In a report analysing India’s residential real estate sector released by Colliers, Navi Mumbai was named one of the prime investment markets for 2014.
Alongside Thane and Virar, Navi Mumbai was noted as being one to watch, as rapid urbanisation and job creation in the area is creating an unmitigated demand for housing. Navi Mumbai real estate has had a strong few years, with plenty of new developments, sales and exceptional price growth reported. The sentiments are shared by other property analysts such as The Economic Times and Jones Lang Lasalle, both of which have singled out Navi Mumbai as being one of the residential real estate markets to watch in 2014.
Why real estate investment in Navi Mumbai makes sense
With an average price of Rs 3,500 – 7,500 per sq. ft., Navi Mumbai real estate is relatively affordable in comparison with Mumbai. 8,845 units came to market in 2013, with real estate investors absorbing a high percentage of this stock. Navi Mumbai appears to be generating a great deal of the interest from investors that are off put by high prices and limited transactions in Mumbai, with the micro-market of Ulwe standing out in particular.
Future home to the oft-delayed Navi Mumbai international Airport, Ulwe has caught investor attention in recent years, and although construction delays have led to a fairly stagnant 2013, this is expected to change as CIDCO accelerates plans to break ground on the development. With the phase 1 of the airport now expected to open in 2018, investors can take advantage of low asking prices in Ulwe now (roughly Rs 4,875 per sq. ft.) with the expectation that these will once again rise as construction commences. The nodal agency has also prepared a three year plan development of 13 schools, four professional colleges, one degree college, 32 hospitals, 34 religious and spiritual centres and 77 social welfare centres in the nodes being developed by it.
Investors with the means to buy now and hold for what analysts recommend be a slightly longer holding period (six to seven years) and expect high returns on their investment.
According to Jones Lang Lasalle, job creation, affordability and infrastructure are all factors contributing to the appeal of Navi Mumbai real estate. If these projections prove to be accurate, along with those of Colliers, real estate investors would be smart to act now to reap the benefit of the highly positive growth expected from this market in the next four to five years.
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