Better homes, well-defined infrastructure and strong connectivity gives Thane an edge over other suburban locations near Mumbai. With state-of-the-art hospitals, multiple educational institutes and recreational facilities, Thane has attracted buyers who are looking for better lifestyle at an affordable cost. With huge development across Thane, leading developers like Hiranandani, Rustomjee, Kalpataru, Lodha, Shapoorji Pallonji and Dosti Realty amongst others have either announced their projects or have ready to move in properties.
Manish Joshi from NewsBarons connects with Prashant Thakur, Director & Head-Research, ANAROCK Property Consultants, who informs ‘The ongoing metro project in Thane, once fully operational, will help boost real estate activity in the region because it will ease connectivity with Mumbai even further’.
NB: Thane seems to be attracting all leading developers?
Prashant: At a time when land became a rare and expensive commodity in main island of Mumbai, several leading developers went ahead to purchase land in nearby Thane where its prices were much lower. With many of these leading developers having land banks here, they are now looking to launch new projects. Moreover, Thane boasts of good social and physical infrastructure facilities with easy connectivity to major areas in Mumbai via Eastern Express Highway and Ghodbunder Road. The upcoming metro when operational will further boost connectivity between Thane and other major areas of Mumbai. As for homebuyers, property prices are still fairly cheaper here in Thane than the financial capital and those who cannot afford a home in the later consider Thane as a viable option.
NB: Is Thane a case of oversupply and limited demand?
Prashant: We cannot say that there is case of oversupply in Thane and limited demand. If we consider trends, properties priced less than INR 1.5 crore are high in demand here by the homebuyers and developers are adhering to this trend as far as new supply is concerned. As per ANAROCK 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.
NB: There is a huge price variation between projects in Thane?
Prashant: Our research suggests that over 89% of the total 7,860 new unit launches in H1 2019 in Thane were priced within INR 1.5 crore. Out of this, nearly 57% were in the price bracket of INR 80 lakh to INR 1.5 crore budget range while remaining were in the sub INR 80 lakh budget. Only 11% (approx. 880 units) new units were in the luxury price bracket.
NB: Will developers be looking at price correction to attract buyers?
Prashant: Prices are at their lowest best in Thane and will most likely not see any major price correction in the primary market. Given that the cost of construction is only rising, it is unlikely that builders will lower the prices in the primary market. As for secondary market, those looking to exit the market immediately may offer good discounts, particularly in those areas where there is ample supply but limited demand.
NB: Will the recently announced rate cut boost consumer sentiments?
Prashant: No doubt, consumer sentiments do get a boost when rate cuts on home loans are offered to home buyers but to say that these impact housing sales significantly is not entirely true. While affordable housing may see some improvement as this highly budget-sensitive segment already has the benefit of other incentives and any downward revisions in interest rates can and do make some difference. However, the reduction in rates will not do much for mid-income housing in tier 1 cities where the main concern is unaffordable property prices and not interest rates.
NB: From a long term perspective, is Thane an ideal investment destination?
Prashant: The ongoing metro project in Thane, once fully operational, will help boost real estate activity in the region because it will ease connectivity with Mumbai even further. With better connectivity, the surrounding areas will soon emerge as thriving residential markets. Moreover, various commercial developments in Thane will further push residential demand in the area. The IT sector in Thane has already started developing and is set to flourish in the future with various upcoming IT park projects lined up for future development. This will play a major role in the future growth of the city.