Growing Demand for Affordable Flats at Thane

Growing Demand for Affordable Flats at Thane

Mumbai continues to be the favourite residential destination of real estate developers and investors alike. But in the recent times, high interest rates and steep property prices in the city have led to a steady increase in demand for affordable housing options in places like Navi Mumbai and Thane.

Owing to factors such as connectivity and the proposed development of prominent infrastructure such as the international airport in the vicinity, a growing number of home buyers are expressing a keen interest in buying flats at Thane.

Located centrally between Navi Mumbai, Kalyan-Dombivli and the main city, it is a convenient hub for commuters. Due to its proximity to the three major highways-the Eastern Express highway, NH3 and NH4; it has the added benefit of enhanced road connectivity to other states.

Realty Market Trends in the Area

Due to the increasing demand by investors for affordable residential projects in Thane, real estate rates between July 2011 and June 2012 escalated by 7-8%. In comparison, property prices in central and south Mumbai only moved up by a mere 2-4% during the same time period.

According to a 5 year residential realty market analysis conducted recently across 11 cities, Thane has registered a sharp rise in home prices. Records by a renowned estate consultancy firm indicate an average price rise of 80-85% between April to June 2009 and January to March 2014. The primary reason for this increase can be attributed to affordable rates.

With the main city having reached its saturation point, neighbourhoods such as Ghodbunder road, Majiwada and Pokhran II are undergoing rampant real estate activities. As per a Thane based real estate broker, there is a steady demand for 1 BHK flats. Other housing options include integrated luxury townships with adventure parks and knowledge centres for kids as well as premium apartments, located close to the Eastern Express Highway and railway station.

Urban amenities such as a 200 bed multi-specialty hospital equipped with world-class healthcare facilities, reputed educational institutions and entertainment zones are some of the other reasons a large percentage of people are flocking here.

Latest Realty Activity to Boost Sales

Sale of property has been tepid in Mumbai as well as other metropolitan cities. Owing to the reduction in the rates of stamp duties and simpler regulatory procedures by the state government, developers in Thane are resorting to pre-launch deals to boost real estate. Besides the ongoing and proposed infrastructure development in the area, affordability is an important factor that has attracted investors and end-users to Thane.

A pre-launch means selling a project to buyers and investors prior to the formal launch, even before all the necessary approvals have been obtained. Developers offer deals at a significant discount of 10-15%, sometimes even more in return for taking the risks involved at this stage.

This helps the developers to spread the word and gauge the response in the realty market. Although pre-launch activity had considerably declined in the last two years due to the plight of realty market and uncertainties in obtaining approvals, the trend is reviving again.