Rental Demand & ROI Analysis of Viceroy SAVANA

HISTORY

Over the last 15 years (2009-2024), Kandivali East, the locality for Viceroy SAVANA, has witnessed substantial property appreciation, transforming from a relatively mid-segment residential hub into a highly sought-after destination. In 2009, property prices in Kandivali East averaged around ¹8,000-¹12,000 per square foot for well-located projects. The initial growth phase in the early 2010s was driven by improved connectivity via the Western Express Highway (WEH) and S.V. Road, coupled with the establishment of reputed educational institutions and healthcare facilities. The area benefited from an increasing number of working professionals seeking convenient access to commercial hubs in Andheri and Bandra-Kurla Complex.

The mid-2010s saw accelerated development with a significant influx of organized retail and entertainment options, further enhancing liveability. The announcement and subsequent construction of the Mumbai Metro Line 2A (Dahisar to D.N. Nagar) served as a major catalyst for property values from approximately 2016 onwards. Projects along the metro corridor, like Viceroy SAVANA, which is strategically located, experienced a notable surge in demand and pricing. By 2020-2021, even amidst economic uncertainties, prices showed resilience, reflecting the fundamental demand for housing in Mumbai's western suburbs.

Currently, as of 2024, property prices in Kandivali East for well-maintained projects such as Viceroy SAVANA are typically in the range of ¹18,000-¹25,000+ per square foot, representing an appreciation of roughly 100-150% over the 15-year period. This consistent growth trajectory is largely attributed to sustained infrastructure development, excellent social amenities, and its strategic position connecting various parts of Mumbai, making it a highly desirable residential corridor.

FUTURE PROSPECTS

Looking ahead to the next 5 years (2025-2030), Viceroy SAVANA in Kandivali East is poised for continued, albeit moderated, property appreciation. The key growth factors driving this forecast include:

Growth Factors:

1. Enhanced Connectivity: The full operationalization and integration of Metro Line 2A will continue to be a primary driver. With seamless connectivity to southern and central Mumbai, Kandivali East's appeal as a residential base for professionals will strengthen. Further connectivity improvements, such as potential future extensions or linkages to the Coastal Road, will also positively impact values.

2. Robust Social and Commercial Infrastructure: Kandivali East already boasts a mature ecosystem of schools, hospitals, shopping malls, and entertainment zones. Continued development of new commercial office spaces along the WEH corridor will generate employment opportunities locally, fostering demand for residential properties in the vicinity.

3. Affordability Quotient: While prices have risen, Kandivali East still offers a relatively better affordability proposition compared to more saturated and expensive micro-markets like Andheri or Bandra, making it attractive to a broader base of homebuyers and investors.

4. Developer Reputation and Project Quality: Viceroy SAVANA, being a quality project, is likely to maintain its desirability and command a premium over lesser-known developments.
   Risk Factors:

5. Interest Rate Volatility: Fluctuations in home loan interest rates could impact buyer affordability and temper demand, leading to a slower pace of appreciation.

6. Economic Slowdown: Broader economic slowdowns, either domestic or global, could affect job markets and consumer sentiment, thereby influencing real estate investment decisions.

7. Increased Supply: While demand remains strong, the launch of new residential projects in Kandivali East and neighboring areas could lead to a temporary increase in inventory, potentially moderating price growth.
   Considering these factors, Viceroy SAVANA is projected to experience an average annual appreciation of 5-8% over the next five years. The sustained demand from end-users, coupled with Mumbai's inherent land scarcity and ongoing infrastructure upgrades, will underpin this growth, positioning the project as a sound investment for capital appreciation.