Localities with maximum property price appreciation in Mumbai City
Over the past 12 months, property market in India has been influenced by RBI moves to increase benchmark lending rates at repeated intervals. Efforts to tame inflation are having a dampening impact on interest rates sensitive sectors including automobile & real estate. The property transactions in major metros have dropped by 20-35% from the levels of last year. High prices and even higher interest rates are keeping the buyers guessing between buying and not buying a house. However within this scenario there are many localities where property prices have appreciated and continue to be on a rise.
In an attempt to capture the market sentiments and ascertain the pockets that are driving the growth in Mumbai real estate sector, Makaan.com, the fastest growing website by People Group conducted a research on areas that have appreciated the most in the last one year. The objective of the study is to identify gems in an otherwise subdued Mumbai property market.
The research for Mumbai was conducted among 177 localities. We represent here the top 8 areas that have beaten all localities and have appreciated the maximum over the 12 months period. Palm Beach Road, a popular locality in Navi Mumbai, witnessed the maximum price appreciation across Mumbai. The per square feet (psf) property prices in the area went up from Rs- 6,899 in January – August 2010 to Rs- 10,088 in January-August 2011, a whopping 46% growth. Mansarovar came next with an increase of 43%. The real estate prices in this locality went up from Rs- 2,977 in January to August 2010 to Rs- 4,271 in the same period this year. Other localities in the Mumbai top list are Dombivili (West), Vasai Road, Malad (West), Powai, Kamothe, Bhayander (East). These areas experienced price appreciation in the range of 33% - 43%. It’s interesting to know that majority of the areas in the list come from Navi Mumbai. (You can refer to the table below for the details analysis.)
Avg Capital Value
Avg Capital Value
|Navi Mumbai||Palm Beach Road||6,899||10,088||46%|
|Mumbai Beyond Thane||Dombivili (West)||2,909||4,014||38%|
|Mumbai Mira Road and Beyond||Vasai Road||2,684||3,695||38%|
|Mumbai Andheri Dahisar||Malad (West)||9,462||12,776||35%|
|Mumbai Central Line||Powai||12,194||16,268||33%|
|Mumbai Mira Road and Beyond||Bhayander (East)||3,265||4,341||33%|
Commenting on the findings Aditya Verma – COO, Makaan.com says, “Owing to policy changes announced by RBI, property prices in top real estate markets in India have moved in a narrow range over the past 12 months. However, there are pockets within each market that seems to have bucked this trend. The purpose of this research was to identify areas that have outperformed even during tough macro environment. We hope, consumers will be able to benefit from the analysis.”
Makaan.com conducted similar research for the top 4 real estate markets of Bangalore, Delhi, Hyderabad and Pune. The objective was to identify price drivers in each of these markets over the last 12 months (from January - August’10 to January - August’11).
Disclaimer: The research is based on historical prices. It cannot be used to predict price movements in future since all the factors, which have a bearing on property prices as well as their impact, cannot be adequately assessed in advance. The research reflects the overall price movement at the locality level. Individual properties within a locality may show a different pattern than the locality depending on their proximity to important landmarks, amenities, age of building etc.