Kalyan-Dombivali: Low prices, good connectivity attractive for home buyers

The Kalyan-Dombivali stretch serves as a housing destination for mainly lower- and middle-income groups. The region, about 40 km from central Mumbai, it has seen significant increase in investment in real estate, primarily in the residential sector, in the past couple of years. This area has developed rapidly because of rising property prices in the suburbs of Mumbai and the growing demand for affordable housing.

Kalyan is one of the major railway stations on the central line of the Mumbai Suburban Railway network. It is also the third-busiest station in the suburban railway network, after Thane and Andheri.

The new Central Business Districts (CBDs) in Mumbai's suburbs and periphery will be the new economic growth drivers, and, in turn, will drive demand for locations such as Shilphata, Kalyan, Dombivali or Titwala. With economic activity shifting from old CBDs to Thane, Navi Mumbai and its periphery, locations in the Kalyan-Dombivali's periphery are bound to grow. This stretch attracts investors mainly from the Mumbai region because of affordable prices and better connectivity.

The stretch comes under Kalyan-Dombivali Municipal Corporation and forms part of the Mumbai Metropolitan Region. As the connectivity of the stretch improve in future, these locations will gain strength as affordable housing destinations. Already, this twin city has a large industrial belt to its south-east, from Kalyan to Badlapur. Besides, there are several small- and large- industries that generate demand for affordable housing.

The major challenge this belt throws up is that the time taken to travel to Mumbai's CBDs is significantly high, as the mode of mass transportation is the suburban local train. This is one of the major reasons why the area mostly houses people who work in areas in closer vicinity, such as Thane and Navi Mumbai. Another challenge is the lack of social infrastructure. As the area is still developing, it needs well-developed retail, hospitals and education, among others. The situation is improving due to increase in demand. The government's initiatives have brought several regulations and funding for the implementation of infrastructure. Several projects are underway, which will improve connectivity.

Those buying properties here should check the developer/project profile like market credentials, financial strength, past delivery track record, capacity to manage multiple projects, project approvals and home loan availability, involvement of credible partners or private equity firms etc. before making a purchase decision.

The writer is head, strategic consulting (west), JLL India