Rental Demand & ROI Analysis of Modirealty Ashvattha

HISTORY

Over the last 15 years (2010-2024), Dahisar East, much like other northern suburbs of Mumbai, has witnessed significant property appreciation, though with varying phases. From 2010-2014, the area experienced a robust growth trajectory, driven by its relatively affordable property prices compared to central Mumbai and improved connectivity via the Western Express Highway and local train services. This period saw a steady influx of end-users seeking larger homes at more reasonable rates. Appreciation during this phase averaged 8-12% annually, particularly for well-connected residential projects.

The period from 2015-2017 saw a slight moderation in growth, influenced by the broader market sentiment, demonetization, and the introduction of RERA. Prices stabilized, and while appreciation wasn't as aggressive, the market remained resilient due to strong underlying demand and ongoing infrastructure talks. Post-2018, with the formalization of RERA and renewed focus on infrastructure, including the highly anticipated Mumbai Metro Line 7 (Dahisar East Andheri East), the area regained momentum. Property values started appreciating again, albeit at a more sustainable pace of 5-7% annually until early 2020.

The initial impact of COVID-19 in 2020 led to a brief slowdown, but the subsequent period (2021-2024) has seen a resurgence. Dahisar East benefited significantly from the desire for larger homes, lower interest rates, and the gradual operationalization of Metro Line 7. The demand for 2 BHK units, such as those in Modirealty Ashvattha, has been consistently strong, driven by young professionals and families. Overall, properties in Dahisar East have seen an average cumulative appreciation of 150-200% over the 15-year period, transforming it from a peripheral suburb to a well-established residential hub, capitalizing on its strategic location at the city's northern gateway.

FUTURE PROSPECTS

The future prospects for property appreciation in Dahisar East over the next 5 years (2025-2030) appear promising, driven by several key growth factors, though balanced by inherent risks. We anticipate moderate to strong appreciation, likely in the range of 6-10% per annum for well-located projects like Modirealty Ashvattha.

Growth Factors:

1. Metro Line 7 & Connectivity Enhancement: The full operationalization and integration of Metro Line 7 will significantly reduce commute times to major commercial hubs like Andheri, Jogeshwari, and Bandra Kurla Complex, boosting demand for residential properties along its corridor. Further extensions or integration with other metro lines will only amplify this effect.

2. Infrastructure Development: Ongoing and proposed infrastructure projects, including potential further upgrades to the Western Express Highway, proposed link roads, and continued improvement in civic amenities, will enhance livability and connectivity, making Dahisar East an even more attractive residential destination.

3. Affordability & End-User Demand: Despite past appreciation, Dahisar East remains relatively more affordable compared to central and western suburbs. This will continue to attract a strong base of end-users, especially first-time homebuyers and those seeking an upgrade from smaller units, ensuring sustained demand for residential projects.

4. Social Infrastructure: Continuous development of schools, hospitals, retail centers, and recreational facilities will further mature the locality, adding to its appeal and intrinsic property value.

5. Micro-market Specifics: Projects with good amenities, reputable builders, and strategic locations (like proximity to the highway, metro, or local stations) are poised for higher appreciation.
   Risk Factors:

6. Interest Rate Volatility: Fluctuations in home loan interest rates could impact affordability and buyer sentiment.

7. Economic Headwinds: Broader economic slowdowns or job market uncertainties could temper demand.

8. New Supply: A significant influx of new residential projects in the pipeline could lead to temporary oversupply in certain pockets, potentially moderating price growth.

9. Traffic Congestion: Despite infrastructure upgrades, increasing population density could still lead to traffic challenges, a common concern in Mumbai.
   Overall, Dahisar East is positioned for continued steady growth, transitioning from a developing suburb to a well-established and integrated part of the Mumbai metropolitan area. The 'Modirealty Ashvattha' project, given its location, stands to benefit significantly from these anticipated developments.