By Rohit Poddar, Managing Director of Poddar Housing and Development Ltd
The clouds of Mumbai suburbs have witnessed major changes in the past few years in terms of infrastructure and residential spaces. A decade back places like Ambernath, Badlapur were only known for the rapid presence of small and medium industries and now with the advent of industries, the city has been witnessing a plethora of job spurt. The changing scenario has resulted in the conversion of suburban’s image from an industrial hub to residential hub.
With the growing infrastructure, builders and developers are now investing more in residential space. The suburbs have been developed vastly, having amenities like technologically advanced hospitals, highly experienced doctors, better education option for kids like schools and colleges, entertainment and hangout spots like malls, restaurants and multiplexes. This is not only enhancing the lifestyle of the people and their culture but it is also setting a benchmark for a better standard of living.
If you take Mumbai, it is the best place for an investor to invest as well as the buyer to buy. For instance, people migrating to Mumbai for a job and higher education choose to live in suburbs, since owning a house anywhere in the western stretch is a farfetched idea for a person of medium to high income. Hence a solution to this is looking out for residential spaces that are not only affordable but convenient.
Availability of property and redundant mills is now getting converted into residential infrastructure is an important market influencer here in the years to come. While on the other hand, people who have houses in various part of Mumbai, look out for suburbs to invest as a secondary option. The key factors attracting the home buyers are connectivity, employment opportunity, pollution free environment and healthy lifestyle at a budget-friendly price. Property prices are so reasonable, on an average of 15 lakhs to 30 lakhs, one can buy an apartment with a minimum configuration of 1BHK – 2 BHK. The future of Mumbai suburbs looks promising and bright with the current momentum in the real estate market.
The luxury apartment is considered one of the best investment, but for a developer, it is quite a task to sell a luxury apartment. Real estate developers now a day’s take a step back on launching new projects in the segment due to scarcity in the demand in a subdued property market. Generally, it takes approximately two to four years to properly execute a project depending on the location. It is during this period that builders strive to sell most of the flats. However, South Mumbai – known for high-end homes tell a different story altogether. This particular region has arisen inventory period which is approximately from 40 months to 70 months.
Affordable housing, on the other hand, brings a number of opportunities for builders and buyers both this is lacking in luxury housing. It is not only easier to sell these homes since they belong to the affordable sector but it also provides good returns in the longer run. The affordable sector is also supported by Pradhan Mantri Awas Yojana (PMAY) which has played a pivotal role for the sector. As the infrastructure progresses and the real estate industry develop the finance for the projects, home loans etc also made easily available which helps the sector tremendously.
Recent surveys and studies have proved that the affordable sector is booming like never before. There has been general buoyancy in the market after structural changes like demonetization and implementation of RERA and GST. “Consequently, confidence is coming back; the maximum pent-up demand existed in the affordable segment. It is now resulting in transactions after the supply has come into the market. Moreover, urbanization is an unstoppable trend in the Indian market. That creates demand for budget homes. So going forward affordable segment will continue to thrive.