Why Bollywood Stars Are Investing Heavily in Mumbai's Commercial Properties
Bollywood stars like Sara Ali Khan, Amrita Singh, and Kartik Aryan are making significant investments in commercial properties in Mumbai, driven by the higher rental yields compared to residential properties.
Bollywood StarsCommercial PropertiesMumbaiReal EstateInvestmentReal Estate MumbaiOct 18, 2024
Kartik Aryan, another prominent Bollywood star, followed a similar trend last year by buying a commercial unit in Andheri West. The office space cost him ₹10.9 crore, as per property registration documents. The trend of investing in commercial properties is not limited to these stars. Data shared by SquareYards reveals that Amitabh Bachchan and Abhishek Bachchan have invested a staggering ₹194 crore in residential and commercial properties in Mumbai since 2020.
The primary reason behind this trend is the higher rental yields that commercial properties offer compared to residential ones. According to real estate experts, commercial assets such as office and retail spaces in Mumbai typically fetch a rental yield in the range of 6% to 8%, whereas residential properties yield only 2% to 3%. This significant difference in returns makes commercial properties an attractive investment option for high-net-worth individuals, including Bollywood stars.
Investing in commercial properties also offers long-term stability and growth potential. Mumbai, being a major financial hub, has a steady demand for office and retail spaces. This demand is further fueled by the growing number of startups and established companies looking for prime locations in the city. The strategic location of Andheri West, with its well-developed infrastructure and connectivity, makes it an ideal choice for such investments.
For instance, the Andheri-Kurla region is rapidly developing into a major commercial district, with several high-profile projects underway. This development is expected to drive property values and rental yields in the area, making it an attractive option for investors.
Bollywood stars are not just investing for financial gains; they are also diversifying their portfolios. The film industry can be unpredictable, and having a stable source of income from commercial properties provides a safety net. Moreover, the tax benefits associated with commercial real estate investments can be a significant advantage.
Despite the higher returns, investing in commercial properties comes with its own set of challenges. High initial costs, lengthy legal processes, and the need for ongoing maintenance and management are some of the factors that investors need to consider. However, for those with substantial financial resources and a long-term investment horizon, the benefits often outweigh the challenges.
In conclusion, the trend of Bollywood stars investing in commercial properties in Mumbai is likely to continue, driven by the strong demand, higher rental yields, and long-term growth potential. As the city continues to evolve, these investments are expected to yield significant returns and provide a stable financial foundation for the stars who choose to diversify their portfolios in this way.
Frequently Asked Questions
Which Bollywood stars have recently invested in commercial properties in Mumbai?
Bollywood stars like Sara Ali Khan, Amrita Singh, Kartik Aryan, Amitabh Bachchan, and Abhishek Bachchan have recently invested in commercial properties in Mumbai.
Why are Bollywood stars investing in commercial properties?
Bollywood stars are investing in commercial properties in Mumbai due to the higher rental yields compared to residential properties, long-term stability, and growth potential.
What is the typical rental yield for commercial properties in Mumbai?
Commercial properties in Mumbai typically fetch a rental yield in the range of 6% to 8%, compared to 2% to 3% for residential properties.
What are the challenges of investing in commercial properties?
Challenges of investing in commercial properties include high initial costs, lengthy legal processes, and the need for ongoing maintenance and management.
What are the benefits of investing in commercial properties?
Benefits of investing in commercial properties include higher rental yields, long-term stability, growth potential, and tax benefits.
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