Track2Realty Exclusive: When Ajit Bundelkar, a stock market adviser, was suggested by the property broker to invest in a property beyond Thane market he was taken by surprise. Thane itself has just started shaping up and someone was suggesting to look not within but beyond. However, for him it was the same trusted broker on whose advice he had invested in a Thane apartment when he moved from Surat to Mumbai in 2009.
Though suspicious at that point of time, he is now pretty happy to have invested in an upcoming region which has given him much better appreciation and quality of life than any other costly and congested location of the city. Why then look beyond Thane? He suspected the broker’s extra commission in those markets that may have brought the greed out of this advice.
However, after much insistence by the broker he decided to visit to the areas like Kalyan, Dombivalli, Badlapur etc for a first-hand feel of the market. A proper study of the market and meeting some of the investors in those markets made him realise his apprehensions were not well founded. The spate of new launches has definitely put these areas into fast forward mode of development. These non-descript locations till only recently are today new property hotspots attracting a sizeable investment in both the residential as well as commercial segment.
Developers’ interest, buyers’ choice, investors’ appetite…these locations seem to be well poised to cater to all the stakeholders like no other location in the overheated and saturated property market of Mumbai. What is all the more surprising is that there is no sign of piled up inventory or developers’ unease in these emerging locations. That is indicative of the investment appetite and growth potential of the region. The rate of property transaction here is also relatively higher than other markets of Mumbai.
Analysts believe these regions are witness to the first flush of investment and the first movers are mostly the seasoned developers of Mumbai looking for fresh land parcels and virgin territories to grow after reaching to the peak level in the established locations. Also, the ticket size is relatively small compared to any other micro market or suburb of Mumbai. Vakratunda Group has some presence in these locations since its early days and the company seems to be convinced to launch more projects in and beyond Thane.
Maintaining that locations beyond Thane are more attractive than even Thane as a suburb of Mumbai Ram Makhecha, Director, Vakratunda Group says Thane was shaped up as the entry point to this growth corridor at a time when there were apprehensions about the location in the first place. But now that Thane has emerged as an entirely new growth corridor of Mumbai, the locations like Kalyan, Dombivalli and Badlapur will take much lesser time to shape up as an extension of Thane suburb.
“There lies the floodgate of opportunities in and around Thane and the way first movers in Thane have been reaping the benefits, the investors beyond Thane region are also set to get a sizeable ROI. If Thane alone can change the outlook of this suburb, what would be the scenario when all the adjoining regions will be fully inhabited with social and physical infrastructure put in place. So, for others it may be just plain real estate opportunity in the region, I look at it as a location that will command a sizeable economic activity in the days to come. Needless to add, real estate development will catalyse this growth corridor of Mumbai,” says Makhecha.
Some analysts are of the opinion that the buyers’ interest in the region has already seen a dramatic turnaround. They rather question which other location can offer this kind of greenery and quality of life, that too in the affordable price band of Rs. 6000 to Rs. 10,000. Also, it is believed that things may not be the same for a long time since the regions has already seen the first flush of investment and appreciation. Still, in the overheated property market of Mumbai areas beyond Thane stand as a good bet for quality living as well as investment for sizeable return.
Recently some reports indicated that these emerging locations are much sought after in real estate market as these are not just impressive growth corridors but they also provide a scenic view. It says the stretch beyond Thane is thus preferred by the higher middle class and now is also getting interest level of high-end customers due to its scenic view. So, now it is not just about the affordable housing, rather some of the developers are launching even the high-end apartments where price range starts from Rs. 12,000 upwards.
Diipesh Bhagtani, Executive Director, Jaycee Homes believes the kind of social infrastructure like schools, hospitals, hotels and other amenities that are coming up in the vicinity is actually adding to the charm of the location.
“At the end of the day one needs to live in a place that provides all the necessary amenities. Definitely, on this count areas across Thane region score over other suburbs of Mumbai as they are catering to the basic needs of the habitation that has settled over there or are planning to in near future,” says Bhagtani.
Now this brings to the table fundamental question as to whether the areas beyond Thane like Kalyan, Dombivalli, Badlapur and others will emerge as a competitive zone to Thane. However, experience of property market across the country and even globally suggests that wherever the extended stretch of new locations have given more value to money, they have only helped the parent location in terms of quality investment and appreciation.
How soon this happens in Thane is to be seen. But nearly all the analysts agree that Kalyan, Dombivalli and Badlapur are the next growth corridors, which in turn will help Thane to shape up as the most sought after suburb of Mumbai. Investors around Thane and beyond seem to be silently smiling to the better days ahead.
