Mumbai’s booming real estate market—valued at approximately ₹26,975 per sq ft—is now nearly 20% costlier than Dubai, yet demand remains steady, says Akshat Shrivastava, investment advisor at Wisdom Hatch. He attributes this surge to a deep-rooted investing psyche: “Indians will buy at any price,” he notes, because property is familiar and emotionally secure—even when global markets might offer better value.
Since COVID-19, housing prices in top Indian cities have soared by about 48%, driven largely by hyper-local sentiment rather than infrastructure improvements—or lack thereof. Despite Mumbai’s urban challenges and competing options overseas, domestic buyers continue to prioritize familiarity and trust over cost considerations.
Shrivastava points out that while real estate is intensely local—fueled by cultural comfort and informal channels like “black money”—equity markets tell a different story. He observes that Indian investors are increasingly benchmarking global equities and gravitating towards offshore diversification, prompting policymakers to introduce measures like LRS limits and TCS hikes to manage capital flows.
He warns: “India is a market where we pay a high price for baseline quality—be it food, education, or now even equities.” This mindset helps explain why Mumbai real estate keeps climbing—even as infrastructure and value lag behind.
