The constant quest for mid-income homebuyers in Mumbai
is for areas that are relatively affordable, yet provide the necessary connectivity and adequate social and general infrastructure.
With these requisites in mind, there are many growth nodes in the Mumbai
Metropolitan Region (MMR) that are attracting end-users and investors. Affordability and connectivity with the major city centres make these areas prime locations, which naturally also attracts the attention of developers. One such area is Ambarnath, located just beyond Ulhasnagar in Thane district, which has emerged as one of the leading destinations for affordable housing around Maximum City.
Over the last few years, this micro-market has shown impressive industrial growth, with several national and multinational companies operational there. Some of the factors that have worked well for Ambarnath are:
Good connectivity with Badlapur - an important railway junction in MMR. Kalyan, Dombivli, Bhiwandi and Ulhasnagar are also easily accessible.
Some of the important roads such as Pipeline Road, Kalyan-Badlapur Road, SH-76 and NH-222 pass through Ambarnath.
The civic and social infrastructure here is growing rapidly on the back of the increasing population.
The presence of a large industrial contingent drives residential demand from the blue-collared workforce to Ambarnath.
Also, tourist destinations such as Matheran and Titwala are close by.
About a decade ago, despite the rapid development, infrastructure and civic amenities in most of the suburbs in MMR, especially on the western and central line, were fairly poor. With more developers focusing on providing housing in Ambarnath, these factors have seen a significant upgrade. The area also has reputed educational institutes and healthcare facilities, along with shopping malls and multiplexes.
The most preferred residential configurations in Ambarnath are one and two Bedroom Hall Kitchen (BHK) apartments, followed by a much smaller share of three BHK flats. The built-up area of a one BHK apartment ranges between 630-730 sq. ft, while that of a two BHK apartment varies between 850-1,060 sq. ft. The approximate built-up area of a three BHK apartment is about 1,000-1,300 sq. ft.
The property prices here average between Rs 3,700-4,200/ sq. ft. Ambarnath has registered appreciation of about 14-17 per cent over the last two years, with the last quarter alone delivering a 5 per cent price growth. A one BHK apartment here generally costs between Rs 20-30 lakh, and two BHK prices range anywhere between Rs 25-40 lakh, while three BHKs are priced between Rs 35-55 lakhs. From an investor perspective, Ambarnath obviously has a lot to offer. The rental market here is quite strong, with a rental yield of about 4-5 per cent.
All in all, Ambarnath has a lot going for it. With good growth potential on the commercial and residential real estate
fronts, it promises good returns over the mid-to-long term for investors.
The writer is COO - Business & International Director, JLL India