• Luxury supply increased by 29% since 2017
  • Of 12,090 units new luxury supply in 2018, MMR launched nearly 6,310
  • NCR – 2,650, Hyderabad – 1,585, Kolkata – 160; Pune saw least supply with less than 100 units

Prashant Thakur, Head – Research, ANAROCK Property Consultants

Catering to a very niche clientele and not the masses, luxury housing has evolved at a rapid pace in India. The nouveau riche (newly rich) prefer discreet opulence over the commonplace, and look for experiential luxury, both at a unit and project level.

From start-up founders to high-salaried professionals, high net-worth individuals are prompting developers who understand the luxury segment to think increasingly out of the box and deliver something unique and aspirational.

On the ‘other side of the fence’, affordable housing has taken centre-stage in India over the past 3-4 years, not only because of the massive demand for it but also due to the concerted efforts by the Government to cater to it. Against such a backdrop, there are rising speculations that luxury housing is losing its sheen to the affordable segment.

Two lateral views from the revolving door

Prashant ThakurPrashant Thakur, Head – Research, ANAROCK Property Consultants

NRIs Eyeing Indian Properties

Ever since the Indian rupee began nosediving, more and more NRIs (non-resident Indians) have turned their focus to the Indian real estate market. There are good reasons for this.

Other than the favourable exchange rate, the new regulatory environment driven by RERA, DeMo and GST have served to clear up a lot of the misgivings that kept many NRIs from investing in property in India. However, that’s not all there is to it.

Most NRIs, regardless of whether they are permanently stationed or well-settled abroad, at some point entertain a fond wish to buy a home in India – if not for themselves, then for their families back home.

Buying a property is still a mark of prestige and accomplishment for any Indian, regardless of where they are in the world. Nor will most NRIs ever entirely shed a feeling of responsibility towards their families back home.

As per ANAROCK’s recent Consumer Sentiment Outlook survey,

Prashant ThakurPrashant Thakur, Head – Research, ANAROCK Property Consultants

Panvel, previously seen as a destination on the outskirts of Navi Mumbai and far off from Mumbai, has now evolved into an integral part of Mumbai Metropolitan Region (MMR) and is, in fact, a buzzing real estate market.

Strategic Location

  • Located on the eastern side of the Mumbai-Bangalore National Highway (NH-4) and the Mumbai-Pune Expressway, Panvel is well-connected to the rest of India by road and rail. Also, being located on the Mumbai-Pune Expressway, Panvel has garnered a huge amount of interest from end-users and investors of both Mumbai and Pune.
  • Excellent connectivity to workplace destinations of Navi Mumbai and Pune
  • Panvel is a 30 – 45 minutes’ drive from CBD Belapur and Vashi, which are prominent workplace destinations of Navi Mumbai, and a 2-hour drive from Pune’s thriving IT hub Hinjewadi. This makes Panvel a convenient destination for working IT professionals who shuttle between the two cities.

Infrastructure upgrades to take Panvel to the next level

Numerous infrastructure initiatives are planned to upgrade the connectivity and profile of this city.

Prashant ThakurPrashant Thakur, Head – Research, ANAROCK Property Consultants 

Ambernath, a well-developed industrial micro market of Thane district, is famous for the wealth of medium-to-large scale industries in its purview.

The locality is bisected into east and west sections by the central suburb railway line that starts from Chhatrapati Shivaji Maharaj Terminus (CSMT) and passes via Thane, Kalyan and ends at Khopoli.

Ambernath’s growth took off when the Government established a large Ordinance factory (OFA) and a Machine Prototype Factory (MPF) here. These industries prompted residential real estate developments and also encouraged other medium-to-large scale industries to establish their manufacturing base in the city.

With the rapid industrialization of Ambernath-Badlapur MIDC area and the excellent central railway line connectivity between Thane, Kalyan and Ulhasnagar, working professionals of these micro markets see Ambernath as an affordable option to meet their housing needs. Thus, Ambernath is transforming into one of the major affordable housing destinations of MMR.

Connectivity

  • Road: Ambernath has an excellent connectivity to Kalyan via Maharashtra SH 80 and Thane via NH 160. It is connected to Pune via Bengaluru –

Dwarka_Expressway

Prashant Thakur, Head – Research, ANAROCK Property Consultants

Conceptualized under the Gurugram Master Plan 2021, Dwarka Expressway or the Northern Peripheral Road (NPR) was initially planned to connect Dwarka in Delhi to Palam Vihar in Gurugram.

However, it was further extended to Kherki Dhaula toll plaza intercepting NH 48 as per the Master Plan 2025.

Stretching along 18 km, this 8-lane and 150-meter-wide expressway aims to provide seamless connectivity between Delhi, Gurugram and Manesar.

The expressway passes through sectors 109, 113, 37D, 88B, 105, 99 and many other sectors which saw an upsurge in residential real estate activity since its announcement.

With land acquisition issues over the years, the residential real estate market along the region suffered a major setback.

However, the recent clearance of all major hurdles here has given a new ray of hope to prospective buyers and investors focused on Dwarka Expressway’s many transit-oriented benefits.

The major attraction of Dwarka Expressway is its seamless connectivity between Gurugram and Delhi.

  • Road: Sectors along Dwarka Expressway will enjoy excellent connectivity to Delhi and the international airport.

