Study of real estate market chembur

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Study of Chembur Real Estate Market


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Chembur: From A Crabbing Area To ‘The Queen Of Eastern Suburbs’

Chembur was a picnic spot on the north-eastern outskirts of Mumbai. The name Chembur is a

derivative of Chimbori (the Marathi word for crabs). Chembur was a causeway and a popular

crabbing area earlier. From a picnic spot and a crabbing area Chembur has come a long way.It

is now considered 'the queen of the eastern suburbs’.

Occupying an area of 23.5 km², the bounds of Chembur extend from Tilak Nagar in the north to

the seafront in the south, past the Tata Power project. And from the Rashtriya Chemicals &

Fertilizers plant in the West to the Deonar Bus Depot. Major arteries originate at Chembur and

lead to Navi Mumbai (New Bombay), Ghatkopar, Sion, Kurla and Mulund-Thane. The Central

Railway’s Harbour Line, services Chembur.

Old bungalows and villas in the northern half are making way for high-rise apartments.

(Burmah) Shell Colony, Sahakar Nagar, Subhash Nagar and Tilak Nagar are old housing board

tenement colonies in Chembur. Anushakti Nagar at Deonar -the staff quarters of Bhabha Atomic

Research Center, lies just outside the eastern boundary of Chembur.

There are large lower middle class settlements in Thakkar Bappa colony, P.L. Lokhande Marg,

Ghatkopar -Navi Mumbai Link Road, Vashi Naka (refineries), Siddharth Colony, Lal Dorgar etc.

Rashtriya Chemicals and Fertilizers, a public sector company occupies a large portion of this

suburb and its residential campus is a rare green location in Mumbai. Other industries located

in Chembur are BPCL, HPCL, BARC, Tata Power etc.

Chembur has two Bus Depots at Deonar & Govandi. It has railway stations at Tilak Nagar,

Chembur & Govandi. Mankhurd Station is also close by.

Like most suburbs of Mumbai today, Chembur has a cosmopolitan population. The profile of

residents consists primarily of high & middle income group people, working in South & Central

Mumbai. Chembur is known for many things — its pockets of greenery, the streets choc-a-bloc

with food joints and for being a cultural hub for dance and theatre enthusiasts. But what most

residents here might take as a norm and outsiders are unaware of is the high celebrity quotient

of the suburb. Despite being a complete anti-thesis of glamorous suburbs like Andheri and

Bandra, Chembur has somehow thrown up a veritable talent of singers, musicians, actors and

actresses.


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Chembur: Location

& Infrastructure Developments


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Chembur –A Residential Catchment Area To Various Commercial Hubs

Chembur is in proximity to and well connected to some commercial hubs of Mumbai and

therefore serves a good residential catchment area for people working in these hubs.

It is well connected by road via the Eastern Express Highway to the Powai-Vikhroli IT/ITeS Hub.

It is well connected by road & rail to Navi Mumbai, another IT/ITeS hub.

It is well connected via Eastern Express Highway & Sion to the Bandra Kurla Complex. Bandra

Kurla Complex is becoming a key commercial hub for Mumbai with major financial services &

banking companies based in the complex.

It is also not very far from Lower Parel (Marketing, Advertising & Media hub) and Andheri

(Entertainment & Media, IT & ITeS hub).

Bandra Kurla


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Chembur to Compete With Western Suburbs: Upcoming Infrastructure Projects

The two major upcoming infrastructure projects, which are likely to have the marked impact

on the overall real estate market of Chembur and surrounding areas, are Santacruz-Chembur

Link Road & Metro Rail Project.

Metro Rail Project: Charkop-Bandra-Mankhurd Segment

A plan for a reconfigured Mumbai Metro which stretches from Charkop in Kandivli to Bandra and

goes on to Mankhurd has been passed by the Mumbai Metropolitan Region Development

Authority (MMRDA). The line will connect the western and eastern suburbs through a 31.87 km

elevated route. The route will have 27 stations and the line will travel at a height of five to 12

metres above ground level.

From Charkop, the route passes through Link Road, Linking Road then parallel to the western

railway line until Bandra. Then, it crosses the Western Express Highway eastward across the

railway tracks, across Mahim creek, along the main road of Bandra-Kurla Complex (with a stop

at MMRDA’s headquarters), then across Lal Bahadur Shastri Marg at Kurla, to HD Barve Road and

finally reaching Mankhurd.


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One passenger coach will run every four minutes. At Charkop, Bandra, Kurla and Mankhurd,

there will be easy access from the Metro station to the suburban railway stations.

