Wed, 05 Sep 07
Now is a great time to invest in India, according to one expert...
Those looking to invest in property in India as the country experiences a protracted economic boom will find plenty of great investment opportunities in Mumbai, the director of Property-Abroad.com, Les Calvert, stated.
Mr Calvert said now was "definitely" a good time to invest in off-plan property, as the city was experiencing considerable growth. "We have a couple of developments in Mumbai that we've seen grow just in the last couple of months by about twenty or thirty per cent," Mr Calvert noted.
As Indian property booms, developers are getting more attuned to changing needs and requirements, Reuters reported this week. The news agency noted that across the country, domestic house prices surged over the last two years, pricing the middle classes out of the market. Now they have dropped by 20 per cent.
Prices outstripping wages
Explaining that prices had greatly outstripped increases in wages, Hari Krishna, of Kotak Mahindra Bank, said: "Many developers are rationalising prices across the country and certain sets of people are saying there's a need to focus more on either the luxury or the mass market."
As it is, the Mumbai market is increasingly focused on the tourist market, according to Mr Calvert, who stated that "the general environment surrounding Mumbai has always been of interest to the tourism market".
He added: "Certainly the culture of the city in general is attracting more and more tourism and there are more and more people jumping on the bandwagon [in terms of] investment and buying holiday homes there."
Of course, to get the tourists in there must be good access, which Mumbai can already provide with one international airport. But a second airport, the Navi Mumbai airport in the Kopra-Panvel area, is expected to be handling over ten million people by 2010.
Catalyst for development
Mr Calvert said this will boost investment "tremendously", adding that new airports tend to act as catalysts for development in the surrounding vicinity, causing property prices to "shoot up" and improving infrastructure.
Mumbai's existing airport is also undergoing change, with Mumbai Newsline reporting today that a new domestic terminal is to be built, which will open in December 2008, while a revamp of the airport may lead to another terminal being axed to create space for taxiways.
The city formerly known as Bombay is undoubtedly undergoing rapid change. As property needs change, new infrastructure emerges and new airport facilities are built on the back of a booming economy, the opportunities are there for shrewd investors to make significant returns.
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