Locked land: A significant chunk of Mumbai’s severely restricted land is currently locked in slums and dilapidated buildings. This l and needs to be released by offering viable incentives to interested developers. However, the many attempts by the state government to rehabilitate dwellers of such homes in the prime city centres have met with very limited success, either on account of poor implementation or because slum dwellers cannot be brought to agree on what constitutes a good deal. Mumbai is surrounded by water on three sides; as a consequence the city has never seen circular development like other cities in India. Development, thus, has always been linear Distance from prime south city centres to the suburbs, coupled with lack of robust infrastructure connecting these places has led to prices surging in prime city centres The government has been increasing ready reckoner rates by 15-20%, a significant jump suburbs would contest this - but those who can afford homes in the central locations would not.
Indian developers are constantly courting NRI and PIO investors in their countries, and many even have permanent offices there for this purpose. Often, as much as half of their inventory is sold to such investors even before local brokers get wind of the launch.
Heavy inward migration: They now require additional homes because nuclear families are on the rise. For such inhabitants, the high property prices are not as big a deterrent as they are for outsiders, given that they already own property in Mumbai and are well- entrenched in their professions.
The preferred route is to sell an apartment in a prime area and purchase two apartments in a relatively sub-prime area with some additional investments in order to accommodate two f amilies. In other words, inherent demand from Mumbai’s local inhabitants is always rising - and this naturally reflects on property prices.