– by Anuj Puri
Raigad in MMR is rapidly shedding its previous ‘blue-collar’ image and transforming into a corporate hub, finds leading real estate consultancy ANAROCK’s latest report Raigad: Mumbai 3.0. As knowledge partners to the event, ANAROCK released the report at the Real Estate Business Summit Raigad MMR organized by CREDAI MCHI Raigad today.
Following the government’s massive infrastructure push and a massive outlay of INR 100,000 crore investments, Raigad is seeing rapid industrialization and urbanization, leading to high real estate growth in the region. ANAROCK’s report highlights that Raigad’s overall residential market has outperformed its neighbors (including the island city of Mumbai, Navi Mumbai and Thane) in terms of property price appreciation.
Anuj Puri, Chairman – ANAROCK Property Consultants says, “While housing prices in Mumbai, Thane, and Navi Mumbai together recorded 9-17% growth over the last six years, housing in Raigad saw average capital appreciation of between 21-35% in this period. While these three cities are brimming with realty developments, Raigad presents an ideal alternative for collateral growth. The determined infrastructure push by the Maharashtra government is constantly enhancing Raigad’s connectivity to major areas in MMR, which has very positive implications for its real estate market across property typologies.”
Ateeque Khot, President – CREDAI MCHI Raigad says, “Raigad is one of the few areas in MMR – and indeed in the country – where residential prices have appreciated despite the larger challenges of the housing industry. Developers in Raigad have a massive opportunity for the construction of townships and major Greenfield projects. Already, Raigad offers a wide spread of housing at prices ranging from INR 15 lakh to INR 95 lakh. This region is riding high on its five pillars of strength, namely warehousing, industrial & logistics, tourism, office spaces, education, and residential developments.”
Industrial demand is gaining significant momentum in Raigad due to mega infrastructure projects including Dighi and Karanja Port expansion, and boosted connectivity via the upcoming Mumbai-Trans Harbour Link, Virar-Alibaug multi-modal corridor, and the new international airport at Navi Mumbai, among others.
Raigad’s adjoining cities have already seen significant growth and land availability is becoming challenging, placing Raigad squarely in the path of the ensuing spill-over demand. It is also an ideal focal point for real estate investments as a large part of Raigad’s development is still greenfield. This presents considerable scope for price appreciation.
ANAROCK’s report takes a deep dive into Raigad’s current real estate market dynamics, highlighting that many areas in Raigad district still offer affordable housing options within the critical INR 40 Lakh budget. These areas are quite liveable and have excellent connectivity to other key micro markets in Navi Mumbai, Mumbai, and Thane.
Despite these indubitable positives, property prices in Raigad district continue to be attractive when compared to other zones in MMR. As much as 57% of the housing supply here falls in the budget range of <INR 40 lakh, followed by 25%in the INR 40-80 lakh range. Only 18% of the overall supply in Raigad district is priced above INR 80 lakh. As the location profile improves amidst burgeoning infrastructure development, housing demand here will evolve and create more scope for high-end and luxury housing.
Other Report Highlights:
As on Q2 2019, Raigad has nearly 78,700 housing units across budget segments
- The region offers significant employment opportunities in 7 established industrial zones comprising 3,400 industries
- Property prices in Raigad start as low as INR 4,200/sq. ft and go up to INR 13,000/sq. ft. In contrast, properties in Navi Mumbai, Thane, and Mumbai start at INR 11,500/sq. ft. and much of the housing supply is in far-flung emerging areas.