If Your Great-Grandparents Invested Rs 1,000 in Mumbai Land...
Financial expert Rishabh Zaveri recently shared an eye-opening case study, exploring the incredible transformation of Mumbai's real estate market over the past century, turning modest investments into generational wealth.
Mumbai Real EstateInflationGenerational WealthLongterm InvestmentsCompoundingReal Estate MumbaiFeb 02, 2025
Financial expert Rishabh Zaveri recently shared an eye-opening case study, delving into how the city’s real estate market has evolved over the past century, transforming modest investments into generational wealth.
In his LinkedIn post titled ‘Inflation, Time, and Real Estate A 100-Year Case Study in Mumbai’, Zaveri highlights the transformative power of long-term investments and the role of inflation in shaping asset values.
Taking a trip back to 1925, Zaveri references an old newspaper advertisement promoting plots of land in Mumbai’s now-iconic neighborhoods—Bandra, Chembur, and Ghatkopar.
At the time, land was being sold for a mere ₹3 to ₹6.80 per square yard, a price that seems almost unimaginable today.
Back then, these areas were emerging suburbs, far from the bustling, high-value real estate hubs they are now.
Fast forward to 2025, and the transformation is staggering.
In Ghatkopar West, land prices have skyrocketed to around ₹190,000 per square yard, while in Bandra West, the rates soar even higher at approximately ₹378,000 per square yard.
This represents an astronomical increase—nearly 19,000 times in Ghatkopar alone.
These figures aren’t just numbers; they are a testament to how dramatically the value of land can appreciate over time, especially in rapidly urbanizing cities like Mumbai.
Reflecting on this extraordinary growth, Zaveri draws out several key lessons.
One undeniable truth is that inflation is inevitable.
The purchasing power of money diminishes over time; what ₹10 could buy a hundred years ago holds little value today.
This steady erosion of currency value emphasizes why simply holding onto cash without investing leads to wealth depreciation.
Another critical takeaway is that time rewards asset holders.
Those who owned land in 1925—whether through foresight, circumstance, or luck—have unknowingly built generational wealth.
Their modest investments grew exponentially, turning into fortunes passed down through families, all thanks to the consistent appreciation of real estate.
Zaveri also underscores the importance of wise investing.
Whether in real estate, equities, or other productive assets, the key is to invest strategically and with patience.
Over the long term, these investments tend to yield substantial returns, as evidenced by Mumbai’s real estate boom.
Central to this growth is the power of compounding.
Even a small investment, when allowed to grow uninterrupted over decades, can accumulate into a massive sum.
This principle isn’t exclusive to real estate—it applies to all forms of investing, reinforcing the value of starting early and thinking long-term.
Zaveri estimates that land investments in Mumbai would have delivered an average return of around 10-12% per annum over the past century.
While this might not seem extraordinary in the short term, over a hundred years, it translates into exponential growth.
This highlights the importance of patience and persistence in wealth-building.
“Imagine what ₹1,00,000 wisely invested today could be worth for your future generations,” Zaveri writes, leaving readers with a compelling question Where should we invest today to achieve similar exponential growth in the future?
Mumbai’s real estate journey—from plots priced at ₹3 per square yard in 1925 to ₹378,000 per square yard in 2025—is more than just a story of skyrocketing property values.
It’s a powerful reminder of how inflation, time, and smart investments can shape not just individual fortunes, but entire family legacies.
Frequently Asked Questions
What was the price of land in Mumbai in 1925?
In 1925, land in Mumbai, particularly in areas like Bandra, Chembur, and Ghatkopar, was being sold for a mere ₹3 to ₹6.80 per square yard.
How much has land in Ghatkopar West appreciated by 2025?
By 2025, land in Ghatkopar West has appreciated to around ₹190,000 per square yard, representing an increase of nearly 19,000 times from 1925.
What are the key lessons from Mumbai's real estate growth?
Key lessons include the inevitability of inflation, the importance of time in rewarding asset holders, the value of wise and strategic investing, and the power of compounding.
What is the average return on land investments in Mumbai over the past century?
Land investments in Mumbai have delivered an average return of around 10-12% per annum over the past century.
What advice does Rishabh Zaveri give for future investments?
Zaveri advises readers to consider where they can invest today to achieve similar exponential growth in the future, emphasizing the importance of starting early and thinking long-term.
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