Bottom Line: Contrary to the general perception, Mumbai and its extended property market has something for every budget segment.
Sugandha Mishra wanted to buy a 2BHK house within a budget of INR 50 lakh in Mumbai. She initially thought she would not be able to afford a roof over the head anywhere in and around India’s financial capital with such a meager budget. However, she was pleasantly surprised when a property agent told her that she could easily get a flat in some of the locations of Navi Mumbai and beyond Thane areas.
“We looked at the areas of Kalyan, Dombivali and Ambernath beyond Thane. We also went on the property hunt to Navi Mumbai locations like Dronagiri, Karjat and New Panvel. Finally we decided for a property in Ulwe where the price point of Rs. 4400 was quite attractive and within our budget for a 850 square feet apartment,” says Sugandha.
Similar is the story of Siddharth Sood, a marketing professional who was told by friends that he could never buy a 2BHK flat in Mumbai with a limited budget of INR 1 crore. However, his property hunt proved such apprehensions wrong and he could settle for a decent flat of 780 square feet at the rate of INR 12,000 in Mulund West.
“I explored areas like Kurla, Ghatkopar East, Vikhroli etc. In Navi Mumbai, locations like Airoli, Vashi and Nerul also looked attractive from the standpoint of my budget limitations. The advantage with the Mulund property is the fact that there are more business establishments and job catchment area within close distance,” says Sood.
Location mantra
- Some of the locations of Navi Mumbai and beyond Thane areas best bet for up to INR 50 lakh houses
- Kalyan, Dombivali and Ambernath beyond Thane and Dronagiri, Karjat and New Panvel in Navi Mumbai hot property for INR 50 lakh
- With a budget of INR 1 crore one can explore areas like Kurla, Ghatkopar East, Vikhroli etc
- In Navi Mumbai, locations like Airoli, Vashi and Nerul also look attractive from the standpoint of INR 1 crore budget
- For a budget up to INR 1.5 crore Western Suburb locations like Jogeshwari, Malad, Kandivali or Borivali are quite attractive
- In Eastern Surburb Kurla or Vikhroli can be an option with the price band of INR 1.5 crore
- With a budget of INR 2.5 crore and above one can explore most of the locations of Eastern Suburbs, Western Suburbs and some parts of South Mumbai
Options beyond budget constrains
Namrata Chawla, another homebuyer was on the house hut in Mumbai and with a budget of INR 1.5 crore she did not face as much dilemma with the location as those buyers who have to buy within a range of INR 1 crore. In her case the choice is either to go for a compact 800-900 square feet of apartment in well-connected locations or have luxury of space beyond 1200 square feet in a far-off location.
“I think this is an ideal budget for Mumbai and if you wish to work in any part of the city. Even Western Suburb locations like Jogeshwari, Malad, Kandivali or Borivali are quite within the range if one is looking to work in any part of the Western Suburb. In Eastern Surburb Kurla or Vikhroli can be an option with this price band,” feels Chawla.
However, what a homebuyer like Namrata Chawla just touched upon, issue of an ideal price band, is something that is always INR 2.5 crore and above. With this kind of a budget one can explore most of the locations of Eastern Suburbs, Western Suburbs and some parts of Central Suburbs also.
“Of course, you can not dream to buy a house in Worli or Bandra with INR 2-3 crore but most of the other locations can be bought. Having said this, I will maintain that in Mumbai the luxury of housing may be costly but a decent roof over the head is always possible with every budget segment. The only catch is that lower the budget and far off extended suburbs is the choice,” explains Raju Natekar, a local property agent.
Market mantra
- Fierce competition in the mid segment housing but affordable housing to be next demand driver
- Western suburbs to have more traction due to infrastructure & connectivity to job catchment areas
- Experts believe the legal and practical checklist remains the same for all budget segment but the location and value addition is the differentiation
- For a house below INR 1.5 crore, the buyers should check necessities like the size of the bedroom and drawing room than focusing on fancy apartment of modern living
- Housing needs have to be classified into basic, secondary and tertiary level. Instead of swimming pool and Wi-Fi facility with INR 50 lakhs one should look for location & connectivity with the work place
Industry perspective
Mohan Tharwani, Managing Director of Tharwani Infrastructure feels each segment of housing has its own demand drivers in a city like Mumbai. However, the next wave would be in the affordable housing with the government’s focus on Housing for All. Even from the standpoint of short-term market dynamics the market is poised for more uptake in the INR 25-45 lakh category.
“It will take another nine to ten months before the market gets back to the purchase of INR 1 crore and above. Most of these housing transactions are witness to paying 40-50% as down payment and the rest through the bank finance. But since there is no cash available in the market after the demonetization this segment will be muted. In the below INR 50 lakh property market down payment is nominal and the property is by and large purchased with the bank finance only,” Tharwani explains the rationale.
Rajendra Joshi, CEO of SD Corporation feels the location would be the differentiating factor in the choice for property. According to him, the mid segment and affordable properties would be the demand drivers moving forward. Quality developers will definitely be the key differentiating factor.
“The sheer land cost is so high that anything below INR 1 to 1.2 crore is not feasible for any location that has connectivity to the work place. So, this price range is ideally the segment to attract most of the buyers. In terms of the location, today 60% of the work force is living in the Western Suburbs and hence despite of traffic challenges that region will see most of the launches and the absorption. There will be some demand in the Eastern Suburbs as well. For the affordable buyers below INR 1 crore the markets that look attractive are Thane and Navi Mumbai,” explains Joshi.
In a nutshell, contrary to the general perception that only the Richie Rich can buy a house in Mumbai, the fact of the matter is that there is something for every budget segment. If not the fancy luxe living in posh areas, a roof over the head is always there with the rider of more money adding to more amenities and lesser travelling distances.
By: Ravi Sinha
