Tips to keep in mind while investing in 2016

Space constraints have restricted the growth prospects of the realty market in Mumbai but the emerging pockets have now reignited the development expectations. The government is putting the impetus on infrastructure, thus strengthening the emerging locations and therefore, realty markets in these destinations are well set for a robust growth.

"With the added impetus, home-buyers in Mumbai are back. The fall in interest rates and the New Year have helped improve home sales in the MMR. Developers are now increasingly getting focused on the affordability factor to increase sales and improve their cash-flows. The other factor that will help in maintaining the momentum is the rapidly improving infrastructure of the MMR. The government is taking the initiative to improve infrastructure in the region and this will be a major game-changer for most of the emerging pockets," says Ramesh Nair, COO operations and international director, JLL India.

Experts believe that the emerging areas around Mumbai and the MMR like Mulund, Thane, Kanjurmarg, Mira Road, Bhayandar, Vasai, have seen a phenomenal growth in the recent past. The residential market growth in these regions also helped to gather momentum in Mumbai's realty as a whole since the last four-five years.

Experts point out that the Banking, Financial Services and Insurance (BFSI) sector and professional services are the major sectors of growth in the city, whereas, the manufacturing, pharmaceuticals, shipping as well as the media and entertainment sectors, are also noticeable drivers. Simultaneously, the rapidly improving infrastructure has helped the city expand its boundaries, with new peripheral areas emerging and becoming contenders in the real estate market. The government is laying great emphasis on connecting the city with other growth nodes by improving infrastructure, and the proposed Mumbai-Nagpur Expressway, Navi Mumbai International Airport and the Delhi-Mumbai Industrial Corridor (DMIC), will definitely help fuel the local economy and give an impetus to the property market as well.

"A growth in infrastructure has played a key role in keeping the real estate market balanced in Mumbai. Other than these factors, price appreciation and social infrastructure also play a major part in keeping the sector floating. The recent major projects such as Santacruz Chembur Link Road (SCLR), the proposed Mumbai Trans-Harbour Link (MTHL), Navi Mumbai International Airport, various phases of the various phases of the proposed Metro links, etc, are the major game-changers that have allowed the momentum of the city's real estate market since the last couple of years.

Other than this, the high investor activity also played a big role in driving real estate prices, and Non-Resident Indian (NRI) investors cover a significant portion of the residential real estate market in Mumbai. Another critical factor that has contributed to the acceptability of a balanced real estate market in Mumbai is the development of new office projects towards the north of the city, mainly in the central suburbs. Hence, the above mentioned dominant factors have determined the fate of the city's realty market," informs Dharmesh Jain, chairman and managing director, Nirmal Lifestyle.

According to the realty experts, with Mumbai becoming increasingly saturated and unaffordable, the peripheral areas are the new micro-markets in focus. Ulwe is one micro-market, which is already garnering a lot of interest from investors and end-users. Apart from the two Special Economic Zones (SEZs) that have been planned here, its proximity to the upcoming Navi Mumbai International Airport has caused many developers to flock there with a wide spectrum of realty projects.

The relatively affordable property prices and good returns on investment over the mid-to long-term, have strengthened the demand for homes in Ulwe.

Some of the other fast-growing places include Mulund, Thane, Vasai, Mira-Bhayandar, Panvel, etc. One of the most well-developed areas in this region is Mulund. The area at present is a part of a real estate observable fact that features better living and caters to those who want to lead their life in a grand manner. These places have attracted attention as an emerging commercial and residential hub, which could become bigger in size in the coming years and play a major role in transforming the real estate landscape of the city. DS Kulkarni, CMD, DSK Group is hopeful about the real estate sector in 2016. "We hope with a stable government in power under a strong leader like Narendra Modi, the year ahead should augur well for the real estate sector. I think every builder should follow the diktat of the Modi sarkar he/she should not only build smart cities, but aspire to develop the smartest ones," concludes Kulkarni. 

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