Mumbai - Real Estate

About Mumbai

Mumbai Real Estate market

  • Approximately 7,200 Mumbai residential projects were launched during the third quarter of the year. This is a decline of 34% from the previous quarter. The primary reasons were low sales and delays in approvals. The new launches were concentrated in Navi Mumbai (64%), Central Suburbs (13%), Thane (10%) and Western Suburbs (7%). Most new launches were in the mid-end segment (64%).
  • Capital values remained almost constant in many places except South Central Mumbai where values declined marginally by 2%. Rental values too have remained stable due to low supply and stable demand.
  • Preference for ready-to-occupy units has increased among end-buyers owing to delays in under-construction projects. Consequently, developers have started launching projects with lower ticket sizes: 2 BHK configurations with a size of 1,200-1,300 sq.ft being the most popular.
  • Residential capital values in the city are expected to face downward pressure due to subdued transaction activity and increase in launches during the last quarter of the year. Few developers have delayed launches in order to revisit plans and change apartment sizes based on market demand. Rental values are expected to be stable in Mumbai.

Demographics:

  • According to the 2011 census, the population of the city is 12,479,608. The city has seen a huge migration of population from all over India in search of employment opportunities. The population density is approximately 20,482 persons per sq.km. The living space is 4.5 sq.mt per person.
  • According to 2011 census, the sex ratio in the island city is 838 (per 1,000 male) and 857 in the suburbs. Greater Mumbai has a literacy rate of 94.7%. The literacy rate in Mumbai slums is 69% making these slums the most literate slums in India.

Employment Opportunities

  • Mumbai is India's most populated city. It is the financial and commercial capital of the country as it generates 6.16% of the total GDP. The city contributes to 10% of factory employment, 25% of industrial output, 33% of income tax collections, 60% of customs duty collections, 20% of central excise tax collections, 40% of India's foreign trade and 4000 crore in corporate taxes. Mumbai has witnessed an economic boom since the liberalization of 1991, the finance boom in the mid-nineties and the IT, export, services and outsourcing boom in 2000s.
  • Although Mumbai had prominently figured as the hub of economic activity of India in the 1990s, the Mumbai Metropolitan Region is presently witnessing a reduction in its contribution to India's GDP.
  • Many of India's conglomerates such as Larsen and Toubro, State Bank of India, Life Insurance Corporation of India, Tata Group, Godrej and Reliance, and five of the Fortune Global 500 companies are based in Mumbai.
  • The key sectors contributing to the city's economy are gems and jewellery, leather, IT and ITES, textiles, and entertainment. Bandra Kurla Complex (BKC) and Nariman Point are Mumbai's major financial centres. The Santacruz Electronic Export Processing Zone (SEEPZ) in Andheri and the International Infotech Park (Navi Mumbai) offer excellent facilities to IT companies.
  • Current situation indicates that the western zone has 33% of the total occupied space in the city implying a large proportion of employment opportunities here. The central zone contributes to 30% of employment.

Connectivity

  • Mumbai has several major national highways: National Highway 3, National Highway 4, National Highway 8, National Highway 17 and National Highway 222. The Mumbai-Pune Expressway was the first expressway built in India. There are several important highways such as Mumbai Nashik Expressway, Mumbai-Vadodara Expressway, Western Freeway and Eastern Freeway under construction. The Bandra-Worli Sea Link bridge and Mahim Causeway link the island city to the western suburbs. The three major arterial roads of the city are the Eastern Express Highway, the Sion Panvel Expressway and the Western Express Highway.
  • Mumbai is the headquarters of two of Indian Railways zones: the Central Railway (CR) and the Western Railway (WR). Mumbai is also well connected to most parts of India by the Indian Railways. Long-distance trains originate from Chhatrapati Shivaji Terminus, Dadar, Lokmanya Tilak Terminus, Mumbai Central, Bandra Terminus, Andheriand Borivali.
  • Public transport systems in Mumbai include the Mumbai Suburban Railway, Brihanmumbai Electric Supply and Transport (BEST) buses, taxis, auto rickshaws and ferries. Suburban railway and BEST bus services together accounted for about 88% of the passenger traffic in 2008.
  • The Mumbai Suburban Railway, popularly known as ‘local trains’ forms the backbone of Mumbai's transport system. Mumbai's suburban rail systems carry more than half of the Indian Railways daily carrying capacity. Trains are overcrowded during peak hours. The Mumbai rail network is spread at an expanse of 319 route kilometres and is growing. The Mumbai Monorail and Mumbai Metro are under construction and expected to be partially operational in 2014, relieving overcrowding on the existing network.
  • Public buses run by BEST cover almost all parts of the city as well as parts of Navi Mumbai, Mira-Bhayandar and Thane. Maharashtra State Road Transport Corporation (MSRTC) buses provide intercity transport from Mumbai to other major cities of Maharashtra and India. Navi Mumbai Municipal Transport (NMMT) also operates its Volvo buses from Navi Mumbai to Bandra, Dindoshi and Borivali.
  • The Chhatrapati Shivaji International Airport is the busiest airport in India in terms of passenger traffic. An upgrade plan was initiated in 2006, targeted at increasing the capacity of the airport to handle up to 40 million passengers annually. The proposed Navi Mumbai International Airport to be built in the Kopra-Panvel area has been sanctioned by the Indian Government and will help in relieving traffic burden on the existing airport.
  • Mumbai has two major ports, Mumbai Port Trust and Jawaharlal Nehru Port Trust, which lies in Navi Mumbai. Mumbai Port has one of the best natural harbours in the world. Jawaharlal Nehru Port is the busiest and most modern major port in India.

