[ecis2016.org] The recent announcements regarding the Navi Mumbai Airport, have renewed interest in its real estate market. However, the city has a history of good infrastructure development, making it an ideal choice for home buyers
Amidst the new residential towers and township projects by various builders that promise world-class facilities, the development of basic infrastructure in Navi Mumbai (in terms of roads, parking spaces, pedestrian walkways and public transport) has silently kept pace. Moreover, the progress on the Navi Mumbai Airport, is likely to further boost the development of the satellite town.
You are reading: Navi Mumbai: Poised for stable long-term growth
“The announcement of the Navi Mumbai Airport, in 2007, kicked-up euphoria in the real estate industry, as it drew the industry’s attention to the untapped area around Navi Mumbai,” recalls Sandeep Ahuja, CEO of Richa Realtors. “Areas like Ulwe, Kamothe and Kharghar are now seen as hotspots, with great potential for growth. The airport is anticipated to be functional by mid-2019. With the area undergoing quick transformation, thanks to the brisk functioning of CIDCO, property prices are going move upwards,” he predicts.
Impact of the airport’s development, in Navi Mumbai:
- Stagnant real estate markets around the airport, may see a marked pick-up in sales.
- Unsold inventory is likely to be cleared, while investors may start selling to unlock capital.
- In the mid to long-term, property prices will increase in these areas, especially after the existing inventory is sold off.
- Road connectivity will see huge improvement.
- Hotels, schools, hospitals and other social infrastructure, will come up.
- The growth of infrastructure will provide a fillip to the realty market
While infrastructure changes the dynamics of a location, perception has to support this reality, maintains Ashish Raheja, managing director of Raheja Universal Ltd. “In the case of New Mumbai, the reality is that infrastructure will change the location’s dynamics. However, the perception will take a couple of years to catch up. The metro rail project and extension work on the Jawaharlal Nehru Port (JNPT), will transform the location, while the airport will give it international recognition. Various roadway projects, will also make life easier for the people,” explains Raheja.
Many businesses have already migrated to locations in satellite city and have been followed by residential developments in these areas. As transportation infrastructure improves, demand for real estate is bound to increase, as people yearn to find homes that are closer to their workplace and reduce travelling time to the office. Consequently, Navi Mumbai is likely to become a preferred location for Mumbaikars and attract more developers to this market.
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Experts point out that property prices are related to demand and supply. Demand for properties will rise, only with a combination of factors such as employment potential, infrastructure and overall quality of living. If a satellite town offers these facilities, along with efficient connectivity to the main city by road or rail, it would result in an increase in prices in these areas. Consequently, home buyers can maximise their ROI, by investing in projects that are still under development, in such areas.
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