The line will connect eastern & western suburbs. People working in IT/ITes hub of Malad &

Financial Hub of Bandra Kurla Complex will be connected by rail to Chembur. Similarly, people

living in western suburbs will find it easy working in Chembur/Mankhurd. This will increase

attractiveness of Chembur for commercial development as well.

Extension of Metro Rail Project to Sahar Airport & Panvel

The Mumbai Metropolitan Region Development Authority (MMRDA) plans to extend the second

phase of the metro rail project from Charkop-Bandra-Mankhurd to both Chhatrapati Shivaji

International Airport at Sahar and the second international airport scheduled to come up near

Panvel.

With the proposed addition of the Mankhurd-Panvel and the Bandra-Sahar sections, the

Rs6,192-crore second phase will now cost more than Rs. 12,000 Crore. According to primary

estimates, the addition of these two links will require investment of more than Rs6, 000 Crore.

The project will now also require the participation of the City and Industrial Development

Corporation (CIDCO), the creators of Navi Mumbai.

With this addition, the original 32-km phase between Charkop and Mankhurd will now become

longer by another 32 km, taking the total length to 64 km.

Santacruz-Chembur Link Road (SCLR)

The Santacruz-Chembur Link Road (SCLR) project is part of Mumbai Urban Transport Project

being built at the estimated cost of Rs.550 Crores. Santacruz Chembur Link Road is an

important arterial road connecting Western Express Highway (WEH) and Eastern Express

Highway (EEH). Total length of Santacruz Chembur Link Road is 6.45 km starting from Dr. Hans

Bhugra junction on WEH in Santacruz East and running to the East skirting Vidyanagari Campus

(Mumbai University at Kalina) on its south and meeting Lal Bahadur Shastri (LBS) Marg after

crossing Meethi River Bridge. Thereafter it follows the existing S. G. Barve Marg to a length of

about 150 meters and beyond a new road is proposed through slums and crosses the Mumbai

Kalyan Central Railway (Main) line.


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Further passes close to Lokmanya Tilak Terminal and through MHADA colony, running parallel

to Harbour Line up to Amar Mahal junction of Eastern Western Highway.

Currently traveling time from BKC to subject site is approximately 15 to 18 minutes. Santacruz-

Chembur Link Road is expected to reduce travel time between BKC and subject property by 10

minutes. Travel time between Santacruz and Amar Mahal Junction is expected to reduce by 30

minutes. This flyover will be Mumbai’s longest and officially city’s first viaduct. The flyover of

two-level will be 2.2 km long with the total length of the road of about 6.45 km. The lower

level will be divided into two parts. The left portion will be elevated from Kurla railway station

to Tilak Nagar railway terminus and the right portion will meet S.G.Barve Marg near Nehru

Nagar, Kurla (E).

All these projects are likely to have positive impacts on the real estate prices in the areas

along the corridor viz. Kurla, Chembur, Govandi, Deonar & Mankhurd. Along with the benefit of

proximity to the CBD of Mumbai & the better public transport facilities and connectivity, these

areas will compete with the existing western suburbs of Mumbai in the coming years.


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Mumbai's Biggest IT Park To Come Up In Chembur

Mumbai city will have a new IT park, in Chembur. As of now, it the new IT park is expected to

be the Mumbai's biggest IT and IT-enabled services (ITES) special economic zone (SEZ) at 30

lakh sq-ft.

Bombay Industrial Corporation, a private company involved in warehousing business, signed a

deal with the Union Ministry of Commerce and Industries on May 31, 2007 to set up an IT/ITES

park in Chembur.

The approval of plans to set up an IT park in Chembur assumes importance as most of the

IT/ITES zones set up so far are located in areas like Thane, Vashi, and Panvel. Rubin Chedda,

managing director of Bombay Industrial Corporation, said, "With transportation a big

inconvenience in Mumbai, an IT/ITES SEZ in Chembur is sure to attract a lot of IT companies.”

Bombay Industrial Corporation, with a turnover of Rs 4 Crore, is still to announce a

retrenchment plan for its 80-odd employees. The IT/ITeS SEZ will get a lot of attention as it is

going to come up within the city. It will take 3 years for the project to complete.

The new IT/ITES Park in Chembur is expected to further boost the real estate prices in and

around Chembur, creating additional need for residential as well as commercial & retail

development.


