Mumbai, the financial capital of India, is known for having the priciest real estate in the country. Interestingly, along with being the costliest city to reside in, towns and micro-markets that were once considered distant or second-home options have now moved up in the pecking order of preferences.
The best examples of this growth in residential and commercial real estate are the Thane and Powai micro-markets of the Mumbai Metropolitan Region (MMR).
Thane and Powai were both looked down on in the 1980s or even until the 1990s. However, real estate rates in both of these micro-markets are now touching the stratosphere. That’s thanks to the urban sprawl as offices moved out of south Mumbai and spread across the metropolis, into nearby towns and micro-markets.
"If 20 or 25 years ago someone would have told me that I would open my office in Thane or Powai, I would have laughed, as everyone was in south Mumbai. However, today's scenario is just the opposite. If companies opt to be located in south Mumbai, their reasoning is questioned. They are asked why they have chosen south Mumbai over other localities," said Piyush Jani, a real estate consultant who deals in commercial office spaces in suburban Mumbai.
"The per square foot rates in many of the residential and commercial projects in Thane are at par with several micro-markets in Mumbai, namely Borivali, Kandivali, Mulund, and Bhandup, among others. What does this mean? Thane has grown, and the growth has been much better than in several areas of Mumbai," he added.
"The reason for this is urban sprawl, partly due to saturation. After a certain point in time, every micro-market tends to give up due to its inability to match the upcoming areas with better offerings and infrastructure. Thane and Powai, too, may face this phenomenon at some point in time. But there is still time for that to happen until new competing areas enter the fray," Jani further added.
About Thane and Powai
The Powai micro-market is famous for the presence of Hiranandani Developers, who have residential, retail, and commercial properties in the area. This micro-market is also famous for being home to one of the most prestigious institutes in the country, the Indian Institute of Technology (IIT)-Bombay. Powai also has an ample number of schools and hospitals. One of the largest global consulting firms, Deloitte Consulting, is also located in this micro-market.
Thane, on the other hand, is a work-in-progress, considering it is perceived to be a more culturally and traditionally vibrant micro-market compared to Powai. Thane, too, houses several big companies, has an ample amount of open space, and has a good number of schools, colleges, and hospitals.
Prominent projects
The prominent projects in Powai include the Hiranandani Business Park, Regent Hill by Hiranandani Developers, Urban Park by Godrej, and Elixir Reserve by L&T Realty.
In Thane, Raymond Realty has a residential real estate project going by the name of Raymond Ten X. The other significant projects in this micro-market are Dosti Realty, Ashar Group, and Vihang Group.
Going forward, both Thane and Powai will be big markets when the redevelopment of old buildings begins in 10–12 years, according to local brokers.
Connectivity
Thane is well connected with railway stations like Thane and Mulund, among others. It is easily accessible by those using the Eastern and Western Express Highways.
The micro-market is expected to get a connectivity boost from the upcoming CST-Thane Metro-4 corridor that will allow citizens to travel up and down. Further, Thane also has good connectivity with other satellite towns of MMR, besides those looking to travel fast out of the city towards Gujarat, deep down into Maharashtra, or even South India.
Deepak Sharma, an IT consultant who moved his office from Andheri to Thane for ease of travel, said, "I realised that after COVID-19, work-from-home (WFH) and working from anywhere would become the norm. I also realised that my staff would not be ready to travel far to Andheri from Thane."
"Hence, I moved to Thane, considering Thane is also my residence, And, now for a year, I have been walking to work. The upcoming Metro will provide greater connectivity, thus, adding to the charm. Post-COVID-19, I really feel that people are optimising travel and making maximum use of technology to ensure minimal travelling," he added.
Powai, on the other hand, is poorly connected with the suburban local train network of Mumbai, which carries over seven million passengers daily. The closest suburban railway stations are Andheri, Vikhroli, and Kanjurmarg.
But Powai is well connected via roads from both the Western and Eastern Express Highways. This micro-market is expected to benefit in a big way from the upcoming Andheri-Vikhroli Metro Line 6 that will pass via Powai.
Cost of flats in Powai and Thane
Developers are offering 1, 2, 3, and 4BHK apartments in both localities in a wide price range of Rs 10,000 per sq ft to Rs 50,000 per sq ft for rentals. Thus, one could easily rent a 2BHK apartment in Powai for Rs 30,000 to Rs 40,000 per month.
However, when it comes to Thane, one might easily be able to rent a 2BHK apartment in a gated society with amenities for about Rs 20,000 per month.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
