Anubhav Aggarwal
Considered to be the most expensive city of India and one of the top expensive real estate in the world, Mumbai’s real estate has always been under scanner for property investment. Despite its premium property rates, Mumbai’s property market is still considered as a bankable decision to turn your investments into.
But, the question remains, is the city with 20 million population and counting, has reached its saturation when it comes to offering good ROI (return on investment)?
For decades, the city has been struggling to keep up its infrastructure to match population. Although the strength of population for any town can become its strength, overcrowding, lack of open spaces, traffic jams, insufficient parking spaces and other population-based problems have become true to the personality of Mumbai City.
In such a time, the city has extended to new locations for affordable housing in areas within its geographical reach such as Navi Mumbai & Thane.
Some of the biggest real estate industry players are developing the finest property projects offering self-contained features that are well worth the investment as well as relocation. Both these areas may witness increase in property rates in the next two-three years. Both Navi Mumbai and Thane are emerging as popular investment areas in suburbs.
Thane & Navi Mumbai today stand as one of the fastest developing city of India, be it in terms of some of the best schools, colleges, luxury projects, malls, commercial spaces or its easy connectivity with the city of Mumbai.
The residential areas are already offering play parks and shopping attractions. These two locations are offering promising ROI for investors who are ready to look beyond Mumbai.
Mumbai has always been challenged with its population, with growth rate of 2 percent per annum. The city’s geographical constraints and rapid population growth, road and rail infrastructure development has not been able to keep pace with growing demand over the last 4-5 decades.
However, with the introduction of Mumbai Metro due for completion by 2021, prices around metro line locations are likely to go high significantly.
There are no two ways about popularity of Mumbai on the basis of its real estate value. Even the areas like Santacruz East, Vile Parle (East), BKC, Mira Road East, Sewri can be viewed as promising ROI for this year. Premium developers have launched luxury residential projects in these areas offering better living and an option of lucrative choice for investment.
Some of the other affordable areas poised to become profitable due to much-needed infrastructure initiatives are Chembur, Mulund and Ghodbunder Road in Thane.
Mumbai has always witnessed re-development project as an answer to shortage of land. Developers have turned into redevelopment projects to meet the increasing residential property demands. Many low demand areas and patches of suburbs in east have undergone make-over through redevelopment projects.
Developers are turning cheap and polluted realty pockets into great residential complexes offering better lifestyle, thus, much of the population who previously resided in the west parts of the suburbs are now relocating to east for better life and connectivity with national highway. One such great example is BKC.
Several new redevelopment projects are launched while various housing societies are undergoing re-development that makes great investment option.
The Central Line of the city has witnessed upward trend in development of office complexes. Many companies are now having their offices in Mulund, Bhandup, Ghatkopar, Kanjurarg and other locations. This has led to an increase in residential projects as people now prefer to live near their workplaces, saving them travel time.
Parallel to development in office complexes and residential projects, these areas have witnessed development in good schools, hospitals, malls and overall infrastructure. Property costs in these area are also comparatively lesser than western suburbs.
Other areas that are seeing an upward trend in real estate tied to job opportunities nearby are Chembur, Bandra East and Wadala.
With so many profitable investment options that city offers and an announcement by the Finance Minister Arun Jaitley during the Budget that National Housing Bank will refinance individual loans worth Rs 20,000 crore this year, residents have been given an opportunity to finally consider investing in their dream home in favourable parts of Mumbai city.
With constant developments and launch of new projects almost every week, Mumbai’s real estate scene is very unpredictable for investors. The city is caught in the vicious cycle of developing itself to keep pace with growing number of citizens’ needs, while the development and opportunities itself attracts more and more people every year from other towns and rural regions.