 

Mumbai civic administration

  • Mumbai extends from Colaba in the south to Mulund and Dahisar in the north and Mankhurdin the east. It is administered by the Brihanmumbai Municipal Corporation (BMC). BMC is responsible for the civic and infrastructure needs of Mumbai.
  • BMC is headed by the mayor who is chosen through indirect election by the councillors from among themselves. The mayor is elected for a term of two and half years. The Municipal Commissioner who is an IAS officer is the CEO and head head of the executive arm of BMC. He is appointed by the state government. The Commissioner is appointed for a fixed term as defined by state statute.
  • The Mumbai Police is headed by a police commissioner. He is an Indian Police Service (IPS) officer. The Mumbai Police comes under the state Home Ministry.

Infrastructure projects:

Name of the project

Impact areas

Expected Completion Date

Remarks

Mumbai Trans-Harbour Link (MTHL)

The road connects Mumbai to Navi Mumbai via Sewri and Nhava

Beyond 2017

This is an ambitious project connecting Navi Mumbai to Mumbai. It is a 22 km, 6-lane sea bridge. The estimated cost is approx. Rs. 96,300 million.

Eastern Freeway

Connects CST to Ghatkopar

Under construction

The 16.8 km highway runs from CST, connecting eastern suburbs such as Chembur, Wadala, Panjarpol and Ghatkopar. Acts as link to Eastern Express Highway

Virar-Alibaug multimodal corridor

Connects Virar and Alibaug

Planned. Expected beyond 2017

Project is a part of broadening the route in MMR between Virar and Alibaug. Will also improves connectivity with major national highways

Navi Mumbai International Airport

Kopra, Panvel, Ulwe

Planned. Phase 1 expected to be operational in 2017.

Will significantly reduce congested air traffic in Mumbai. Will also significantly increase economic and real estate activity in Navi Mumbai

Metro Rail

Connects different suburbs in Mumbai. Phase I connects Versova to Ghatkopar, Charkop to Mankhurd, Colaba to SEEPZ. Phase II connects Charkop to Dahisar, Ghatkopar to Mulund, Andheri (E) to Dahisar (E)

Phase I completion expected in 2014. Phase II planned. Expected completion beyond 2017

Phase I is 11.4 km. Phase II is 31.9 km. The Metro will improve public transportation in Mumbai significantly.

Mumbai Monorail

Phase I connects Bhakti Park, BPCL colony and Chembur. Phase II connects Lower Parel and Dadar

Phase I expected in 2014. Phase II is planned. Expected beyond 2017

Improving connectivity and transportation between various localities in Mumbai. Phase I is 8.2 km and Phase II is 12 km long

Western Elevated Rail Corridor

Connectivity between Church gate and Virar

At bidding stage. Completion beyond 2017

It is a mass rapid transport system. Will enhance residential markets of peripheral western suburbs. Improves connectivity with South Mumbai

Key localities in Mumbai

Locality

per sq.ft price in Q3 2013 (Rs.)

Rent per sq.ft for apartment (approx.)

