REAL ESTATE SECTOR POST COVID 2019( corona virus) – AN OPPORTUNITY – WHY TO BUY POST LOCKDOWN? Focus on Affordable Housing – Vasai to Boisar Belt.

πŸ”·οΈ We have tried to covered Affordable Housing Segment for Region of Suburban Mumbai – Virar – Vasai – Naigaon Region and Saphale – Palghar – Boisar Region.Which Area is best for investor and end user you? And Why you should invest or Not?Current stagnant Real esate Industry offers Attractive Rates & perks.

πŸ”·οΈ No one has never witnessed Such a Lockdown situation before in his life.The corona virus has effected the whole world.The Global economy has already slow down and can enter into crises in many part of the Globe.


πŸ”·οΈ Even developed countries and Super power like Italy, America will be worst affected. Almost all the industries-Travel and Tourism, Automobile, White Goods, IT, Retail etc are suffering huge losses.But these are temporary in nature only Till lockdown.

πŸ”·οΈ This not the first time Real estate space has seen such difficult times.In 2007-2008 Lehman Brother Crises which created Biggest financial crises all around the world.In 2016 Demonetization in country.But one good things about Real esate is, It had Overlooked all events & Situation within few months and prices of real estate has been kept rising over a period of time.Many times we say the Famous Phrase “Yeh Flat mujhe itne mein mil raha tha in year 2000″( I was getting this Flat at this rate in year 2000 now prices have shoot upto this level)

πŸ”·οΈ Many first time buyer who were looking to buy there House for the 1st time in year 2020.The current opportunity would give you more better deals and best offers to buy.One should take Advantage of such situation.

Why to Invest in Real Estate during Corona Virus phase and Post Lockdown?

πŸ”·οΈ If Maximum people feel the answer is No, I suggest that utilise this time to invest on sources of passive income. Yes, this is the best time to understand various possible investment options available where you can start your passive income and secure your future and safeguard your family.

Although there are options like SIP, Mutual Funds, Shares, Gold,FDS etc. THAN WHY REAL ESTATE??

πŸ”·οΈ Real Estate has proved to be the most reliable investment option so far considering the conditions of Banks, Share Market crash and No capital appreciation on any other option that may look safe initially and highly Risky.

REASONS WHY REAL ESTATE WOULD BOOM AGAIN ?

πŸ’’ COMPETING RISK REWARD : Based on July 2018 data from National Council of Real Estate Investment Fiduciaries (NCREIF), private market commercial real estate returned an average of 9.85% over the past five years. This credible performance was achieved, together with low volatility relative to Equities( Stock Market) and Bonds, for highly competitive risk-adjustment returns.

πŸ’’ TANGIBLE & REAL ASSET : Real estate is not paper money, this is the asset you can hold tangibly which again increases its reliability and return on investment over a period of time.In current Lockdown situation HOUSE is the Place To Stay Safe.# STAY HOME STAY SAFE#

πŸ’’ STABLE INCOME GENERATOR & PRICE APPRECIATION (wealth creator) :

The Rental yield from Real estate is much higher than traditional source of investment.In commercial space rental yields are as high as 2.5% to 7% also.But these requires huge capital investment and needs lots of guidance from experts.OR need to get Better property.Today Many Commercial property are Empty as no proper location or commercial not that successful in particular area.Residential yields are lower but it requires low capital and can create huge wealth over a period of time.

πŸ’’ INFLATION EDGE OVER OTHER ASSET CLASS : Real estate can be good inflation hedging vs other assets.As there is Growth in economy the Demand for Real estate keeps growing and that can keep driving Rent higher.And this can yield higher capital values.

πŸ’’ WHY REAL ESTATE DURING LOCKDOWN or POST LOCKDOWN?

Probably most of the people interested in buying real estate would be holding their decision till the lock down opens due to speculations in the market or risk pertaining to economic conditions. Yet for any clever investor who is observing the current market will testify buying of real estate during lock down or so AFTER Lockdown opens it can prove to be the smartest move.

