Tenants in rent-controlled housing in the city of Mumbai, many of whom have been paying less than $20 a month for their homes, are being made extremely wealthy indeed as developers snap up their properties in order to build luxury apartments for the world's super rich.
House prices in the booming city have doubled in the last three years, hitting record highs of 10,833 rupees ($200) per square feet, and the tenants currently occupying homes in some of the most exclusive spots are being offered hefty cheques to leave , with many having been made overnight millionaires.
"South Mumbai has about 500 dilapidated stone structures dating back to the early 1900s with a potential value of about $40 billion if redeveloped," explains Pujit Aggarwa, Managing Director of real estate developer Orbit. "For generations, most tenants were living a hand-to-mouth existence, barely making two ends meet," he continues. "Now, with redevelopment, these tenants have become multi - or just plain old - millionaires overnight."
Five bedroom units in the city are currently being snapped up for $12 million, according to Aggarwal, with a large percentage being passed on to the occupants. Even with the huge prices being offered to both the landlords and the occupying tenants, developers expect to treble their money as investors continue to pour into the city.
Search for property in Mumbai