Mumbai property prices are amongst the highest in the country. Slow property sales and inflated pricing has led to buyers postponing their property buying decision considerably resulting in an inventory pile-up of 46 months. Find the detailed analysis for January - June 2015 period.

1. INVESTMENT
DESTINATIONS IN
MUMBAI
Panvel
Kalyan
Nalasopara
Kharghar
Mira Road
Dombivli
Kamothe
Ulwe
Sanpada
Stagnant sales and inventory pile up due to high pricing in MMR
MUMBAI SNAPSHOT JAN - JUNE 2015
Mumbai has an inventory pile up of 46 months, well above the accepted 8 to 12 months mark. This is a result of high
pricing in the MMR (Mumbai Metropolitan Region). Inflated pricing has also postponed the buying decision considera-
bly.
Western suburbs gain prominence after announcement of the coastal road project
The proposed 35.6 km coastal road project from Nariman Point to Kandivali will be instrumental in providing quicker
and faster commute to the western suburbs of Mumbai. This project is also said to affect the pricing and demand for
properties there, post its completion in 2017.
New infrastructure developments to drive Navi Mumbai real estate
The satellite township of Navi Mumbai has emerged as the newest investment destination for home buyers and
builders alike.
With projects like the Navi Mumbai International Airport and the Mumbai Trans Harbour Link, this region has
witnessed a surge in investments with an overall price appreciation of nearly 3% to 5% each quarter. Both the
infrastructure projects will be operational by 2019.
New policies may usher in transparency
Getting sanctions and building permissions online will create a corruption free process for builders. This will also
safeguard the interest of home buyers in the state. This is a welcome move by the govt. to create a system, in an
otherwise disorganized sector.
What does the future hold for Mumbai?
Maharashtra government aims to make the state, a gaming and animation industry hub, attracting INR 50,000 crore in
investment to create 1 million jobs in the next 5 years. Creating jobs and investment opportunities will improve the
demand for residential real estate in and around these commercial zones in turn improving the social viability of the
region.
The government has also offered an additional 200% FSI (Floor Space Index) for IT parks. This move will lead to a drop
in rentals for commercial properties.
MUMBAI
NalasoparaNalasopara
INR 4400 - 4500 PSFT
Mira Road MUMBAIMira Road
INR 7500 - 7800 PSFT
UlweUlwe
INR 5500 - 5800 PSFT
KhargharKharghar
INR 8000 - 8500 PSFT
PanvelPanvel
INR 5500 - 6000 PSFT
KalyanKalyan
INR 5300 - 5600 PSFTSanpada INR 5300 - 5600Sanpada
INR 13000 - 14000 PSFT
DombivliDombivliDombivli
INR 5700 - 5800 PSFT
KamotheKamothe
INR 6500 - 7000 PSFT

2. Panvel
Around 20,000 new affordable housing units are planned to
be built in Navi Mumbai, in and around Panvel. This would be
a major boost to the low cost housing sector in MMR.
The proposed Navi Mumbai International Airport recently got the
final approval and CIDCO (City and Industrial Development
Corporation of Maharashtra) has handed over 250 acres
of land for its development. Once the construction starts
the realty sector in Panvel will get a major boost.
Panvel was added to the realty map of India post the
announcement of the new airport in 2007, but the
project did not kick start as planned.
Located close to the land and sea trade route, the Old Panvel
region is considered to be busy and heavily polluted.
New Panvel region is modern, less polluted and
has many township projects making it an ideal residential hub.
The approval of an elevated railway line from Church Gate to Virar
and CST to Panvel with a 6 lane road will reduce the commute time
and traffic in the region.
To improve the poor public transport in the region, Navi Mumbai
Municipal Transport (NMMT) has announced frequent
buses to Panvel along with New Panvel, Kalamboli, Navade,
Taloja, Roadpali & Khandeshwar.
5%
3BHK
PREFER
39%
2BHK
PREFER
49%
1BHK
PREFER
Unit Type Demand
Price Trends
Budget Preference
Property Type Demand
Property Sale & Rent
Q1’13 Q3’13 Q1’14 Q3’14 Q1’15
INR 4400 INR 4450 INR 5250 INR 5650 INR 5750
90% 5%5%
Distribution of Projects
86% 6% 5% 3%
Legend Plot Villa ApartmentBuilder Floor
Preference to Age of Property
0-1 Year 1-3 Years 4-10 Years Above 10 Years Under Construction
11%
76% 2%
5%
6%
>1CR
50L
80L
1CR
30L
1cr
90L
50L
70L
30L0
71%
18%
7%
1%
3%
FOR RENT
INR 10-12
psft
INR 6000
psft
FOR SALE

