THANE: The primary market for residential properties in Thane last year saw a near double the increase in quantum of flat sales compared to the previous two years. Experts attribute the rise to affordable realty rates and easy access to neighbouring cities that is fast drawing prospective home buyers especially the middle and higher middle class to the lake city who were looking for an option to Mumbai and Navi Mumbai.
An observation by global analysis firm Jones Lang Lasalle shows that the absorption rate (the absorption rate is the rate at which available homes are sold in a specific real estate market during a given time period) in the Thane primary market in 2015 averaged 19 flats per day, which is nearly double the count when compared to the sale in 2013, which was of 10 flats per day.
“The sales of new flats in Thane peaked at 6,800 in 2015 as compared to 3,700 in 2013 and a slight increase to 4,400 in 2014. Attractive rates and easy access to other cities in the MMR makes it a lucrative bet to purchase flats here. The civic infrastructure is also improving in this part of the region drawing buyers,” said Ashutosh Limaye, head of research services at Jones Lang Lasalle.
Meanwhile, the generation of new units remained modest over the same period. While 4,000 new units were released or launched in the market in 2013, the numbers swelled to approximately 6,500 each in the next two years. The first half of the 2016 calender year has seen nearly 2,000 flats released in the primary market.
In contrast, the inventory of flats has also risen from 6,200 units in 2013 to nearly 8,540 units by the end of June 2016. Meanwhile, the rates for residential properties at several pockets in the city have remained almost stagnant spare for a few exceptions.
“Builders have been including freebies instead of reducing prices of flats across the city,” said an industry player.
The consumption of the existing inventory of nearly 8,540 flats will not be a problem, forsees Limaye, adding that the city in the present scenario can easily exhaust its existing inventory in just seven quarters or nearly two years as compared to Mumbai that would require another three years or Navi Mumbai where the supply is exceeding the demand.
Meanwhile, the corporation has seen nearly 150 new proposals lined up for approvals in the present year that could add up to the existing inventory of flats. A senior official from the TMC’s town planning department said they have already issued nearly 1,500 certificates till the last fiscal year for various projects in the city and the scenario looks healthy for development this fiscal too.
In addition, the city has a potential of generating nearly 1crore sq feet of residential space, say realty players, estimating from the existing few industrial plots awaiting to be converted into residential zones in the coming few years.
Majority of the proposed projects are in Daighar, Kausa, Diwa, Kalwa, Kavesar, Shil, Panchpakhadi, Wadavli, Majiwade, Manpada, Naupada, Manpada and Kasarvadavli, inform experts.
“The city has a strategic location and has developing modes of transportation like metro and roadways. In addition, there is a stable cultural background and ample socialising avenues within the gated complexes in the city, which proves to be a good draw,” sums up Rajesh Gadgil, president, Thane real estate agents’ association.
Credits ET Realty