Are The Richie-Rich Turning to Thane?
Thane, the neighbourhood city of Mumbai is drawing attention of rich investors. A recent report by one of the leading real estate consultancies ranked Thane as one of the 20 cities in the world wherein the rich are planning to make an investment. The main reason for investors to choose Thane over Mumbai is that last year the builders hiked prices to exorbitant level. Therefore, Thane became a comparatively affordable and value-for-money option.
Growth of Thane's Real Estate
You could say that Thane's real estate is growing at the expense of Mumbai. The main reason for the investors to choose Thane over Mumbai is that capital values have forever been on the rise in Mumbai. Even when it isn't rising, it is expensive due to unavailability of land bank. The situation became worse when the banking sector increased the interest rates on home loans and tightening lending norms. This discouraged sale of new apartments leading to reduction in new launches. Consents and approvals further slowed down the real estate sector in Mumbai.
Factors Driving Investors to Thane
Presence of abundant land is one of the main factors that spurs growth in Thane's real estate sector. The developers have converted vast tracts of land of defunct factories and industrial estates into vast residential complexes that are well-facilitated with modern amenities.
The city is a free district in Maharashtra giving way to manufacturing, small and medium enterprises, IT sector, chemical zone and port based activity. With TCS leasing 2 million sq ft in Hiranandani's Thane project, the city will offer more job opportunities to residents.
Good growth prospects
Availability of land, good connectivity, promising employment opportunities and an upcoming metro ensures that the investors would enjoy the benefits of growth prospects. In the last 46 months, property prices in Thane has witnessed an increase of 6.7 per cent.
Areas such as Ghodbunder Road, Majiwada and Kasarvadavali boast reputed schools, good malls and healthcare facilities. In recent times, many prominent real estate developers such as Godrej Properties, Rustomjee, Runwal Builders, Vihang Group, Hiranandani Constructions Private Limited, Piramal Realty and Puranik Builders.
Although the city is facing traffic and water issues but steps are being taken to improve the infrastructure of the city.
Also Read: Mumbai Can Be Affordable Too, Here's How