Looking for a south Mumbai address for less than Rs 4 cr ? Try these neighbourhoods

Homes under Rs 4 crore remain available in various parts of South Mumbai, despite long-standing unaffordability

South Mumbai, defined as all areas south of Mahim in the west and Sion-Chembur in the east, has long been considered out-of-bounds for the salaried class, even among the higher end of the scale, due to historically high home prices. However, observers say that an increasing number of projects in close proximity to south Mumbai, and some in south Mumbai itself, can be purchased for upto Rs 4 crore, although inventory remains limited.

Developers generally refer to the Rs 1 crore-4 crore segment as "premium" or "affordable luxury", with most new supply in Mumbai's suburbs being in that category. Due to high land prices, such a price point was considered unviable in the south Mumbai market. However, with the government pushing slum rehabilitation and cluster redevelopment policies, especially in the island city and in the immediate vicinity  to revitalise some of these areas, a few developers have chosen to work in that segment in order to attract more volumes.

Ritesh Mehta, JLL India's Senior Director and Head (north and west), residential services and development initiative, pointed to Chembur as an attractive destination at that price point, located close to south Mumbai, with easy connections to both Mumbai and Navi Mumbai. However, supply there is limited, due to height restrictions imposed as it is located on the approach to the Mumbai airport.

Often overlooked due to its historical status as Mumbai's port and legacy trading areas, the eastern seaboard, from Trombay to Wadala and Sewri, are also being primed up for development on historically industrial lands. Developers, such as Ajmera Realty, Ashwin Sheth group, and others, have set up, or are planning to set up projects in the area, both on greenfield land, as well as redevelopment projects on old, chawl-like accommodations. Most developers are pricing these projects at under Rs 4 crore.

"We also see Sewri and Parel as good choices at that price point, as those areas are commutable from key employment centres," Mehta added.

Wadala, being well-connected to the rest of Mumbai, including the western suburbs through the Harbour Line of the Central Railway, is an increasingly attractive choice for residential real estate developers. The area, earlier home to various industries, went through years of decline after their closure, but has found a new lease of life owing to its proximity to the Eastern Freeway, as well as to employment centres such as Lower Parel and the rest of south Mumbai.

Besides the less-patronised Mumbai Monorail that passes through the area, Wadala is also set to see increased connectivity through two new lines of the Mumbai Metro, including one that is slated to offer another connection to the Fort area.

The trans-harbour Atal Setu is also playing a part in increasing developers' interest in the Wadala-Sewri region, according to observers. The Atal Setu terminates in Sewri, at an intersection with the Eastern Freeway.

In other core south Mumbai markets, interest, and business development activity, in the under Rs 4 crore ticket size has also been noticed in areas like Dadar (East) and Byculla, both of which have thrown up multiple redevelopment opportunities in recent years.

Once home to stately bungalow-like houses in small town planning schemes, new supply from redevelopment opportunities is coming up at Hindu Colony, in Dadar (East). Redevelopment and south Mumbai-focused developer Sugee has taken a lead in a number of these projects, listing two bedroom units in the area at around Rs 3.5 crore.

Despite not being largely favoured by developers, the sale of one bedroom apartments have also continued in Dadar, including new supply and re-sales. According to listings on sales platforms, under-construction one bedroom apartments typically sell for around Rs 1.62 crore in Dadar East.

Byculla, located even closer to areas such as Fort and Nariman Point, and also close to Lower Parel, attract a slightly higher price point, but some developers have chosen to undercut those prices, to attract more volumes, especially in the case of "asset-light" redevelopment projects.

Adani Realty and Marathon's joint venture project, Monte South, has advertised two bedroom apartments at around Rs 3 crore, with the project expected to be fully ready next year.

Some of these suburbs, as well as areas in the island city, often see supply under affordable housing schemes, chiefly from the Maharashtra Housing and Area Development Authority (MHADA), in which houses in well-connected suburbs, in the mid and high-income category, are priced between Rs 80 lakhs to Rs 3 crore, along with higher price points.

A part of the supply last year, for example, is in areas such as Wadala's Antop Hill, among other areas, which attracted significant interest due to the location and the competitive price point.

However, observers added that the inventory from MHADA schemes in Mumbai sold through a lottery process is often limited, with homebuyers preferring to scan the open market for such deals, rather than applying for the lottery and depending on its outcome.