Imagine connecting two worlds—Riyadh and Mumbai—through real estate. As Saudi investors look for stable, long-term opportunities, Mumbai’s growing real estate market booms with its strong returns and global appeal. For Saudi Arabian high-net-worth individuals (HNIs), the city presents an alluring investment opportunity.
Whether it’s high-end residences or commercial spaces, Mumbai offers a promising investment landscape backed by strong demand and solid infrastructure. This blog post explores how Mumbai is creating opportunities for Saudi investors to tap into luxury, growth, and security in India’s financial capital.
India–Gulf Relations: Economic & Emotional Ties
India and Saudi Arabia have an enduring partnership that goes beyond economics. Both countries embrace strong emotional and cultural connections. Saudi Arabia is India’s fifth largest trading partner, whereas India is Saudi Arabia’s second-largest trade partner.
In FY 2023–24, bilateral trade was approximately. ₹3.57 lakh crore, with Indian exports at ₹95,948 crore and imports at ₹2.61 lakh crore.
Additionally, over 2.7 million Indians live and work in Saudi Arabia. This makes up one of the largest expat communities there. Many of them have roots in Mumbai or have family living there.
For these families, investing in Mumbai real estate is more than just a financial decision. It’s an emotional one. It gives them a way to stay connected to their homeland, plan for their future, and feel a sense of belonging even while living abroad.
Why is Mumbai Attractive to Saudi HNIs?
Mumbai’s luxury real estate market is increasingly catching the eye of Saudi HNIs for several reasons:
- Luxury Homes with Halal-Compliant Options:
Developers in Mumbai, like Rustomjee, are tailoring their offerings to meet the lifestyle preferences of Middle Eastern buyers. Properties with halal-compliant kitchens, prayer rooms, and culturally sensitive designs are becoming more common.
- Proximity to World-Class Amenities:
Mumbai offers easy access to top-tier healthcare facilities, international schools like Dhirubhai Ambani International School, and global business districts such as the Bandra-Kurla Complex (BKC). These factors make it an ideal choice for families relocating from Saudi Arabia.
- Prime Locations Popular Among Gulf Families:
Neighborhoods like Bandra, Juhu, BKC, and Powai are particularly sought after. Bandra and Juhu offer luxurious sea-facing homes with vibrant social scenes, while BKC is a hub for business and diplomatic circles. Powai blends serene lakeside vistas with contemporary lifestyle.
Read Also: Sky Mansions at Rustomjee Crown: The Ultimate Address for Luxury in Mumbai
Features Saudi Families Look For
When investing in Mumbai’s luxury properties, Saudi families prioritise specific features that align with their cultural values and lifestyle needs. This includes:
- Private Spaces and Women-Friendly Amenities:
Privacy is paramount for many Saudi families. Properties offering private elevators, exclusive floors, or gated communities appeal strongly to this demographic. Additionally, women-friendly amenities such as secure recreational areas and wellness centres are highly valued.
- Religious Access:
Proximity to mosques or dedicated prayer areas within residential complexes is often a deciding factor. Islamic schools that provide quality education further enhance the appeal of certain neighbourhoods.
For example:
- Rustomjee Elements (Juhu) boasts proximity to Juhu Jama Masjid and Andheri Islamic schools, catering to religious and educational needs.
- Rustomjee Sagar Tarang (Versova) has proximity to Versova Jama Masjid and Islamic cultural centres in Andheri.
- Concierge Services & Global-Standard Security:
Luxury living is about enjoying a seamless lifestyle. Mumbai concierge services meet the unique requirements of affluent Gulf families. This covers:
- Personalised Services: From arranging private chefs to managing household staff and securing VIP event access, concierge services ensure convenience at every step.
- Enhanced Security: With global-standard security measures such as 24/7 surveillance, biometric access controls, and private guards, Mumbai’s luxury residences provide peace of mind for high-profile clients.
Legal & Financial Considerations
Saudi nationals can freely purchase residential or commercial properties in India under the Foreign Exchange Management Act (FEMA). However, agricultural land, plantations, or farmhouses require special approvals.
In order to manage the financial and regulatory implications of real estate investments in Mumbai, proper planning is necessary. These consist of:
Repatriation of Funds:
- Rental Income: Repatriable up to two properties annually. These are subject to Reserve Bank of India (RBI) guidelines. Taxes must be paid before remittance.
- Sale Proceeds: Repatriation allowed up to the original investment amount in USD (post-tax deductions). Gains exceeding ₹8.35 crore require RBI approval.
Taxation Framework:
- Direct Taxes:
- Long-term Capital Gains Tax: For properties acquired before July 23, 2024, NRIs have the option to choose between 12.5% without indexation or 20% with indexation.
- Rental Income: Taxed at 30% (plus cess) for non-residents, deductible after standard 30% maintenance allowance.
- GST: 5% GST on under-construction properties. No GST on ready-to-move-in units.
- Double Taxation Avoidance (DTAA): India-Saudi Arabia DTAA ensures that income is taxed only once. Saudi investors can claim relief on taxes paid in India.
Registration Process:
In Mumbai, real estate transactions have registration and stamp duty charges. As per the Maharashtra Stamp Act:
For properties priced below ₹30 lakh:
- Registration cost: 1% of the property’s value.
- Stamp duty: 6% of the market value.
For properties priced above ₹30 lakh:
- Registration cost: Fixed at ₹30,000.
- Stamp duty: 6% of the market value.
Read Also: How NRI Investors Can Capitalise on India’s Growing Luxury Real Estate Demand
Conclusion
The growing interest of Saudi investors in Mumbai’s luxury real estate market underscores the city’s rising global stature as an investment hub. With its blend of cultural familiarity, economic stability, and world-class amenities, Mumbai presents an unmatched opportunity for Gulf-based HNIs seeking both financial growth and lifestyle excellence.
For Saudi families looking to diversify their portfolios or establish a second home abroad, Rustomjee stands out as a perfect option that connects tradition with modernity. Explore Rustomjee premium properties today!
FAQs
- What are the price ranges for luxury villas in Mumbai’s prime locations?
Here’s a breakdown of current luxury villa prices across Mumbai’s most sought-after neighbourhoods, tailored for Gulf investors. South Mumbai (Nepean Sea Road, Malabar Hill): ₹100–200+ crores, Bandra (Bandra West, Bandstand, Pali Village): ₹50–100+ crores, Juhu: ₹10–50+ crores, and Navi Mumbai & Panvel: ₹4–15 crores.
- How much is the property tax in Mumbai for residential property?
The property tax rate for residential properties in Mumbai is 0.02%. If the capital value of your home is ₹1,000,000 (calculated as 10% of the market value), then your annual property tax would be ₹2,000 (0.02% of ₹1,000,000).
- Who is exempted from property tax in Mumbai?
Homes within BMC limits that are up to 500 sq. ft. in size are completely exempt from paying BMC Property Tax. Properties used for religious worship or charitable purposes are also exempt. For residential units with a carpet area between 501 sq. ft. and 700 sq. ft., a 60% discount on the property tax rate is applicable.
