Thane tops, Gr Noida takes biggest knock in home sales
BENGALURU: A local train heading out of Mumbai’s city centre reaches suburban Thane in an hour. The metro ride from central Delhi to Noida Extension or Greater Noida takes about the same. However, in terms of home sales, the two couldn’t be more different.
Thane (West) topped the charts among all micro-markets in India in home sales, with 7,755 housing units changing hands in the 12 months ended September 30, according to data collated by Liases Foras Real Estate Rating and Research Pvt. Ltd. The number is a 21% jump from the previous year, which saw sales of 6,427 homes. Thane (West) is part of the larger Thane district, with a railway station cleaving the suburb into western and eastern sides.
At the same time, the micromarket of Noida ExtensionGreater Noida in the National Capital Region (NCR), which has far more apartments than Thane (West), saw sales of 7,712 units in the year ended September 30—1,812 units fewer than the 9,524 units sold in the previous year. Raj Nagar Extension in Ghaziabad, another NCR micromarket, saw a 39% drop in sales to 2,224 units during the period.
So what’s the secret sauce of Thane (West) that attracts buyers and builders? The answer: prices relative to the cost in neighbouring areas, good infrastructure, and a wide range of homes at various price points. Thane (West) has a weighted average price of ₹9,801 per sq. ft, relatively more affordable than units in Mumbai and its other suburbs.
In the backdrop of India’s worst slowdown in the residential sector, it is increasingly evident that sales are becoming micro-market driven, with certain locations in the top cities performing better than the others.
“Thane and Greater Noida are two examples of why one micromarket performs well and the other doesn’t. What has worked for Thane (West) is the continuous infrastructure and commercial development, connectivity, large supply and a wide range of projects priced between ₹5,000-15,000 per sq. ft. The lack of these in Greater Noida have worked against it. Real estate projects were launched in Greater
Noida in areas which were still not connected well and fully habitable,” said Pankaj Kapoor, CEO of Liases Foras.
There is a reason why nearly all top developers in Mumbai are keen to launch projects in Thane, be it the sales factor, huge demand and the availability of land. Mumbai-based Lodha Group launched its first project, Lodha Crown, under its new affordable housing brand in Thane’s Majiwada in October. Spread over 10 acres comprising 2,800 units—with homes priced at ₹25-50 lakh (and some units at up to ₹75 lakh) on an average—it sold close to 500 units for around ₹250 crore. Shapoorji Pallonji Real Estate launched its premium residential project, Shapoorji Pallonji Northern Lights, in Thane in March 2019, selling over 600 flats during the launch.