Friday, July 24, 2015

COVER STORY - FAR-FLUNG SUBURBS: better value :The Times of India



Exploring the prospect of investing in Ambernath, Badlapur or Neral? We tell you why it's a good idea

If you are thinking of parking your surplus funds by investing in a second property, then buying an apartment in the far-off central suburbs between Kalyan and Nerul would be the best decision to do so.We look at the several points put forth by the property experts on why the region still offers a lot of scope for value-buying for actual users and investors alike.
AFFORDABILITY: A KEY FACTOR

Prashant Puri, director of Key property solutions, a property consultancy firm, explains that land rates till Thane have gone beyond the budget of a common man. “Till Thane, the rates of residential properties are quoting on an average at a rate of Rs 10,000 and Rs 14,000 per sq ft. So, even a 500 sq feet property won't be available for anything less than Rs 60-70 lakhs,“ he says.

As compared to that, a property buyer can get a 1-BHK flat in Ambernath, Badlapur and Titwala in the range of Rs 12 lakhs and Rs 21 lakhs.

PROPER CONNECTIVITY

Places in central suburbs like Ambernath, Shahpur, Badlapur and Neral, have in the last decade, witnessed a rapid increase in population, due to its proximity to Mumbai and Thane by railways. Mangal Chavan, director, Seva Group, explains that all these areas are wellconnected, both by the railways and road. “A commuter can easily commute to Mumbai, Navi Mumbai or Thane where he is working on a daily basis by local trains. Places like Badlapur and Ambernath are connected to important locations by road as well,“ Chavan explains.Badlapur is also connected to the MumbaiPune Expressway.

There are several state transport buses that are available from some of these places to Navi Mumbai, Pune and Mumbai. “These places also have local transport facilities like auto rickshaw services to reach destinations within the city,“ he adds.

PROXIMITY TO PLACES OF EMPLOYMENT

Puri explains that just like Nariman Point and Bandra Kurla Complex, even Thane and Navi Mumbai are fast turning into commercial hubs attracting people living in the 30-40 kms radius for employment opportunities. “Places like Thane, which has got industrial zones like Wagle Industrial Estate, attracts people for employment prospects from its far-off suburbs like Badlapur and Ambernath,“ he says.

The state government too, on its part, has de veloped several places here for generating employment opportunities. The Maharashtra Industrial Development Corporation (MIDC) for instance, has developed an industrial area within the area governed by the Kulgaon-Badlapur Municipal Council. This industrial area is reserved primarily for chemical industries. The area has been developed in different blocks and has been laid out keeping in mind the needs of both, small scale and large scale industries. This development has stimulated the economic growth of the city.

Also, Ambernath has four industrial areas.Many big and small companies like CEAT, Go drej , Mahindra and Mahindra, ASB International, etc, have set up their offices there, thus prompting demand for real estate in the region.Apart from this, there are three central government establishments falling under Ordnance Factory Board and DRDO at Ambernath.

A FAST GROWING INFRASTRUCTURE

Bhavin Patel, managing director, Tulsi Estates, explains that the region has witnessed rapid development in the last few years. “Better quality roads have come up in this region in the last few years. The state government had also announced several infrastructure projects including the Shirgaon-Padgha-Titwala-Badlapur Link, Neral-Dasturi Naka-Matheran Road, Khopoli Bypass Road, etc. All these projects would also boost development,“ Patel informs.There are several other factors, which would ensure that demand for these areas would continue to be there. “Neral is in close proximity to Matheran, which is one of the hottest tourist destinations. There would be an assured stream of tourists coming to the area,“ Patel adds. The Maharashtra government has declared Shahapur as a centre for tourism. It has places like Mahuli and Aaja that are popular spots for trekking. Shahapur also has four dams at Tansa, Bhatsa, Vaitarna, and Modak Sagar, which together supply 2900 mega litres of water per day to Mumbai.

At present, average property rates around Neral are quoted at Rs 2400-Rs 2700 per square feet; while at Shahpur the same is trading in the range of Rs 2700 and Rs 3000 per square feet.

BETTER RETURN ON INVESTMENTS (ROI)

Puri explains that property buyers who have invested in these places in the last five years have got a 100 per cent return on their investment.“Due to the affordability factor, the ticket sizes for these investments are very small. Returns in the future would now depend on how soon the infrastructure projects are developed for these areas. Faster the development, higher would be the ROI,“ he says.

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