MUMBAI: The limited availability of residences in the
South Mumbai market coupled with the huge demand, has
led to prime locations in the suburban markets emerging
as attractive options for clients.
The South Mumbai residential market has witnessed a
considerable increase in demand owing to huge influx
of expatriates as well as restricted supply. Owing to
this, the rental and capital values in this part of
the city, have shot up. However, the suburban markets
are emerging as attractive options for clients.
A Colliers International Research Report says there
is active demand for the high-end residential real estate
market in Mumbai including places like Malabar Hill,
Nepeansea Road, Cuffe Parade, Prabhadevi, Worli, Juhu,
Santacruz, Bandra and Khar.
The demand for Hiranandani Gardens, Powai, for both
lease requirements and out right sale increased in the
third quarter of 2006. In the fourth quarter of 2006,
Bandra Kurla Complex saw the first high-end premium
residential project going to be developed, with possession
in 2009.
With increasing construction activity and better amenities
in Central and Suburban Mumbai (excluding Bandra/Khar),
investors/end users are reconsidering these locations
for their housing requirements. Cuffe Parade and Malabar
Hill continued to dominate the other areas with highest
capital values ranging from Rs 40,000 to 50,000 per
sq ft. Rental values witnessed an increase, ranging
from 5% to 12% in Malabar Hill, Nepeansea Road and other
submarkets.
With foreign companies forming joint ventures with
large Indian corporations, the traffic of expatriates
is on a rise due to which the capital and rental market
will witness a continuous upward pressure. The hike
in interest rates for bank/loan borrowers, has deferred
the zest of the middle-income sector to invest in residential
property, thus reducing the pricing in some pockets
of the suburbs by 10% to 15%.
Due to release of mill lands and other incentives for
builders as well as occupants of old buildings to reconstruct
on the old structure (better known as TDR constructions),
the constructions in Central and Suburban Mumbai has
increased ten-fold and are expected to continue at this
pace in the near future.
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Courtesy: EconomicTimes.com, TIMES NEWS NETWORK
