Mumbai's Affordable Hubs May Not Really Be Affordable

Mumbai is known to be one of the most expensive property markets worldwide. So, the middle-class homebuyers looking for a property found relief in the outskirts which are flooded with affordable options. Moreover, with robust infrastructure planning and launch of prominent housing projects, these areas have stepped up in the list of most preferred areas for buyers with a modest budget.

Growth drivers of affordable housing hubs

Those areas where lifestyle living was a far-fetched term now offer a cosmopolitan way of life as reputed developers made way to these less-heard-of micro markets. With township living and available amenities, the profile of these areas improved which resulted in high price appreciation in no time. For instance, Dombivli is a prominent example of the phenomena. A micro market, which was once a sleepy suburb, gained real estate investors only when some of the famous property developers came up with township projects and pitched it as second home investment options for the rich ones and as a first home to the salaried class. Currently, there are over 250 projects in the area and over 150 are ready-to-move-in while more than 40 are launching shortly.

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"The locations within municipal limits have the decent infrastructure of water, electricity, roads, waste disposal and management, schools, hospitals and entertainment options. So areas such as Kalyan-Dombivali, Vasai-Virar and Panvel have the above. These locations have primarily become Mid Income Housing destinations and are not really low-cost destinations any longer," says Rohit Poddar, Managing Director, Poddar Housing.

 

Additionally, as the city expanded, newer areas which were earlier a part of the gram panchayat were added to the Mumbai Metropolitan Regional Development Authority (MMRDA) limit. This move fastened the infrastructure development. Thus, ensuring smoother connectivity and less travel time from the central business district or CBD.

Moreover, this infrastructural development also paved way for the growth of commercial development here. The industries were able to find large land parcels at much cheaper price.

Also read: Mumbai Charms Prospective Homebuyers With Space & Amenities

Nerul in Navi Mumbai is one such area that houses a number of IT companies employing a huge workforce. This manpower has raised the demand for rental housing in nearby areas, giving an opportunity to property investors to invest here for a regular rental income.

While the usual property appreciation in these areas, it's the growth drivers which have pushed property prices in affordable dens. For Navi Mumbai, International Airport at Panvel remained the key clincher which made the properties more desirable in the New Mumbai. Thane gained preference because of direct connectivity through Eastern Freeway, Eastern Express Highway and Western Express Highway that enabled signal-free ride from Thane to South Mumbai.  Similarly, construction of various flyovers from Bhiwandi, Kalyan, Dombivli to Thane and Navi Mumbai have brought down the travel time between these locations. New 21-km long flyover has been planned to travel from Shil Phata to Kalyan, Dombivli, Bhiwandi, Ambernath and Mumbra faster.

What's affordable now?

“Low-cost destinations occur where the land prices are lower and hence also have poorer civic and other infrastructure and hence is becomes the developer's prerogative to develop and provide such infrastructure where it is not available,” says Poddar.

While areas, which are easily reachable in Navi Mumbai, Thane and beyond Thane, have seen a skewed price rise. On the other hand, new affordable housing options are coming up in Palghar and Boisar. Outskirts of Virar are new found gem for real estate developers. Mahindra, Tata Housing and many more popular developers have come up here to offer affordable flats starting at Rs 9 lakh. Apart from this, suburban areas of Navi Mumbai, which are currently popular for plotted development, have few affordable options.

New infrastructure to take market by storm

Recently announced Maharashtra State Budget has given a big impetus to road infrastructure. Mumbai-Nagpur Expressway that would pass through Thane can be another booster for hubs lying in this region.  Moreover, local train commute from Palghar and Boisar has already improved, the bullet train between Mumbai and Ahmedabad will be having a stop in Boisar which can boost the property market here. The already flourished industrial growth is expected to bring this area in mainstream property markets where investors might flock for parking their money.