Are Low-Budget Flats in Mumbai Even Possible?

Home to Bollywood and one of India's most formidable stock markets, Mumbai is a city desired by film makers, actors and businessmen aiming to raise corporate empires. Not surprisingly then, everyone who lives here and plans to settle down, aspires to own a home in this city of dreams. The harsh reality of Mumbai however remains that owning a home here is very expensive. Ever since the development of Mumbai Metropolitan Region (MMR) was fast-tracked, affordable homes in Mumbai have become a possibility. Areas like Navi Mumbai have been expanding and seeing a surge in residential projects to make the pursuit of owning a home in Mumbai easier.

Prices on the rise

Home sales in Mumbai have been at a five‐year low, but that has not had a serious impact on home prices, as the average price of a flat in Mumbai even now is at an all time high of Rs 3 crore. In the Mumbai Metropolitan Region (MMR), which includes Mumbai city, its suburban districts and parts of Thane and Raigad, the average cost of a home measuring 1,098 sq. ft. has peaked to Rs. 1.34 crore from Rs. 1.2 crore about a year ago.

Affordable alternatives are here to stay

Mahindra  Lifespaces,  which  is  a  part  of  the  Mahindra  Group,  came up  with  an affordable homes scheme in Mumbai's suburbs in the past. The group has now announced the second phase of the project to provide homes for everyone in Mumbai. Nearly  240  ready-to-move-in flats in Mumbai will  be  made  available  once the  project  is completed. Located in Boisar on the outskirts of Mumbai, the flats range from Rs. 11 lakh to Rs. 21 lakh. A 2BHK in Mumbai will be sized around 762 sq.ft., and 351 sq.ft. flat will have just a room and a kitchen. Though Mahindra Lifespaces has been known for its medium and premium homes in the past, this venture will be successful as well, as 300  flats  in the  first  phase  have  already  been  sold  since  the  ambitious  project commenced last Diwali.

Living in the suburbs is in

The difference between the prices of flats in places like Boisar, located on the outskirts of Mumbai, and those in places like Old Panvel, is huge. It might be a better idea to buy low budget flats in Panvel or under construction flats in Panvel. Rate for a 1BHK in Boisar is around Rs. 2,550 per sq.ft. and for the same property in Old Panvel, one needs to shell out Rs. 6,000 per sq. ft. A 1BHK in Boisar having an area of 552 sq.ft. would cost around Rs. 14.08 lakh, whereas a flat of similar area in Old Panvel would cost Rs. 39 lakhs. If you move further away from the city, a 2BHK flat of 825 sq. ft. area would cost Rs. 18.15 lakh in Atgaon under the Bathija City project. In East Kalyan, you can get a 2BHK for Rs. 20.39 lakh for Rs. 2,999 per sq.ft. Leading real estate developer, HDIL , has  also  come  up  with  affordable  residential projects  all  across  the  MMR  region - Residency Park in Virar, Thane; Galaxy Apartments Kurla (E) and Paradise City in Palghar are just a few examples.