Mumbai – The City of Dreams is today truer than ever before. As people continue to stream into the megapolis from different parts of the country, the city is growing unabated, and sometimes may even seem to be bursting at the seams. Mumbai’s municipal limits are only set to expand, almost merging into other bordering towns over the next few decades. But it is not migration and crowds pouring in to find jobs that is making the city obese, the expansion is led by housing, supplemented by infrastructure development in terms of connectivity and transport. The Mumbai Metropolitan Region Developmental Authority (MMRDA) and other government agencies like City and Industrial Development Corporation (CIDCO) are responsible for identifying and developing of new growth regions. As it stands today, Mumbai is expanding on 3 sides – western suburbs (beyond Dahisar), central side (Thane and beyond) and Navi Mumbai (Panvel side). Primarily a northward development driven by the residential segment, homes in the affordable segment are setting the base for the development. The last few years have seen affordable projects mushrooming in locations what were once considered far flung
The great metro exodus
As urban development continues to ascend, there has been a shift in the preferable area for real estate investments. Locations in the main city region are limited, saturated, and witnessing a rapid increase in cost. People have found it easier to find accommodation in areas far north of the city. According to the Times of India report, over 9 lakh residents have migrated from the city life and moved towards suburbs like Thane. Furthermore, this shift has also begun with business and commercial spaces. Previously, Mumbai city was the central hub for many businesses to set up shop. Now, these hubs are centralized in multiple places. Research conducted by RoofandFloor has revealed that 3,000 projects have commenced in the suburban regions, and 48% are within the affordable segment to meet with the demands of homebuyers.
Suburban real estate investments
A few contributing factors towards the growth of real estate in the suburban areas are as below:
Affordability
The real estate rates in the city have skyrocketed to a point where one thinks twice before sealing the deal. In the suburban regions, land prices are not as steep. It provides an opportunity for the working class to buy the house of their choice with enough room to make loan payments over time.
Transit Infrastructure
Today, even the most secluded regions are reachable with the improvement in transit infrastructure. Roadways and railways continue to expand their reach. With the inception and fast-paced development of the metro rail, connectivity has never been easier. Convenience in conveyance play a significant role in the decision-making of a home and commercial space buyer.
Social Infrastructure
Schools, hospitals, and other such amenities have developed incrementally in suburban areas. The government has adopted many structural reform programs that would improve social infrastructure further and contribute to overall economic growth. Phoenix Marketcity, Infinity Mall and others provide recreation and leisure, being some of the best malls built in the suburban regions.
Return on Investment
Real estate is a long-term investment that yields great returns over time. People have now started investing in vacation houses or villas for weekend getaways or just for investment purposes in suburban areas. As there is a massive expansion of the city, the value for such land will have an excellent appreciation value in the coming years,which has been the track record. In fact people have realised that capital appreciation gains are anyday more valuable than any savings that would have been done during the years and the logic of properties earning like a loyal employee without recurral costs is a much better wealth creation proposition with the support of bank loans and a easy repayment facility.
Future of real estate in the Mumbai and its suburbs
People look for areas that are a harmony of nature and infrastructure coupled with peace and opportunity. The basic proposition behind successful investment in real estate in India is to approach areas that are emerging or currently under development, especially from the angle of the infrastructure development like highways and railways stations being upgraded and frequency of local trains being improved. These areas have a higher potential to yield returns as compared to areas where price growth is saturated or at its peak. There will also be limited opportunities and resources to establish new market drivers like office buildings, malls, or transit infrastructure due to low material supply to these areas.
Small cities that are now being established and developed in the extended central Mumbai suburbs, like Karjat, Kasara and shahapur etc., have a relatively low entry point. Similar is the case with the Navi Mumbai syburbs that have gone on to expand, reaching the Raigad district, with key nodes like Palaspa, Karanjade, Ulwe and areas around Panvel. Further, there has been an influx of affordable housing projects in locations like, and Ambernath, Badlapur, Ambivali, Dombivli in Thane district. Supplemented by the ongoing infrastructure development in the peripherals, promising better connectivity and jobs, these opportunities offer significant room for future growth with a promising path for great returns.
The 126 km-long Virar-Alibuag Multi Modal Corridor that is in the making, is set to be a major connectivity booster, linking NH-8, Bhiwandi bypass, NH-3, NH-4 and NH-4B, Mumbai-Pune Expressway and NH-17. This corridor is set to be a crucial step towards development, and creating job opportunities across seven key centres across Virar, Bhiwandi, Kalyan, Dombivali, Panvel, Taloja and Uran. The Corridor will also be play a pivotal role in the development of Navi Mumbai International Airport, JNPT Port, MTHL and Dedicated Freight Corridor. The planned development of Mumbai International Airport is expected to be a game changer for the real estate sector and will facilitate further extension of the city’s boundaries.
Going by the current development, it won’t be far-fetched that Mumbai’s limits expand all the way to Lonavala, perhaps in a few years from now. However, the pace of infrastructure development needs to be stable so that real estate growth takes place in a sustainable manner. The city’s future development will vest heavily upon the government’s ability to create employment nodes in the peripheries, thereby enabling sustainable growth of the city.