Mumbai continues to be the favorite residential destination for property developers and investors alike. But of late, high interest rates and high property prices in the city have led to a steady increase in demand for affordable housing options in places like Navi Mumbai and Thane.
Due to factors such as connectivity and the proposed development of major infrastructure such as the nearby international airport, an increasing number of homebuyers are expressing great interest in buying flats in Thane.
Centrally located between Navi Mumbai, Kalyan-Dombivli and the main city, it is a convenient hub for travellers. Due to its proximity to the three main highways, the Eastern Express, NH3 and NH4; it has the added benefit of better highway connectivity with other states.
Real estate market trends in the area
Due to increasing investor demand for affordable residential projects in Thane, real estate rates between July 2011 and June 2012 increased by 7-8%. By comparison, property prices in central and south Mumbai only increased by 2-4% over the same period.
According to a recent 5-year residential real estate market analysis of 11 cities, Thane has seen a sharp rise in home prices. Records from a well-known real estate consulting firm indicate an average price increase of 80-85% between April-June 2009 and January-March 2014. The main reason for this increase can be attributed to affordable rates.
With the main city having reached its saturation point, neighborhoods like Ghodbunder road, Majiwada and Pokhran II are experiencing rampant real estate activity. According to a Thane-based real estate broker, there is a constant demand for 1 BHK flats. Other accommodation options include luxury townships integrated with adventure parks and knowledge centers for children, as well as premium apartments, located close to the Eastern Express and the train station.
Urban conveniences such as a 200-bed multi-specialty hospital equipped with world-class healthcare facilities, renowned educational institutions, and entertainment zones are some of the other reasons why a large percentage of people flock here.
Latest real estate activity to boost sales
Property sales have been tepid in Mumbai as well as other metropolitan cities. Due to lower stamp duty rates and easier regulatory procedures by the state government, developers in Thane are turning to pre-launch deals to boost the property sector. In addition to ongoing and proposed infrastructure development in the area, affordability is a major factor that has drawn investors and end users to Thane.
A pre-launch means selling a project to buyers and investors before the formal launch, even before all necessary approvals have been obtained. The developers offer deals with a significant discount of 10-15%, sometimes even more in exchange for taking the risks involved at this stage.
This helps developers spread the word and gauge the response in the real estate market. Although pre-launch activity had slowed considerably over the last two years due to the difficult real estate market situation and uncertainties in obtaining approvals, the trend is picking up again.
