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Corridor of growth

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Page 1: Corridor of growth
Page 2: Corridor of growth

Corridor of growthCorridor Description and Rating

D O M B I V L I – K A LYA N

Areas Included: Tilak Nagar, Pokharan Road No. 2, Balkum Village, Bhivpuri Road, Kapurbawdi, Hiranandani Meadows, Katemanivali, Kasheli, Kolshet Road, Kalyan East, Dombivli East, Dombivli, Majiwada, Kapur Bawdi, Vasant Vihar, Dombivli West, Thakurli, Dhokali, Manpada, Eden Woods, Kolshet, Kalyan West and Bhiwandi

Fig 1: Map of the corridor

Page 3: Corridor of growth

Corridor of growth (COG)02

Properties available in corridor

The corridor offers a significantly wide variety of price ranges, giving buyers plenty of options to buy properties

although much of these are in the affordable segment, in line with the positioning of

Thane as a cheaper alternative to Mumbai. This is reflected by the fact that more than 40% of the supply is priced less than Rs 60 lakh. Although areas closer to Mumbai on the Ghodbunder Road cannot be considered

as affordable and a significant 35% of the properties are priced more than a crore. This leaves the relatively mid segment supply of properties costing between Rs 60 lakh to Rs 1 crore, to form less than quarter of the

About the Corridor Thane Market Overview: Thane city witnessed a spurt in real estate activity over the last decade and has gained prominence on account of limited affordable options available within the Mumbai municipal limits. Seamless connectivity offered by the two national highways (NH-3 and NH-8) connecting Mumbai’s Eastern and Western Suburbs to Thane via Ghodbunder Road has fuelled significant development of the city.

Development Landscape: The strategic location of Ghodbunder Road resulted in leading real estate developers of the Mumbai Metropolitan Region to develop many Grade A residential as well as commercial developments along the stretch. Hiranandani Estates was one of the first such township developments on the stretch comprising of world class housing and social infrastructure facilities. Development seen along the Ghodbunder Road propelled the real estate activity in other pockets of Thane West, resulting in mushrooming of several real estate developments by Grade A and B

developers. On the other hand, Thane East has seen limited developments on account of few land parcels available.

Infrastructure and connectivity: Ghodbunder Road, a 20 km long stretch comprising four flyovers at Kapurbawdi, Manpada, Patlipada and Waghbil, has served as a lifeline for the daily commuters between Mumbai and Thane.

The Mumbai Metropolitan Region Development Authority (MMRDA) approved the construction of the Wadala-Ghatkopar-Thane-Kasarvadavali line, also known as Line-4, in November 2014. Once completed, the line will provide seamless metro connectivity to Thane, although the challenges remain in completing the project by 2020. The work is yet to start on this line. There is also a plan to construct a Borivali-Thane Tunnel connecting Tikujiniwadi in Thane to Ekta Nagar in Borivali. There is a plan to construct 5-km elevated road on the narrow stretch of the Ghodbunder Road, between Chena Creek and Oval although this project is also in the nascent stage.

Historic Trends: The current capital values for residential properties along the Ghodbunder Road and Thane West pockets ranges between Rs 8,000-12,000 per sq ft, and have appreciated by more than two times over the last decade. Appreciation in property prices resulted in the properties located in Thane main region (Thane west and Ghodbunder Road) leaving their affordable tag, leading to mass development of townships in the outskirts of Thane, including pockets like Bhiwandi, Kalyan and Dombivali.

Directions of Growth: While Bhiwandi has many low-rise developments, one can see growing number of high-rise developments starting from the Kalyan-Bhiwandi Junction on the Kalyan-Shilphata Road leading to Dombivali East. Large townships - Lodha’s Palava City and Runwal My City - are being developed in the Dombivali East region of Thane City. The current capital values for residential properties in these micro markets range between Rs 5,000-5,500 per sq ft.

Overall Connectivity Social Infrastructure Security/Water

Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration

Page 4: Corridor of growth

Corridor of growth (COG)03

The highest rental demand is being witnessed in Majiwada, followed closely by Dombivli East. While Majiwada stands

first on account of its favourable locality on

Ghodbunder Road and it has well-developed social infrastructure. Dombivli East stands out because of the significant supply of houses on rent at affordable rates. The third place

Manpada and the fifth place Vasant Vihar, both are on Ghodbunder Road and derive benefits similar to Majiwada. There is a huge investment scope available along the corridor.

total supply of the corridor. Most of what is available in the corridor is multi-storey apartments by reputed builders. Of this, 1-2BHK apartments, together forms more than 80% of the corridor’s total supply. Overall, the corridor is well developed and almost three quarters of the supply is ready-to-move-in properties.

