Why real estate prices are so high in Mumbai?

Mumbai is not only the land of dreams but also the financial capital of India. It is one of the costliest cities to buy a home. Each day passes and the bar to purchase a flat keeps getting higher. The news comes as a shock when we hear that billionaires invest Rs. 1,000 crores to build their villas. And buying a normal apartment in Mumbai is almost like spending lakhs on matchboxes! Have you ever wondered why real estate prices are so high in Mumbai. I will try to answer this query for you!

Why is Mumbai real estate so expensive?

• Water Locked:

  Other cities like Delhi, Kolkata, and Bangalore have a scope to grow from all sides. On the other hand, Mumbai is an island city since all three sides are surrounded by the Arabian sea. So, Mumbai can grow only in a northward direction. The other three sides, which are South, West and East, faced the Arabian Sea.

• Population:

  Mumbai is a place where people come and settle. So, it not only belongs to the people who are born and brought up but also to many who come to flourish in their careers. Therefore steady infrastructure is required in distant suburbs such as Borivali, Dahisar and Mulund beside central Mumbai. Due to demands, prices in the suburbs also skyrocketed over the years.

• Airport, National Park and Abattoir:

  Mumbai has the oldest Airport, National Park and Abattoir. Since all these places take up a lot of space it hinders the chances of the builders to construct new buildings. Due to the presence of the Airport, there are many restrictions on not allowing tall structures. So places such as Andheri East, Juhu, Vile Parle, Santacruz, BKC, Kurla, Ghatkopar cannot have skyscrapers or tall buildings.

• Ready reckoner rates:

  Ready reckoner rates are a means which helps the Government collect taxes steadily. And the ready reckoner rates are on the higher side compared to the other places in India. And it will increase more over a period of time.

• Poor Infrastructure:

  Due to poor infrastructure it is very difficult to commute from one place to another in Mumbai. Local trains are an alternative way to travel faster but during peak hours you won't be able to stand on local trains. Living in areas such as Virar, Vasai, Panvel, Kalyan, and Dombivali can make you travel 1.5 hours every day due to traffic.

These are the main reasons why real estate prices are so high in Mumbai. Hope you find this answer informative. 

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