News Release MMR is the most lucrative residential investment destination in India; prices in Madh–Marve to almost double by 2020: Knight Frank Report Ulwe and Majiwada–Kasarvadavali emerge as potential investment destinations with a price appreciation of 70% and 59% respectively
Mumbai, December 16, 2015: Knight Frank India today launched the second edition of its Residential Investment Advisory Report 2016 for the MMR market. This report identifies the top investment destinations in the MMR region for the next five years (till 2020) and also reviews the performance of the previously recommended destinations.
The average price in Madh–Marve, at `13,500 per sq ft in 2015, is expected to touch `26,200 per sq ft by 2020. Along with the upcoming Versova–Madh sea bridge, the planned Coastal Freeway would drastically reduce the road travel time from the selected destination to the premium office markets, such as BKC, Lower Parel, Worli and Nariman Point. The scope for luxury lifestyle residential developments alongside the Arabian Sea, coupled with enhanced seamless access to the premium office markets, would drive housing demand in the Madh–Marve locality.
Ulwe, the top destination in the first edition of the report in 2012, continues to be one of the top destinations, with a 70 per cent price appreciation by 2020. Incremental employment opportunities in Navi Mumbai and Thane, the upcoming Seawoods– Uran suburban train network and the ecosystem that will be created for the upcoming Navi Mumbai International Airport will drive demand.
Majiwada–Kasarvadavali, the next investment destination, will experience a price appreciation of 59 per cent by 2020. Incremental employment opportunities in Thane and Navi Mumbai and the upcoming Kasarvadavali metro rail would drive residential demand.
News Release Top residential investment destinations in the MMR (Prices in `/sq ft)
(Prices in `/sq ft)
2015 – 2020 94%
Source: Knight Frank Research
Says Dr Samantak Das, Chief Economist & National Director, Research , ‘Regional growth within a city is anything but even, and the direction of such growth is a critical factor in determining the fate of a particular residential property. Since our first edition in 2012, the residential market has gone from bad to worse. Our previous recommendations of Ulwe, Wadala and Chembur witnessed price appreciations that were higher than the price growth of the city in the last 3 years. Going forward, we believe that Ulwe will hold its position as a prospective location and hence it has featured along with other new potential destinations like Madh–Marve and Majiwada–Kasarvadavali in next five years. These top investment destinations are likely to fetch a price appreciation in the range of 59% to 94% by 2020.’
As per Mudassir Zaidi, National Director, Residential Agency “Real estate industry is cyclical in nature and we anticipate that we are at the end of the cycle of slow down. The wave of positive sentiments is quite evident since Dussehra and Diwali. With the real estate regulation amendments; credibility and positivity will build up confidence in the minds of the investors who will sooner or later get drawn back into the market. The role of infrastructure development is significant in MMR, the prime focus being urban transport projects. For all the three destinations featured, existing and upcoming infrastructure developments along with accessibility to employment hubs have been key drivers that led to the emergence of these localities. The Navi Mumbai International Airport and its integration with the Mumbai metro will add great advantage to the identified locations especially Ulwe and MajiwadaKasarvadavali. We recommend that investors exploit the opportunities available in these destinations.”
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