Corridor of growth Corridor Description and Rating Areas Included: PANVEL KHARGAR Panvel West, Panvel East, New Panvel, Mumbai-Pune Expressway, Seawoods, Belapur, JNPT Road, Pali, Khanda Colony, Khandeshwar, Kalamboli, Nerul, Navade, Kharghar, CBD Belapur, Ulwe, and Kamothe Fig 1: Map of the corridor
02 About the Corridor Historic Development: Navi Mumbai city, conceptualized by the City and Industrial Development Corporation (CIDCO) in 1970s to decongest Mumbai, is one of the most planned cities in the country. Vashi Bridge, opened in 1973, connected Navi Mumbai to the Island city, resulting in significant development across 14 nodes carved out by CIDCO. Further, construction of the Sion- Panvel Expressway strengthened the connectivity between the two cities. Current Status of the corridor: Navi Mumbai has witnessed impressive physical and social infrastructure development over the last two decades although the recent spurt in development is more recent than Thane. Access to Mumbai through the Vashi Bridge has resulted in development of premium localities on the Palm Beach Road like Vashi, Sanpada and Nerul, with average prices above Rs 10,000 per ssq ft. The Thane-Belapur Road has in turn become the office hub, with areas like Airoli, Mahape and Ghansoli becoming hubs of commercial development, housing Mindspace SEZ, Reliance Corporate park and Dhirubhai Ambani Knowledge City. There is significant amount of upcoming office supply, led by L&T s 2 million sq ft Seawood Grand Central in the Seawoods Area. Many corporates, which were earlier operating from Mumbai, have shifted to Navi Mumbai in the last half decade and more are shifting. This is to save cost as the area is well connected by road and rail to Mumbai as well as Thane and offers quality commercial office spaces at competitive rental values. Further on the Sion-Panvel Expressway, Kharghar, Kamothe and Kalamboli areas are housing numerous residential complexes, shopping centres, educational institutions and Golf Course. Challenges: Although Navi Mumbai is also well connected via the rail network to other areas of MMR, the rail connectivity of Thane to the South Mumbai region is smoother in comparison. The city was originally an industrial hub and hence, there are still a number of industries scattered across Navi Mumbai. The present access to Mumbai is also a challenge and the Sion-Panvel Expressway gets congested during peak hours, leading vehicles to use the Mulund- Airoli Road instead. Navi Mumbai has also historically lost out on big residential developments due to the constraint from CIDCO providing only smaller sized plots, unlike Thane, where mega developments like Lodha-Palawa City and Hiranandani Estate could happen. Though this is changing with the upcoming townships in the outskirts of Panvel. Advantages: Unlike Thane, Navi Mumbai has witnessed strong commercial developments with many large corporate houses like Hindustan Uniliver, L&T and Reliance among others operating from here. The area also has decent quality malls, scoring better than Thane. The city is also much more planned and most of the development is concentrated along the Sion-Panvel Expressway, providing easy mobility. Upcoming Infrastructure Development: Navi Mumbai has a number of proposed developments including an International Airport and the Mumbai Trans Harbor Link. After years of delay, the work is finally going to start on the International Airport, likely to result in significant development in areas neighbouring the airport site. Another much delayed project, the Mumbai Trans Harbor Link which will connect Sewri from the Mumbai end to Nhava Seva in Navi Mumbai, finally got in-principle approval from the Union Ministry of Environment and Forests (MoEF) in January this year and is expected to be completed by 2019. This
03 proposed harbor link is expected to affect the southern Navi Mumbai areas. While Navi Mumbai clearly stands out with these big-bang projects and given their size their time-bound implementation remains a challenge. Hence, these projects should be kept in mind more by the end users as compared to short term investors. Present Residential Development: Real estate development in Navi Mumbai is well organized with selfsustainable nodes planned by CIDCO. Kharghar, Kamothe and Kalamboli areas can be seen housing several high rise residential complexes, shopping centers, hospitals etc. Residential complexes in these areas also boast of impressive occupancy levels. The current capital values for residential properties in these areas hover around Rs 6,000-10,000 per sq ft. Pricing levels exceeds the Rs 10,000 per sq ft mark in areas of Kharghar, housing Central Park and Golf Course. Leading developers in these areas include Adhiraj Constructions, Paradise Group, Neelsiddhi Group and Haware among others. Areas like Seawoods, Palm Beach Marg and Vashi are premium localities housing many luxury residential projects currently priced in the range of Rs 10,000-12,000 per sq ft. On the other hand, pockets like Ulwe and Adaigaon located in the outskirts of the city offer affordable residential options currently priced in the range of Rs 4,000-5,000 per sq ft. Panvel is also a fast developing node of the city housing several upcoming projects by leading developers such as Godrej Properties, Indiabulls etc. Outlook: The prices in the city are slightly more than those in Thane, but much lower than Mumbai. Given the quantum of existing and upcoming office supply here, the city is expected to fare well. However, the city s residential sector is majorly spread across a smaller area between Khargar in the North and Panvel in South. Overall Connectivity Social Infrastructure Security/Water Properties available in the corridor The corridor offers a wide variety of price ranges, providing housing supply for all segments. Th corrdior has various properties available in varied sizes and prices, which is helping the home buyers. Around 30% of the supply is priced above Rs 1 crore, originating from areas closer to Mumbai on the Sion-Panvel Expressway and specially the Palm Beach Road area. The highest share of supply is retained by the mid segment, providing houses in the Rs 40-80 lakh price range. The corridor is well-developed and majority of the available listings are readyto-move-in properties that are providing immediate possession. Given the expensive Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration
