Thane Big Ticket Housing
In conversation with Maulik Sheth, Director Ashwin Sheth Group
Once a quaint city at the outskirts of Greater Mumbai limits, now, Thane is a bustling city. In other words, Thane has emerged as independent self-sustaining destination. Earlier, almost all homes were either under the affordable bracket or belonged to mid-segment, with times changing, now big ticket housing is making its presence felt.
In the last about 7 years, spacious and bigger apartments have increasingly come up in Thane. Such developments are largely concentrated in and around Eastern Express Highway, Wagle Estate and Ghodbunder Road. This has redefined real estate in Thane where homebuyers cutting across various income brackets can find a home. The property rates ranges from as low as Rs 50 lacs to around Rs 10 crore.
In the last 40 months, property prices have risen by 6.2% in Thane. Thane has fast become the go to destination for homebuyers. In fact, migration to Thane went up by 10 times, from 30,128 to 3.9 lakh between 2001-2011. As per a research, almost 7,860 new units were launched in Thane in H1 2019 while over 6,810 units were absorbed during the same period, increasing by 70% against H1 2018.
As compared to Mumbai, where price of a luxury apartment is nowhere below Rs 8-10 crore. In Thane, the same square feet of area with bigger open area is available for less than half the price.
Latest report by a real estate research company on the Mumbai Metropolitan Region (MMR) market states that though the new project launches remained subdued or rather declined by 14% during Q2 2019, but “Peripheral central suburbs recorded the highest new launch addition with a 38% share of MMR, followed by Thane at 19% and Navi Mumbai with 16%.” The same report adds on to highlight that despite the challenging environment for real estate, including in MMR in Q2 2019, majority of sales were in the peripheral central suburbs accounting for 32% of MMR, of which 15% along was in Thane.
Every one out of two units launched in the Mumbai Metropolitan Region, was accounted for by Thane and Navi Mumbai, as per JLL India’s latest edition of Half Yearly Release.
JLL’s report adds that Thane municipal region with 10,000 units launched in H1 2019, led the supply momentum capturing more than one-third share of launches.
Eastern Express Highway, Ghodbunder and Pokhran Road –II micro markets have been the preferred areas. Reputed developers like Ashwin Sheth Group holding large land parcels have launched units that are spacious with ample open area and Viviana Mall just next door. Ashwin Sheth Group’s under construction projects in Thane being Avalon and Zuri.
Inventory levels for big ticket projects in Thane are not high, which gets reflected in the research report – The Peripheries-Greater Mumbai’s Future Suburbs. As per this report, “majority of unsold stock in the Mumbai Metropolitan Region is in Mumbai and its peripheral areas. Thane city and Navi Mumbai account for nearly one-third of the unsold stock in the region and the trend has been similar during the past 5 years. Lesser launches in Thane and Navi Mumbai, coupled with better offtake compared to Mumbai (due to higher affordability) has kept the unsold stock in these regions on the lower side.”
Hence, Thane has finally earned the reputation for quality residential projects backed by better social and civic infrastructure. Moreover, Thane is surrounded by prominent business hubs such as Airoli, Powai and logistics hub Bhiwandi due to which the residential housing demand risen manifold. Secondly, this city has also witnessed an increase in office space development thereby office coming closer to one’s home.