Madh-Marve, Ulve top investment hot-spots, says Knight Frank India

Despite slowdown in the property market, Mumbai remains the most lucrative investment destination in India, says Knight Frank advisory report, which was opened on Wednesday.

And in Mumbai, Madh-Marve and Ulve are the preferred destinations for the investors where the property prices will witness a boom.

Knight Frank – the global property research and brokerage firm – recommendation comes after evaluating the top residential destinations across five major cities, keeping in mind need of the homebuyer from an investment point of view over the next five years (2015–2020). The report also reviews the previously recommended destinations three years ago (in 2012).

"In Mumbai, Madh–Marve and Ulwe are identified as the top destinations, with an expected price appreciation of 94 and 70 per cent respectively, thereby emerging as a promising asset class for the next five years. Majiwada–Kasarvadavali will also experience a price appreciation in future," stated the report.

Ravi Patil from the Mangalmurti Construction Group, which has projects in Ulwe, said Ulwe is top destination because of its proximity to proposed Navi Mumbai International Airport and Nava Sheva-Sewri trans-harbour link.

"If the trans-harbour link, which has been pending for last 20 years happens, then one staying in Ulwe can reach Sewri in 30 minutes. The connectivity is the key and the same is the case with the Madh–Marve. Government should undertake these projects that will throw open huge chunk of the lands in affordable rates. These two locations have potentials to bring down the Mumbai city prices drastically," said Patil.

The new Airport Road, in Viman Nagar in Pune, is identified as a potential location, with an expected price appreciation of 63%, thus moving Pune's ranking up to third place, while Vishrantwadi is to witness a 55% growth appreciation.

While the Golf Course Extension Road and New Gurgaon emerged as a potential destinations for residential investment, NCR's ranking has come down drastically compared to 2012 due to the overall real estate scenario bottoming out.

However, the property experts said these are just predictions and need not come true always.

"In fact, Ulve is an odd location with no proper drinking and other municipal facilities. A few years ago too they had come up with a similar prediction," said an expert requesting anonymity. "The problem is people flock to invest. But when nothing changes on the ground, the frustrated investors will have to dispose it at the same price or even lower," he added.

Mudassir Zaidi, national director, Residential Agency said, "Real estate industry is cyclical in nature and we anticipate that we are at the end of the cycle of slowdown. The wave of positive sentiments is quite evident and the recovery is getting stronger."

Dr Samantak Das, chief economist & national director – research of Knight Frank India said the residential sector is reeling under tremendous pressure since the last couple of years, with price appreciation in most cities not even able to exceed the inflation rate.

"We have identified 11 locations spread across Mumbai, NCR, Bengaluru, Pune, Chennai and Hyderabad that will provide the maximum price appreciation in the range of 41% to 94% in the coming five years," he added.