Mumbai Metropolitan Region Driving Realty Rail In India's Financial Capital

As they battled to get over a slowdown in the real estate sector, major cities saw their property prices going down in the past two years. India's financial capital Mumbai and Cyber City Hyderabad, however, remained exceptions, data show. Even if marginally, there has been a consistent growth in property rates in the two cities. However, that has not stopped buyers from investing in the two major cities, especially Mumbai. In Mumbai, according to a PropTiger DataLabs report, the growth of property markets of the Mumbai Metropolitan Region (MMR) is even more prominent. An annual analysis of the region shows that the micro-markets of the region acted as the engine of growth in 2016.

Here are the key takeaways from the report, based on the data for the calendar year 2016:

The microscopic view

Of the nine micro markets in the region, Beyond Thane** has emerged as the top performing area. The central & eastern suburbs are ranked second and the western suburbs are ranked third. The list is followed by Navi Mumbai (4) , Thane (5) , Mumbai Barbour (6) , Mira Road & Beyond (7) , South Mumbai (8) and Beyond Panvel (9) .

The performers

Micro markets of Thane West, Chembur, Domvali, Mira Road East and Powai are ranked the best performing localities during 2016, in that order. The rankings are based on a locality's weighted average of four parameters ― absorption, new launches, inventory overhang and livability score. These localities offer options across categories. Average property price in Thane West, for instance, stands at Rs 8,667 per sq ft. At Powai and Chembur, you have to shell out about Rs 17,000 per sq ft to buy property. In comparison, property prices are cheaper at Mira Road East (Rs 7,300 per sq ft) and Dombivali (Rs 5,250 per sq ft) .

Also read: Strugglers Hunt For The Perfect Home In Aamchi Mumbai

Looking west

According to the report, four of the top 15 localities in the MMR are the micro-markets of western suburbs ― Kandivali West (6) , Goregaon West (10) , Dahisar (11) and Malad East (12) .  “The development of commercial establishments over the years has increased the popularity of western suburbs* as a residential area,” says the report. In fact, this micro-market has the majority of the working population of the region.

Fitting the bill

Data show Badlapur East (ranked 8) and Ambernath East (ranked 15) are the preferred choices for the middle-income group. “The availability of large land parcels at relatively cheaper prices have resulted in large-scale developments in the vicinity,” says the report. In both the localities, average property prices stand at Rs 3,200 per sq ft.

Also read: These Are The Most Promising Housing Pockets In Mumbai

Keeping it light

At 21 months and 24 months respectively, Chembur (ranked 2) and Powai (ranked 5) have the lowest levels of inventory. The popularity of the two localities among home buyers could be attributed to their easy connectivity with the commercial hub of the Bandra- Kurla Complex (BKC) . You have to shell out over Rs 16,000 per sq ft to buy properties in these areas. Among other localities that have low inventory overhand are Mira Road East and Vasai (ranked 13) .

Note

*Localities in the western suburbs include Andheri West, Bandra West, Borivali East, Borivali West, Dahisar, Goregaon West, Jogeshwari West, Juhu, Kandivali East, Kandivali West, Khar, Mahim, Malad East, Malad West, Santacruz West and Ville Parle East & West.

**Localities beyond Thane include Ambernath East, Ambernath West, Ambivali, Asangaon, Badlapur East, Badlapur West, Bhiwandi, Diva, Dombivali, Kalyan East, Kalyan West, Karjat, Khardi, Murbad, Navgaon, Neral, Shahapur, Sil Phata, Titwala, Ulhasnagar, Vajreshwari, Vangani, Vasind and Warai.