(Figures in rupees)

High Low

Kandivali

13,000

31

25

Borivali

13,200

29

20

Malad

14,300

29

20

Andheri

20,400

50

35

Bandra

41,000

120

50

Mahim

25,800

70

45

Dadar

30,600

75

45

Worli

36,400

150

100

Lower Parel

32,050

65

25

Kanjurmarg

13,500

39

25

Kurla

12,000

45

26

Karjat

2,600

35

23

Mahalakshmi

37,300

110

50

Matunga

35,400

70

55

Cuffe Parade

64,550

165

120

Colaba

41,500

170

80

Byculla

25,000

75

45

Sewri

31,750

75

60

Sion

20,000

85

35

Chembur

16,300

45

35

Vile Parle

24,500

65

40

Ghatkopar

15,500

45

35

Vikhroli

14,200

45

35

Powai

18,900

50

35

Bhandup

12,800

40

25

Mulund

13,300

33

22

Mira Bhayandar

7,900

15

11

Dahisar

11,300

30

17

Jogeshwari

15,500

40

30

Goregaon

14,800

50

29

Wadala

20,600

50

35

Property Registration Charges

  • Stamp Duty: 5 percent (ready reckoner) of property value
  • Registration Charge: 1% of property value, but nor more than Rs. 30,000
  • Local Body Tax: 1 per cent, same as registration charge
  • VAT: 1 percent of total property cost
  • Service Tax: 3.7 per cent (if house is worth more than Rs. 1 crore or area is over 2,000 sq.ft).

Brihanmumbai Electric Supply and Transport (BEST)

  • The Brihanmumbai Electric Supply and Transport (BEST) is the electricity provider for Mumbai city. It operates as an autonomous body under the Brihanmumbai Municipal Corporation (BMC). It provides electricity to over 5 million residential and commercial establishments in Mumbai city. Electricity to suburban areas of Mumbai is provided by Reliance Infrastructure Ltd (formerly Bombay Suburban Electric Supply Ltd). There are other private companies such as Tata Power providing electricity to different parts of Mumbai.

Following are BEST tariffs for residential usage:

  • Rs 40 per month Energy charge of Rs. 2.45 per kWh for up to 100 units
  • Rs 75 per month Energy charge of Rs. 4.5 per kWh for 101 to 300 units
  • Rs 75 per month Energy charge of Rs.6.35 per kWh for 301 to 500 units
  • Rs. 100 per month Energy charge of Rs. 8.00 per kWh for 500 units and above

Mumbai water supply

  • Water is supplied to Mumbai by the Municipal Corporation of Greater Mumbai (MCGM) or Brihanmumbai Municipal Corporation (BMC). MCGM supplies 90 lpcd (liters per consumer per day) of water. Mumbai has several water sources such as Vihar, Tulsi, Tansa, Modak Sagar, Upper Vaitarna and Bhatsa lakes and rivers. Ulhas river basin is identified as a future source of water. There are plans to build a dam across Midlle Vaitarna for catering to the growing population.
  • Mumbai’s water tariffs are as follows:
    • Domestic (Stand Post) - Rs. 2.25 per 1,000 litres
    • Domestic ( Buildings & Chawls) – Rs. 3.5 per 1,000 litres
    • Halls, Hospitals, Playgrounds, Swimming Pools etc – Rs. 10.50 per 1,000 litres
    • Industries, Dhobi Ghats, Government Premises, etc – Rs. 18.00 per 1,000 litres
    • Refineries, Airports, Public Sector Undertakings, etc – Rs. 25.00 per 1,000 litres
    • Race Courses & Star Hotels - Rs. 38.00 per 1,000 litres
    • Sewerage charges are at 60% of water charges

Mumbai Property Tax:

  • The Assessment and Collection Department (ACD) of BMC collects property taxes in Mumbai under sub-sections (IA) and (IB) of section 154 of Mumbai Municipal Corporation Act. The property tax is based on the actual value of the property and changes with every new budget.

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Real Estate Guide


All Localities in Mumbai

LocalityRating
8.9
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7.5
7.3
7.1
7.0
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6.9
6.7
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6.4
6.4
6.4
6.2
6.2
6.1
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6.1
6.0
6.0
6.0
5.9
5.8
5.8
5.8
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5.7
5.7
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5.2
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5.1
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5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.0
4.9
4.9
4.9
4.9
4.9
4.9
4.9
4.9
4.8
4.6
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