Finding Affordable Property In and Around Mumbai

Mumbai is the financial capital of the country and hence it attracts a lot of people to the city for the purpose of work. The residential options in the city are quite hard pressed because of the large influx of people. The property prices are sky high and mostly out of the reach of service class people. Most people in the service sector are pushed to the outskirts of the city where property prices are somewhat affordable. Ghatkopar West is one such area where a lot of middle class people reside. However, in recent times, rental and capital values have gone up by close to 50 percent in the past 3 years in this area. As the Ghatkopar-Andheri-Versova Metro was completed and began operations, the value of property in the area would increase by almost 10 percent to 15 percent in the coming 6 months.

The first Mumbai metro railway link or the VAG corridor or Versova, Andheri and Ghatkopar corridor makes connection among areas such as Azad Nagar, Andheri, Chakala, Western Express Highway, Sakinaka and Airport Road. It also connects the Western and Eastern suburbs of Mumbai. The metro links which have started functioning have boosted the real estate market in Ghatkopar West apart from improving connectivity across the city. Previously, commuters required changing trains in Dadar for reaching their offices in West Suburbs which has now been made into a direct route for the metro. The metro railway link has reduced travelling time between Ghatkopar and Versova from 90 to 100 minutes to only 20 minutes. During work hours the transit time became more hectic as there were long traffic snarls. However, as the metro railway has been started travelling has been made easier for the service class.

Liveability of Ghatkopar West has increased as it now enjoys better access to business district and lesser congestion of roads. Young couples and nuclear families that cannot afford purchase of properties in the Western Suburbs and Andheri are purchasing property in this neighbourhood. Because of the lowered travel time, buyers have been offered an option of living in a neighbourhood which has all kinds of infrastructure such as hospitals, schools, banks, malls and restaurants whereas the load on their budget is lower. The average value of capital in Andheri West is around Rs 19000 to Rs 25000 for a square feet whereas in Ghatkopar West the square feet price is around Rs 15,000 to Rs 18,500 per square feet.

The areas of flats are much bigger in Ghatkopar West even though the prices are much lesser. For example, for a 2BHK apartment (most supplied units in the neighbourhood) the price range is around Rs 1 crore to Rs 2.5 crore and the area covered is around 850 sq. ft. to 1500 sq. ft. A 3BHK apartment would cost around Rs 2 crores to Rs 4 crores covers a carpet area of 1350 sq. ft. to 2500 sq. ft. The rental rates in the area are also much lower. For example, per square feet the rental rate is around Rs 40 to Rs 50 in a month in Andheri West whereas in Ghatkopar West, the rental value is around Rs 35 to Rs 40 for square feet in a month. For a 1BHK apartment in Ghatkopar West, rent per month would be around Rs 20,000 to Rs 25,000 in a month while 2 BHK flats in Mumbai could be leased for Rs 30,000 to Rs 50,000 in a month. The rental rate for 3BHK flats would be around Rs 42,000 to Rs 60,000 in a month.

With the high availability of social infrastructure and relatively lower cost of living and improved connectivity via the metro railway, Ghatkopar West has the potential for both end users and investors.

Those looking for more affordable residences within Mumbai and around it or have a fixed budget between Rs 20 lakhs and Rs 40 lakhs, there are two hotspots that are emerging and offer properties suitable to one’s budget.

Asangaon

Within a budget of Rs 20 lakhs and Rs 30 lakhs, you would find flats in Asangaon. In this price range, 1 BHK and 2 BHK flats in Mumbai are available which measure between 450 sq. ft. and 1200 sq. ft. Several 1BHK apartment options are available for budgets of Rs 10 lakhs to Rs 15 lakhs. When it comes to infrastructure, Asangaon is much under development. Via the expressway, Asangaon is around 70kms away from Mumbai and is a part of Thane. More than four hundred manufacturing units operate in the area which brings in people for work and hence demand for housing is being pressed. Also, the area has a railway station of its own which is linked to Mumbai’s central line of the suburban rail network.

Panvel

Panvel connects Pune and Mumbai and is located in Navi Mumbai. This area is best suited for those people wanting to invest in property which costs within Rs 20 lakhs to Rs 40 lakhs and wanting to be near Mumbai. Most of the apartments which are available in this price range cost between Rs 20 lakhs to Rs 40 lakhs. There are over 20 new projects which are coming up along with smaller apartment complexes which are in numerous stages of completion. Most people buying apartments in Panvel belong to the middle class segment who cannot afford prime areas in Thane or Navi Mumbai. Most of the real estate market in Panvel is investor driven and the market attracts mostly those kinds of investors who are making their third or fourth investment.

The prices of property are so high in Mumbai that most of the service class people have been pushed to the outskirts or to areas such as Thane and Navi Mumbai. Prices in these two areas too are escalating rapidly thanks to the excess demand coming in from both investors and end users. Capital appreciation in Navi Mumbai in certain areas has been almost 15 to 20 percent in the past couple of years which shows how pressurizing the demand would turn out to be in near future.