πŸ’’ DEMAND DRIVES REAL ESTATE VALUE : Real estate is facing deficit demand in the market due to Lockdown situation. which leads to generation of various attractive offers by Developers.Currently developers are opting for online promotion and Giving Special offers and perks to maintain its sales.End Users can a better deal Currently and also AFTER Lockdown for next few months.Once festive season starts the sales can see some UPMOVE.

πŸ’’ HOUSING LOAN AT HISTORICALLY LOW DUE TI REDUCTION IN REPO RATES:

Last week RBI had made announcement to reduce REPO rate by 0.75% basis point.This has resulted in Reduce Housing loan Rates.So indeed this is good time to buy your home at lowest interest rate.one should check interest rates from all LEADING banks and Nbfc before taking a Housing Loan. Few Best Banks & Nbfc to take loan for easy and smooth process are – HDFC,ICICI, LIC HFL,AXIS,SBI & TATA CAPITAL

πŸ’’ PASSIVE INCOME CREATOR : Various small investment options are being introduced in the market starting as low as starting from 15 lacs in real estate that too with a rental income generator. This is again an opportunity to create a separate asset class in your portfolio and start a source of passive income.

🏘FEW IMPORTANT POINTS TO CHECK BEFORE BUYING ANY PROPERTY 🏠

ALL ABOVE CAN CREATE PROPERTY APPRECIATION.

πŸ’’ DEMAND FOR BUDGET HOUSING TO REMAIN STABLE POST LOCKDOWN IN FEW AREAS :

In very highly priced markets like Mumbai Where in few pockets prices are Reaching out of reach of common man.one needs atlest 1.10cr to 1.50cr to buy average 1BHK in belt of Borivali to Andheri. One space which offers Budget Housing would see the recovery very early and Demand to remain stable or can start picking with start of festive season.But even those space have to bear the Brunt for atlest 3 to 6 months as things get normal.Many upcoming Areas Near Mumbai on western line areas like Naigaon, Vasai, Virar, Saphale, Palghar & Boisar are gaining attention. All are well connected with Rail,Roads and promise a better infrastructure development in future also And Already seen as Extended part of Mumbai. Let’s Talk in Detail about this Region.

πŸ’’ INFRASTRUCTURE DEVELOPMENT IN NAIGAON – VIRAR REGION : There are many ongoing and future proposed development in this region like Virar- Alibaugh corridor,Vasai Creek Bridge,Metro 7 project between Virar & Borivali,New industrial Getting Setup,Bhayander – Naigaon Sealink.With these heavy turnaround one can expect Good Demand for this region

WHY TO INVEST IN NAIGAON- VASAI-VIRAR?

πŸ’’ NAIGAON – Well connected with Mumbai by road and Railway.Also has Juhuchandra station on vasai- Diva Railway line.Its developing area.All inclusive Average price for 1bhk in area ranges between 30L TO 38L.Many Good and Big projects available innarea.Only concern is available of potable water in area. There are No Multiplex,Big Schools, Hospital, Restaurants or Shopping brands like Big Bazar or Dmart.But surely over a period of time all would be available.But Wait can get longer.

πŸ’’ VASAI – once also Know as BASSEIN has now Transformed into well know developed region and extended part of Suburban mumbai.Well connected with rails on western line and also on central line Till diva and Panvel.Also stops to many Long distance trains. Vasai east and west both are very well developed.Has 4 to 5 Multiplex like Dattani, K.T vision, K movie star &Broadway cinemas and 2 malls in east and west.Well developed roads and infra and many house to many big and small scale industries.House to many leading brands you name it and its present- Big Bazar,Dmart,Vijay sales,Mufti,Decathlon etc.Many Good school and college and Famous Vidhyavardhani Engineering college & Technology . Vasai also has all kinds of Big Brand showrooms of 2 and 4 wheelers. Many Big brands & chain of Restaurants like Post office, Whatever happens, Urban juice cafe, Pizza Hut, Dominos,Borivali Biryani center,McDonalds etc.

