Affordable home in Mumbai

Q: I am looking for an affordable home in Mumbai. Which are the good areas in Mumbai for affordable housing?

Rakshit, Mumbai

14th August 2013

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@Bikram, You can also look for Vikhroli is located in the middle of the Eastern Express Highway (EEH). It has a few well planned highways and flyovers that connect Sion and Thane. One can reach Thane from Sion in 30 minutes. Vikhroli is also well connected by the LBS Marg from the west. The highway further connects it to western suburbs including Bandra and Jogeshwari. Vikhroli offers 1 BHK apartments within a budget of Rs. 55-60 lakhs. With the Mumbai metro expected to come here, property prices are set to go up by 12% in the first quarter of 2014.

Jerome Fernandez, Mumbai

1st January 2014

Comment

Actually you can also look at distant areas in Navi Mumbai such as Taloja and Dronagiri. However, these areas are still undergoing development and lack the necessary social infrastructure. If one is willing to buy and hold a property for the next 5 years, these localities can give a good price appreciation.

Deepankar Godbole, Mumbai

1st January 2014

How is Vasai locality? Can I get affordable houses in Vasai?

Bikram, Mumbai

1st January 2014

Comment

Vasai too is undergoing commercial and industrial growth, and has seen consistent rise in property values in the last year. Yet, most properties here are in the affordable range. The average property price in Vasai is in the range of Rs. 4,600-4,900 per sq.ft. A 1-BHK property is available within a budget of Rs. 20-35 lakhs whereas, a 2-BHK property is available in the price range of Rs. 35-50 lakhs.

Kishore Pathak, Mumbai

1st January 2014

MMRDA expects a stock of 5,000 more such flats to be available for purchasing by the end of the current fiscal year. Next fiscal-year onwards, the size of the flats in upcoming schemes are expected to become twice the existing size (320 sq.ft). The development board also has plans to create 5 lakh such flats in MMR in the next three years.

Suresh Khanna, Mumbai

20th November 2013

Comment

I heard that MMRDA is set to put about 2,500 flats on sale in Thane and Vasai-Virar. :) :)

Jerome Fernandez, Mumbai

20th November 2013

Comment

Yes you are right Jemore.... A state government notification states that MMRDA can designate up to 50% of flats built under different housing schemes in MMR, under the rental housing scheme to be sold as a part of affordable housing. The 2,500 flats to be sold in Thane have already been handed over to the Thane Municipal Corporation.

Vineet Tendulkar, Mumbai

20th November 2013

In the eastern region, LIH units have emerged in Bhubaneshwar and Kolkata. There is a potential for more growth in the supply of LIH units in Bhubaneshwar as the state government is putting concerted effort to promote affordable housing.

The southern region has seen the least progress in terms of low income housing. This is majorly due to prevailing cultural resistance to multi-storey apartment format and longer approval timelines. These reasons have deterred some developers from entering the space.

Shrikant Kejriwal, Mumbai

20th November 2013

Comment

According to latest data from Monitor Inclusive Markets (MIM), there were a total of 80,000 affordable housing units in the range of Rs. 3-10 lakhs built in the last five years across the country. Mumbai too saw a fair share of these affordable houses in various locations across the city. Most of these affordable houses are low income housing (LIH) units.

Vineet Tendulkar, Mumbai

20th November 2013

Comment

Among the 22 cities taken into consideration, Mumbai, Ahmedabad and Indore saw the highest volumes of supply. North Indian cities such as Delhi, NCR saw limited supply of LIH units. The Dharuhera/Rewari industrial belt in Delhi will see some LIH projects in the future within the range of Rs. 10 lakhs as some developers have expressed interest in building these units.

Deepankar Godbole, Mumbai

20th November 2013

Despite high per sq-ft rates, the developers are able to deliver the projects at affordable rates in response to the high demand for affordable properties. Ulwe is currently the most affordable while Kharghar is the most expensive among the three localities for properties in the 1, 2-BHK bracket.

Bikram, Mumbai

15th August 2013

Comment

Which are the new projects coming up in Ulwe?

Praveen Modi, Mumbai

15th August 2013

Comment

National Marvel, Ganesha Sai Nakshatra, Sae Regency, Baybliss Ulwe, Laxmina Aurum and EV Solitaire are some of the new projects in Ulwe.

Bikram, Mumbai

15th August 2013

What is the price trends in Ulwe, Kamothe and Kharghar?

Praveen Modi, Mumbai

14th August 2013

Comment

The second quarter of 2013 has seen the maximum growth in demand for 1 and 2-BHK properties in these three locations. Kamothe saw a growth of 56%, followed by Ulwe at 47%. Kharghar witnessed the lowest demand of 32% for 1-BHK properties. The maximum growth in demand for 2-BHK properties in these three locations was 48%. Following is a table comparing the prices for 1, 2-BHK properties in these three locations.

