|Mr. Anuj Puri, JLL India |
Mumbai has a deeply ingrained work culture, of a magnitude that rivals Manhattan & Tokyo.
As such, its citizens tend to attribute ultimate location value to residential properties that are within reasonable commuting distance from their work places. The key concept here is ‘reasonable’, and must be seen in context with the legendary intra city accessibility challenges that this city faces.
In the Island City, a house close to the CBD/SBD is a premium offering on the residential real estate market.
The rapid opening up of the further suburbs has resulted in new commercial residential catchments. The same mantra always applies – demand for residential properties in Mumbai, regardless of locality, results from that area’s ability to generate employment. The success of these areas lay in the fact that they were developed on the basis of a certain plan with regards to public transport viability.
As long as this system could meet the demands placed on it, all locations within its purview worked. Navi Mumbai, as a unique economic microcosm with relatively well planned infrastructure & connectivity, has proved to be something of a game changer.
On the whole, the viability of Mumbai’s public transport system has reached a plateau that is almost impossible to transcend. Newer locations open up only under the unrelenting hammer of urbanization the required infrastructure is often an afterthought, if it happens at all. Without sufficient connectivity to the city’s workplace hubs, some of latter day residential areas are finding no takers.
This puts paid to the myth that anything with 4 walls and a ceiling will sell in Mumbai. If buyers can not reach their offices in time from there, it will fail for the simple reason that it does not fulfill the quintessential Mumbaikar’s primary objective.
Walk to Work Concept..!
Meanwhile, in a city where the walk to work concept remains an elusive dream for the majority of its inhabitants, the highest demand for houses continues to be in and around the primary & secondary business districts.
In fact, this brings one to the root of the dizzying price spiral that gets more & more unreal as one closes in on the central areas of the city.
It has nothing to do with a higher grade of construction quality, amenities/social infrastructure available town side. Simply put, buyers are willing to pay for the privilege of an hour off their daily commute.
About the Author..!
Mr. Anuj Puri is Chairman & Country Head in Jones Lang LaSalle India
+ 91 22 2482 8410