The corridor provides a wide range of properties with prices varying across the corridor, falling as one moves east on it and away from Godhbunder Road and Mumbai boundary. While the range of apartment sizes is large, the majority of configurations i.e. 1, 2, 3 and 4BHK units are around 630 sq ft, 1000 sq ft, 1500 sq ft and 2200 sq ft respectively.

Sales Price Covered Area ( Lacs) (Sq.ft)

1 BHK 25-70 550-680

2 BHK 50-134 810-1120

3 BHK 109-243 1200-1760

4 BHK 153-463 1710-2720

Best sectors to invest in a home Based on rental demand in sectors

Table 1: Sizes and prices of flats available for various room configurations

Based on home buying demand in sectors

Fig 5: Top 10 localities by consumer for renting a house

Fig 6: Top 10 localities by consumer for buying a house

Page 5: Corridor of growth

Best bedroom configurations to buy Preferred buying and renting options

Buying Renting Total (BHKs) Total (BHKs)

1 BHK 38% 31%

2 BHK 44% 50%

3 BHK 16% 18%

4 and Above 3% 1%

Table 2: Demand distribution for buying and renting

The home buying tendency follows closely with the rent seeking tendency on the corridor. All the localities which have

high rental demand will give better return

on investment to the owners and hence, more people will be looking to buy in these localities. Consequently, eight out of the top ten localities by consumer searches for

buying a house are in the top ten localities by consumer searches for renting a house. The rental prices are quite reasonable along the corridor, which is boosting demand.

Given that Thane has always been marketed as a cheaper alternative to Mumbai, developers have historically

tried to keep the prices low by reducing the size of the apartments. As a result, more than one third of the apartments are 1BHK units, although the concentration of 1BHK format is more in the outskirts of the city and away from

Ghodbunder Road. Overall, 2BHK units are the dominant apartment types in the corridor, forming almost half the listings as well as consumer searches. Most of the premium supply of apartments is in the 2 and 3BHK categories with a few 4 BHK and above types in the corridor.

Price changes and future prospects Historic Price movement

The Thane corridor has witnessed decent price appreciation over the last five quarters, moving up for each of these

quarters. The connectivity with Mumbai has made Thane a preferred destination for affordable housing, and the general slowdown in economy has pushed home buyers as well as people looking to rent apartments, to look for affordable housing in Thane.

This, has led to a steady demand in market, resulting in a steady stream of new launches in the market, and has supported the prices in the market, resulting in 6% increase in prices over the last year.

Fig 7: Historical Price changes of corridor

Corridor of growth (COG)04

6 monthly change Yearly change

4% 6%

Table 3: Historical Price changes Corridor Average Price Rs/sqft

Page 6: Corridor of growth

Price movement for top localities by Consumer Preference

The localities on the chart above are dispersed geographically, with Manpada and Majiwada being located in the more developed part of Thane, which is closer to Ghodhbunder Road while Dombivli and

Kalyan locations are located in East Thane, which is the outskirts to the main Thane city.

Prices in the localities in main Thane have fallen slightly, while the prices in the Dombivli-Kaalyan region have mostly increased on account of new projects being launched at a slight premium to average city prices due to their favourable locations

Fig 8: Price changes in top localities by consumer demand

Master Plan

The current Master Plan of the corridor is greatly restricted by the Ulhas River with most development in the south of the

river. While the main Thane city, Dombivli and Kalyan lie on the south of the river, Bhiwandi

lies to the north of it. The Master Plan has allocated majority of the developable land for either residential or industrial use and even the 2052 concept plan of the Mumbai Metropolitan Region (MMR) has these two as the prime

land uses. Although the current Master Plan provides some pockets of commercial usage, the quantum is not very high.

