Why are 2BHK Flats in Thane in High Demand?

In 2013, real estate developers launched more than seven thousand residential units in Mumbai in the first three months. Even though demand for properties has increased in the city, most buyers prefer to buy a 2 or 3 bhk flats in Mumbai due to increase in property rates.

Even in areas like Kalyan, Dombivli and Thane, there is a huge demand for small residential units. According to the enquiries recorded from property buyers at a housing expo in Thane, majority of demand was for smaller units, especially 1 and 2BHK flats in Thane.

The cost of a 1BHK flat in this area ranges between 30 and 65 lacs INR. As per reports, bookings were done for approximately 400 flats during the four-day property expo in Thane.

What deters buyers from buying bigger flats?

According to the industry experts, high loan rates and economic uncertainty are two main factors due to which buyers are reluctant to invest in bigger apartments. With the rise in carpet area, cost of living also increases, forcing people to buy a 1 or 2BHK flat so that they can adjust society maintenance, EMI and other costs within their strict budget.

Apart from 2BHK flats, developers are also launching residential projects in Thane, offering 1BHK flats. Demand for 1BHK has gone up considerably in the last few years. As per industry reports, approximately 65% potential home buyers in the city look for 1BHK flats compared to 2 or 3 BHK. Skyrocketing property rates are forcing people to move to suburbs like Thane in order to find affordable housing. Presently, this suburb is being considered one of the best locations for buying residential property.

Which localities are worth investment in Thane?

Some of the areas where buyers can look for properties are Ghodbunder Road, Dombivli East, Badlapur and Kalyan West. These areas in Thane account for approximately 37% of the total supply of 1BHK flats. The demand is high because people with a small budget prefer to buy a small flat rather than opting for a 2-3 BHK house. These areas are a favourite among buyers who cannot afford to shell out a huge amount on Mumbai properties.

Average size of a 1BHK flat in Kalyan West or Dombivali East is between 500-700 square feet. On Ghodbunder Road, 1BHK apartments are available with floor space of 500-800 square feet.

Who choose Thane for property investment?

Connectivity of this suburb is good with other parts of Mumbai through the Eastern Express Highway, NH-4 and NH-3. This location not only has open spaces and layouts but also excellent infrastructure. Majority of areas in this suburb offer good amenities to the residents.

Various premium real estate developers are coming up with exciting new residential projects in Thane to cater to the demand of middle-income buyers. Compared to other suburbs of Mumbai, areas like Dombivali and Badlapur have the lowest capital value. Due to this, demand for smaller units has gone up. Kalyan West and Ghodbunder Road are also witnessing high demand for small units.

Summary

Various real estate developers are launching residential projects in Thane, catering to the rising demand for 1 and 2 BHK flats in Thane.

Jennifer Kelly has worked in several reputed real estate companies in Mumbai. Currently, she blogs about real estate trends and give tips on buying flats in Mumbai.