How Investment in Andheri Properties is Paying Off Premium to Foreign Investors?
14 March 2016
You would agree that most of the investor flats in any new residential project or even slightly older ones, belong to NRIs or people who are temporarily living in some foreign country. This is because only someone who is earning in a foreign currency (several times the Indian currency), will he / she be able to generate such significant income to be able to invest in real estate. Of course, there are businessmen who do make such investments. But, from the salaried class, its mostly the NRIs or Indians in foreign land, who can think of real estate as a great investment alternative. And there are many of them who invest in new residential projects in Mumbai!
Over the years, there have been different locations in Mumbai, which have proved to really fruitful to real estate investors. And one such area is Andheri! It is one of the largest areas of Mumbai (considering the east and west side), and well-connected to most places in Mumbai. Be it the western suburbs or the town side (BEST buses and local trains galore), or even the central side (thanks to Metro trains).
The most attractive thing for NRIs or people who are not used to long intra-city travel, thanks to the international exposure, is that Andheri is extremely close to the international airport of Mumbai (Chhatrapati Shivaji International Airport). So, even if the foreign investors visit any other city or town of India, they can easily come to Mumbai to check their flat in Andheri, where they have invested. And more often than not, most international locations have perhaps the best connectivity from Mumbai airport in India.
Now, the question arises as to why should one invest in flats in Andheri? Apart from the connectivity and airport proximity, there are certainly numerous other factors that make this as a prime location for different types of real estate investors. Most important consideration for many is the price of investment. Depending on the timing of your investment (before the start of a new development project or just before possession or second hand deals), you can expect to invest in homes in Andheri for prices as listed under:
- Price range of Rs.13,500 per square feet (psf) to Rs.20,500 psf in Andheri East for 2016, against price range of Rs.9,500 psf to Rs.11,500 psf in 2010
- Price range of Rs. 16,000 psf to Rs.28,500 psf in Andheri West for 2016, against price range of Rs.13,500 psf to Rs.15,200 psf in 2010
To think of it, the highest prices were hovering around Rs.15,200 psf (for Andheri West) and Rs.11,500 psf (for Andheri East) in late 2010. So, the rise has been phenomenal. And it continues at a steady pace every year!
The Andheri-east area is famous for the numerous offices at SEEPZ and MIDC. It is a hub for several office goers, and also offers easy connectivity to the other office hubs in Mumbai like Vikhroli.
And the Andheri-west area is fast becoming the new Bandra, i.e. a premium location. With posh areas like Lokhandwala, Versova and near the link road, Andheri has always received a significant demand for residential homes. And some other highlights of Andheri that care of people’s needs are:
- Access to great car showrooms like Audi, Mercedes, BMW, etc.
- More than 150 cuisine and specialty restaurants for dining,
- 24/7 Medical stores and Hospitals
- International Schools and colleges like Bhavans, S.P. Jain, etc.
- Malls like Infinity, Fun Republic, and so on
Also, it is the final stop before the highly premium localities of Juhu, Vile Parle and Bandra begin. And there is limited scope for housing development projects in these areas, as they have always been occupied to a great extent, with hardly any free space for new developments. So, there is huge demand for housing in Andheri area, from people living in western suburbs, and who want to get closer to the town at not so high prices.
All these factors have always worked in favour of Andheri, and given great returns on investment to people who have purchased homes at the right time. It was one of the biggest booming areas during the last real estate boom that started from 2007-08, and is likely to continue in the same vein when the next boom occurs. So, there is a good reason to believe that there is no better time for foreign investors than ‘NOW’ to invest in a 1 BHK flat or a 2 BHK flat in Andheri west or Andheri east, and see their money grow in years to come!