Mumbai Metropolitan Region’s (MMR) housing landscape is witnessing a paradigm shift, with peripheral areas outperforming prime city locations in residential price appreciation over the last six years.
According to ANAROCK Research, Panvel leads the charge, registering an impressive 58% surge in residential prices from ₹5,520 per sq. ft. in 2019 to ₹8,700 per sq. ft. by Q3 2024.
In contrast, Worli, one of Mumbai’s most prestigious addresses, saw a relatively modest 37% increase, with prices climbing from ₹38,560 per sq. ft. to ₹53,000 per sq. ft. during the same period.
The meteoric rise of Panvel, coupled with Virar’s identical 58% growth, highlights the growing allure of peripheral locations. While Worli and Lower Parel – both prime city locations – recorded appreciations of 37% and 49% respectively, the peripheral areas’ enhanced connectivity and affordability have emerged as the driving forces behind their price escalation.
Mr. Sandeep Sonthalia, CEO, Wadhwa Wise City said, “Property prices in Panvel and Virar have been rising rapidly due to significant infrastructure developments in the region. Projects like the Atal Setu Bridge, improving connectivity between South Mumbai and Navi Mumbai and the Navi Mumbai International Airport (NMIA), set to boost global connectivity, are making these areas more accessible and attractive for homebuyers, investors and developers alike.
“Additionally, the Virar-Alibaug Multimodal Corridor, which will drastically reduce travel time between Virar and Alibaug, is a major factor driving interest in these areas.”
“The demand for affordable housing in these areas, combined with improved connectivity to Mumbai, is fueling the rise in property prices.
“As commuting times shorten with better road and rail connectivity, Panvel and Virar are becoming popular alternatives for homebuyers looking for more spacious homes, at affordable prices, than central Mumbai.
“Developers are responding by launching numerous projects, anticipating high demand from a growing middle-class population. With ongoing infrastructure growth and a shift toward suburban living, Panvel and Virar are set to continue as key real estate hotspots in the Mumbai Metropolitan Region,” added Mr. Sonthalia.
The trend of peripheral areas outperforming prime locations is not limited to Mumbai. Across India’s top seven cities, price growth in suburban areas has surpassed that of city centers. Improved connectivity, enhanced infrastructure, and the availability of spacious and affordable housing projects are driving this nationwide shift toward suburban living.
Beyond affordable housing, the demand for holiday homes in peripheral areas is also experiencing a significant uptick. For instance, with homebuyers increasingly seeking lifestyle-driven second homes, destinations like Lonavala and Alibaug have emerged as prime markets near MMR. These locations offer proximity to the city while providing serene environments and luxury living options, making them ideal for weekend getaways and investment opportunities.
Highlighting the growing preference for holiday homes in peripheral areas, Mr. Vikas Sutaria, Founder at Iraah Lifespaces commented, “Peripheral locations like Lonavala and Alibaug are fast emerging as key micromarkets for holiday homes near Mumbai. The combination of scenic landscapes, enhanced connectivity, and an evolving lifestyle aspiration has significantly boosted demand in these regions.
“Many affluent buyers are investing in luxury villa projects in these areas, marking them as prime locations for a perfect second home. These micro-markets, supported by robust infrastructure growth, are poised for sustained momentum in the coming years.”
This rising trend in peripheral growth underscores the dynamic transformation in India’s real estate sector, with infrastructure and connectivity acting as the cornerstone of this evolution. With the confluence of affordability and lifestyle preferences, the peripheral areas are poised to lead the next wave of real estate growth, setting the stage for a dynamic and diverse housing market.