Is Navi Mumbai The Destination For Real Estate Investment In 2014?
Navi Mumbai will be the destination to look out for in the year 2014, say developers. The Mumbai realty market has remained almost stagnant for about two years. However, while Greater Mumbai (the Island city and suburbs) hasn’t been witnessing much activity, Navi Mumbai is seeing a good real estate activity. The market trends in Navi Mumbai in 2013 are expected to continue and grow the next year.
Good infrastructure and minimum delays
Real estate developers believe that Navi Mumbai will be the region to look out for, during the next year, when it comes to Mumbai real estate. The City and Industrial Development Corporation (CIDCO) has been very active in developing the necessary infrastructure such as roads, the Metro service and the sea link. The proposed Navi Mumbai International Airport has also picked up pace after crossing some major initial hurdles.
Owing to the active development of infrastructure, developers too are active in developing new projects. There are already a few projects that were successfully launched in the year 2013. Another reason for developers looking to launch projects in Navi Mumbai is that there are fewer delays in getting sanctions in Navi Mumbai, unlike few other regions in Mumbai.
Demand exceeds supply
While the current economic situation in the country and specifically Mumbai has put a majority of the prospective buyers on the back foot, developers believe that the demand for houses exceed supply. While there is unsold inventory in Navi Mumbai, once the market picks up momentum and people start buying, the inventory pileup will be cleared in a very short period.
There is currently a high demand for smaller units within the budget of Rs. 30-40 lakhs, due to rising prices. As such, 1 BHK units have done well this year. Developers are also working at coming up with new projects in this segment.
Areas to look out for
There were several areas in Navi Mumbai that saw new project launches this year. Some of the areas include the Kalyan-Badlapur belt, Ulwe and Taloja, apart from few other pockets. There are few more projects that are expected to be launched during 2014 in these areas. Areas towards Kharghar, Belapur, Airoli and Ghansoli are becoming expensive in anticipation of the infrastructure projects. These can be considered good investment destinations as the prices are expected to go up once the projects start shaping up. Current property prices in these areas are between Rs. 8,200-9,450 per sq.ft.
There are also certain areas such as Taloja, Ulwe, Dronagiri and New Panvel that can be considered more affordable. Though these destinations are still developing and do not have much infrastructure yet, one can see good prices in the next 4-5 years. Current property prices in these areas vary between Rs. 3,500-6,900 per sq.ft.
