By Accommodation Times News Services
Mumbai’s residential market remains most lucrative investment destination in India states Knight Frank India’s second edition of its Residential Investment Advisory Report 2016. The report states that Mumbai tops among the five residential destinations due to the destination like Madh-Marve and Ulwe, which are expected to nearly doubling of prices in just five years.
As per the report Madh–Marve emerges as the most lucrative potential destination, with an estimated price appreciation of 94 percent in the next five years. Ulwe, still in the list of potential destinations as featured in the first edition of the report, continues to be the other top destination, with a 70 per cent price appreciation in 2020. Majiwada–Kasarvadavali, the next investment destination, is expected to see an appreciation of 59 per cent by 2020. The key drivers for the MMR will be employment; physical and social infrastructure; an arterial road network and the proposed suburban railway networks (metro and monorail), the Costal Freeway and the trans-harbour link.
The other major investment destinations are in the National Capital Region, Bengaluru, Pune, Chennai and Hyderabad.
As per Dr Samantak Das, Chief Economist & National Director, Research, “The residential sector in India is reeling under tremendous pressure since the last couple of years, with price appreciation in most cities not even able to exceed the inflation rate in the economy. In the next five years, we anticipate the residential price growth to remain muted on the back of delayed economic reforms, subdued demand and a lack of consumer confidence in the completion and delivery of projects.”
Further he added, “We have identified 11 locations spread across Mumbai, NCR, Bengaluru, Pune, Chennai and Hyderabad that will provide the maximum price appreciation in the range of 41% to 94% in the coming five years. While Madh–Marve in Mumbai has been identified as the top investment destination, Ulwe in Mumbai and New Airport Road in Pune have emerged as the second and third potential destinations respectively.”