Top investments destination in mumbai mmr jan-jun15

INVESTMENTDESTINATIONS IN

MUMBAI

Panvel

Kalyan

Nalasopara

Kharghar

Mira Road

Dombivli

Kamothe

Ulwe

Sanpada

Stagnant sales and inventory pile up due to high pricing in MMR

MUMBAI SNAPSHOT JAN - JUNE 2015

Mumbai has an inventory pile up of 46 months, well above the accepted 8 to 12 months mark. This is a result of high

pricing in the MMR (Mumbai Metropolitan Region). Inflated pricing has also postponed the buying decision considera-

bly.

Western suburbs gain prominence after announcement of the coastal road projectThe proposed 35.6 km coastal road project from Nariman Point to Kandivali will be instrumental in providing quicker

and faster commute to the western suburbs of Mumbai. This project is also said to affect the pricing and demand for

properties there, post its completion in 2017.

New infrastructure developments to drive Navi Mumbai real estateThe satellite township of Navi Mumbai has emerged as the newest investment destination for home buyers and

builders alike.

With projects like the Navi Mumbai International Airport and the Mumbai Trans Harbour Link, this region has

witnessed a surge in investments with an overall price appreciation of nearly 3% to 5% each quarter. Both the

infrastructure projects will be operational by 2019.

New policies may usher in transparencyGetting sanctions and building permissions online will create a corruption free process for builders. This will also

safeguard the interest of home buyers in the state. This is a welcome move by the govt. to create a system, in an

otherwise disorganized sector.

What does the future hold for Mumbai?Maharashtra government aims to make the state, a gaming and animation industry hub, attracting INR 50,000 crore in

investment to create 1 million jobs in the next 5 years. Creating jobs and investment opportunities will improve the

demand for residential real estate in and around these commercial zones in turn improving the social viability of the

region.

The government has also offered an additional 200% FSI (Floor Space Index) for IT parks. This move will lead to a drop

in rentals for commercial properties.

MUMBAI

NalasoparaNalasopara INR 4400 - 4500 PSFT

Mira Road MUMBAIMira Road

INR 7500 - 7800 PSFT

UlweUlwe

INR 5500 - 5800 PSFT

KhargharKharghar

INR 8000 - 8500 PSFT

PanvelPanvel INR 5500 - 6000 PSFT

KalyanKalyan INR 5300 - 5600 PSFTSanpada INR 5300 - 5600 Sanpada

INR 13000 - 14000 PSFT

Dombivli Dombivli Dombivli INR 5700 - 5800 PSFT

KamotheKamothe INR 6500 - 7000 PSFT

Panvel

Around 20,000 new affordable housing units are planned tobe built in Navi Mumbai, in and around Panvel. This would be

a major boost to the low cost housing sector in MMR.

The proposed Navi Mumbai International Airport recently got the final approval and CIDCO (City and Industrial Development Corporation of Maharashtra) has handed over 250 acres of land for its development. Once the construction startsthe realty sector in Panvel will get a major boost.

Panvel was added to the realty map of India post the announcement of the new airport in 2007, but the

project did not kick start as planned.

Located close to the land and sea trade route, the Old Panvelregion is considered to be busy and heavily polluted.

New Panvel region is modern, less polluted and has many township projects making it an ideal residential hub.

The approval of an elevated railway line from Church Gate to Virar and CST to Panvel with a 6 lane road will reduce the commute timeand traffic in the region.

To improve the poor public transport in the region, Navi Mumbai Municipal Transport (NMMT) has announced frequent buses to Panvel along with New Panvel, Kalamboli, Navade, Taloja, Roadpali & Khandeshwar.

5%3BHKPREFER

39%2BHKPREFER

49%1BHKPREFER

Unit Type Demand

Price Trends

Budget Preference

Property Type Demand

Property Sale & Rent

Q1’13 Q3’13 Q1’14 Q3’14 Q1’15

INR 4400 INR 4450 INR 5250 INR 5650 INR 5750

90% 5%5%

Distribution of Projects

86% 6% 5% 3%

Legend Plot Villa ApartmentBuilder Floor

Preference to Age of Property

0-1 Year 1-3 Years 4-10 Years Above 10 Years Under Construction

11%

76% 2%5%

6%

>1CR

50L

80L

1CR

30L

1cr

90L

50L

70L

30L0

71%

18%

7%

1%

3%

FOR RENT

INR 10-12psft

INR 6000psft

FOR SALE

Kalyan

The proposal to extend the Navi Mumbai Metro’s, Belapur-Taloja line upto Kalyan and Ulhas Nagar will further increase end users’sinterest in the locality.

‘Logistics City’ has been announced at Bhiwandi nearKalyan, as a trade and logistics hub in the region.

MMRDA (Mumbai Metropolitan Region Development Authority)has planned a 29 km Kalyan Ring Road which will add to the connectivity of Kalyan and its neighbouring localities.

Realty demand in Kalyan comes from both end users and investors, and the locality has a good mix of under-construction and ready-to-occupy projects.

Kalyan’s real estate market is seeing good demand from buyers, due to increasing property prices in Mumbai’s suburbs

and growing demand for affordable homes in MMR.

It is connected to Mumbai via central line of the Mumbai suburban railway network and is the 3rd

busiest station there.

A number of industries in the region has also created the need for affordable homes at Kalyan.

Government recently stopped issuing approvals for new projects in the Kalyan-Dombivli belt until a new sewage plant is constructed.

4%3BHKPREFER

24%2BHKPREFER

71%1BHKPREFER

Unit Type Demand

Price Trends


Budget Preference


Property Sale & Rent Q1’13 Q3’13 Q1’14 Q3’14 Q1’15


97% 2%


86% 7% 4% 3%



34%

33%7%

14%

12%

>1CR

50L

80L

1CR

30L

1cr

90L

50L

70L

30L0

65%

25%

7%

1%

2%

FOR RENT

INR 10-12psft

INR 5450psft

FOR SALE

Nevertheless, construction activity such as redevelopment propos-als and other development projects that are partly complete or nearing completion will be granted due permission. This move will improve the basic physical infrastructure in the region.

Nalasopara

The locality is witnessing high demand for 1-2BHK compact housing units and many developers are catering to this demand, making properties here extremely affordable.

The locality has seen rapid population growth from the year 2001, making it the most crowded zone, in the Vasai-Virar stretch with 38% of its total population residing here.

Lower capital values in Nalasopara in comparision to neighbouring localities like Vasai and Virar has created a

healthy demand for residential properties here.

Its proximity to Mira Road through the Mumbai-Ahmedabad National Highway,

has attracted developers and increased investment.

30% of the railway traffic from western railway also originates from Nalasopara.

Demand has increased for the western region of Nalasopara in the recent past, as it is well planned and developed by CIDCOand provides better infrastructure for its residents.

1%3BHKPREFER

18%2BHKPREFER

78%1BHKPREFER

Unit Type Demand

Price Trends


Budget Preference


Property Sale & RentQ1’13 Q3’13 Q1’14 Q3’14 Q1’15


95% 1%1%


85% 7% 6% 2%



22%

57%3%

9%

11%

FOR RENT

INR 9-11psft

INR 4500psft

FOR SALE

50L

30L

1cr

50L

70L

30L

20L

0

091%

8%

Top investments destination in mumbai mmr jan-jun15

Real Estate

Transcript of Top investments destination in mumbai mmr jan-jun15