Prashant Thakur, Head – Research, ANAROCK Property Consultants
Ambernath, a well-developed industrial micro market of Thane district, is famous for the wealth of medium-to-large scale industries in its purview. The locality is bisected into east and west sections by the central suburb railway line that starts from Chhatrapati Shivaji Maharaj Terminus (CSMT) and passes via Thane, Kalyan and ends at Khopoli.
Ambernath’s growth took off when the Government established a large Ordinance factory (OFA) and a Machine Prototype Factory (MPF) here. These industries prompted residential real estate developments and also encouraged other medium-to-large scale industries to establish their manufacturing base in the city.
With the rapid industrialization of Ambernath-Badlapur MIDC area and the excellent central railway line connectivity between Thane, Kalyan and Ulhasnagar, working professionals of these micro markets see Ambernath as an affordable option to meet their housing needs. Thus, Ambernath is transforming into one of the major affordable housing destinations of MMR.
- Road: Ambernath has an excellent connectivity to Kalyan via Maharashtra SH 80 and Thane via NH 160. It is connected to Pune via Bengaluru – Mumbai Highway which is less than 3-hour drive
- Rail: Ambernath has a local MMTS station on the central railway line.
- Air: Chhatrapati Shivaji International Airport is a 1.5-hour drive from Ambernath (50 km away). The proposed Navi Mumbai Airport will be a just one-hour drive from Ambernath via Badlapur-Katai road and NH 48
- Since 2013, around 17,300 new residential units have been added in this micro market. Of this, more than half of the launches (around 57%) were added during 2015-17 and an additional 33% came in 2013-14.
- Huge employment opportunities, wide industrial presence and availability of land has triggered residential real estate growth post-2013.
Despite the slowdown in MMR’s residential real estate post general elections in 2014, Ambernath’s real estate performed well in terms of supply and capital value appreciation.
In 2017, new launches dropped by 55% as compared to 2016. This was primarily due to ambiguity post RERA implementation and the overall burden of existing unsold inventory in the market (around 8,600 units as of Q1 2018).
- Nearly 34% (around 6,000 units) of the total supply since 2013 is in ready-to-move-in stage and nearly 15% units (around 2,600) will enter the market in less than 12 months. This gives a wide range of options for the home buyer.
- Around 40% units (~7,000) of the total supply is likely to enter the market within 12-36 months.
- Ambernath is a definitive affordable housing destination of MMR, with close to 95% of the total supply falling within the Rs. 40 lakh price bracket.
Ambernath has good social infrastructure facilities in the form of healthcare, educational institutions and retail outlets for day-to-day requirements.
Data indicates a healthy supply of new units entering Ambernath in the coming years, which will give more options to homebuyers. Also, it will tighten the competition for developers who wish to enter this micro market.
That said, property prices in Ambernath have seen decent appreciation since 2015 and the trend has been more or less consistent over this period. This micro-market has registered a rise of ~5% CAGR during the period 2015-18 (Q1).
Data suggests that Ambernath’s realty market is experiencing an upward trajectory with capital values seeing price appreciation post Q2 2015. In addition to its other market drivers, ITC now plans to set up a world-class food processing plant here.
This means that Ambernath will see considerably increased real estate activity even as its easy accessibility to Mumbai, Thane, and Kalyan-Dombivli continue to be distinct advantages. Also, MMRDA’s infrastructure upgrade plans for Kalyan-Ambernath area and is also likely to boost housing demand in the near future.
Industrial workers from Ulhasnagar, Ambernath, Badlapur and Anand Nagar MMIDC view this buzzing affordable residential hotspot of MMR as a preferable housing destination.