Looking For Rental Returns In Mumbai? 5 Localities That Were Promising in 2016
Mumbai real estate performed positively in 2016 and was ranked as one of the most promising destination for the investors as per a survey by Urban Land Institute. The infrastructural projects such as the Mumbai Trans Harbour Link (MTHL), Mumbai Coastal Road and Navi Mumbai International Airport and the three upcoming metro corridors adds to the demand for rental housing in the financial capital of India. As the city is expensive for purchasing property, rental markets witnessed a positive turn. Furthermore, demonetisation led to an increase in the demand for rental apartments in Mumbai. A report titled 'Buy vs Rent' by ArthaYantra Corporation says that rental rates will see an increase in the coming 12 to 18 months.
Makaaniq lists five best localities of Mumbai that will give good rental returns:
As per a report by PropTiger Datalabs, Thane West was one of the localities that saw maximum action in 2016. The rental rates in Thane West increased from Rs 21 per sq ft to Rs 22 per sq ft over a period ranging from January 2016 to November 2016. This means for 1,000 sq ft one can earn extra income of Rs 1,000.
Seawoods is surrounded by localities such as Taloja, Ulwe, Kharghar, Kamothe, Ghansoli, Vashi, Panvel and Airoli. The presence of railway station helps demand to flourish. Larsen & Toubro will revamp the railway station. These proposed developments will further push the rental market in Seawoods. Rent for apartments in Seawoods increased from Rs 21 per sq ft to Rs 23 per sq ft over the period ranging from Jan 2016 to Nov 2016. This indicates that one can earn an additional income of Rs 2,000 for 1,000 sq ft.
Mira Road East
Mira Road East is one of the top performing localities as per a report by PropTiger Datalabs. The presence of sea links, highways and suburban railway boost connectivity. Business hubs such as Lower Parel and Bandra Kurla Complex are easily accessible through Mira Road East. These positive aspects push the rental rates for apartments in Mira Road East.The rental rates increased from Rs 15 per sq ft to Rs 17 per sq ft over the period ranging from Jan 2016 to Nov 2016. An additional income of Rs 2,000 can be earned for 1,000 sq ft.
Borivali West enjoys proximity to the Airport and the Churchgate railway station. The locality is well linked to main business hubs of Mumbai. In recent times, the area's population surpassed the 1 million mark. This is one of the reasons for the push in rental rates of apartments in Borivali West. The rental rates per square feet were Rs 31 in January 2016. This rose to Rs 33 per square feet in November 2016. As a result, one can earn an additional rental income of Rs 2,000 by renting out 1,000 sq ft.
Chembur is in close proximity to Chhatrapati Shivaji International Airport. Areas such as Andheri East, Bandra Kurla Complex, Navi Mumbai and Lower Panel ;can be easily accessed through the locality. The presence of Eastern Highway and the proposed monorail will promote the demand for apartments in Chembur. This leads to an increase in the rental rates. In January 2016, the rental rates were Rs 39 per sq ft. This rose to Rs 51 per sq ft in November 2016.