One hundred years ago, a modest land investment in Mumbai might have become a fortune today. In a recent eye-opening case study, financial analyst Rishabh Zaveri examined how the city’s real estate market has changed over the past century, transforming little investments into wealth that lasts generations. In his LinkedIn article “Inflation, Time, and Real Estate: A 100-Year Case Study in Mumbai,” Zaveri delves deeply into how inflation affects asset values and the transformational potential of long-term investments.
Zaveri travels back to 1925 and shows an old newspaper ad advertising land plots in Mumbai’s now-famous Bandra, Chembur, and Ghatkopar neighbourhoods. The land was being sold for a pittance of 3 to 6.80 a square yard at that time, which is practically unthinkable in the current setting. These neighbourhoods were still developing neighbourhoods at the time, not the thriving centres of high-end real estate that they are now.
As we move forward to 2025, the changes are astounding. Land prices have risen sharply to about 190,000 per square yard in Ghatkopar West and even more to about 378,000 per square yard in Bandra West. In Ghatkopar alone, this is an enormous growth of around 19,000 times. These numbers are more than just statistics; they demonstrate how significantly land values may increase over time, particularly in quickly urbanising places like Mumbai.
In light of this remarkable development, Zaveri extracts several important insights. There is no denying that inflation is unavoidable. The purchasing power of money reduces over time; what ₹10 could purchase a hundred years ago holds little worth now. This consistent decline in currency value highlights how wealth depreciation results from merely hoarding cash without making any investments.
Another important lesson is that asset holders benefit from time. Whether by fate, circumstance, or foresight, those who acquired land in 1925 unwittingly created wealth that would last for generations. Thanks to real estate’s steady appreciation, their small investments expanded rapidly and eventually became fortunes that were passed down through families.
Zaveri also emphasises how crucial prudent investing is. The secret is to invest patiently and strategically, whether in stocks, real estate, or other profitable assets. Mumbai’s real estate boom is proof that these investments typically generate large returns over the long run.
The ability of compounding is essential to this expansion. When left unchecked for decades, even a little investment might grow into a substantial sum. This notion isn’t specific to real estate—it applies to all forms of investing, underscoring the value of starting early and thinking long-term.
According to Zaveri, over the previous century, land investments in Mumbai would have yielded an average return of roughly 10–12% annually. In the near term, this might not seem remarkable, but over a century, it converts into exponential growth. This emphasises how crucial perseverance and patience are to accumulating wealth.
Zaveri adds, “Imagine what ₹1,00,000 wisely invested today could be worth for your future generations.” This prompts readers to consider where we could invest now to get such exponential growth in the future.
From plots that cost 3 per square yard in 1925 to 378,000 per square yard in 2025, Mumbai’s real estate journey is about more than just rapidly rising property values. It serves as a potent reminder of how time, inflation, and wise investments can mould not only the fortunes of individuals but also the legacies of entire families.
Source: Business Today
