Buyers looking for property on the fringes of Mumbai

Real estate remains at the top of the wish-list for investors. After the first home is bought and paid for, the search for the second one begins. Capital appreciation, rent, inflation, protection, all remain the reasons why real estate continues to be popular. The real estate sector has grown rapidly in the last decade and is becoming one of the best options for investments with better returns.With new projects being launched by many developers that offer a plethora of amenities, buyers are keen on splurging lavishly for holiday homes.

 


Ravi Ahuja, executive director, Cushman & Wakefield, explains, “Given the increasing prices of apartments in suburban Mumbai, home-buyers have been driven north wards towards peripheral locations of the city. Peripheral locations beyond Kalyan such as Asangaon, Badlapur, Ambernath, Titwala and Vasind, which offer affordable options of plots and apartments, have witnessed high levels of interest from end-users and investors.“ The outskirts of the city offer affordable houses with good amenities. Apart from these facilities, the growing infrastructure and developing surroundings make it one of the best buys for a second home.Mayur Shah, managing director, Marathon Group, says, “Home-buyers opt to purchase flats located on the fringes of city due to multiple reasons.The prime reason is the cost factor. Due to the availability of land in the extended suburbs of the city at cheaper rates, flats that are sold in these locations are available at a lesser cost than those in Mumbai. The other reason is new infrastructure that is being developed in these locations and improvement in connectivity through new roads, bridges and flyovers that make these areas easily accessible with Mumbai city .“

 

 

The townships that are being developed in these locations offer a lifestyle similar to that of Mumbai. These factors are attracting prospective home-buyers to opt for extended suburbs to buy their dream home. Hariprakash Pandey, vice-president, Fi nance and Investor Relations, HDIL, says, “Virar and Palghar are becoming interesting markets for buyers looking for a new home. Typically, 30 per cent of buyers of many properties in Virar and Palghar are looking for a second home. Compared to previous years, enquiries and visits have gone up this year.“

 


Gautam Ahuja, managing director, Ahuja Constructions, says, “In the last five to seven years, prices in these city suburbs have increased exponentially. With unaffordable rates and increased home loan rates, a family earning a good income is not able to buy their home in the suburbs of Mumbai. As a result, developers have started looking at options in the outskirts of the city where land rates are reasonable and they can build homes within the reach of the middle and lowermiddle class. Investing in a property on the periphery of the city, with the intention to make future grabs, plots and properties on the outskirts, make a great choice.“
Connectivity to business districts through the suburban railway network and National Highway-3 has helped the growth of these locations. Locations such as Boisar and Palghar have also witnessed high interest from prospective low to mid-income buyers. According to Rohit Poddar, managing director, Poddar Developers, “Today, consumers are interested in investing in areas that have higher appreciation and value for money . Kalyan, Atgaon and Badlapur are hotspots for first homes, weekend homes and investment. These three areas have the maximum potential for fundamental reasons.“

 


Other distant areas from the city, which are beyond like Dahisar, Mira Road and further, are booming locations for alternate realty that are well-connected to the highway, railway station, etc., are also fetching good returns. These locations are also becoming one of the hotspots for purchasing property with growing job opportunities. Gaurav Shah, director sales and marketing, Ravi Group, says, “Lands or flats in the fringes of the city are not only a good investment alternative, but also an amazing option for relaxation from the hustle and bustle of the city. What works for these locations is its proximity to the central business districts, connectivity via public and private transport, traffic-free roads, pol lution-free environment and spacious surroundings.“ With the many initiatives taken by the corporation, the development profile of the area is now a mix of a number of housing projects from premium, affordable to integrated townships along with support facilities like schools, colleges, hospitals, malls to amusement parks. If you have a limited budget and are still willing to invest in alternate realty, the aforementioned areas could be a good choice, considering that the social and physical infrastructure are in place and there is scope for further growth. Sunny Bijlani, director, Supreme Universal, says, “Land transactions are difficult as a lot of due diligence is required and, hence, flats are preferred by people for investment as well as selfuse, especially in fringe areas of the city.“

Source: Times of India dated June 10, 2015