MUMBAI’S NEW ULTRA-EXLCUSIVE RESIDENCE
India’s first Picasso painting will be housed at what will be Mumbai’s most exclusive residential address once Lodha Altamount welcomes its first residents in 2017. And with India’s new pro-business government, investment in Indian realty is a promising opportunity, experts claim.
Ultra-high net-worth Indians and NRIs (Non-Resident Indians) now have an opportunity to park their money in what will be Mumbai’s most costly residential address to date.
Lodha Altamount by leading Indian developer Lodha Group offers über – luxurious residences at south Mumbai’s most prestigious address, promising to redefine luxury living in the city that is famous as the heart of India’s Bollywood film industry.
The project is built on the site of Washington House, the former U.S. Consulate in South Mumbai, on Altamount Road and a quiet two-kilometer stretch on a hill overlooking the city that was rated as the tenth most expensive street in the world. The neighbourhood is still home to a number of diplomatic headquarters and is within a short drive of several of Mumbai’s most famous society spots such as Breach Candy Club, the Royal Western India Turf Club and the Willingdon Sports Club.
Also currently being constructed in Mumbai by Lodha Group is the world’s tallest residential tower, World One, which will reach a height of 442 metres once its 108 floors are completed and which will surpass Dubai’s Princess Tower (414 metres) which has long claimed the title its own.
Experts say that things as such “symbolise Mumbai’s arrival on the global economic and cultural stage” and as investments into the country are rising on the back of Modi’s pro-business government, things are looking good for Indian real estate.
Foreign investment into Indian real estate has historically been sluggish, which has been a result of lacking FDI-friendly policies and restrictions on foreign property ownership. However this is changing as new pro-business policies stipulated by 2014-elected Prime Minister Narendra Modi encourage foreign direct investment into the country.
According to a recent article published in India’s Economic Times, foreign investor interest in Indian real estate is on the rise after almost five years. The cycle started gaining momentum just before the 2014 general elections and at least USD 2.2 billion of funds have been raised so far in the current investment cycle, indicating an improvement in foreign investors’ confidence in Indian real estate, the article says.
For Abhishek Lodha, Managing Director of Lodha Group, this is not surprising. “Since the election of Prime Minister Modi there has been a growing awareness that India is becoming one of the fastest growing economies in the world and that there is a lot of potential.
“Investor interest is especially high from NRIs living across the globe including the Middle East. Traditionally these investors have been targeting residential property but as they are becoming more comfortable with the real estate market, I believe they will increasingly look at the office sector too,” he explains.
Lodha says the fact that Modi’s government is fully committed to support investments and to ease doing business is bearing fruits, as evident in the increased investments in the country. “Modi travels all over the world to demonstrate that India’s new government is more responsive and hence more attractive for investment. Of course this is a work in progress but Modi is making a lot of efforts to show that India is moving in the right direction which is getting recognised by investors,” Lodha comments.
According to Lodha, residential as well as office properties in India offer very good investment opportunities in the medium and long term. “Office rentals in India are one of the highest in the world and offer yields of 8-9%. Equally, residential property in India provides higher returns than most global stock markets as well as other commodities such as gold etc.,” he says.
Lastly, India’s chronic housing shortage has created a large supply – demand imbalance which contributes to the investment attractiveness of the residential asset class in India, says Lodha.
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