Web Exclusive | March 2014
Eastern Mumbai slated to emerge as top destination for residential housing
Our Mumbai Bureau
In Navi Mumbai and Panvel, it is estimated that property prices will continue to rise in EMD to Rs 6,000/sq ft by 2017, Rs 8,000 per sq ft by 2020, Rs 15,000 per sq ft by 2025 and to an astounding Rs 30,000 per sq ft by 2030.
Many developers rode the 2008 real estate boom by catering mainly to high-income buyers until the housing bubble burst. In the past six years, there has been an increasing trend to entice lower and middle class clients with smaller properties outside Mumbai limits. These locations are 60 to over 100 km from Mumbai. But they registered brisk sales of smaller flats in places like Boisar, Virar, Panvel, Kalyan, Shahpur, Ambivali and Karjat. These homes cost anywhere between Rs 10 lakh and Rs 35 lakh. Experts opine that despite the slowdown in the property market, demand for affordable homes is eight to ten times more than luxury apartments.
The Eastern Mumbai District (EMD) which encompasses Karjat, Neral, Shelu and Khopoli, amongst others, has been steadily growing as an investment hub, as property investment remains a good, safe, low-risk investment with average rates of Rs 3,000 per sq ft and an upward trend incomparable to other areas in the real estate market.
With upcoming infrastructural improvements and developments like the construction of the 12-lane multimodal corridor, the ambitious Delhi Mumbai Industrial Corridor, the expansion of educational and IT infrastructure and the slated extension of rail connectivity, the Eastern Mumbai District is well poised to become a self-sustaining metropolis.
Based on trends seen in Navi Mumbai and Panvel, it is estimated that property prices will continue to rise in EMD to Rs 6,000/sq ft by 2017, Rs 8,000 per sq ft by 2020, Rs 15,000 per sq ft by 2025 and to an astounding Rs 30,000 per sq ft by 2030; an incredible 900 per cent appreciation in 16 years, with an unbelievable 16 per cent CAGR.
On an initial investment of Rs 3,000 per sq ft, property investment in the Eastern Mumbai District is the perfect low risk-high return combination