The Fed’s Impact in september upon property in Mumbai
If the Prime Minister of India is right, then property in Mumbai and many other Indian cities is in no danger of a precipitous fall or correction. Narendra Modi pointed out that across the globe today, India’s economy remains the only bright spot in a global economy suffering from weak growth and poor sentiment. At a time when leaders of the European Union are doing their best to ensure the survival of their currency and other engines of global economic growth such as China and Japan have a mountain of debt, India’s economy seems to be relatively untouched by global headwinds and has thus far remained immune to trouble. Global factors, however, are more than likely to have an acute impact on property rates in Mumbai as the world today is far too interconnected for a large economy such as India to remain unscathed by weak global economic trends. The price of much of the real estate in Mumbai may not drop, yet in the foreseeable future, it is also unlikely to attain significantly higher valuations. 
Markets expect that the US central bank will raise interest rates next month and this could once again create a panic in the Indian stock market as foreign investors pull out money from Indian browsers to take advantage of higher interest rates in the US. However, this will most likely have little impact on real estate in Mumbai as, despite what many assume, there is little correlation between real estate and equity markets. It should be stated that a few academics believe that a bear market leads to higher real estate prices in the concerned economy within close to six to eight months as stock market investors begin to invest in real estate to grow their wealth. However, since the largest participants in Indian capital markets are Foreign Institutional Investors (FII’s), the money from such investors is unlikely to flow into the coffers of projects in Mumbai or into properties in Mumbai; thus FII’s may exit Indian browsers due to a rate hike by the Federal Reserve, but their exit will most likely have little impact on the property rates in Mumbai. Individual investors in the Indian stock markets if they are astute should expect a stock market correction next month as the Federal Reserve raises interest rates.
However as Indian browsers are still at peak levels, it either indicates that such individual investors are either unconcerned by impending rate hike or are too small in number to have a significant impact on the movement of the Indian stock markets. In the former case, money may eventually be invested in property in Mumbai after a period of a few months and lead to higher prices for builders in Mumbai. If, however individual investors are too small in number to have an impact on stock prices in the country, then the impact upon property in Mumbai too may be negligible. 
Luxury flats in Mumbai are the most likely to see great times ahead as the wealthy have never been wealthier than today. There are today, eight years after the biggest financial crises since the great depression, more millionaires in India than there were before 2007. Thus while affordable property in Mumbai may be less affected by global economic trends, luxury apartments in Mumbai are likely to be priced higher after a few years than they are today.
