Real Estate Market of Mumbai and Bengaluru: A Comparison

The real estate sector of India is considered to be one of the profitable ones for investors. This is also the second most employment generating sector in India. The activities of real estate in India are mainly concentrated in its various large and populous cities like Mumbai, Bengaluru, Delhi, Pune, Kolkata, Chennai, etc.

Bengaluru is known as the ‘Silicon Valley’ of India, because of its high IT nexus.

Both the real estate market of Mumbai and Bengaluru attract investors but there is a great difference also between the real estate market of Mumbai and Bengaluru. In recent times the RE market of Bengaluru is witnessed to be more profitable for real estate investors. Consequently, the city of Bengaluru has resulted in high growth in the real estate market.

Now the question is, why the real estate market of Bengaluru has resulted in so high growth? To know that we need to compare it with another city. Let’s compare it with Mumbai.

Real Estate Market of Mumbai V/s Real Estate Market of Bengaluru

At present, we are going through the crisis of pandemic Covid–19. Although both the real estate market of Mumbai and Bengaluru have overcome the negative impact of the pandemic significantly, still, they have not been able to overcome it completely.

It is observed from various reports that the real estate market of Bengaluru is better than the real estate market of Mumbai, due to several reasons. A large number of investors, thus, prefer to invest in the real estate market of Bengaluru than the real estate market of Mumbai.

Real Estate Market of Mumbai V/s Real Estate Market of Bengaluru

Many significant differences are pointed out between the real estate market of Mumbai and Bengaluru. Due to these reasons, the real estate market of Bengaluru is considered to be more attractive to investors. The differences between the real estate market of Mumbai and Bengaluru are discussed below:

The real estate market of Mumbai is older than the real estate market of Bengaluru.
In the real estate market of Bengaluru, the professionalism among the developers, builders, the realtor is comparatively high than in the real estate market of Mumbai.
The cost of land in the real estate market of Mumbai is relatively high than that of Bengaluru. The high value of land has negatively impacted the real estate market of Mumbai. The relatively low land price helps to boost the RE market of Bengaluru.
In the real estate market of Bengaluru, the projects are more capitalized. There the projects are less dependent on cash flow from sales to fund the project. On the other hand, the REAL ESTATE market of Mumbai shows that it is less capitalized and along with that the developer or builder are observed to be more dependent on cash flow from sales to fund the projects.
Buyers need to pay after the completion of the entire project in the real estate market of Bengaluru. Thus, the buyers remain confident. On the other hand, in the real estate market of Mumbai, the buyers need to pay before the completion of the project, which in turn, decreases the confidence of the buyer.
The demand for real estate properties in Bengaluru is mainly high because of its high IT nexus.
The average cost of living in Mumbai is higher than in Bengaluru, which also affect their real estate market.
The average rental amounts are higher in the real estate market of Mumbai than in the real estate market of Bengaluru.
Amenities and services in the real estate market of Mumbai are generally poorer than the real estate market of Bengaluru.
Various real estate properties are observed to be relatively cheaper in the real estate market of Bengaluru than in Mumbai.
The problem of the slum is observed to be quite more crucial in the real estate market of Mumbai than in the real estate market of Bengaluru.
The real estate market of Bengaluru is mainly based on actual end-user demand, which is not completely true for Mumbai.
Job security is higher in Bengaluru than in Mumbai and along with that, the average salary is also higher in Bengaluru than in Mumbai. This affects the real estate market and eventually, the real estate market of Bengaluru has a high growth rate.
In Bengaluru, getting the approval of various real estate projects is comparatively easier than in Mumbai. On the other hand, high delaying in the approval of projects in Mumbai makes the developer, seller, builder, investor, etc. Less attractive to the real estate market of Mumbai.
The overall infrastructural conditions of Bengaluru are better than that of Mumbai. This, in turn, attracts investors to the real estate market of Bengaluru then Mumbai.
In terms of the loan disbursement and sanction, the real estate market of Bengaluru ranks higher than the REAL ESTATE market of Mumbai.
In the real estate market of Bengaluru, the land cost is not considered as a part of the construction so the builders can relax but in the real estate market of Mumbai, the land cost falls within the cost of construction. This increases the capital burden on the builder.

In Summary

There is a significant difference between the real estate market of Bengaluru and Mumbai. Due to the pandemic, the importance of the ‘Silicon Valley’ of India has increased as the world is depending more on the internet and various online platforms.

Besides, it is observed from various indicators that the growth and potentiality of the real estate market of Bengaluru are more than Mumbai. Thus, at present, the real estate market of Bengaluru has the potential to ensure you attractable profits.

I hope that I have been able to provide you with a comparative analysis between the real estate markets of Mumbai and Bengaluru.

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