3. Kalyan
The proposal to extend the Navi Mumbai Metro’s, Belapur-Taloja
line upto Kalyan and Ulhas Nagar will further increase end users’s
interest in the locality.
‘Logistics City’ has been announced at Bhiwandi near
Kalyan, as a trade and logistics hub in the region.
MMRDA (Mumbai Metropolitan Region Development Authority)
has planned a 29 km Kalyan Ring Road which will add to
the connectivity of Kalyan and its neighbouring localities.
Realty demand in Kalyan comes from both end users and
investors, and the locality has a good mix of under-construction
and ready-to-occupy projects.
Kalyan’s real estate market is seeing good demand from buyers,
due to increasing property prices in Mumbai’s suburbs
and growing demand for affordable homes in MMR.
It is connected to Mumbai via central line of the
Mumbai suburban railway network and is the 3rd
busiest station there.
A number of industries in the region has also created the need
for affordable homes at Kalyan.
Government recently stopped issuing approvals for new projects in
the Kalyan-Dombivli belt until a new sewage plant is constructed.
4%
3BHK
PREFER
24%
2BHK
PREFER
71%
1BHK
PREFER
Unit Type Demand
Price Trends
Preference to Age of Property
Budget Preference
Property Type Demand
Property Sale & Rent Q1’13 Q3’13 Q1’14 Q3’14 Q1’15
INR 4650 INR 4900 INR 5100 INR 5200 INR 5250
97% 2%
Distribution of Projects
86% 7% 4% 3%
0-1 Year 1-3 Years 4-10 Years Above 10 Years Under Construction
Legend Plot Villa ApartmentBuilder Floor
34%
33%
7%
14%
12%
>1CR
50L
80L
1CR
30L
1cr
90L
50L
70L
30L0
65%
25%
7%
1%
2%
FOR RENT
INR 10-12
psft
INR 5450
psft
FOR SALE
Nevertheless, construction activity such as redevelopment propos-
als and other development projects that are partly complete or
nearing completion will be granted due permission. This move
will improve the basic physical infrastructure in the region.

4. Nalasopara
The locality is witnessing high demand for 1-2BHK compact
housing units and many developers are catering to this demand,
making properties here extremely affordable.
The locality has seen rapid population growth from the year 2001,
making it the most crowded zone, in the Vasai-Virar stretch with
38% of its total population residing here.
Lower capital values in Nalasopara in comparision to
neighbouring localities like Vasai and Virar has created a
healthy demand for residential properties here.
Its proximity to Mira Road through the
Mumbai-Ahmedabad National Highway,
has attracted developers and increased investment.
30% of the railway traffic from western railway also originates
from Nalasopara.
Demand has increased for the western region of Nalasopara
in the recent past, as it is well planned and developed by CIDCO
and provides better infrastructure for its residents.
1%
3BHK
PREFER
18%
2BHK
PREFER
78%
1BHK
PREFER
Unit Type Demand
Price Trends
Preference to Age of Property
Budget Preference
Property Type Demand
Property Sale & Rent
Q1’13 Q3’13 Q1’14 Q3’14 Q1’15
INR 4150 INR 4000 INR 4025 INR 4450 INR 4275
95% 1%1%
Distribution of Projects
85% 7% 6% 2%
0-1 Year 1-3 Years 4-10 Years Above 10 Years Under Construction
Legend Plot Villa ApartmentBuilder Floor
22%
57%
3%
9%
11%
FOR RENT
INR 9-11
psft
INR 4500
psft
FOR SALE
50L
30L
1cr
50L
70L
30L
20L
0
0
91%
8%