Prashant Thakur, Head – Research, ANAROCK Property Consultants 

Despite new launches decline, property prices in Yelahanka did not correct significantly and actually appreciated by 9% in the past 2 years.

Existing since the 12th century, Yelahanka is closely linked with the origin of Bengaluru. The book ‘Bengaluru to Bangalore’ by T.V. Annaswamy mentions that the word ‘Yelahanka’ is derived from ‘Valipakka’, meaning ‘along the highway.’

Over a period of time, Valipakka (during Chola reign) transformed into Illaipakka (during Hoyasala reign) and finally into Yelahanka.

Rapid Development

The construction of the Kempegowda international airport was a game changer for the region and initiated Yelahanka’s metamorphosis from a sleepy little settlement on the outskirts of Bengaluru into a buzzing residential investment destination.

Yelahanka, which is divided into Old Yelahanka and Yelahanka New Town, is home to many defence establishments such as CRPF training school, Indian Air Force’s Air Force Station and BSF Training Centre.

This micro-market also houses the largest facility of Mother Dairy in Karnataka, as well as the rail wheel factory (India’s largest manufacturer of railway wheels and axles).

Prashant Thakur, Head – Research, ANAROCK Property Consultants 

Project delays are one of the most alarming issues historically dogging the Indian real estate sector.

The dearth of effective planning and execution of construction activities, escalating construction costs, approval delays, diversion of allocated funds to other projects and tepid sales are some of the predominant factors resulting in project delays. The homebuyer is, of course, at the losing end.

To put it in numbers, during 2017, out of the total 5.8 lakh residential units slated to be completed across the top 7 cities in India, only 1.5 lakh units were actually delivered until December 2017. This indicates that around 4.3 lakh units actually missed their stipulated completion deadlines.

The National Capital Region (NCR), one of the country’s largest residential markets, was seriously wounded by sudden policy changes, structural reforms – and the dubious practices of unscrupulous developers.

As a result, it topped the list of cities with maximum project delays. Around 1.5 lakh units in NCR missed the 2017 deadline. The story in Mumbai Metropolitan Region (MMR) was no different with nearly 1.1 lakh units missing the said deadline.

Prashant Thakur, Head – Research, ANAROCK Property Consultants

Located in south-eastern peripheries of Pune, Undri was once a small and unremarkable village outside the Pune municipal corporation limits. After opposition from residents regarding merging of Undri into the Pune Municipal Corporation (PMC) in 1997, it was demerged in 2002.

In 2017, Undri came under the purview of the Pune administrative authority – Pune Metropolitan Region Development Authority (PMRDA). Many residents of the region, whose primary occupation was agriculture, sold their land parcels to private real estate players, thus paving the way for rapid growth of residential and commercial developments in Undri.

Surrounded by micro-markets such as Hadapsar, Pisoli, and Handewadi, Undri offers relatively serene surroundings with thick green cover. It has good social infrastructural facilities including educational institutions, healthcare facilities, and entertainment options.

Various IT-ITeS establishments including Magarpatta City in Hadapsar, Eon Free Zone in Kharadi and SP Infocity in Phursungi have created massive residential demand in and around the regions, eventually hiking property prices in these areas.

Undri caught the spill-over demand from these nearby markets with its relatively lower property values.

Prashant Thakur, Head – Research, ANAROCK Property Consultants

After a year-long delay, the final draft of Greater Mumbai Development Plan (DP) 2034 recently saw the light of day.

The highlights were the amendments in the development control regulations (DCR) in terms of increased FSI and the opening of the salt pan lands for construction of affordable houses, which are now the talk of the town.

DP 2034 visualizes Greater Mumbai as a ‘competitive, inclusive and sustainable city’. It goes without saying that decongesting the city must be a prime focal point in such an agenda.

Accordingly, the Municipal Corporation of Greater Mumbai (MCGM) has decided to utilize the city’s huge tracts of salt pan lands for affordable housing projects.

A total of 3,355 hectares of salt pan lands are spread across MCGM in Dahisar, Goregaon, Mulund, Bhandup, Kanjur, Nahur, Ghatkopar, Turbhe, Mandale, Chembur, Wadala and Anik.

These lands, which were classified as salt pan lands and no development zones (NDZs) for decades are now open for new development.

According to the final draft of DP, 2,100 hectares of salt pan lands are now demarcated for the construction of 10 lakh affordable housing development,

Prashant Thakur, Head – Research, ANAROCK Property Consultants

Goregaon, located on the western lines of the Mumbai suburbs, is one of the oldest and most popular residential areas in MMR.

A vibrant residential hub, Goregaon lies between Bandra and Borivali and has earned its tag as a premium residential hotspot due to its proximity to the entertainment industry in Bandra and Juhu.

In a city where connectivity is everything, other market drivers that make it such an attractive residential hub for HNI buyers and investors are its proximity to:

  • The Chhatrapati Shivaji International Airport
  • The commercial hubs of Bandra-Kurla Complex (BKC) and Andheri
  • The Western Express Highway
  • NESCO, Nirlon Knowledge Park and Mindspace
  • The proposed ODC (Oshiwara District Center)

Apart from its thriving commercial office real estate market, the fact that Goregaon is such a uniquely-positioned hub for working professionals also favours its residential property market. Moreover, Goregaon has emerged as one of the front-running property hotspots to advance the vital walk-to-work (w2w) concept in Mumbai.

With several office projects already in place and more constantly mushrooming in and around the locality,