The economic slowdown has brought greater rationality to real estate prices. With prices correcting in overheated pockets of metros and tier II cities, residential real estate has become more affordable and the scales have tilted in buyers’ favour.

While an investment in residential property may yield lower returns than an investment in commercial property, it is safer, especially if the property is chosen wisely. For city-based small investors, studio apartments or 1-BHK properties near known demand drivers such as IT hubs, large manufacturing units, and educational institutions offer good return potential. Smaller-format housing continues to have steady demand, especially in metros where company staffers and students seek cost-effective housing on rent. Rental accrual on such properties becomes a steady source of income, while the capital value invariably appreciates over time. The returns from commercial real estate are higher, but so is the risk. Such properties are also more expensive.

Mumbai witnessed some of the highest prices in the residential market till the beginning of this year. Clearly, those prices were not sustainable since the number of buyers for super-luxury houses is shrinking. Central Mumbai (specifically Lower Parel and Worli) witnessed the highest price escalation. The slowdown has affected these areas.

The current slowdown has curtailed demand from investors. Most of the demand today comes from end-users. In Mumbai, there is no dearth of those desperate to buy affordable housing. Three areas of Mumbai offer such housing. These areas are likely to sustain their prices, while others are likely to witness a correction.

Vasai-Virar sub-region. The extended western suburbs are well-known for budget housing. The key economic drivers in this region are MP SEZ by DHL, Biotech SEZ and IT SEZ by Mahindra. Connectivity to this area is likely to improve due to the introduction of additional suburban trains from next year. Prices range from Rs 2,500-3500 per sq ft.

Area adjoining Panvel. This region is benefiting significantly from infrastructure enhancements such as the upcoming airport, the Trans-Harbour Link, a railway terminus, and the mono rail. Mega SEZs by Reliance and others are also expected to have a positive impact, as is the expansion of JNPT. Many developers have already initiated large township projects in this region. Prices range from Rs 3,000-3,800 per sq ft.

Bandra-Khar area. Those hunting for prime properties focus on this area. Its connectivity is expected to improve due to the Bandra-Worli sea-link, the proposed Metro Line 2, and the upcoming Santacruz-Chembur Link road.

This region has an elite profile due to the availability of quality infrastructure: shopping, healthcare, education and recreation facilities. Developers are working on a number of redevelopment schemes in this area. Prices range from Rs 18,000-25,000 per sq ft.

Read the complete story at http://www.expressestates.in/full_story.php?content_id=93830

To check real estate projects going at these areas click on following links :

For Vasai http://www.mumbaiproperties.info/vasai-real-estate.php
For Virar http://www.mumbaiproperties.info/virar-real-estate.php

For Panvel http://www.mumbaiproperties.info/panvel-real-estate.php

For Bandra http://www.mumbaiproperties.info/bandra-real-estate.php

For Khar http://www.mumbaiproperties.info/khar-real-estate.php