Japan’s Sumitomo Realty and Development has adopted a focused approach in the Indian real estate market by concentrating its investments entirely in Mumbai. Unlike most developers that follow a sell-to-exit model, the Japanese real estate major plans to develop residential projects in the city and operate them as rental properties rather than selling individual apartments.
Sumitomo’s India presence is being managed through its subsidiary, Goisu Realty. The company is currently developing five residential projects in Mumbai, with four of them located near the Bandra Kurla Complex, one of the city’s key commercial and financial districts. These projects are being planned as high-rise developments and are expected to be completed over the next five years. The company has already invested a significant portion of its committed capital in India as part of its long-term strategy.
The decision to focus on rentals marks a clear departure from the conventional residential development model in India. Sumitomo aims to build and manage apartments that will be leased, including serviced residences designed for professionals and expatriates. The company believes this model aligns well with Mumbai’s strong rental demand, limited land availability, and growing population of working professionals.
Rising rental values in premium micro-markets have also influenced the company’s strategy. Areas in South Mumbai and central business districts have witnessed consistent growth in rental prices over recent years, supported by demand from corporate tenants and high-income households. Sumitomo views this trend as an opportunity to create stable, long-term rental income rather than relying on one-time sales.
Mumbai’s economic significance, infrastructure connectivity, and relatively lower geological risk compared to other Indian cities were cited as key reasons behind the exclusive city focus. The company also noted challenges related to land acquisition and project scale in other major markets such as Delhi, Bengaluru, and Chennai.
Sumitomo’s Mumbai-only bet highlights increasing interest from global developers in India’s evolving residential rental market. The move reflects growing confidence in the city’s long-term real estate fundamentals and could influence how foreign investors approach residential development in India in the coming years.
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