Investment spotlight – Why upper Kharghar offers high ROI for residential real estate investors

Mumbai :

In the competitive landscape of real estate investment, Upper Kharghar emerges as a compelling opportunity for astute investors. Positioned strategically within the Mumbai Metropolitan Region (MMR), Upper Kharghar offers a lucrative blend of affordability, growth potential, and robust infrastructure, the outcome of southern and central Kharghar’s remarkable transformation over the years, is set to evolve into a thriving residential and commercial hub.

This journey traces back to the late 1990s when the City and Industrial Development Corporation (CIDCO) laid the groundwork for Navi Mumbai and what has become a dynamic urban landscape. From its inception as a meticulously planned township, Kharghar has expanded into distinct three sectors, each offering unique opportunities, amenities, and value for money.

However, emerging ahead of other sectors within Kharghar today is Upper Kharghar. It has grown as a focal point for real estate investment within the Mumbai Metropolitan Region (MMR). So, what makes Upper Kharghar stand out as a lucrative investment destination for residential real estate investors? First and foremost, Upper Kharghar presents an attractive proposition with its diverse range of housing options at competitive price points. From spacious apartments to premium residences, the area caters to various budget segments, making it an appealing prospect for both end-users and investors eyeing substantial returns.

The availability of abundant land for development provides developers with the canvas to create innovative residential projects, thereby sustaining the demand for properties in the region. Upper Kharghar, positioned as an upcoming growth center within MMR, entices investors with its appealing price range and spacious unit sizes. The region boasts a spectrum of residential developments, catering to various budgets from affordable to premium.

In addition, Upper Kharghar stands out for its superior quality of life and well-established civic amenities, making it a sought-after destination for both investors and residents. This, coupled with aggressive infrastructure development, and enhanced accessibility makes it a convenient destination for residents and investors alike. Upper Kharghar stands at the forefront of connectivity, seamlessly integrating with major transportation arteries such as Mumbai Highway, Panvel Road (NH-48), and the Kharghar Railway Station.

The operational Phase 1 of the Navi Mumbai Metro Line 1 not only enhances local mobility but also sets the stage for transformative growth. Paired with the revolutionary Mumbai Trans Harbour Link (MTHL), which reduces commute times between South Mumbai and Navi Mumbai to a mere 35 minutes, it offers unparalleled convenience and significantly boosts the ROI potential of Upper Kharghar.

Anticipation builds with the impending inauguration of the Navi Mumbai International Airport, promising heightened accessibility and economic vitality. Notably, the proposed Kharghar Corporate Park and the forthcoming Kharghar-Turbhe Link Road (KTLR) are poised to revolutionize travel dynamics, streamlining commutes from Mumbai, Thane, and Navi Mumbai by a significant 30 minutes.

Upper Kharghar’s strategic position as a connectivity hub to regions like Panvel and Kalyan-Shil Road underscores its pivotal role in regional infrastructure. As Upper Kharghar catalyzes neighboring areas into burgeoning tourist destinations, property values soar, driving demand for short-term rentals and hospitality establishments. The proposed Navi Mumbai coastal road, linking Kharghar to Belapur’s Central Business District, promises to alleviate traffic congestion and elevate local connectivity, cementing Upper Kharghar’s status as a dynamic real estate hotspot.

In terms of financial metrics, Upper Kharghar according to a Colliers report published in January 2024 is set for impressive investment returns, with projected capital appreciation and rental yields outperforming many other areas within MMR. With anticipated returns of 1.4x in five years and a rental yield of around 3%, the region offers a compelling investment proposition. As the boundaries of Upper Kharghar expand, the region emerges as a hub of opportunity for both end-users and investors alike.

With a remarkable capital appreciation of approximately 37% over the past five years, the potential return on investment stands at an enticing 10%. This surge in demand can be attributed to the availability of spacious apartments, a distinguishing feature when compared to other areas within the MMR. The spill-over effect of development from neighboring areas, combined with Upper Kharghar’s tranquil surroundings and superior quality of life, fuels sustained demand for residential properties. The presence of educational institutions, healthcare facilities, and recreational amenities further enriches the appeal of the region, attracting families and professionals seeking a well-rounded lifestyle.

The northward growth trajectory of Upper Kharghar is unmistakably driven by its unique physical attributes. With lush green forest areas on the western side and the serene Taloja River flowing on the eastern flank, development is naturally channeled towards the north. This expansion has not only bolstered the region’s population but has also sparked a surge in demand for real estate, catalyzing a ripple effect of development in neighboring areas. Spearheaded by prominent developers, Upper Kharghar stands as the epitome of progress in the region. Upper Kharghar is swiftly emerging as a formidable contender alongside Core Kharghar, showcasing competitive saleable prices that beckon both real estate investors and homebuyers alike.

As market dynamics and pricing trends evolve, Upper Kharghar presents itself as a prime area to watch, teeming with potential for future growth and lucrative investment opportunities. Forecasts reported by Colliers indicate a promising future for Upper Kharghar, with anticipated appreciation rates ranging from 7 to 8% per square foot, fuelled by ongoing infrastructure projects. Recent trends have already showcased a commendable 4 to 5% appreciation in average price per square foot over the past year, signaling a trajectory of growth and prosperity in the years to come.

As Upper Kharghar continues to emerge as a competitive market, investors and homebuyers stand to benefit from its growth trajectory. The region’s resilience, adaptability, and balanced market dynamics ensure a conducive environment for real estate investment, with consistent sales growth and minimal unsold inventory signaling strong demand and a plethora of options for buyers. As the region continues to flourish, Upper Kharghar with its good blend of affordability, connectivity, and growth potential in residential real estate continues to present investors with enough reason to seize the opportunity with the investment returns it presents.