NRI Buying Trends in The Kandivali East

HISTORY

The Kandivali East real estate market, where 'SD Siennaa' is located, has witnessed significant and dynamic appreciation over the last 15 years (2009-2024), transforming from a nascent residential hub to a highly sought-after destination. In the period of 2009-2014, following the global financial crisis, Kandivali East experienced robust growth, with property values appreciating at an annual rate of 10-15%. This was driven by its strategic location along the Western Express Highway (WEH), offering excellent connectivity to commercial hubs like Goregaon and Andheri, and its relatively affordable prices compared to established western suburbs. Demand from middle-income families seeking quality housing and improved social infrastructure (schools, hospitals, retail) spurred this initial phase.

The mid-period of 2014-2019 presented a more challenging landscape. Government policies like demonetization and the implementation of RERA led to a temporary slowdown, consolidation in the market, and rationalization of prices. Annual appreciation during this phase typically ranged from 3-7%, with some micro-markets experiencing stagnation or minor corrections. However, this period also laid the groundwork for future growth by professionalizing the sector.

The most recent five years, 2019-2024, have seen a strong rebound and accelerated appreciation, despite the initial disruption caused by the COVID-19 pandemic. The pandemic-induced desire for larger homes, coupled with low interest rates and stamp duty reductions, fueled a recovery. The operationalization of parts of Metro Line 7 (Dahisar East-Andheri East) has been a significant game-changer, drastically improving connectivity and reducing travel times, thus enhancing the area's livability quotient. Property values in Kandivali East have seen an average appreciation of 7-12% annually in this period, particularly for well-located, amenities-rich projects like 'SD Siennaa'. Over the entire 15-year span, cumulative appreciation for quality residential projects in Kandivali East can be estimated to be in the range of 150-220%, reflecting its journey from an emerging locality to a mature and premium residential zone.

FUTURE PROSPECTS

The future prospects for property appreciation in Kandivali East, and specifically for a project like 'SD Siennaa', for the next 5 years (2025-2030) appear strong, driven by several key growth factors, albeit with certain risks.

Growth Factors:

1. Full Metro Line 7 Impact: The complete operationalization of Metro Line 7 will further enhance connectivity to key business districts and the international airport, making Kandivali East an even more desirable residential location. This will attract professionals and families, sustaining demand. 'SD Siennaa's proximity to this major infrastructure artery will be a significant advantage.

2. Ongoing Infrastructure Development: Planned road upgrades, flyovers, and other civic infrastructure projects will continue to improve intra-locality connectivity and ease traffic congestion, boosting the area's appeal.

3. Commercial Corridor Development: The Western Express Highway corridor continues to evolve into a robust commercial hub, with new office spaces and retail developments. This creates job opportunities closer to home, reducing commute times and making residential areas like Kandivali East more attractive.

4. Established Social Infrastructure: Kandivali East already boasts a mature social infrastructure with renowned educational institutions, healthcare facilities, and entertainment options (e.g., Growel's 101 Mall). This established ecosystem provides a high quality of life, which is a major draw for long-term residents and investors.

5. Quality of Developers: The presence of reputable developers with quality projects like 'SD Siennaa' ensures premium construction, modern amenities, and good maintenance, which tend to hold value better and appreciate steadily.
   Risk Factors:

6. Affordability Challenge: As prices continue to appreciate, Kandivali East might reach a saturation point in terms of affordability for certain buyer segments, potentially slowing down the pace of appreciation.

7. Interest Rate Volatility: Fluctuations in home loan interest rates could impact buyer sentiment and affordability, affecting demand.

8. Competition and Supply: The market continues to see new project launches. While demand is robust, an oversupply in certain segments could lead to price competition.

9. Traffic Congestion: Despite infrastructure improvements, the sheer volume of vehicles in Mumbai might continue to pose traffic challenges, impacting the daily commute.
   Considering these factors, 'SD Siennaa' in Kandivali East is projected to witness an average annual appreciation of 6-9% over the next five years. This steady growth will be primarily driven by the full realization of infrastructure benefits, sustained demand from end-users, and the area's established reputation as a well-connected and amenity-rich residential locale.