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Comparison of peripheral Mumbai, Navi Mumbai and · PDF fileComparison of peripheral Mumbai,...
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Transcript of Comparison of peripheral Mumbai, Navi Mumbai and · PDF fileComparison of peripheral Mumbai,...
Overview
Housing is considered one of the basic necessities of life. However, in tier-I cities
such as Mumbai and Delhi, where the prices are sky-rocketing, affording a house for
most middle-class families is slowly becoming a distant dream. Mumbai is currently
considered one of the most expensive cities in the world in terms of housing, where a
typical 1,000-sq-ft apartment may easily cost more than Rs 1.5 crore in Mumbai
suburbs such as Andheri or Bandra. The present affordability range in Mumbai is Rs
65-80 lakh, which is deduced based on the income level and housing expenditure of
an average individual in Mumbai.
Mumbai has a good supply of projects, both ready to occupy and under-construction.
Mumbai has an inventory overhauling of 48 months. There are more than 2,90,000
residential units under construction in Mumbai. Yet, most of the inventory is unsold,
as most of them are beyond the affordability range of an average middle-class family.
The gap between the demand and supply of affordable units in the city is also huge
due to various costs involved in the construction as well as land values in the city.
In such a scenario where affordability has become the need of the hour, there are few
places in Mumbai that still offer housing in the affordable range. There are three
major regions currently offering housing units in the range of Rs 60-80 lakh. They are
periphral Mumbai such as Dahisar, Mira Bhayander and Bhandup, areas of Navi
Mumbai and areas of Thane.
a) Peripheral Mumbai
While in Southern Mumbai, most of the western suburbs have gone well beyond the
affordable range and with increasing connectivity and infrastructure, the eastern
suburbs too are going beyond the affordable range. There are however, few suburbs
on the peripheries of Mumbai that offer houses in the range of Rs 65-80 lakh. Some
of these suburbs include Dahisar, Mulund, Bhandup, Mira Bhayander and Mira Road.
The primary reason for the lower cost of houses in these areas is the distance from
the central business districts (CBD) such as Bandra-Kurla Complex (BKC), Colaba and
Churchgate. Another reason for the lower costs is the lesser infrastructure such as
highways, flyovers, electricity and water as well as social amenities in these areas
compared to the prime localities in Mumbai.
The most common configuration of properties available in peripheral Mumbai in the
budget of Rs 60-80 lakh are 2BHK apartments. The average covered area of these
apartments is in the range of 820-1,200 sq. Ft.
b) Navi Mumbai
Navi Mumbai is witnessing an improved connectivity to Mumbai suburbs with the
help of several bridges such as Airoli Bridge and Sion-Panvel Expressway. There are
certain infrastructure projects that are proposed to reduce the connectivity problem
to the CBDs such as the Mumbai Trans-Harbour Link (MTHL). Navi Mumbai is also
witnessing a good improvement in civic infrastructure, social amenities as well as
employment opportunities due to the upcoming SEZs in areas such as Kharghar,
Ulwe and Kalamboli. As such, several areas have also slowly gone beyond the
affordable range.
There are, however, certain areas that still lack a good connectivity to Mumbai.
These areas are still a witnessing a slow growth primarily due to the low property
values here and the proximity to the proposed Navi Mumbai International Airport.
Some of these areas include Kharghar, New Panvel, Taloje and Kalamboli.
The most common configuration in these areas are 2BHK apartments with covered
area in the range of 1,000-1,250 sq. ft. There are also few 3BHK apartments available
for this budget with a smaller covered area. Trends also show that most of these
apartments are available at a slightly higher ticket size of Rs 70-80 lakh.
c) Thane
Thane is a part of Mumbai Metropolitan Region (MMR). Most of the residential
projects in Thane are in the affordable range as it is well connected to Mumbai and
yet, far from the Mumbai suburbs and CBDs. Some of the fast growing areas in Thane
are areas in Thane West, Pokhran Road and Ghodbunder Road.
The most common configurations available in this region are 2BHK apartments with a
built up area in the range of 790-1,075 sq. ft. Pokhran Road witnesses more 1BHK
apartments with covered area of 550-650 sq. ft. This is because most of the projects
on Pokhran Road lie closer the Eastern Express Highway (EEH) and command a higher
property value.
The following graph gives a comparison of the configurations available in these
different regions of Mumbai.
