Good Reasons to Invest in Real Estate in Western Suburbs
Over the past decade, Mumbai city has witnessed large-scale developments in its peripheries and beyond. There are new hotspots in the western part of the city that are undergoing major developments. These areas are budget-friendly and also give you a social uplift. Properties in and around the vicinity of a commercial hub and better connectivity to other prominent locations provide higher returns and are majorly preferred. Western suburbs like Andheri, Malad, Kandivali, Goregaon, and Mira Bhayander are the key hotspots for both residential and commercial properties.
Given the current market dynamics, below are a few reasons why the Western Suburbs of Mumbai are becoming the most appealing real estate investment market:
The western suburbs, more particularly Andheri, Goregaon, Malad to Mira Bhayander has witnessed a sharp rise in housing and commercial development. The covid-19 pandemic and the resultant Work From Home module have made people realize the importance of bigger living spaces and urged them to look for bigger spaces, even if it means traveling a little bit more. Therefore there’s a huge increase in demand for residents moving into ready-to-move-in flats in western suburban areas to gain more quality indoor and outdoor space attached to their property. With more activity taking place inside the home, flats need to now have space for living, entertainment, career/job work, working out, school, and more.
Big space is needed but not at an expensive price
Most buyers are seeking bigger homes, but not at a bigger price. The majority of prospective home buyers are extremely sensitive about the price factor and are hence forced to shift to suburbs and peripheral locations of Mumbai, where homebuyers can get bigger ready-to-move-in flats within their budget. They are looking for projects that fall within the affordable category, and yet offer them some upscale lifestyle.
So there is an opportunity for Affordable housing developers to anchor a sizeable number of state and central tax credit possibilities. Builders can take advantage of this opportunity by equipping themselves with government relief or subsidies in the construction of new, or rehabilitation of existing infrastructures. The investment of thousands of crores of rupees into India’s infrastructure segment, with the intention, to bolster connectivity is boosting up the affordable home-buying segment. The issued debt financing for REITs and the backdrop of the Development Financial Institution for supplementing funds for infrastructure and the real estate market is likely to supply a major uplift to the real estate industry and help bring in more investments.
Better living standards
While Kandivali, Malad, Goregaon, and Andheri rank high on general infrastructure, affordability, and workplace catchment, areas like Mira-Bhayander, Virar-Vasai, Naigaon are not lagging far behind as the most in-demand and emerging profitable destinations. They are also coming up in a big way due to the planning, a distinct culture as well as lifestyle amenities, but for them commuting is still comparatively tiresome. Property rates in the western suburbs are favorable, and there is a wide range of good properties by reputed developers like the best real estate developer in India, K.Raheja Realty to choose from as well in these areas.
Kandivali, Malad, and Goregaon are already witnessing a boom in commercial properties as the Andheri and Borivali have now saturated. As a result, commercial developments are seeing great demand in these areas. Also, homebuyers are looking for lifestyle amenities beyond – ready-to move-in flats for an affordable yet upscale living experience. To cater to the rising needs, developers are inclined towards providing the best of lifestyle amenities both social and infrastructural along with the affordability tag. As a result, clubhouses, jogging tracks, and gated communities are some of the few lifestyle amenities that can be seen prominently in affordable housing.
Being the financial capital of India, Mumbai is home to the headquarters and offices of some of the major businesses of the country. This has led to a rise in commercial property in Mumbai, especially in areas of Andheri, Goregaon, and Malad. So simultaneously there is a boost in residential projects in Mumbai in these areas as well, as home buyers prefer to buy flats in close vicinity of their workplace.
Growth in Infrastructure
The infrastructure of the western suburbs of Mumbai is constantly improving over the past few years. The following infrastructure projects are in various stages of completion:
Mumbai Metro Rail:
The Mumbai metro project is a comprehensive and widespread project that it connects every nook and corner of the city. Line 1 has been operational since 2014, from Ghatkopar to Versova.
Overview of other metro lines in Western Suburbs and the areas they follow:
Metro Line 2A running from Dahisar-Charkop-Andheri West: covers a total of 18.5 km and comprises 17 of the 39 stations that form part of this route. As of now, Line 2A is operational from Dahisar East to Dahanukarwadi covering a total of 9.5 km and 9 stations.
Metro Line 2B running from D.N. Nagar-Bandra-Mandale: covers a total of 23.6 km and comprises the remaining 22 stations that form part of this route.
Metro Line 3 runs from Cuffe Parade-BKC-SEEPZ-Aarey Colony: covering a total of 33.5 km and comprises of 27 stations.