04 Table 1: Sizes and prices of flats available for various room configurations Sales Price Covered Area ( Lacs) (Sq.ft) 1 BHK 30-60 580-690 2 BHK 55-120 940-1210 3 BHK 80-230 1340-1810 4 BHK 145-535 1970-3630 nature of the residential sector in this region, majority of the supply is in 2BHK category, followed by the 1BHK format, while leaving just 18% for the 3BHK and above segment. The corridor provides a wide range of choices for each bedroom configuration to the home buyers with prices varying along the length of the corridor, falling as one moves north on it and away from Southern Mumbai. While the range of apartment sizes is rather large, majority of configurations of 1, 2, 3 and 4BHK units are around 650 sq ft, 1100 sq ft, 1600 sq ft and 2750 sq ft, respectively. These sizes are slightly larger than the average sizes available in cities across India. Best sectors to invest in a home Based on rental demand in sectors Fig 5: Top 10 localities by consumer for renting a house Invariably, all the top corridors by demand are physically located closer to the Sion- Panvel Expressway. Of the top 10 localities, Nerul, CBD Belapur and Seawoods are all located at the start of the corridor and benefit Based on home buying demand in sectors from proximity to Mumbai. Khargar, which tops the chart is going to be connected to the upcoming metro. Kalamboli, Kamothe, Khandeshwar and New Panvel are relatively distant from the Mumbai border but still maintain good connectivity. Overall, the corridor provides rental yields in the range of 1.8% to 3%, with the average being 2.3%. There is no specific trends in yields and rents vary mostly in accordance with the sale value. Fig 6: Top 10 localities by consumer for buying a house
05 The home buying tendency follows closely with the rent seeking tendency in the corridor. All localities which have high rental demand will give better returns to owners and hence, more people will be looking to buy in these localities. Consequently, all the top ten localities by consumer searches for buying a house are in the top ten localities by consumer searches for renting a house. Most of the demand is concentrated here that is providing good return to the owners. Best bedroom configurations to buy Preferred buying and renting options Table 2: Demand distribution for buying and renting Buying Renting Total (BHKs) Total (BHKs) 1 BHK 26% 23% 2 BHK 55% 55% 3 BHK 16% 19% 4 and Above 2% 2% The 2BHK format is the predominant apartment type in the Navi Mumbai Corridor, occupying 55% of consumer demand for buying and renting a house. The home buyers are interested in the 2BHK category. The demand for 3BHK units are minimal but still there is supply. The renting demand for 3BHK units is a little higher compared to their buying demand. The demand is also avilable for 1BHK configurations. The consumer deamnd for buying 1BHK is 26% and renting for the same is 23%. Overall, there is very less demand for buying or renting a 4BHK or higher bedroom apartment in the corridor. Price changes and future prospects Historic Price movement Table 3: Historical Price changes 6 monthly change Yearly change 2% -3% The Navi Mumbai corridor has been through moderate price upheavals in the last 5 quarters with average price increasing for three quarters while falling for two in the study period. Overall, the price changes in the corridor have been constrained in the +/- 3% price range. Although the prices have fallen by 3% in the last one year, the trend in the last half year has been positive, and the prices are expected to reach the level of last year within a couple of quarters. The operationalization of the upcoming infrastructure will also be supporting the prices. Corridor Average Price Rs/sqft Fig 7: Historical Price changes of corridor
06 Price movement for top localities by Consumer Preference In line with the average price movement of the corridor, four of the five localities in the chart above witnessed a positive price change, although the price changes have been mostly muted. Of the five localities in the Figure 8, Seawoods and Nerul, which are located at the start of the corridor, and adjacent to Mumbai, witnessed positive price change. Khargar, which is located in the middle of the corridor was the only market which witnessed negative movement in prices, which was mostly due to prices of newly launched projects being launched at a slight discount to the average price of the locality. Fig 8: Price changes in top localities by consumer demand Master Plan Fig 9: Land use of various localities in the corridor As per the land use plan available with CIDCO, the corridor is equally divided between residential and other land uses (forest/reserved areas/riverbank areas). There is plenty of forest/reserved areas to the north of Khargar, limiting development in that direction. Given that the north-west of the city is already developed, it can develop in the North-east direction towards Taloje, in the South-east direction towards Panvel and in the South-west direction towards Ulwe. Of these areas, only the localities in and near Panvel are lying on the Sion-Panvel Expressway and hence, witnessing development as well as demand from buyers, while localities like Taloja and Ulwe lag behind. Most of the commercial land use area is concentrated near Belapur, although only the area lying near the Sion- Panvel Expressway has been developed. On the contrary, a significant portion of the erstwhile industrial usage area is now housing offices on the Thane-Belapur Road.
