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Jul 20, 2011, 01.33 PM IST | Source: Moneycontrol.com

Affordability pushes real estate demand in Western India

Affordability, end-user demand pushed up real estate values in West India in 2010.

Affordability pushes real estate demand in Western India
By E Jayashree Kurup, Content and Research Head of Brix Research

Affordability, end-user demand pushed up real estate values in West India in 2010

Western India saw a rise in real estate values across cities during the Jul-Sep 2010 period with a few key localities witnessing maximum growth.  

Mumbai’s residential market has seen values rising during the Jul-Sep 2010 period. Localities in the western suburbs such as Dadar, Bandra, Andheri, Borivali, Powai witnessed steadily rising capital values during this period.

The more premium and highly priced south Mumbai localities such as Kemps Corner, Altamount Road, Cuffe Parade and Walkeshwar, however, remained stable during this period while some localities such as Tardeo, Mahalakshmi and Worli witnessed a drop in values. Rental values in South Mumbai have also shown a downward trend.

Investors and end-users have shown interest in localities situated on the outskirts such as Navi Mumbai and Thane due to greater affordability and superior infrastructure facilities.

Goa’s residential market is growing at a rapid pace and is the ideal location for potential investors. The Arpora-Siolim-Assagaon belt is growing post July 2010.

Ready-to-move-in apartments in this locality offer attractive rental returns from foreign nationals, post-October which is the in-season period. Owners lease apartments for 8-10 months and reap a healthy return of 8-10 per cent on rental values which is higher than that offered by any other locality in Goa.

The launch of a number of affordable housing projects has been the characteristic feature of Ahmedabad’s real estate market in the recent times. Localities such as Satellite and Thaltej have witnessed bulk of the upcoming development.

The emerging locality is Rajkot which witnessed growth in 2010 was Rathan Path Village which is in the vicinity of a number of newly developed and upcoming educational institutions. Students provide a robust demand in the rental market in this locality and this has provided a boost to the capital values as well.

Nagpur’s residential market is growing and Wardha Road, Khaamla and Kamptee are the localities to watch out for according to the Brix Research Regional Value Analysis Reports Volume 2 Issue 3 and witnessed appreciation in both, rental and capital values.

In Pune, the mid to premium segment (Rs 40-70 lakh) is witnessing significant growth in terms of the number of projects being launched. Further, localities such as Kalyani Nagar, Viman Nagar and Kalyani Nagar extension are developing witnessing appreciation in values.
By Brix Research Bureau (The knowledge unit of Magicbricks.com - India’s No.1 Property Site)

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