Peripheral Mumbai Thane Navi Mumbai
0
10
20
30
40
50
60
70
73 1
1015
65
1 04
House Configurations in MMR
1BHK
2BHK
3BHK
Areas in MMR
No
. of u
nits
Fig i): Comparison of configurations across different MMR regions (Source: CommonFloor listing
data)
Fig i) shows that as one comes closer to the Mumbai suburbs, the budget size
increases, slowly moving away from the affordable range. There are also fewer
apartments in the affordable range. This means that the available configurations of
apartments also varies depending on the distance of the area from the Mumbai
suburbs. For example, peripheral Mumbai and Thane almost have no 3BHK
apartments in the affordable range, while parts of Navi Mumbai witness a few 3BHK
apartments in this budget range.
The approximate land value in peripheral areas of Mumbai range from Rs
5,500-18,300 per sq. ft. The approximate land value in Thane is between Rs
4,200-15,000 per sq. ft, whereas the approximate land value in Navi Mumbai is in the
range of Rs 3,100-10,500 per sq. Ft.
Bigger apartments in Navi Mumbai
From the data available at CommonFloor, it is also found that as one goes away from
the suburbs, the dimensions of the available properties slowly increase. This is best
illustrated with a graph as shown below.
Peripheral Mumbai Thane Navi Mumbai
0
200
400
600
800
1000
1200
1400
430
600 600
1225
1098
1275
875 900
1095
Apartment sizes
Minimum
Maximum
Average
Areas in MMR
Pro
pe
rty d
ime
nsio
ns
Fig ii) Property dimensions (in sq. ft) in the three regions of MMR (Source: CommonFloor listing
data)
It can be seen from the graph that the minimum, average and maximum built-up area
of properties slowly increase as one goes further from Mumbai towards Thane and
parts of Navi Mumbai such as Taloje, Kharghar and Panvel.
Supply and absorption
The following table gives the supply and absorption data of 1, 2 and 3BHK units
across the various regions of peripheral Mumbai, Thane and Navi Mumbai.
Area No. of projects Completed
projects
Ongoing projects Total Units Units absorbed Percentage units
absorbed (%)
Peripheral
Mumbai
1352 842 489 164314 65364 39.78
Thane 524 368 118 72266 49502 68.5
Navi Mumbai 1064 785 255 115352 43949 38.1
Table 1: Supply and absorption of units across three different regions in MMR
One may see at the outset from Table 1) that though peripheral Mumbai has more
number of projects going on, the absorption rate is less than that of Thane. It also has
a higher absorption rate than Navi Mumbai. This is because, the property rates in
peripheral Mumbai are higher than that of Thane while the infrastructure is far better
than that of Navi Mumbai, as several parts of Navi Mumbai are newly developed.
Areas in Navi Mumbai such as Kharghar and New Panvel see a lower absorption due
to the lesser infrastructure development there. Thane enjoys a good absorption rate
due to its proximity to Mumbai suburbs as well as the lower capital values compared
to Mumbai.
The graph below shows the total percentage of units launched across the three regions
in MMR in the last decade. There were a total of 3,51,932 units launched in these
three regions since 2009.
Fig iii) Percentage of units launched in peripheral Mumbai, Thane and Navi Mumbai (SOurce:
Various sources)
The graph below gives a detailed idea about the yearly supply of units across the three
different regions of MMR over the last five years.
Fig iv) Graph showing launch of housing units across three regions since 2009
46%
21%
33%
Percentage Units Launched
Peripheral Mumbai
Thane
Navi Mumbai
Peripheral Mumbai Thane Navi Mumbai
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
3046
94438818
9778
7676
5105
6184
6128
8746
5649
5703
7754
14777
7253
20843
Launch of housing units
Yr 2013
Yr 2012
Yr 2011
Yr 2010
Yr 2009
MMR regions
La
un
che
d u
nits
The graph shows that peripheral Mumbai and Thane witnessed a good number unit
launches in the years 2009 and 2010, while Navi Mumbai witnessed lesser launches.
However, the scenario suddenly changed after 2011, where both peripheral Mumbai
and Thane witnessed a drop in unit launches while Navi Mumbai saw significant
increase in unit launches.
One may infer that this is due to the increasing land values in peripheral Mumbai and
Thane, compared to that of Navi Mumbai.
Future prospects of affordable housing in Mumbai
Currently, the entire Mumbai market is witnessing a very slow movement in terms of
housing projects. At the same time, areas outside Mumbai, especially areas in Navi
Mumbai such as Kharghar, Kamothe, Ulwe and Panvel are witnessing a good growth
primarily due to their affordability.
The lack of good infrastructure in areas such as Taloje, New Panvel and Kalamboli
may be a slight dampener at the moment. Yet, with the land value in Mumbai and
Thane going beyond the range of affordability and the growing infrastructure in Navi
Mumbai, these areas are continuously witnessing purchases from home buyers. As
such, one can look towards areas of Navi Mumbai at the moment for affordable
housing for few more years.