Rs 1 crore budget? Should you buy a 3 BHK in Panvel or 1 BHK in Mumbai?

Panvel Property Rates: According to developers from the Panvel micro-market, the per sqft rate on carpet for a residential apartment in the late 1990s was below Rs 1,000, and the same has now gone up to above Rs 10,000 per sqft on carpet.

With the stage set for Prime Minister Narendra Modi to inaugurate India's longest sea bridge, the 22-km Mumbai Trans Harbour Link (MTHL) to Navi Mumbai, micro-markets in and around Panvel along with Ulwe, Dronagiri and Uran are seeing a lot of traction.

Developers from Panvel and surrounding areas anticipate property rates to match those in several suburban micro-markets in Mumbai, thanks to upcoming infrastructure projects such as the Navi Mumbai International Airport and Virar Alibaug Corridor.

Everything you wanted to know about Panvel but were afraid to ask

Historically Panvel was famous for its rice market, and today, it has a significant population from the Agri and Koli community. It is a crucial passageway as every train heading to South India from Mumbai passes through Panvel. However, after Navi Mumbai started picking up pace from the 1970s, with Vashi followed by Nerul, Belapur and Kharghar coming up, Panvel has gained prominence, especially among homebuyers looking for affordable housing.

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In terms of its geographical location, Panvel is well connected with Mumbai via road and the suburban rail network. The under-construction Navi Mumbai International Airport is 20 minutes away. The upcoming MTHL project is also around 15 to 20 minutes from Panvel.

Does Panvel pip Mumbai in a 1 crore budget?

According to developers, Panvel has become an end-user market rather than an investor-driven market earlier.

“Now known as Mumbai 3.0, Panvel, and the surrounding areas are seeing a lot of traction owing to upcoming infrastructure projects such as the MTHL, which is expected to be opened for the public on January 12. In a budget of Rs 1 crore, if you ask me, should a homebuyer buy a 1 BHK in Borivali or a 3 BHK in Panvel? I would say it depends on individual goals. If they are a young married couple, I would say they should buy in Panvel,” said Vidip Jatia, MD of the listed company Supreme Holdings and Hospitality (India) Ltd, which develops properties under the brand Belmac in Panvel and Pune.

“Panvel projects come with open space, gardens, clubhouses, etc along with great connectivity to the entire Mumbai Metropolitan Region (MMR) at an affordable price point. At the same time, in Panvel, homebuyers will have the potential to get better returns than other mature markets like Borivali, Goregaon, Andheri or Mulund, where prices are high and appreciation might be restricted due to the non-availability of space, Jatia added.

According to Niranjan Hiranandani of Hiranandani Developers, homebuyers seeking growth potential may find Panvel attractive over say a Borivali in suburban Mumbai. “Panvel has seen rapid urbanisation in recent years and is expected to continue growing. Borivali, on the other hand, is already well-established and is likely to experience slower growth. Panvel is also more affordable than Borivali, making it an attractive option for homebuyers on a budget,” said Hiranandani.

“In Borivali, a 1 BHK offers convenience and access to amenities, but may not be large enough for large families. In contrast, a 2 or 3 BHK in Panvel may offer a larger living space and higher value over time, considering its potential for appreciation in the future. It is ultimately a matter of balancing factors such as location, amenities, future value, and individual preferences to make an informed decision,” Hiranandani added.

Also read: Ulwe Mumbai property rates: Ulwe homeowners become crorepatis as harbour link, new airport near completion

Prominent developers

Panvel as a micro-market—and even Navi Mumbai—does not have a strong presence of Grade A or listed developers. However, the micro-market has the presence of noted developers such as Hiranandani, Wadhwa, Marathon etc. City and Industrial Development Corporation (CIDCO) owns significant parcels of land in Panvel and in Navi Mumbai and periodically puts up plots for auction.

Apartment prices

One-, two- and three-bedroom apartments in Panvel range in price from Rs 9,000 per square foot to Rs 14,000 per sqft, depending on factors such as the locality, connectivity, and the age of the property, according to local brokers.

According to developers from the Panvel micro-market, the per sqft rate on carpet for a residential apartment in the late 1990s was below Rs 1,000, and the same has now gone up to above Rs 10,000 per sqft on carpet.

“I was selling apartments in Panvel at Rs 750 per sqft on carpet in 1997, and today, in my latest project in New Panvel, I am selling between Rs 12,000 to Rs 14,000 per sqft. Things changed a lot in the last 25 years, and they will change even faster in the next, say, 10 years,” said Raajesh Prajapati of Prajapati Developers, who is also Founder President (MCHI-CREDAI), Raigad, a chapter of the apex body of developers.

“Today Borivali is selling at around Rs 30,000 per sqft and my guess is in the next 10 years or less, Panvel, including several areas nearby, including Ulwe, Dronagiri and Uran, will also reach that level. The perfect example of this is Palm Beach Road, where flats are being sold at Rs 40,000 per sqft, which is costlier than several suburban areas of the Mumbai real estate market," Prajapati added.

In the case of the rental market, the monthly rent is Rs 10,000 to Rs 15,000 for a one-bedroom apartment, about Rs 15,000 to 23,000 for a two-bedroom flat, and Rs 25,000 to Rs 40,000 for a three-bedroom unit, according to local brokers. However, it depends on the locality and several other factors.

Also read: Navi Mumbai Metro line starts, among 5 infrastructure projects that will boost real estate market

Challenges

Although the entire Panvel and Navi Mumbai stretch is expected to benefit from the MTHL and the upcoming international airport, local developers say strong suburban railway connectivity within MMR and Metro rail will solve the problems of the common man.

“Homebuyers in Panvel also come because it is affordable housing. Hence, railway and Metro connectivity is important. But MTHL is for private vehicles, for which the one-way toll is expected to be Rs 250, and not all can afford this,” said a developer, who did not want to be identified.