Mumbai Central Suburbs emerges as the preferred market for homebuyers

The demand for residential units in Mumbai and the Mumbai Metropolitan Region is on an upswing for the second straight quarter of FY 22. The second quarter of 2022 saw as many as 20,000-plus new residential units being launched across the region. Mumbai alone saw a quarterly rise of 5 per cent in terms of new launches, indicating a positive upward trajectory for demand of new units in the bustling metropolis.

Interestingly, in spite of several headwinds, including, among others, the raising of stamp duty, imposition of metro cess, as well as the rise in lending rates in Q2 FY 2022, Mumbai still showed a growing demand for supply of new residential units. The Central Suburbs dominated the supply of new residential units, followed by the Western Suburbs.

Describing the growth story of the central suburbs Mr. Rajat Rastogi, Executive Director, Runwal Group said, “With all major branded developers now being present in the Central Suburbs of Mumbai, the region has emerged as a popular home buying destination. Prime location, great connectivity, green surroundings and attractive property prices have contributed to the growth in demand for this region. Proximity to schools, hotels, hospitals, malls and restaurants have been a major factor in the region’s rising popularity amongst home seekers. Quality developments with premium amenities, modern infrastructure and large open spaces have made the Central Suburbs a much sought after location for those looking for a lifestyle home. We have been witnessing progressively increasing sales volumes across our projects in this region with each passing year and this is testimony to the rise of this region as a key real estate hub.”

Commenting on the transformation of the central suburbs region, Mr. Cherag Ramakrishnan, Managing Director, CR Realty said, “Earlier an industrial hub, the stretch from Kanjurmarg to Mulund has completely transformed into a most coveted residential destination. The employment catchment areas of Powai, Vikhroli, Airoli, and Thane are also in close proximity to this location. With the upcoming Metro 4, the location is undergoing a residential, commercial, and infrastructural metamorphosis that has spurred the interest of end-users and investors alike.”

According to the latest Knight Frank India’s assessment, of the total registrations in the month of August 2022, Central Suburbs recorded a rise of 7% from 28% in July 2022 to 35% in August 2022. In July 2022, 93% of homebuyers from Central Suburbs and Western Suburbs each preferred their current micro market while purchasing property. About 5% of home buyers from Western Suburbs have relocated to Central Suburbs. Central suburb has emerged as the second preferred market for homebuyers of central and south Mumbai having a share contribution of 33% and 15%.

Commenting on the advantage of this suburb, Ms. Shraddha Kedia-Agarwal, Director, Transcon Developers said, “This suburban area is known for its seamless connectivity and the ever transforming infrastructure. Today, it is connected to every city corner, reducing travel time through most modern infrastructure projects in Mumbai. Further, the Metro and GMLR will ease and enhance the connectivity to almost all parts of the city. The location especially towards the Mulund end provides panoramic vistas of the hills with enchanting green surroundings as it is located on the foothills of one of the largest urban reserve forests in the world. Also, housing the city’s finest healthcare and educational institutions, the suburb has become one of the most preferred locations for residential, commercial and recreational spaces.”

Considering the overall real estate trends in Mumbai and factoring in affordability, infrastructure and connectivity, the central suburb offers good returns on investment and is likely to see rapid growth in real estate development in the future.