Navi Mum hot spot for realty investors

 Navi Mumbai seems to have become the favourite property destination for investors to park their money. As per Census 2011, a sizeable proportion of houses are lying vacant in peripheral towns. But no cluster beats the Navi Mumbai-Panvel-Raigad Census Town (NMPRCT) zone in this respect. It is in this zone of the state, which includes Kharghar, Kamothe and Kalamboli, that the maximum number of apartments is lying unoccupied (see graphic). 

    In the census, two to three houses in 10 were found vacant in these towns, prompting realty experts to assume that they were flourishing investment markets. In surveying the occupancy pattern, the census department took the help of civic bodies. 
    Of 75,094 structures (census houses) surveyed in the NMP-RCT zone, 20,495 (about 27%) were found unoccupied, followed by Panvel (about 23%), Badlapur (about 21%) and Vasai-Virar (about 23%). The reasons for the vacancy are not mentioned. Property experts say most of the vacant homes are owned by investors, who anticipate rate appreciations; also, genuine buyers defer purchase, hoping for realistic realty rates. 
    Pankaj Kapoor, the managing director of the realty rating and research firm Liases Foras, said, "A genuine buyer can never afford to leave a house locked. Over the last decade, a sizeable number of flats was bought by those who did not intend to stay in them, while the actual end user was left out. Take a trip in areas like Kharghar and Kamothe after evening hours and you will get the correct picture." 
    A noted developer from Navi Mumbai confirmed the presence of investors in the market. "Going by a conservative estimate, 20-25% of the realty market is ruled by investors. Most developers earmark a specific number of units for regular investors, who get properties at discounted rates. The developer, in turn, is assured of adequate finances during crucial phases. Genuine buyers are not always affected by investor presence. Also, curbs cannot make investors vanish from the realty scene." 
    Pranay Vakil, chairman, Knight Frank India, said, "Investors, mostly, seek bulk properties that can be sourced within Rs 50 lakh. Property costs in Navi Mumbai are less than Mumbai, thus making buying there a lucrative bet. 
    "Investors enter deals during the pre-construction period and make an exit when the properties start reaping reasonable profits. They later reinvest in other developing areas. They are interested in owning property but not occupying them." 
    But developer Paras Gundecha, who is also the president of the Maharashtra Chamber of Housing Industry (MCHI), said low occupancy did not imply flourishing investor presence. "There is a vast difference between unoccupied and unsold flats," he said, expressing surprise at the figures. "Houses can remain unoccupied because of people staying in Mumbai buying homes in the extended suburbs." 
    Also, some families might be investing in flats for youngsters or future occupancy or events like marriage. Some flats could also be owned by NRIs and those who have temporarily migrated to other cities for employment. 
    Developers Ashok Mohnani, who has projects in the Vasai-Virar belt, and Vilas Bhamre, who has projects in Panvel, said these areas had better occupancy and the market was being driven by actual buyers. Nevertheless, Bhamre said, "Kamothe and Kalamboli are developing. So, there is the possibility that some structures might have been unoccupied during the survey."