Planning to Move to Bandra Kurla Complex

Various suburban locations in Mumbai, including Bandra Kurla Complex continue to look good from the perspective of investors. According to real estate experts, Lower Parel and BKC are going to be two most sought-after locations for property investment in the city. Even South Mumbai and locations in proximity to BKC will be in demand.

If you wish to take the plunge and make an investment in Mumbai's real estate market BKC might be an expensive but great location. Property rates in this location currently quote at 27,500 INR per square ft. to 50,000 INR per square ft. These rates might double in next 4-5 years. Buyers wishing to own a property in BKC will have to shell around 6 Crore to 25 Crore INR.

Reason behind skyrocketing rates at BKC:

BKC has a number of residential buildings and offices, offering 'walk-to-work' facility to property buyers. Even limited supply and Central Business District are key drivers due to which BKC properties are expensive and high in demand.

Since commuting distance in Mumbai dampens energy levels, several corporates strive to offer a luxurious lifestyle to employees so that they don't have to travel long distances to come to work. These options are being provided in BKC through premier residential projects. BKC is the leading financial hub of South Asia, with a business area located in the heart of the city. It is expected that a number of residential products will be offered by MMRDA for further evolution of this area as a nexus for luxury homes.

Around BKC, supply of residential properties will be augmented by land coming from redevelopment in nearby areas like Bandra East, Bandra West, Kalanagar, Kurla and Kalina. But as far as land rates are concerned in BKC's immediate neighborhood, only super-luxury apartments can be offered to buyers.

In 2012, residential property rates in BKC were 40,000 to 45,000 per square ft. Rates in immediate neighborhood of Bandra East ranged between 25,000 to 30,000 per square ft. Currently, residential property rates in BKC are skyrocketing and this hasn't affected the demand for such properties in this area. The unique location and planned nature of BKC are two major factors due to which residential property buyers are more than willing to spend huge amounts on buying homes.

BKC property market in the coming years:

Whether you wish to buy a property in BKC for personal use or you want to put it up on rent, this area will give you good returns, irrespective of the market conditions. There are no difficulties in finding tenants for investors because a large number of expatriates and senior professionals work in BKC. Considering the limitation of under-construction projects, property rates will skyrocket in coming years. Irrespective of the slow market for residential properties in Mumbai, year-on-year appreciation of residential real estate capital values in BKC has been between 10-12%.

So, whether you are looking for properties in BKC or apartments in Thane, property market in Mumbai can bring you good returns if you make an informed decision.

Nancy Desouza is a blogger, working as a successful real estate agent in Mumbai. She has sold apartments in Thane and expensive flats in Bandra Kurla Complex to many happy customers.