Is investment in affordable localities profitable?
Liquidity issues, political uncertainty, high interest rates on home loans, and buyers cautious sentiments were the reasons behind property market remaining grim in the year 2013, although the Mumbai Metropolitan Region had huge demand. Prime areas have inflated prices resulting in property becoming unaffordable for majority of buyers. So these buyers are giving preference to the above mentioned areas now. Now the question is investment in these affordable localities profitable? Is the real estate growth being supported by infrastructure developments in these areas? Are they really habitable? And what is in store for the buyers of home in these areas?
Badlapur, Ambernath, Panvel, New Panvel, and Vasai Road have emerged as most profitable areas in the suburbs of Mumbai. These areas are thriving mainly on the budget housing and provide 1bhks which measures around 600 square foot for 20 to 25 lakh Rs. and 2bhks which measures around 900 square foot for 25 to 30 lakh Rs.
According to Amit Singh who is the Head of Sales and Marketing at Apex Multicons Private Ltd, Mumbai, Panvel, Badlapur and Vasai give investment options in Rs 30 lakh. Out of these areas, Panvel has been most profitable. The area has a number of corporate offices of major companies and is an IT hub. The new International Airport close to Panvel will result in sizeable appreciation of prices in Panvel. One can expect and ROI of 125 to 150% with holding period of only 3 to 4 years.