Real Estate
Ulwe offers an opportunity to buy property in the costliest real estate market in the country at rock bottom rates
“More dreams are realised and extinguished in Bombay than any other place in India.” Gregory David Roberts (Shantaram)
The essence of Mumbai (erstwhile Bombay) is aptly captured in the
above quote, after all, it is the city known as the Mecca of Indian
films and the commercial capital of the country that attracts people
from all over India in the hope of making it big one day. The very
restless nature of Mumbai is rightly described in Maximum City by
Suketu Mehta, which attests the fact why the city has spread much
beyond the seven islands that it once comprised of, and why South Mumbai
is the costliest piece of real estate in the country. But, why are we
speaking about the costliest piece of real estate in our investment
destination section? That’s because, real estate in Mumbai despite being
one of the costliest in the country still has some pockets such as Ulwe
in Navi Mumbai available for pretty low rates (compared to other
regions in the megapolis), with great appreciation potential.The location. Previously, Ulwe was dominated by fishing villages like Morave and Shivaji Nagar. It was only around 2008-09 that developers began to unravel Ulwe and since then prices in this micro-market have been on an upswing. It is part of the Mumbai Metropolitan Region (MMR), Raigad district, and is maintained by the City and Industrial Development Corporation (CIDCO).
http://www.jaghey.comUlwe is connected with Thane-Belapur road through Uran Road, which
also connects it with the Jawaharlal Nehru Port Trust (JNPT) road
leading towards Jawharlal Nehru Port (Nhava Sheva). The central business
district (CBD) of Belapur in the region is only seven kilometers from
Ulwe enroute the Uran road. Besides CBD Belapur, there are five other
prominent office locations within the zone at a distance of around 22
kilometers of Ulwe. In future, Nerul-Seawood-Uran rail line, which is
currently under construction, will connect Ulwe with the suburban rail
network. This will happen through the Bamandongri railway station that
is expected to be operational by 2015. Proximity to the proposed
international airport will also benefit the real estate market in Ulwe.
Towards the south of the proposed international airport the Navi Mumbai
Special Economic Zone (NMSEZ) had been planned, but the project has been
shelved as of now.Capital values and rentals. Within the micro market of Navi Mumbai, Ulwe holds a special place, especially if you want to own a piece of this ‘maximum’ city. Capital values in the islands are high, and the price has escalated even in Navi Mumbai. And, this is where Ulwe has the edge. To give you an idea, in the first quarter of 2013 (calendar year) capital values in Vashi (in Navi Mumbai) were around Rs 10,000 per sq.ft. On the other hand, capital values in Ulwe were around Rs 4,000 per sq.ft.
A Knight Frank India study states that this discount of 60 per cent may come down to 38 per cent by 2017. Capital values in Ulwe have already been on an upswing in the past few quarters and the approximate value is in the range of Rs 5,500-Rs 6,000 per sq.ft currently. “There are, however, some high profile projects where capital values are between Rs 6,300-Rs 6,400 per sq.ft,” says Samantak Das, chief economist and director, research, Knight Frank India. The rental market in Ulwe is still at a very nascent stage. A lot of this has to do with the fact that the social infrastructure in Ulwe is moving at a slow pace. However, in the coming years, the dearth of social infrastructure will be addressed through the auction of earmarked plots for hospitals, schools and other real estate developments, as per the Knight Frank India study.
The options. Ulwe is primarily a residential locality and does not have much commercial developments in the area. If you plan to invest in residential properties, there is a host of options available from flats to plots.
Should you invest? While the micro market may not have social infrastructure to boast of currently, the future is certainly bright. Consider Ulwe as an investment destination as capital values in Ulwe may double in the next 36-42 months. Proximity to CBD Belapur and the Thane-Belapur road will also help in the development of Ulwe. Further, occupied office space in Navi Mumbai is expected to witness a growth from 13.5 million sq.ft to 25 million sq.ft. by 2017, resulting into increased investment potential in Ulwe. Also, other locations in Navi Mumbai like Vashi are very costly, with capital values of Rs 12,000 per sq.ft to Rs 15,000 per sq.ft.
Infrastructure development in this micro market is another factor why you should consider Ulwe. Once Ulwe is connected with the suburban railway, capital values in this micro market will only move up. Another project that has been pending for a long time and once it happens will give a fillip to the real estate market in Ulwe—the trans harbor link which will connect Ulwe to the island city. Also, Ulwe’s proximity to the IT/ITeS hubs works in its favour.
Holding period. While capital values in Ulwe are expected to double in the near future, if you plan to invest in this micro market it will be advisable for you to stay put for medium to long term to realise the full potential of your investment.
Despite the fact that the micro-market of Ulwe does not have a robust infrastructure currently, considering the locational advantage it enjoys, the expected appreciation value it may accrue and the infrastructural developments that are in the pipeline in this region, the future certainly looks bright.
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