Mumbai Capital

At 94% growth, it’s clear as Madh

ith a five-year price appreciation of 94 per cent, 70 per cent and 59 per cent respectively, Madh-Marve (Mumbai), Ulwe (Panvel) and Majiwada-Kasarvadavli (Thane) have emerged as the top residential potential investment destinations in the Mumbai Metropolitan Region (MMR), a Knight Frank report said on Wednesday.

Knight Frank is a global real estate consultancy headquartered in London.

The study says the average price in Madh-Marve is expected to increase to Rs 26,200 per sq ft in 2020 from Rs 13,500 per sq ft in 2015. It picks the destination as the top residential investment in India, calling it a “sleepy resort location to turn into a buzzing residential hub.”

Mudassir Zaidi, national director, residential agency at Knight Frank, said, “The role of infrastructure development is significant in MMR. The prime focus is urban transport projects. For all the three destinations featured, existing and upcoming infrastructure developments along with accessibility to employment hubs have been key drivers that led to the emergence of these localities.”

The planned Navi Mumbai International Airport and its integration with the Mumbai Metro will benefit these locations, especially Ulwe and Majiwada- Kasarvadavali, Zaidi said, adding, “We recommend investors exploit the opportunities these destinations provide.”

Knight Frank’s picks come at a time when price growth in residential properties is considerably muted as compared to the previous five years.

“It (residential real estate) will no longer be a speculative investment and will have to compete with other investment avenues such as equities, commercial office space and commodities,” the report said.

“Along with the upcoming Versova–Madh sea bridge, the planned Coastal Freeway would drastically reduce the road travel time from the selected destination to the premium office markets, such as BKC, Lower Parel, Worli and Nariman Point. The scope for luxury lifestyle residential developments alongside the Arabian Sea, coupled with enhanced seamless access to the premium office markets, would drive housing demand in the Madh–Marve locality,” it said.

Knight Frank expects Majiwada–Kasarvadavali to see a price appreciation of 59 per cent by 2020. “Incremental employment opportunities in Thane and Navi Mumbai and the upcoming Kasarvadavali Metro Rail would drive residential demand,” the report added.

The firm also expects Ulwe to see a price appreciation of 70 per cent by 2020. Interestingly, Ulwe was also part of its top residential investment destination in Knight Frank’s first edition of its report released in 2012.

At that time, the firm had recommended an appreciation of 145 per cent.

However, in the three years so far, the real price growth has been only 50 per cent.

Similarly, in its 2012 edition, Knight Frank had recommended Chembur and Wadala as top residential areas with recommended price growth of 125 per cent and 133 per cent respectively over the five-year period. However, in three years, Chembur prices grew 42 per cent while prices of Wadala properties rose 40 per cent.

The firm cited delays in infrastructure projects as the reason for restrictions in price growth. However, it said the price increase in its recommended areas for 2012 has been above the average price growth of 22 per cent in the city over the three years.

“Regional growth within a city is anything but even, and the direction of such growth is a critical factor in determining the fate of a particular residential property. Since our first edition in 2012, the residential market has gone from bad to worse,” Dr Samantak Das, Chief Economist and National Director, Research at Knight Frank, said.

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Printable version | Jan 20, 2022 9:00:00 PM |

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