Developers are realising the value of integrated townships to improve the quality of life for today's homebuyers
When it comes to investments, there is no doubt that tangible assets outperform their virtual counterparts. Although tangible assets such as gold may seem more appealing due to their affordability, real estate offers a sense of protection because it is less susceptible to market fluctuations. Due to higher uncertainty, other investment avenues do not get to reap this benefit. Given the current market situation, homebuyers now have the option of investing in a property that has become more affordable as a result of several rate cuts and offers better total returns. This in turn has improved the overall affordability index across the top 10 cities of India in the last 5 years.
Residential Market Dynamics
The days of real estate are regarded purely as an investment opportunity are long gone; the pandemic has taught everybody the value of owning a home. As a result of the change in the market from developers to end-users, nearly 90 per cent of home buyers today are either tenants who were living in leased apartments or fence-sitters who were waiting to buy their dream home but could not due to sky-high prices. Demand has been fueled by a steep reduction in stamp duty, home loan rates near a two-decade low, and lucrative developer scheme.
Key Aspects home buyers should look out for
In the current situation, home buyers have the option of selecting from a wide range of properties that have become more affordable. Although this seems to be promising, home buyers should not limit themselves to searching for properties that have a higher return on investment than others. People also understood the importance of providing modern facilities as a result of the pandemic. From schools to hospitals, open room for fresh air to well-guarded premises, there is something for all. For reasons of comfort, hygiene, and protection, a home buyer should choose a spacious home in an integrated township. This would improve their living conditions in the event of a pandemic.
Residential Areas to invest in 2021 for better returns
It is seen that properties close to a business centre and better connectivity yield higher returns than properties further away. From the MMR region's Kalyan, Vasai-Virar, Bhiwandi, and Thane to Mumbai suburbs Chembur, Andheri, Kandivali there are some appealing locations with facilities, connectivity, and affordability for most home buyers.
Kalyan – Navi Kalyan, Vasai-Virar, Bhiwandi: Due to its affordability and spacious housing units, the MMR region has been a market engine for the past few years. What started as a second home rapidly developed into a first-home hotspot for many middle-income home buyers who were willing to travel and wanted large spaces at a lower price. This cluster offers scenic locations away from the city, well-defined amenities, and a variety of home configurations such as 1,2, and 3 BHKs with larger size with prices that start Rs 27 lakhs onwards. Especially newly emerged areas like Navi-Kalyan have the potential to reshape housing in Kalyan due to its affordable pricing within the vicinity. Additionally, for job opportunities, Bhiwandi has been Maharashtra's logistics hubs since the advent of e-commerce in terms of work opportunities for people in Thane, Badlapur, Kalyan, and beyond. It has aided in the creation of millions of jobs for people in the surrounding area.
Thane: Thane is home to a slew of large-scale developments that include a wide range of amenities. Thane will be even more connected to Mumbai thanks to the new Metro line. Its proximity to Bhiwandi makes it another job-centric location in the area, providing housing, jobs, and other critical services. For a 1BHK, the price range in Thane is between Rs 50 lakh and Rs 75 lakh. Due to the road link between Ghodbunder road and the Mumbai suburbs, it is now another region capable of providing a higher return on investment.
Badlapur: Badlapur’s growth has been fueled by two major factors - connectivity and affordability. Developers are building a variety of residential projects with top-notch facilities and infrastructure. The region's properties are accessible at attractive and affordable rates, making it a common option for first-time homebuyers. Badlapur is served by a variety of modes of transportation, including railways and highways. The area is crossed by a major highway that connects Kalyan and Karjat. The region's connectivity to Navi Mumbai via roads has cut travel time in half, and the proposed airport in Navi Mumbai is only an hour away making it one of the prime locations for investments around the MMR region.
As the real estate industry grows, more developers are realising the value of developing integrated townships to improve the quality of life for today's homebuyers. Home buyers need to realise that a pandemic like Covid 19 is here to stay, and that to be completely protected, a home in an integrated township with schools, hospitals, and other vital amenities close by, must be the deciding factor.
The author is Managing Director, Poddar Housing and Development
DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.