A 2017 report compiled by Knight Frank India Limited, a real estate consultancy firm, stated that Thane has become popular especially among the rich looking to buy property. In fact, it is one among the 20 cities in the world, wherein people are keen to invest in a property. There are couple of reasons as to why this city has become ‘hot property’ with regards to the real estate business. So, let us just discuss these factors that have led to the rise in real estate in the ‘City of Lakes’.
1. The ‘Exorbitant’ Property Prices In Mumbai:
The price of real estate in Mumbai also known as the ‘City of Dreams’ has over the years has risen very rapidly. The major reason for this being that this city is essentially an island surrounded by water on four sides i.e. north, south, east, west. Which means that the scope for further expansion or land development is impossible. In other words, this city has only seen linear expansion (not circular), which has resulted in demand overtaking supply, and prices sky rocketing.
2. Thane ‘The City Of Lakes’ And Shutdown Of Heavy Industries:
Thane was at once a city which was a hub of heavy industries. There came a period in the 1990’s though, that gradually these industries were shutdown. In fact, from the 90’s to about 2013, there were more than 100 industries that shut shop. They included many multinational companies such as United Polymers, Altech Polymers, Colour Chem, Voltas etc. The major reason being the inability of these companies to manage a huge labour force. It is this downsizing of these industries that provided fertile ground for real estate developers such as Hiranandani, Lodha Group etc to initiate and complete a number of ambitious construction projects.
3. Thane Real Estate, Its Superior Infrastructure and Overall Connectivity:
Most of the real estate projects that have mushroomed in this satellite city over the years have provided for great infrastructure. As Samantak Das, chief economist and national director (research), Knight Frank quite rightly commented to Hindustan Times “Compared to Mumbai, people can get bigger houses with all the modern amenities in place. As far as investors are concerned, they get far better returns compared to the Mumbai realty market”. In addition, with regards to transportation this city is well connected to Mumbai, be it through the Central and Trans Harbour Suburban Railway Network or local bus services. It is then this great ‘connectivity and infrastructure’ which makes this city a real estate hub.
With home construction projects still being planned by varied real estate developers in Thane, it would be safe to say that this ‘City of Lakes’ has actually become one of biggest real estate hubs in India today.