Urbanisation is always accompanied by commercial expansion and infrastructural development of an area. People migrate to the developed areas, looking for better lifestyle and growth opportunities.
Thane has steadily shown growth over the past 10 years. It has transformed into a buzzing real estate hub from a small industrial town. It is now one of India’s top residential attractions. Thane has witnessed tremendous growth as it is well-connected to Mumbai.
Availability of land, ongoing improvements to the city’s municipal and transportation infrastructure, and relatively reasonable real estate prices have attracted investors towards Thane. You can access the best schools, hospitals, and shopping malls here.
Some of the infrastructural projects that had helped it become a commercial real estate hub are Cluster Development Scheme, Mumbai Metro Line 4, Mumbai Metro Line 5, Borivali-Thane underground tunnel and Thane Coastal Road.
Impact of Commercial Real Estate
With many ongoing infrastructural projects improving the overall connectivity between Thane and Mumbai, youth and businesses are getting attracted to it. Thane offers high-end retail, IT and ITES sectors, commercial workspaces, hospitality and F&B, healthcare, data centers and logistics parks. As a result, Thane has rapidly grown into a commercial hub, having over 12 million square feet (msf) of existing commercial space and an additional 3.5 msf of upcoming area. At least 89% of the total area of 3.5 msf is expected to be added by the end of CY 2023. At least 54% of office size sold in CY 2022 is greater than 10,000 sq ft in carpet area, with several corporates and MNCs coming up in the area.
This has led to well-known national and international corporations establishing their headquarters here, transforming it into an alternative CBD. Wagle Estate, Ghodbunder Road, and Thane-Belapur Road have become commercial and IT/ ITES development hotspots.
One can also witness an interesting trend of growing commercial rentals in Thane that increased from Rs. 72 in CY 2017 to Rs. 91 in CY 2022, a 26% rise in absolute terms, thereby increasing the rental yield from 5.4% to 6.3%. With the increase in rental yield, sales velocity has also increased from 291K to 429K square feet, a 47% rise.
This constant growth in commercial real estate has helped Thane to emerge as an all-encompassing city with everything accessible in 15 minutes. In terms of connectivity, it takes 30 minutes to connect Mumbai, Navi Mumbai, Kalyan-Bhiwandi, and Mira Road-Borivali to Thane. Further, Thane has the inherent benefit of being the first city in India to offer a genuine walk-to-work culture and walk-to-education, healthcare, and shopping due to its high-quality commercial, healthcare, educational, and retail infrastructure.
This urbanisation has also attracted homebuyers to key micro markets like Thane City, Ghodbunder Road, Wagle Estate and Thane Central. In CY2012 – CY2022 YTD, the CAGR of Thane city stood at 5.9 %, with Ghodbunder Road and Thane Central touching 6.6 % as compared to CAGR of Andheri West at 3.9 %.
(The author is director – Ashar Group, and member of the managing committee, MCHI-CREDAI.)
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
Ayushi Ashar is the Director of Ashar Group & Member of Managing Committee of MCHI-CREDAI. She joined the family business in 2018 after earning her Bachelor’s in Business Administration in Finance from Emory University’s Goizueta Business School in Atlanta, United States. Her quest for knowledge led her to pursue multiple opportunities in the US, starting from Real Estate Portfolio Management at JP Morgan Chase in New York City to a Private Equity and Venture Capital Fund in Atlanta. Finally, she returned to Mumbai in 2018 to empower Ashar’s expanding portfolio through various new real estate ventures and acquisitions. In a short period, she has established a solid reputation in the industry owing to her work ethic, progressive vision and prudent financial acumen.
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