Japan's Sumitomo Bets Big on Mumbai Rentals, Shuns Sales in Unique India Strategy

• Sumitomo Realty and Development, Japan's third-largest developer, is expanding in India with a unique strategy: focusing solely on Mumbai and renting apartments instead of selling them.
• The company views Mumbai as its "second growth engine" after Tokyo, citing its vitality, assets, and fewer geographical risks like earthquakes.
• Unlike other foreign developers, Sumitomo is concentrating on ground-up construction in Mumbai, with five projects underway, including four in Bandra Kurla Complex.
• Sumitomo's Indian unit, Goisu Realty, is reviewing other cities but finds Mumbai's land crunch ideal for long-term rental growth.
• The strategy capitalizes on surging luxury home sales and rising premium apartment rents in India, with South Mumbai rents up 20% in three years.

Why It Matters: Sumitomo adopts a Mumbai-centric, rental-focused model, leveraging India's booming real estate market.