2017 could bring positive news for the Mumbai real estate with the gradual reduction in home EMI. By the time the report was compiled, the union budget was not out & there was a hidden yet prominent euphoria in the market.
Projects in Thane ranging between 55-60 lacs will continue to be one of the major picks for investors & buyers in 2017. Great connectivity, mushrooming shopping malls & retail outlets & heightened employment opportunities in the form of business centers & IT parks are driving the Thane real estate market sentiment. Interestingly, Thane is no more just popular amongst the mid-income buyer but the Micro market is also seeing plethora luxury property new launches, targeted at the higher echelons of the society A new exclusive line has been announced for Thane, that will be rolled out in next four years- connecting Thane with Kalyan consisting of near around 17 stations.
Another market that will witness sizable investment in 2017 could be the Central Mumbai- Kanjurmarg, Powai & Ghatkopar etc. An average 2 BHK in Central Mumbai will fall within INR 1-1.5 Crores, making it within the comfort zone of lot many investors & buyers. Other budget markets like Dronagiri & Ambernath, with prices in the range of 20-25 lacs (1 BHK units) are also expected to stay bullish in 2017.
Future Growth Factors
In the times to come, Mumbai’s real estate industry should benefit from new infrastructure development. With the announcement of a new airport in Panvel & extension of the existing metro line, newer growth avenues are expected to proliferate in nearby locations.
The Navi Mumbai International Airport (NMIA) is expected to take off soon, as the government has assured that the airport will commence its operation by 2019. This has started infusing new optimism in the market, with heightened demand expected to follow in the markets such as Panvel & nearby locations such as Dronagiri, Ulwe & Uran etc.
Work is also gaining momentum across the SEZ around JNPT port. The 4,000 crore is expected to create near around 150,000 direct & indirect employments. The NMIA will also be surrounded with the iconic NAINA smart city project. NAINA that is also called Navi Mumbai Airport Influence Notified Area, will be self-sustainable project spread across an area of near around 561 Sq. Km comprising of Panvel & Thane. It is estimated that around INR 50,000 crores will be spent in the next 5-7 years to develop the project that will be a hub for state of the art IT/ITeS, trade, education & healthcare industry.
A host of high-profile projects is expected to trigger large scale commercial activities, thereby driving demand for residential projects. However, prices will not actually pick-up till real work unfolds. Infrastructures in Mumbai have a reputation getting delayed infinitely. Even the NAINA project, that was announced in January last year; the authorities are finding it difficult to get clearance for most of the projects.