The year 2016 has seen real estate find its footing and start surging ahead, albeit conservatively. Recent Colliers Residential Property Research and Forecast Report reveals that the first quarter saw a moderate influx of new launches in the country with 34 per cent of the launches concentrated in Mumbai itself. Capital values in most regions remained stable and there was a surge in demand which cleared inventory and made room for new launches. Knight Frank half yearly report also indicated that the share of residential launches in Mumbai is up by 29 per cent. Additionally, there has been a steady rise in the sales by as much as 23 per cent in the first half of 2016. With present policy changes and stable market conditions, it is expected that the real estate investment will further boost the sector.
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One of the key beneficiaries of this trend has been Thane. Long relegated as a suburb of Mumbai, Thane is now coming on its own. Various micro-markets of Thane like Majiwada, Pokharan road and Ghodbunder road have been successful in attracting a big chunk of buyers from other peripheral locations of Mumbai. The Knight Frank half yearly report indicates that the demand in the Thane realty market grew by 47 per cent. This rise in demand can be attributed to improved infrastructure, mushrooming business centres, availability of open spaces and affordable housing prices. Such is its demand now that prominent realty players are initiating large-scale investments targeting the middle and upper-middle segment of buyers.
The trend can in many ways be attributed to the rising purchasing parity of buyers and overall economic growth, which has resulted in an upsurge in the demand for luxury apartments in the region. Thane, especially has been at the center of this flurry for luxury housing with a large number of developments in the region and this seems to be a trend that is only expected to grow from here. Data released by Square Yards Global Intelligence Cell indicates that the price movement of mid-luxury and luxury segment is nearly 6 per cent over the previous year. This evidently validates the initial assumption and can be attributed to the quality of developers bringing the supply, attractive pricing, value proposition and flexible payment options offered by the developers.
Additionally, lifestyle influences from western culture have started seeping in, a derivative of this transition is the demand for Sky Villas. Belonging to the luxury residential segment, Sky Villas combine the benefits of penthouses and villas along with additional luxury amenities. These multi-level apartments command a price of Rs 5 crores and can go up to Rs 40 crores in the Mumbai Metropolitan Region (MMR). In fact, Sky Villas as a segment have recovered at a much faster rate from the slowdown and are only expected to maintain a high growth trajectory. Thane, for example, has become a prime target for such developments. The cost, connectivity, proximity to Mumbai and infrastructure make the concept of sky villas in the area a much more attractive proposition.
The future holds a lot of potential for the sector in Thane, especially sky villas. With the growing economy, focus on reducing inflation, increased disposable incomes and exposure to western modernistic lifestyles it is not a distant dream that the Indian luxury segment will compete with those at Las Vegas, Malibu, Florida, etc. Besides, the new upcoming micro markets are capitalising not just on economical prices but increased status on account of host of new business parks, shopping malls, education centers and much more.
The author is brand custodian and chief customer delight officer, Rustomjee Group