Vasai also has many Historical Temples,Churches and Fort.It also has Famous Suruchi and Bhuigaon beach. Sharing autos available to maximum all parts which makes life easier for any middle class and Has many green regions and congestion free areas. It has Many good projects ongoing projects – Average 1BHK price ranges ( All Inclusive) – 30L to 42L in high rise towers.2Bhk – 42L TO 60L and varies as per area and location and Ameneties offered. Potable water is not an issue here anymore.Maximum places have water supply.The place where VVCMC(Munciple) water is available that area is higher in demand.make sure you check with developer water status before buying a property.Also check areas where there is no water logging during Rainy season that can be added edge in property APPRECIATION in future.

πŸ’’ VIRAR – virar has developed well in few years.Well connected with Rail and Roads with mumbai.Also has many good school and Big viva college which offers all kinds of courses.Has all brands like Dmart, Big Bazar, Pantaloons and a multiplex Rockstar.it has all big brands restaurants also from Macdonalds to Pizza hut to everything you need.Has famous Jivdani Temple located on Hill along with numerous Beaches and Arnala Fort.And Biggest Anusement park – Yazoo park.

Area has many good projects.Average 1bhk prices( All inclusive) in west ranges from – 27Lacs To 38Lacs and Virar east prices are bit on lower sides – 25Laxs To 32 Lacs. 2BHK price(All inclusive) ranges from 40 Lacs to 60 Lacs Approx. Many areas in virar had still not achived potable water from VVCMC.One should check with Developer before booking.Sharing Autos are available to maximum all parts.

πŸ’’ SAPHALE – Saphale might be unheard name by many Mumbaikars still today.Its one stop from virar Towards Dahanu and takes only 15 minutes to reach by local train from virar.Extension of Local train Till Dahanu has emerged a Boon for Saphale and has contributed in its development.Though the Region dosent have big school or multiplex or big brand Restaurant.But local market supports all that is needs to make life easy.

One can expect future development like vasai – virar region in next 5 to 10 years and those factors can can create price APPRECIATION in future. Even four track railway expansion going on between virar – Dahanu.Those whose budget dosent fit in Vasai-Virar Region are attracted to invest in this upcoming developing region.It has many Good projects available in region.Small Flats 1RK can be in range of 10Lacs onwards and 1BHK can be in Range of 14.50 Lacs To 18 Lacs Approx.Ground water is available in maximum areas and projects.

πŸ’’ PALGHAR & BOISAR : While budget is the main factor that influences a home buying decision, locations that offer job opportunities are also considered by home buyers. Palghar & Boisar, an industrial town is one of Mumbai’s fastest-growing Extended suburbs. The proposed infrastructure and real estate projects in the area, are likely to transform this location into a prominent residential hub.Palghar & Boisar both are Governed By Gram Panchayat.

There are Dmart and Bigbazar to cater shopping needs.Single screen theatres.Shopping arcades and numerous Healthcare centers.Buyer who needs better Quality life in clean and Green Environment and Also well connected with Roads and Local Trains.One has to travel atlest 1 hours to commute from virar and 1.30 hrs from Borivali.Boisar also has MIDC & Many big industries creating huge job opportuniti

Both palghar and Boisar areas near station are in high demand prices are high in 2 km radius from station.Many good projects available with all INFRA.Average 1RK prices (All Inclusive) are around 10 Lac to 15 Lac and Average 1BHK rates ( All inclusive) are ranging between 16.50 Lacs To 25 Lacs.Some area command premium to above rates as per location and proximity.Despite the rapid developments, infrastructure and civic amenities are still below standard in the area. Bad roads and drainage systems, water shortage and load shedding are other issues in few areas.