Deepankar Godbole, Mumbai

14th August 2013

Kamothe has very good connectivity to Kalamboli, Kharghar and Panvel. It is located along the Mumbai-Pune expressway, which connects it to Belapur CBD. It also has the Mansarovar and Khandeshwar railway stations along the harbour line, both at a distance of 2 km from Kamothe. Kharghar is just 4 km away from the proposed Navi Mumbai International Airport. It is also called the CBD (central business district) of Navi Mumbai. All these projects and upcoming IT MNCs in Navi Mumbai are expected to drive up property prices in the next 8-10 years.

Deepankar Godbole, Mumbai

14th August 2013

Comment

Is it only because of the affordable housing these areas are facing increasing demand?

Rakshit, Mumbai

14th August 2013

Comment

Along with the demand for affordable houses, there are other reasons such as infrastructure projects, good connectivity, high prices in neighbouring localities and good social infrastructure responsible for growth in demand for these three localities. However, the unique selling point of these three localities is the wide range of values at which residential properties are being offered.

Shrikant Kejriwal, Mumbai

14th August 2013

Demand for affordable housing is high in Mumbai despite industry slowdown. Due the high capital values in Mumbai, affordable houses need to be built outside Mumbai. The capital value in these areas is typically in the range of Rs. 2,500-5,000 per sq.ft. Most flats in these areas are built by grade B and C developers. Without proper infrastructure, costs of construction go up and projects become unviable for many of these builders.

Many developers blame the government for neither promoting nor supporting affordable housing. They claim that permissions do not come in time and affect the projects.

Ravi Waghmare, Mumbai

21st October 2013

Finding an affordable home in Mumbai in today's scenario is extremely difficult. In the situation where property prices are continuously rising in Mumbai, there are few localities such as Kharghar, Kamothe and Ulwe that may provide a bit of relief for people who are searching for affordable houses.

Deepankar Godbole, Mumbai

14th August 2013

Comment

I agree with Deepankar property prices for even a 1, 2-BHK property are at an all time high in Mumbai. Even in Navi Mumbai, prices have almost touched the sky making it extremely difficult for buyers to own a house in or around Mumbai. In these conditions, there are certain localities in Navi Mumbai such as Kamothe, Kharghar and Ulwe where one may hope to find affordable properties in the range of Rs. 25 lakhs to 1 crore and above. As such, these areas are facing increasing demand.

Shrikant Kejriwal, Mumbai

14th August 2013

Mumbai outskirts are the best place for someone who wants to buy an affordable house. However, the affordable homes market on the outskirts of Mumbai is beset by problems such as poor infrastructure, lack of proper access and connectivity, delayed clearances and issues of land titles. So to some extent I agree with Mr Deepankar.

Shantanu Kumar, Mumbai

21st October 2013

Most of the affordable houses on Mumbai's fringes are about 60-100 km away from Mumbai. These are areas such as Virar, Panvel, Shahpur, Karjat, Boisar, Ambivali and Kalyan. The cost of these houses range between Rs. 10-35 lakhs. Most of these areas were developed during the 2008 boom to attract lower and middle class buyers. The areas registered good sales as well despite the distance from Mumbai.

Kishore Pathak, Mumbai

21st October 2013

Hi Kishore, no doubt these areas are providing affordable housing but after frenzied sales in these areas, people started realizing that most of these areas have poor social infrastructure and connectivity. For example, the nearest railway station in a couple of areas is about 8-10 km away. There are hardly any amenities such as schools, hospitals, markets or restaurants. There are no proper roads and street lighting. Many of these areas lack the livability factor and it will take at least a decade to come up with the required human mass to improve infrastructure.

Jerome Fernandez, Mumbai

21st October 2013

I agree with you Jemore. Apart from the lack of social infrastructure, builders also face delays in obtaining environmental clearance for many of their projects. Tata Housing faced a similar situation in Vasind near Shahpur and had to scrap one of its projects because the necessary clearances got stuck in red tape. Another large low-cost project from another builder in Karjat saw the completion of only phase I. The remaining phases did not take off despite good initial demand.

Shantanu Kumar, Mumbai

21st October 2013

Mumbai sees a high demand for affordable housing units within the price range of Rs. 25-30 lakhs. However, due to the skyrocketing property prices in Mumbai, it is difficult for a person to find affordable housing in the country's financial capital. Yet, there are certain locations in and around Mumbai where one can find affordable houses. Most of these locations are outside Mumbai, yet have very good connectivity to the commercial centers of Mumbai.

Deepankar Godbole, Mumbai

1st January 2014