospects of Mumbai as a city have always been brighter and it will still be more colourful for the opportunities and things it offers.

2. Infrastructure and Connectivity

A. Transportation Networks

Mumbai has an extensive network of roads. It has at least two express highways and the same number of freeways. It is also now connected through the Metro.

The transportation network also comprises public transport, which is the BEST buses from the government. Private taxi aggregators such as Ola and Uber also operate in Mumbai, giving the people in the city the choice to move in hired cars.

Smaller roots are widened from time to time and newer areas that come up in the suburbs are connected with other parts of the city. Mumbai is not just a city. It is a Metropolitan city, which encompasses more than a hundred square kilometres.

B. Infrastructure Development

The infrastructure development in Mumbai in recent times has accelerated. The Metro was already there which has now been extended and built underground.

The Mumbai Trans Harbor Link was under construction and has now been opened, which connects Mumbai's Ireland city to Navi Mumbai, which is on the mainland and a part of the Mumbai region.

There are more infrastructure projects underway, such as bullet trains, tunnels, and a new expressway, which will link different parts of the city. The suburbs and the suburbs of the Mumbai region will be connected in a superior way to the main city as these projects are completed.

Also, Mumbai is connected to other cities through express highways and bypass bridges. This gives Mumbai city good connectivity to other cities in Maharashtra and India.

3. Diverse Real Estate Options

A. Residential Properties

The city of Mumbai offers a range of residential and commercial properties. There is a reasonable number of options to suit every pocket.

In terms of residential properties, Mumbai offers something as low as a one-room kitchen, also known as one 1RK to luxurious apartments consisting of four bedrooms, a hall and a kitchen known as 4BHK.

The residential properties in South Mumbai, which houses the Mantralaya or the seat of the Maharashtra government, the University of Mumbai, many business conglomerates head offices, the Governor's seat, as well as home to the richest people in the country, are the costliest.

As you move away from South Mumbai the residential rates drop and the suburbs offer more affordable housing options to people.

The residential properties in Mumbai can range from 100 ft.² to 2000 ft.² the pricing can range between a few lakhs to a few crores.

B. Commercial Properties

Commercial properties in Mumbai have always been a very hot topic for businessmen. Mumbai is the financial hub of the country. It is a dream of every trader and businessman to own their office or retail outlets in the city.

Landlords or single investors own a major chunk of the commercial properties in Mumbai. Most commercially available properties are passed on from generation to generation in the city. Also, it has to be noted that the new construction has been a favourite with investors.

Only a commercial property in Mumbai is not a piece of cake. It requires investment capital that select would have. If you have a commercial property in Mumbai, you will get a rent that will be sufficient enough for your basic needs or even more.

4. Quality of Life

A. Social Amenities

Since Mumbai was built well before independence, it already has a good network of amenities. Mumbai as a city has world-class healthcare facilities, top-notch education institutions, and a diverse range of recreational amenities.

Healthcare Facilities in Mumbai

Mumbai has a well-established network of healthcare facilities that include hospitals run by the government and private organisations. In Mumbai, you will find hospitals that would cater to almost every element.

Charitable Institutions in Mumbai provide subsidized or free-of-cost treatments through healthcare facilities run by them.

Educational Institutions in Mumbai

Mumbai has a large number of schools that cater to the population. The schools are by different organisations of the government as well as private organisations and charitable institutions.

Mumbai has education institutes for every pocket size. People with an average income can also educate their children at colleges and other institutions.

Recreational amenities in Mumbai

Mumbai boasts of a seafront that has beaches and open spaces. It attracts people of all ages and backgrounds to experience nature.

Mumbai has parks, movie theatres, malls, recreational activities and events to help people rejuvenate. Whatever your budget may be you can find a place where you can enjoy with your family.

B. Cultural and Lifestyle Attractions

Mumbai has been the home to the Bollywood. There are many movie theatres in the city. Many events such as different sports matches, music events, celebrations and plays happen that people can enjoy.

If you are a foodie, then Mumbai is the place to be. As a city, Mumbai offers a rich dining experience. You can find international cuisines and also Michelin-star restaurants.

In Mumbai, you can have breakfast or lunch for as low as ₹50 or you can opt for a rich dining experience at five-star hotels, such as the Taj and the Trident.

As the saying goes nobody sleeps hungry in Mumbai. Truly Mumbai has something for each and everyone.

5. Investment Potential and Returns

A. Property Appreciation

As pointed out earlier, Mumbai has a rich real estate market. With recent regulation changes in the past couple of decades, leading real estate developers in India developed new towers and properties.

Historically, prices in Mumbai, have reason or have been stable. Investing in Mumbai, real estate market has never been a loss-making venture.

Looking at the demand, and the supply gap that Mumbai offers, the real estate in Mumbai has always risen and will continue to do so soon.

As per the reports released by the government and different private consulting firms, the real estate market in Mumbai has always been prosperous. All you need to have is patience and the capital to invest in.

B. Rental Yield

Since the market in Mumbai is good enough, the rentals in Mumbai are higher. The population in Mumbai is higher as compared to other parts of the country and also there are a lot of opportunities for earning in the city.

The potential and the benefits that the city offers attract and keep people to stay back here in Mumbai. People from all over the country come to Mumbai to earn money, but in the process, they want to own their home here also.

Renting an apartment is an option in Mumbai for people with limited to moderate income. Many people coming to Mumbai do not have a house of their own. Hence people rent out Homes in Mumbai and landlords on handsome rent on their property.

6. Regulatory Environment

A. RERA Compliance

After RERA was passed as a regulation, Mumbai's real estate market has been regulated to a good extent. Many developers are RERA-registered, and most of the projects in Mumbai are registered with RERA.

RERA-registered projects offer transparency since people who want to invest in Mumbai can look up the details on the government's RERA website. This helps investors to make sound decisions and know what they are venting into.

B. Legal Aspects

Before investing in Mumbai, we would suggest that you do your research. Land in Mumbai has traditionally been owned by individuals or families and passed from generation to generation.

New projects are built by merging multiple housing societies, land parcels, or slum lands. Though the new projects are registered, it would be wise to do some research before investing in properties.

Consulting a legal expert would be more beneficial.

Conclusion

The number of benefits investment in properties in Mumbai offers out numbers the benefits that any other city in India offers. The network of people, the infrastructure, the healthcare and educational facilities along with recreational immunities, make Mumbai a great spot to invest in.

If you are from a Tier1 or Tier2 city in India and looking to invest in Mumbai, then it is a no-brainer. But it is suggested that you do your research and make an informed decision rather than blindly buying any property in Mumbai.

The real estate in Mumbai has always grown and given multiple returns to the owners. We encourage you to buy your first home in Mumbai or start your journey in real estate investing in Mumbai.

To help you with your real estate investment journey, we can offer you insights with our consulting as well as help you find the correct property to invest.