Metro Line 6 running from Lokhandwala-JVLR-SEEPZ-Kanjurmarg: covers a total of 14.47 km and comprises 13 stations.
Metro Line 7 running from Dahisar East to Andheri East: covers a total of 16.4 km and comprises 14 stations.
The Coastal Road project is being built in 2 phases-
The 1st phase- 10 km section from Princess Street Flyover at Marine lines to BKC.
The 2nd phase- The construction of the Versova-Bandra sea link.
The Coastal Road under construction will be an 8-lane, including 2 lanes dedicated to a bus rapid transit system, and a 29.2 km long freeway connecting Marine Lines in the South to Kandivali in the north. The project is expected to be completed by November 2023 with an estimated cost of 12,000 crores. When operational the Coastal Road project is projected to be used by 130,000 vehicles daily and will cut down the traveling time from western suburbs to South Mumbai from 2 hours to just 40 minutes. Recreational facilities such as a sea promenade, cycling tracks, outdoor cinema theatres, playgrounds, and a lot more will be hosted along this coastal road. Landscapes are being developed, and trees will be planted along the open spaces.
GOREGAON MULUND LINK ROAD:
Goregaon Mulund Link Road (GMLR) is a 12 km long -road infrastructure development project which is a major thoroughfare in Mumbai that connects Goregaon and Mulund. The Goregaon Mulund link road is one of the major transportation-corridor in the city, providing a link between the western suburbs of Mumbai and the eastern suburbs of Mumbai. It will play a key role in reducing traffic and reducing traveling time. When the GMLR will be operational the travel time from Mulund to Goregaon will be reduced to 20 minutes from 80 minutes. This GMLR will play a vital role in providing relief for people who travel daily to western suburbs for work and other businesses. It is also a major commercial and retail hub, with many shopping centers, restaurants, and other businesses located along the road.
The GMLR flyovers went under construction in March 2022 and are expected to be complete by March 2022. The GMLR tunnel road is estimated to start in February 2023 and is expected to be completed by December 2025. Complete operation of the GMLR is expected in 2026.
Proposed Underground Twin Tunnel Project between Borivali and Thane:
As per the initial plans, this 11.8 km long twin tunnel project will connect Borivali near Magathane Depot to Manpada, Thane. This twin tunnel project will cut down travel time drastically from the current one hour to only fifteen minutes. Each of the two tunnels will have three lanes for vehicular traffic and one lane for pedestrians.
The project will have cross-tunnels every 300 m, smoke detectors, drainage systems, and jet fans to keep the air fresh and clean, which will lead to fuel savings of above a million lakh tonnes and decrease emissions by 36%.
Besides these the existing roads are being widened & are being maintained well, many new flyovers are being built. This has created a good opportunity for developers in Mumbai to launch their projects in the neighboring locality of these infrastructural plans to benefit home buyers.
Connectivity & Convenience
All these infrastructure projects provide excellent public transport to help you reach from one location to another with the city. Apart from local trains which are better known as the lifeline of Mumbai, the city and intercity buses such as BEST, TMT, NMMT, MMT, and taxies exceptionally connect all the parts to the western suburbs. Owning to this the western suburbs of Mumbai has become a hot choice for investment for prospective home buyers.
High ROI shortly
In terms of layout, location, and return on investment, the real estate market of Mumbai’s western suburbs offers a diverse range of investment projects and destinations. They have immense opportunities to offer the best returns on real-estate investments, from sea-facing exotic apartments to duplex houses to budget apartments. Because of the constant influx of people in the city, the demand for real estate seems to be growing every year and this trend will continue going ahead as well. Hence the western suburbs of Andheri, Goregaon, and Malad are widely known to interest home-buyers and investors alike looking for low-risk investments with the potential for high returns.
Moreover, since the western suburbs consist of numerous old residential properties that are unable to withstand environmental pressures; developers have taken on the task of redeveloping these structures. This has increased the avenues of investments in the region. Redevelopment not only changes the physical structure but also brings about an improved lifestyle along with optimum utilization of infrastructure. Also, the increase in permissible floor space index (FSI) from the present level of 1.33 has encouraged builders to develop projects in suburban Mumbai. The FSI is further expected to increase, thanks to the Brihanmumbai Municipal Corporation’s (BMC) recommendation for an increase from the present level of 1.33 to 2 and in some cases even up to 5.
These are good reasons to invest in real estate in the Western Suburbs of Mumbai.