Sumitomo Realty Expands to Mumbai, Shifts Focus to Rental Apartments

Strategic Business Expansion

Sumitomo Realty and Development, Japan's third-largest property developer, is making a significant move into the Indian market through its expansion in Mumbai. The company has chosen to focus on the rental apartment segment rather than selling properties, marking a strategic shift in their business approach.

Mumbai Market Potential

Niinomi Masato, General Manager of Sumitomo's India Business Division, highlighted that Mumbai possesses similar vitality and asset value to Tokyo, making it an attractive location for their expansion. The company is set to manage and rent apartments in one of Mumbai's prominent skyscraper projects.

Long-term Management Strategy

The decision to prioritize rental management over sales reflects Sumitomo's commitment to long-term asset management. This approach is expected to provide stable returns through rental income rather than relying on property sales. The strategy aligns with global trends where institutional investors increasingly favor rental management for its predictability and lower market volatility risks.

Market Impact

Sumitomo's entry into Mumbai's rental market is anticipated to bring additional competition and potentially higher property management standards. Their expertise from the Japanese market could introduce new practices and elevate the overall quality of rental properties in the region.