Parel – A Good Destination For Long Term Investments
Parel is one of the most preferred locations in South Mumbai. It has seen a few residential launches in the recent past. The area has seen a stable market concerning ready projects. Parel is a destination usually sought after by people in the upper-middle class and higher-class. The area may prove a good destination for a long-term investment for these people over a period of 5-7 years.
Parel is one of the original islands of Mumbai. It is surrounded by other upmarket areas such as Dadar, Prabhadevi, Worli and Mahalakshmi.
Access and connectivity
Parel, also referred to as Lower Parel is connected to other areas via key arterial roads such as Dr. Ambedkar Road. The area also connects to the Western Express Highway via the Gokhale Road. It lies along the Eastern Freeway. There are also important railway stations such as Lower Parel railway station and Elphinstone Road railway station. Both the railway stations lie on the western line of the Mumbai Suburban Railway. It will also be an important station on the proposed Mumbai monorail. One can access Lower Parel via the Bandra-Worli Sea Link.
There has been active expansion of IT/ITeS-BPO sectors in South Mumbai, especially in Lower Parel and its surrounding areas such as Prabhadevi. This has introduced the concept of walk-to-work concept to the area. It is also at a distance of about 15 minutes from Bandra-Kurla Complex (BKC), 20 minutes from Nariman Point and 20 minutes from the Mumbai International Airport.
Social amenities
Most of the old mills are now replaced by high end pubs, restaurants, luxury hotels, boutiques and premium office spaces. One of the famous hotels is the ITC Grand Central. There is a high-end High Street Phoenix shopping mall. Parel has some important hospitals such as KEM hospital, Wadia Hospitals, MGM (ESI hospital) and Tata Memorial Centre. It has several colleges such as Maharshi Dayanand College of Arts, Science and Commerce.
Lower Parel is a part of the secondary business district (SBD) and has several office spaces which provide plenty of employment opportunities.
Real estate
Parel was once an important area for cotton and textile mills. The cotton mills are now being rapidly replaced by IT/ITeS, business and commercial projects which have increased the scope of ‘walk-to-work’ concept. This has led to massive influx of residential projects. The area has started attracting professionals with high disposable income who can spend a little extra to own a 3 BHK unit. While Parel has demand for 2 and 3 BHK units, Lower Parel sees high demand for higher configuration (3 BHK and above) residential units.
Developers such as Lodha Group, Indiabulls Real Estate, Neumec Builders and L&T Realty already have ongoing residential projects in Parel and its micro-markets. In case of under-construction projects, there is also a small correction which has happened this year.
The size of a 2 BHK apartment varies between 1,000 – 2,150 sq.ft. The size of a 3 BHK apartment would be between 1,720 – 3,250 sq.ft.
Property Trends
A 2 BHK apartment in Parel has a rental value between Rs. 60,000 – 1 lakh. A 3 BHK apartment would fetch a rental value of Rs. 1 – 4 lakhs. A 2 BHK apartment can be purchased for Rs. 2 – 4 crore while a 3 BHK flat would cost between Rs. 6 – 8 crore. The property values in Parel range between Rs. 30,000 – 35,000 per sq.ft.
