70% New Supply concentrated in Central Suburbs & Peripheral Areas
If you are looking to buy a home in Mumbai but are confused about the area, you might like to consider the new projects in Central suburbs and peripheral areas in the city. According to CommonFloor Quarterly Report (Jan-Mar, 2015), close to 70 per cent of the new supply in MMR was concentrated in the central suburbs of Mumbai, Thane as well as areas beyond Thane. The top localities in these regions include Ghodbunder Road, Kalyan West, Dombivli East and Mulund West.
So, what are the Growth Factors?
When it comes to the fastest growing real estate hotpots in MMR, peripheral areas of MMR occupy the top position followed by some of the central suburbs of Mumbai. Several factors currently drive the real estate market in these areas. Following are a few of them.
– Lower and affordable property prices are the biggest drivers of real estate in these areas. Property prices in South Mumbai and western suburbs have gone beyond the reach of a common man, while they are still within reach in some of the far central suburbs. Peripheral areas of MMR have the most affordable property prices.
– The approximate property prices in South Mumbai are about Rs 45,000-80,000 per sq. ft, while in western suburbs, they are approximately about Rs 15,000-45,000 per sq. ft. The central suburbs have relatively lower property prices of about Rs 14,500-18,500 sq. ft. while peripheral areas such as Kalyan and Dombivli have property prices of about Rs 4,700-6,500 per sq. ft. These affordable property prices have made the areas attractive among property buyers.
– Another driving factor of central suburbs is the growing connectivity to other suburbs via the monorail, Eastern Express Highway (EEH) and Eastern Freeway. The combination of improved connectivity and lower property prices have made central suburbs such as Mulund attractive to developers as well as buyers.
– Some of the key projects launched in these areas during the first quarter of 2015 include Lodha Palava Downtown in Kalyan West, and Hiranandani ParK Eagleton and Tycoon Lawns on Ghodbunder Road.
The following table gives an idea about the market trends in some of the top areas.
Table: Price trends in Top Markets
| Micro-Market | Approx. Units Supply (Q1, 2015) | Current Price per sq. ft. | Price trends (Rs/sq. ft) |
| Mulund West | 4,200 | 14,000 | >8,000 |
| Dombivli East | 2,500 | 5,600 | 4,000-6,000 |
| Ghodbunder Road | 1,650 | 10,200 | >8,000 |
| Kalyan West | 1,000 | 5,200 | 6,000-8,000 |
