6 Reasons Contributing to Rise in Demand for Properties in MMR

If Mumbai is the City of Dreams, then MMR is certainly the Region of Dreams for many Indians. Today, the Mumbai Metropolitan Region (MMR) is one of the most populous and economically vibrant regions in India. For the uninitiated, MMR is a region that comprises the city of Mumbai and its surrounding areas, covering a total area of 4,355 sq. km. As far as the population goes, it is presently estimated to be around 2.6 crores – one of the densest in the country.

This population and economic boom in MMR have walked hand in hand with the rampant growth of lucrative real estate micro-markets in the area. For example, ask any real estate investor to pick a region to invest in India, and you wouldn’t be surprised to hear suggestions like ‘invest in a property in Navi Mumbai´ or ‘buy a flat in Thane’. This is because the MMR has always been a preferred destination for real estate investors owing to its strategic location, connectivity, infrastructure, and cultural diversity. 

In recent years, the demand for properties in MMR has increased significantly, driven by various factors. What are they?

In this blog, we will explore some of the reasons that are contributing to the rise in demand for properties in MMR.

• Affordable housing

The government's initiatives to provide affordable housing to the urban poor have boosted the demand for properties in MMR. The Pradhan Mantri Awas Yojana (PMAY) and MHADA schemes, which offer subsidies and tax benefits to eligible buyers, have made homeownership more accessible and affordable for many people. The schemes have also encouraged developers to launch projects in the affordable segment, catering to the needs of the low and middle-income groups. According to a report by Anarock, the MMR accounted for the maximum share of sales of affordable housing in India in the first half of 2023 among the top 7 Indian cities. This figure stood at 37%. 

• Infrastructure development

The MMR has witnessed significant infrastructure development in the past few years, which has improved the connectivity and liveability of the region. Some of the major projects that have been completed or are underway include the Mumbai Metro, the Mumbai Trans Harbour Link, the Coastal Road, the Navi Mumbai International Airport, and the Mumbai-Nagpur Expressway. These projects have reduced the travel time and congestion between different parts of the MMR, making it easier for people to commute and access various amenities. They have also opened up new areas for real estate development, such as Thane, Navi Mumbai, Palghar, and Raigad.

• Work from home

Today, whether you plan to buy a property in Navi Mumbai or any other region of MMR, you think about remote work feasibility. Many companies have adopted work-from-home policies, allowing their employees to work remotely from anywhere. This has increased the demand for spacious and comfortable homes that can accommodate home offices and other facilities. People are also looking for homes that are closer to nature and offer a better quality of life. As a result, many people are moving from the congested and polluted areas of Mumbai to the greener and quieter suburbs of MMR. According to a survey by ANAROCK, 43% of home buyers prefer to buy homes in peripheral areas post-Covid-19.

• Lifestyle preferences

The MMR offers a diverse and cosmopolitan lifestyle that attracts people from different backgrounds and cultures. The region has a rich heritage and history, as well as a vibrant art and entertainment scene. The MMR also has some of the best educational institutions, healthcare facilities, shopping malls, restaurants, and recreational venues in the country. People who want to enjoy a high standard of living and a variety of options choose to buy properties in MMR.

• Rental income

Another reason that drives the demand for properties in MMR is the potential for rental income. The region has a large population of migrants, students, professionals, and tourists who need accommodation on a temporary or permanent basis. The rental market in MMR is robust and lucrative, offering attractive returns to property owners. According to Anarock, the average rental yield in MMR was around 3 to 3.8%, which is higher than the national average.

• Future prospects

The MMR is not only a thriving real estate market but also a promising one for future growth. The region has several upcoming projects that will enhance its attractiveness and value proposition. Some of these projects include the Delhi-Mumbai Industrial Corridor (DMIC), which will create new industrial hubs and employment opportunities; the Smart City Mission, which will transform selected cities into smart and sustainable urban centres; and the Bullet Train Project, which will connect Mumbai with Ahmedabad in less than three hours.

Conclusion

These are some of the reasons that are contributing to the rise in demand for properties in MMR. Undoubtedly, the region is expected to witness further growth and development in the coming years, making it one of the most sought-after real estate markets in India. So, if you are indeed planning to invest in a property in Navi Mumbai or some other lucrative locality in MMR, now is the time to take that decision!