COMMERCIAL SPACE IN NAIGAON TO BOISAR REGION : It is difficult to get exact rates of commercial units.because prices vary from location to location and it also depends on needs of Buyer and seller.filters like Visibility and footfalls are used to get average value of property.Genrally this space needs huge capital.Rental Yields for commercial shops and offices ranges 2.5% to 7% P.A in maximum areas.Bigger and pre leased properties comment better rates and Rental yields.Rental also vary from location to location and depends.Shops starts from 15 To 20 Lacs and can go as high as 2 to 3 cr also or beyond that also.Main Road TOUCH shops are sold at premium and can be easily Resaled compared to shops on internal roads.But again both have huge difference.As Residential area grows demand for shops and offices starts growing up in particular area.Both has its owns pros and cons.

Demand- Supply Breakthrough: 

Due to Lockdown low demand currently can fetch you discounted rates on good inventories.But once the economic condition will start settling, the bargain will reduce and demand will also start floating upwards. The rates will not be as low as they are now during lock down period.As a smart investor one should look at current situation to crack a better deal as many attractive offers currently available in markets.

Strike the iron when it is hot: We all must have heard this at least once Hindi version -“Maar Do Hatoda Jab Loha Garam Ho”.Currently its time to implement the strategy to gain extensive returns on the investment. Not only the rate are striking low, Even housing loan Interest rates are at Historic low levels and Many Builders offering Many offers and perks for buyers, Which wont last longer – as situation gets better prices can gradully see north moves.

STAY WITH BRANDS AND GOOD DEVELOPERS ONLY

Chose location which are well connected to School, College, Markets,Banks,Multiplex,Restaurants, mode of transport- Railway, Highway & Metros. Project situated on Main Roads are much in demand as these projects offer better connectivity and Can give Good RETURNS value in longterm. Look for Bigger complex as it has all amenities and can have advantage in future for resellers and trends are changing from single owned building to bigger complex.

Current situation is giving an opportunity to buy real estate Property now, yet always go for a grade one category developer. During lock down, you have additional time to do your diligence about the projects, builder background and future prosperity of the investment. Use this time to chose best proposition for yourself, take expert advice and than book your dream asset.All new projects has to be registered with RERA( Real Estate Regulatory Authority)& also look Developers which are Registered with CREDAI (Confederation of Real Estate Developers’ Associations of India)

πŸ’’ THE FINAL OUTDRAW TO CHOOSE BETWEEN VIRAR/VASAI/NAIGAON & SAPHALE/PALGHAR/BOISAR :

If any one Wants To choose Real estate investment in virar – Vasai & Naigaon Belt – Vasai is most preferred location in terms Development infrastructure and future price apprection prospects, This region can become huge Center in next 10 years and can create Huge wealth over a period of time.

And Saphale has it’s own proximity to Other parts of mumbai and Virar- vasai. While those willing to travel a bit than Palghar and Boisar are Better Options.

πŸ’’ PRICE APPRECIATION IN VIRAR -VASAI REGION IN LAST 20 YEARS :

If we see price APPRECIATION history in virar-Vasai region in last 20 years from 1999 to 2019 . In 1999 Average price of 1BHK which was available close to 3 Lacs was Quoting at around 30 Lacs to 32 lacs in year 2019,Giving almost 1000% Returns in last 20 years OR you can say Property prices has appreciated almost 10 Times in last 20 years.

HISTORICALLY 1999 TO 2019 PROPERTY PRICES HAVE RISE ALMOST 10 TIMES IN
VIRAR VASAI REGION.

πŸ’’ Even in last 20 years there were many Events Globally and Many problems in India also like in year 2000 Dot burst, 2007-2008 Financial crises Due to Lehman Brothers all over world.2016 Demonatization such events had severe effect long lasting effects on real estate price. But Overcoming all these events property prices have kept appreciated in almost all parts of India.

πŸ’’ If We go by History of past 20 years of Virar – Vasai Belt.And consider future price prediction in terms of price and percentage ,If we consider same trend to follow returns and factoring in few MELTDOWN also.Than 1BHK which is available at 30 lacs today can shoot till 3 crore in year 2040.The faster the infrastructure, Faster would be the appreciation in region or particular area.

Disclaimer – All Views expressed by Author are only for Educational and study purpose only.Consult your financial advisor before investing or taking any position based on above article.

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