Industry experts say shortage of ready-to-move-in houses, infra development redevelopment ease of living contributing to the big rush.
NAVI MUMBAI: Home rentals in Navi Mumbai are touching the sky due to the non-availability of ready-to-occupy new flats and increasing gap between demand and supply.
The average rentals in Navi Mumbai have gone up by about 20% between 2019 and the first quarter of 2024, according to Anarock.
Navi Mumbai’s rental market is experiencing a boom due to a confluence of factors, says Prashant Thakur, Regional Director & Head – Research, Anarock Group. The city’s affordability, better connectivity to Mumbai and growing appeal as a Mumbai alternative are attracting residents, while business sectors like IT-ITeS are flourishing.
This surge in demand for housing isn’t met by new construction, leading to limited availability and rising rents. Additionally, Navi Mumbai’s future is bright with ongoing infrastructure projects like the recently inaugurated Mumbai Trans-Harbour Link (MTHL), the upcoming Navi Mumbai International Airport, metro expansion, and the Third Mumbai project. These developments are fuelling optimism and further propelling the rental market, Thakur says.
There’s a growing influx of people to Navi Mumbai, and ready-to-move-in options might be limited. While Navi Mumbai does have a healthy stock of under-construction projects, they might not be keeping pace with the immediate demand. This can lead to a shortage of readily available houses, especially for those seeking to move in quickly.
As per ANAROCK Research, here’s a breakdown of the age of inventory of the residential units (launched) between 2019 and Q1 2024:
| Age Of Inventory (Launched Units) | % Share |
| Ready to Move-In | 13% |
| <1 Year | 8% |
| 1 – 2 Years | 11% |
| 2 – 3 Years | 12% |
| >3 Years | 56% |
Answering a question, Thakur says “delays in possession of new houses in Navi Mumbai are indeed a significant issue for people looking to relocate quickly”. This can be particularly challenging for those with pressing needs, like parents seeking a specific school for their children’s education.
Several factors contribute to these delays, including financial constraints faced by builders, approval bottlenecks for permits and clearances, shortage of labour and unforeseen circumstances like material price fluctuations. This leaves renters in a tough spot. They may be stuck waiting for their new homes while also facing a limited selection of available rentals.
Redevelopment projects in Navi Mumbai have accelerated since 2020, says Rajesh Prajapati, founder president of MCHI-Raigad.
While redevelopment projects in Navi Mumbai can put temporary pressure on rental housing market, they represent just one piece of a larger puzzle, says Anarock. Rising demand due to affordability and improved connectivity likely plays a more significant role.
Overall infrastructural development in Navi Mumbai has essentially transformed roads and boosted connectivity but also improved its real estate market, leading to not just more demand but boosting supply, says Prajapati.
For instance, the Mumbai Trans harbour Link has improved the link between Mumbai and Navi Mumbai, and we project Navi Mumbai’s economy to grow by multi-fold due to such projects. The new airport in Navi Mumbai will also play a significant role in boosting sectoral and economic development. Redevelopment projects in Navi Mumbai have also accelerated since 2020, says Prajapati.
“Shifting of existing flat buyers in societies going in for redevelopment has led to shortage of ready stock, and we expect this trend to continue for the next 5-10 years, as areas such as Dronagiri, Ulwe and Panvel are expected to benefit the most,” he says.
Concurring with this, Thakur says infrastructure development is playing a key role in propelling Navi Mumbai as a new and attractive destination. Here’s how, according to him, the various projects are contributing to its growth:
Enhanced Connectivity: Projects like the operational Mumbai Trans-Harbour Link (MTHL) and the upcoming projects such as expansion of metro – particularly in the Navi Mumbai Airport Influence Notified Area (NAINA and the upcoming Navi Mumbai International Airport are likely to significantly improve connectivity of Navi Mumbai to Mumbai and beyond.
Skilled Job Opportunities: Infrastructure development often paves the way for new businesses and industries to set up shop. The upcoming Navi Mumbai Special Economic Zone (SEZ) is a prime example. This growth in commercial activity creates skilled job opportunities, attracting a talented workforce and further boosting the city’s development.
Reduced Traffic Congestion: Wide roads and the planned metro expansion aim to ease traffic flow within Navi Mumbai, making daily commutes faster, improving the overall quality of life for the residents.
Educational Hub: Navi Mumbai is already home to several reputed educational institutions such as Dr. D.Y. Patil Vidyapeeth, National Institute of Fashion Technology etc. and the focus on infrastructure development is likely to attract even more.
Manohar Shroff, senior vice president, CREDAI MCHI- Navi Mumbai, says the rentals have gone up by 10% to 15% as compared to the last year, says
The rent for 1BHK is being quoted at over Rs 35,000, 2BHK at Rs 50,000 to Rs 55,000. Three BHK homes in some posh areas such as Palm Beach are not available even for Rs 90,000 a month.
Palm Beach Road and the surrounding area emerged as a premium lifestyle destination not only to build a life, but also to as an investment destination, says spokesperson of Mistry Construction developing the 9BBR complex. Apart from appreciation of the real estate investment the premium rental returns makes it a win-win scenario, he says.
Sandeep Sonthalia, CEO, Wadhwa Wise City, says, infrastructure development has given a tremendous push to the housing sector in Navi Mumbai, Panvel, and the MMR region as a whole. The commencement of the Mumbai Trans Harbor Link (MTHL), the upcoming Navi Mumbai International Airport, along with various other large infra projects being undertaken in the Navi Mumbai region, has propelled the real estate sector here, he says.
Home buyers and investors are investing in property, considering prices will rise and good price appreciation is expected over the long term.
Navi Mumbai is being touted as Mumbai 3.0 and the government is preparing the path for that realization, Sonthalia says.
There are a number of projects being undertaken presently, which will see improved connectivity within the region and between the island city of Mumbai. These infra projects will considerably improve ease of travel and reduce travel time. Navi Mumbai boasts of good air quality levels amidst verdant surroundings, which have all contributed to the attractiveness of Navi Mumbai as a housing destination. Presently, property prices are still affordable but will soon rise given the huge surge of interest from home buyers and investors to invest in property here.
The improved infrastructure and connectivity between Mumbai and the mainland is seeing a number of offices and commercial establishments shifting their base to Navi Mumbai, Panvel, and the surrounding areas. The region is now witnessing a growing number of people moving here seeking job opportunities which have directly pushed the demand for rental housing, he says.
This has created a demand-supply imbalance, pushing rental values up. The demand for housing often outpaces the supply, especially in rapidly growing urban areas, causing prices to rise. The same is true here in the Navi Mumbai and Panvel region as the housing supply tries hard to catch up with the rising demand for homes here, Sonthalia points out.
Prajapati expects that Navi Mumbai’s demand for commercial, retail, office as well as residential for both affordable as well as luxury housing to grow substantially with users as well as investors looking for long term horizon.
