Affordable Housing in Mumbai- It’s Real!

Mumbai is a major metropolitan and financial hub of India. It is also the home of one of the biggest entertainment industries in Asia, namely Bollywood. The city attracts people from all over India, seeking better career and business opportunities. However, for most such people buying or even renting property in the city is often a major financial burden, given the skyrocketing prices of real estate in Mumbai. But thankfully, there are quite a few localities within the city, which can offer affordable housing options.

What is affordable housing?

Given the fact that the per square foot cost of a residential property in Mumbai is rarely in four figure range, any property that is available for less than 7,000/sq ft. is considered affordable here. However, in addition to the per square feet price, there are some other parameters based on the notification of the Union Ministry of Finance which marks a property as affordable in Mumbai.

• A unit which is not more than 60 square meters  or 645 square feet carpet area from now onwards will be noted as affordable home
• Affordable housing can be defined as those housing projects which make use of at least 50% space index of floor

Government announcements for affordable homes

The Maharashtra Government wants to develop close to 11 lakh housing units under its affordable housing project by year 2022. Developers who will take initiative towards building affordable homes will get some privileges in the form of exemption in tax.  The tax exemption will be calculated on the earned profits for first five years starting from 2016 in place of three years.

Affordable homes will be of 300 sq ft in case of 4 metro cities and 600 sq ft for the non metro zones. The selling price of these properties will be calculated on carpet area in place of build-up area.

Mumbai’s affordable housing hotspots

In Mumbai, there are some housing hotspots where you can find houses with 60 square meter areas as the maximum limit.

 

• Asangaon: Being an important part of Thane district and located at a distance of 70 km from the heart of Mumbai. Here, you can find some exclusive 1 BHK and 2 BHK apartments in the affordable housing category. A 1 BHK unit will cost you between Rs 10-15 lakh.

• Panvel: 

  One of the important areas of Navi Mumbai, Panvel surely offers some light for those looking for affordable homes in this region. One can easily have 1BHK units ranging from 350-600 sq ft, within Rs 20-35 lakh here in Panvel.

• Ulwe: Another promising location, 1BHK units are available ranging from Rs 24-30 lakh with mentioned sq feet areas.

 

Builders like Mahindra Lifespaces Developers Ltd, Sunteck Realty Ltd, and many other reputed real estate names are expected to launch their affordable housing projects very soon in some areas in Mumbai like:

• Mira Road
• Chembur
• Virar West
• Powai

Other factors to consider for affordable property in Mumbai:

Factors other than areas that contribute towards the affordability of a property are:

Connectivity:

Connectivity is an important aspect to be considered while accessing the affordability of a residential property in a specific locality in Mumbai. If the locality is not well connected, you can spend a considerable amount of money on commuting, which negates the benefits of getting the property at a low price. In fact, good connectivity is one of the major reasons that make people opt for a property within a slightly expensive area compared to the one that is in an affordable locality with poor connectivity.

Easy Availability of Amenities:  

To enjoy a comfortable living, easy availability of various facilities and amenities is essential. The proximity of markets, hospitals, schools, banks and other such civic amenities makes it possible to save considerable time and money, especially during emergencies. Localities that do not offer such civic amenities within a reasonable distance and also do not have any plans for the development of the same in the near future, cannot be categorised as truly affordable, even if the property prices are extremely low.

Type of Neighbourhood:

Although most people tend to overlook this aspect, the type of neighbourhood is an extremely important factor. This is especially true in the case of people looking for long-term and permanent property investment options. Living in the wrong neighbourhood can in no way prove to be a sound investment decision, even if the property is available at really cheap rates.

Safety Level:

Finally, finding an affordable house should not be given priority over security. Verifying the safety aspect while choosing localities offering affordable housing is extremely critical.