Corridor of growth (COG)05

Infrastructure UpdatesMumbai Metro Line 4 - Wadala-Ghatkopar-Teen Hath Naka -Kasarwadavli Metro

Particulars RemarksStations Bhakti Park, Anik Nagar, Priyadarshini, Kurla Nehar Nagar, LTT, Vidyavihar, Ghatkopar -, R-City, Godrej Colony, Vikhoroli, Gandhi Nagar, Kanjur Marg, Janta Market, Bhandup, Shangrila, Sonapur, Johnson & Johnson, Mulund Naka, Thane Teen Haath Naka (Thane), RTO Thane, Mahapalika Marg, Majiwada, Kapurbawdi, Manpada, Tikuji-Ni-Wadi, Patlipada, Waghbil, Anand Nagar, Kasarwadavli

Construction start data (expected) 2017

Operational date 2023

Construction completed (till Dec 2015) 15%

Length 32 Kms

Total Stations 22

Time to cover the stretch 64 minutes

The Mumbai-Thane metro project was approved in 2014 and post the Chief Minister’s assurance of speedy execution

in January 2016, the actual ground work is expected to start soon. There was also a proposal under study by the Delhi Metro Rail Corporation to extend the metro link from Wadala up to the proposed location of CST, but that has been put on hold as of now.

Mumbai Metro Line 4 will connect stations such as Bhakti Park, Anik Nagar, Priyadarshini, Kurla Nehar Nagar, Godrej Colony, Janta Market, Johnson & Johnson including others. The stretch of this new metro route will be 32 kilometers.

Table 3: Mumbai Metro details

Page 7: Corridor of growth

Why to invest in Mumbai’s peripheral areas?

There are many areas in the MMR and its periphery, which can be looked at as promising realty destinations. And the ongoing festive season could be the right time to make your investment. Mumbai’s peripheral realty locations have always performed well, even at the time of the slowdown in the property market. It is a good time to invest in Mumbai’s peripheral regions. The locations have proven very attractive in the recent past as far as housing sales are concerned. Infrastructure development has played a major role in bringing these peripheral areas into focus. There is good social and physical infrastructure that is attracting home buyers to the location.

n Source: The Times of India

Thane growing in luxury realty market

Thane, a general refuge to mid-class segment of Mumbai region is slowly shedding its affordable tag and is moving towards luxury segment. Fast forward infrastructural development along with the entry of IT/ITES, retail and logistics companies in the area have been decisive factors in this alteration. The fact that Thane is evolving has allowed many developers to bring in their luxury projects which are being received well by the buyers. Thane is eager to make its presence felt as one of the top luxury destinations of India. The home buyers are also interested to purchase properties that are luxurious and have modern amenities as well as comfort. In fact, the home developers are also offering freebies to the buyers.

n Source: Magicbricks Bureau

Infrastructure push unlocks land in Thane, beyond

Thane’s most active residential pocket is Ghodbunder Road catering to both commercial and residential development with many new projects under construction. Connectivity to Eastern and Western Express Highways in Mumbai has been a determinant. Thane’s development from a neglected corridor to a developing micro market is of interest to investors. Enhanced connectivity, development prospects, translating city development plans into reality, possible inclusion of some areas within the municipal corporation limits and affordability are some of the reasons that are drawing potential buyers to Thane. There is a potential opportunity for growth in areas beyond Thane and the property prices are quite reasonable in the areas.

n Source: Magicbricks Bureau

Things to know before buying in Thane

Thane is a preferred choice amongst home buyers. The area has smooth connectivity to commercial areas of suburban Mumbai and South Mumbai. It also offers affordable housing options to interested investors and buyers. Thane region is a hub of young buyers with a limited budget. In fact, there is huge opportunity beyond Thane too. Thane boasts direct connectivity to Mumbai CST and Bandra-Kurla Complex with one inter-change. The airport is reachable from the places but travelling to airport still remains a problem for residents here. Not only connectivity, the locality has good social and physical infrastructure in this locality.

n Source: Magicbricks Bureau

IN NEWS

Corridor of growth (COG)06

Page 8: Corridor of growth

MOST POPULAR PROJECT in Thanehttp://magicbricks.com/investment-hotspots/mumbai/thane-kalyan-dombivli/

KEY DEVELOPERS in Thanehttp://magicbricks.com/investment-hotspots/mumbai/thane-kalyan-dombivli/

PROJECT SUMMARY BY POSSESSION STATUS in Thanehttp://magicbricks.com/investment-hotspots/mumbai/thane-kalyan-dombivli/

PROJECT SUMMARY BY BUDGET in Thanehttp://magicbricks.com/investment-hotspots/mumbai/thane-kalyan-dombivli/

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D I S C L A I M E R

Every effort has been made to make this report as complete and accurate as possible. MagicBricks accepts no responsibility for inaccuracies in the information/data contained in this report. It shall have neither liability nor responsibility to any person or entity with respect to any loss or

damage caused, or alleged to have been caused, directly or indirectly, by the information contained in this report. The information/data in this report is subject to change from time to time due to market condition.