Dharavi's Profile in Mumbai Real Estate

Dharavi, the thriving 200-hectare of land in the heart of Mumbai, home to over a half million people, is one of Mumbai's prime properties.

With real estate values sky-high in Mumbai and a key commercial district on the cards in north of Dharavi; a multi-billion dollar redevelopment plan for this area is now up.

Booming economy

An annual business turnover of more than $650m (£350m) a year is what Dharavi's contribution to Indian economy is.

Dharavi has a hefty number of flourishing small-scale industries that manufacture embroidered garments, export quality leather goods, pottery and plastic. Most of these products are sold in domestic as well as international markets.

Apprehensive of impending redevelopment plans, residents have raised their concerns fearing uncertainty over the relocation of their small businesses in the informal sector.

The existing residents are believed to be shifted to apartment units. Mumbai is offering them an area of 225 sq.ft each in apartment blocks but there is no space allocated for their prolific enterprises, say media reports.

An 'affordable' alternative

Moreover in a city where house rents are among the highest in the world, Dharavi provides an economical and affordable option. As Dharavi is situated between Mumbai's two main suburban rail lines, majority of people find it convenient for work.

According to industry sources, rents here can be as low as 185 rupees ($4/£2.20) per month.

Future Outlook

Dharavi's location has made it a hot property in Mumbai Real Estate. The redevelopment project is estimated to cost $2.1bn (£1.1bn) but intended for a city that personifies India's hopes of becoming an economic competitor to China this costs zilch.

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The Ups and Downs of Mumbai Properties

While rest of the country is up for a 20-25 per cent price fall, Mumbai will witness the fall in the range of 10-15 per cent, source Housing Development Infrastructure (HDIL). The property boom continuing for the past four years has lead to as much as 300 per cent appreciation in the Mumbai property prices, including the suburban areas of the city as well. But the current market correction is expected to result in prices falling to almost 25 per cent in some areas of Mumbai.

Mumbai Real Estate Developers were holding on to properties for long but now they are releasing them as the market is no longer buoyant. Mumbai has recently been announced as Asia's third and the world's sixth most expensive location to rent a three-bedroom apartment, media reports. Amid that, the news of price correction has bought a much needed relief for the buyers who are waiting for long to buy a house in the city anticipating the fall in Mumbai property rates.

However, Mumbai real estate builders are optimistic as ever. Owing to the fact that people are vying to buy an apartment Mumbai and the demand is robust but supply is limited, the developers feel that there can never really be a crash in the residential property market of Mumbai.

Although the real estate agents and builders accept that there is a fall in the market but they affirms that rental market is still growing strong. The demand for all property types (be it residential or commercial) in Mumbai outstrips the supply, anytime. Due to this demand-supply mismatch, although there would be a market correction in the residential sector of Mumbai, still it is going to be a task for a common man to get a home in Mumbai. Moreover, the realty slump world over is leading to Mumbai properties being flocked by the foreign investors because of its strategic location.

George Gonigal provides you the best and latest information on Mumbai Real Estate, If you want to Buy Apartments in Mumbai, he suggests you log on to magicbricks.com