07 Infrastructure Updates Navi Mumbai International Airport After a long delay, there is finally movement on the Navi Mumbai International Airport front and as per the expected timelines by the government, the airport is expected to start operations by 2019. There is much expectation from the development of the airportand CIDCO aims to build 30 Smart Cities on the 562 sq km land around the upcoming airport. Maharashtra state government is looking at options to connect the Mumbai and the Navi Mumbai airports through the metro. Sewri-Nhava Sheva Mumbai Trans Harbor Link The link is expected to connect South-east Mumbai with South-west Navi Mumbai, but has seen multiple delays in its planning phase. In January this year, the link was finally granted in-principle approval by the Union Ministry of Environment and Forests (MoEF). As the link will connect the Navi Mumbai International Airport with Mumbai, the state s Chief Minister expressed in January that work on the link will start soon and is to be completed along with the construction of the airport in 2019. Navi Mumbai Metro The Navi Mumbai Metro has two phases of which the first phase is under implementation currently and is expected to start operations in a year. Below are the details of the phases of the metro: Phase Connecting Length Stations I Belapur to Pendhar 11.10 Km 11 II MIDC Taloja to Khandeshwar 10.30 Km 8 III Pendhar to MIDC 2 Km 1 IN NEWS Panvel is getting popular among home buyers Panvel is a growing area and many new residential developments are taking place. Several developers are launching their projects in this area. Easy availability of land banks has attracted developers to come up with villas and bungalows at a starting price of Rs 40 lakh. Several developers are pitching the soft launch of their projects at even lesser prices than this in this locality. But, there is still more that can be done to enhance the growth of the area. There should be further infrastructure development. Currently, Panvel could be a profitable option and the home buyers can invest in this location freely. There is an immense opportunity for investment in Panvel area Source: Magicbricks Bureau What is special about Mumbai s Kharghar, Mira Road? Kharghar, a node city of Navi Mumbai, has significant development in the residential sector. Kharghar and Mira Road have properties in the price brackets of Rs 6,000-10,000 per sq ft. Both the locations are relatively affordable, which becomes clear when we compare the values in Kharghar and Mira Road to other preferred localities. Kharghar has a number of ready and under-construction projects both in the commercial and residential segments. The transport connectivity is also good. Kharghar railway station lies on the Harbour Line, a part of the Mumbai suburban railway. With better connectivity, there are increase interests among home buyers to invest in the location and reap huge return on investment. Source: Magicbricks Bureau Kharghar, an instant hit among home buyers The growing housing projects are today offering multi-storeyed apartments, and these have made Kharghar an instant hit among potential home-buyers. Kharghar in Navi Mumbai is still developing. Some sectors of this locality are developed while others are witnessing rampant construction activities. Some of the surrounding areas include Kamothe, Panvel and Kopra. Kharghar is situated on NH-4 and is very close to the Navi Mumbai International Airport (4km). It is also referred to as the Central Business District (CBD) of Navi Mumbai. Apart from infrastructural reasons, Kharghar is also considered a scenic area, which is an attraction for buyers. Source: Magicbricks Bureau Buying a property in Panvel Despite the presence of growth drivers, the development cycle in Panvel has been a bit slow. Delay in several major proposed infrastructure, overall drop in demand leading to a fall in realty transactions are some of the reasons. Apart from investors, the locality is slowly gaining preference amongst the first time home buyers, retirees and second home buyers. The local train connectivity from Thane, Western Suburbs and South Mumbai is a boon for Panvel. Moreover, the upcoming international airport in the area is another advantageous feature for the investor. Followed by the airport, metro rail connecting Mumbai s key business district is expected to come up that will further encourage the development in the area. Source: Magicbricks Bureau
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