Real estate market trends vary from time to time and city to city. In Mumbai, various trends have been observed in the past few years. Read on to know more about the preferences of buyers and developers.
Higher Demand for Affordable Housing
Two real estate market reports have presented their analysis of the budget of home buyers. According to them, most buyers in Mumbai go for homes selling under than 1 crore. Even the supply of apartments and homes in the Mumbai Metropolitan Region (MMR) are priced below 80 lakhs.
According to a report released by Liases Foras, a realty research company, about 44 percent of the new supply of homes in the second quarter of 2018 – 19 range between 25 – 30 lakhs. Since such affordable prices are possible only in the outskirts of Mumbai, the trend suggests that more people are willing to settle down in the city periphery.
The rising property prices in Greater Mumbai have led to a housing demand progression towards the outskirts. Mumbai’s share in overall launches has declined from71 percent in 2013 to 67 percent in 2018. On the other hand, Navi Mumbai has seen an increase in share from 9 to 17 percent during the same period.
As quoted by one of the housing experts, the reason why people have been moving to the outskirts is the lack of sufficient money. Homebuyers are unable to get loans as easily as they used to earlier. Home loans are given selectively and this directly affects what buyers are able to invest in.
Choice of Developers
Real estate developers gauge projects by the demand from the public. Based on the increasing focus of developers on affordable housing, it is clear that this is the top preference among buyers. The luxury and premium market does not enjoy the same demand as affordable townships. Even those developers who still construct luxury projects have moved to Panvel and farther outside.
Living in the outskirts of Mumbai might outwardly seem difficult, but many localities are surprisingly well-developed. Especially in the past few years, they have achieved tremendous growth and development. Localities that were once overlooked by developers have become viable markets in demand. Localities like Thane, Powai, Andheri, Chembur, and Panvel enjoy excellent connectivity. They are located close to Eastern Express Highway, Western Expressway or Sion Panvel Highway. The strategic location helps residents in these localities easily reach any part of Mumbai.
These localities are in the best position to meet the increased demand for homes while not compromising on good air quality and green surroundings. Upcoming infrastructure projects and the new international airport will further improve growth in Navi Mumbai. Already, many buildings and high-rise towers here are undergoing redevelopment.
Suburb locations like Powai and Andheri are already transforming into ‘premium pin code’ destinations. Thane has been consistently rated as the most happening and promising real estate hotspots. Panvel is already set to become an important business destination in the near future. The Navi Mumbai international airport, Mumbai Trans-harbour link, upcoming metro station, and CSMT to Panvel fast lane railway linkage promise better connectivity and ease of travel. A new RORO all-weather craft connectivity will extend South Mumbai all the way across the harbor to Alibaug. This will create a new business and cultural hub in South Mumbai.
The suburbs also enjoy access to all possible amenities within a few minutes’ drive distance. Hospitals, healthcare centers, educational institutions, malls, supermarkets, ATMs, banks and restaurants are present nearby.
All these advantages have naturally increased demand for homes here and this trend has been slowly but steadily improving. Owing to the demand among home buyers, these localities are naturally popular among builders and developers. The demand reflects directly in excellent sales and re-launches.
Boosted Confidence in Home Buyers
The implementation of the Real Estate Regulation and Development (RERA) Act has transformed the real estate Market scenario. The launch of Goods and Service Tax (GST) and Insolvency Bankruptcy Code has also ensured the much-needed transparency and accountability in the real estate sector. This has boosted the confidence of home buyers in Mumbai and the MMR. These regulations have enabled consumer protection and fairness in the sale and purchase of properties.
People believe in the potential of development in the MMR. Already, there are several emerging business districts (EBDs) here. Panvel, in particular, is located in the Mumbai-Pune IT corridor. As a result, Panvel is turning out to be the most favorable future-perfect office location for MNCs and companies in BFSI, IT and ITES sectors. The presence of these companies will naturally boost employment prospects for thousands of job seekers.
Since more land area is available in these localities, developers are able to offer a plethora of amenities as well as ample space and greenery. Home buyers, in turn, are delighted at getting so many features at affordable prices. People are now able to enjoy sophisticated lifestyles that they could only dream of a few years ago.
Economic Growth Potential
Home buyers make educated choices by doing plenty of research. People want to live in a locality that has the best to offer in all aspects. Locations like Thane and Powai are already attractive options for many investors. Thane has already enjoyed a massive makeover and unprecedented growth in the last few years. Infrastructure development, connectivity, proximity to amenities and ambient surroundings all work in its favor. With a small investment, people can now enjoy benefits that are bound to double for the next generation.
Mumbai is a vibrant real estate market and this trend will continue unabated in the years to come. It is all set to evolve in newer regions in the outskirts and offer the same level of security and quality of life to the residents. The new regulations have given people the trust and assurance in fair deals. Developers are offering thoughtful amenities and beautiful interiors at affordable prices. Mumbai’s current real estate market shows plenty of scope for amazing growth and development, especially in the outskirts. For homebuyers, there has been no better time than now to invest here!