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Chembur’s Residential Market


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From small suburbs with row houses and bungalows tucked away in the picturesque landscapes,

Chembur is becoming a favourite suburb for many residents. The augmented FSI (from .5 to 1)

along with the availability of Transfer of Developmental Rights (TDR), has attracted several

builders – some renowned like Runwal, Kalpataru, Kukreja, Neelkanth and many lesser known

players to Chembur. Much of the construction activity is concentrated around Central Avenue

Road, Sion-Trombay road, Union Park, Deonar and Govandi. Except for a few, majority are re-

development of old bungalows into one or two high rises.

Chembur has witnessed large-scale developments in the residential sector over the last few

years. There has been high demand of residential space especially in 1, 2, 2-1/2 and 3 BHK

apartments. Large number of residential apartments & standalone structures has come up in

Chembur during these years.

Today, one can find the presence of all the prominent developers of Mumbai in the residential

market of Chembur. Few major projects by these developers include Raheja Acropolis by

K.Raheja Universal Pvt. Ltd., Golf Scaape by Kukreja Construction Co., Sabari Aashiana by

Sabari Realtors , Neelkanth Gardens by Neelkanth Group etc.

However Kukreja Construction Company is doing the largest number of projects in Chembur.

In order to understand the Chembur market, we have taken three representative areas (sold at

different price points and attracting different sets of buyers). This will enable us to compare

and contrast it with the Chmebur Camp- RCF Stretch where Tata Power site is located.

1. Most Prime Area : Ambedkar/ Diamond Garden

2. Upcoming & Prime Area : Around Deonar

3. Middle Income Area : Areas around Chembur Camp & RCF


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Most Prime Area: Ambedkar /Diamond Garden.

From the beginning the area has been considered prime. It is an aspiration of a Chembur

resident to live in the area on account of quality of life that is offered and also the sheer

convenience of living in the area.

Host of factors have combined together to contribute towards this status.

‘A Convenient Life’: Everything required for is present with in a radius of 2 km: banks,

markets, temples, schools etc.

Quick and Easy Connectivity

Self Sufficient Projects: The projects that have recently been completed in the area

are fully self sufficient with a club house, gymnasium, garden and lots of open space.

Great Ambience : Provided by the vast greenery and absence of slums

Deonar

Diamond Garden- Ambedkar Garden

Camp- RCF Strech


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‘Good crowd to mingle with’ :The fact that only well-educated people ,employed in

good profile companies have stayed there from the beginning adds to the aura of this

area

However most of this area is developed. There is not much scope for further development of

big projects except for a few stand-alone buildings or redevelopment projects. The residential

rates in this area for new projects range from Rs. 9,000-Rs. 12,000 per sq. ft.

There is an upcoming Hiranandani redevelopment project in Maitri Park. Spread across nine

acres of land, Maitri Park was developed between 1962 and 1968. The Maitri Park

redevelopment project offers a good deal to the original occupants of the society even as it

gives the Hiranandani extra FSI in the heart of the Chembur.

Upcoming Area: Deonar

Deonar is a fast developing into a prime location in Chembur. It is home to a lot of greenery,

overlooking hills –thus is well endowed by nature. It is considered good for residential projects.

The region has large projects with great amenities.

Although buyers who are new to Chembur would not perceive a big difference between area

around Diamond Garden and Deonar, the veterans of Chembur consider Deonar a second

preference for residence. Lots of residents of Deonar are employees of BARC.

Deonar has been granted IT1, IT2 and R status. It has scope therefore for industrial,

commercial as well as residential development. Deonar’s proximity to Sion-Trombay road is a

big advantage for both industrial and commercial projects. Proximity to Govandi station also

adds to Deonar’s appeal for all three purposes.

Key Builders who have done undertaken development project in this are Rahejas, Safal Group ,

Sabari Realtors, Kukreja Construction Company , Neelkanth Group etc. .

The residential projects of this zone are priced in the range of Rs 7,000-8,000 per sq. ft.

Some of the prestigious projects in this region are Raheja Acropolis, Sabari Aashiana by Sabari

Builders , Safal Twins by Safal Group etc.

Certain premium projects like Golf Scaape by Kukreja Construction Co. with views of the golf

course are available in the range of Rs. 10,000- 11,000 per sq. ft.


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Middle Income Zone: Chembur Camp-RCF, Close to Tata Power Site

Chembur camp or Chembur colony is one of the oldest areas of Chembur. It’s believed that

refugees after India-Pakistan partition took refuge here and hence the name ‘camp’. Also

implying that the communities living here are not very rich- are ‘middle class’.

This region is believed to be quite congested (esp. when compared to Diamond garden or

Deonar region). Traffic movement is attributed to be slow because of this. Connectivity to

station is not as good; also markets are considered far from residential spaces.

Traffic is believed to add to industrial pollution which is a major concern for people living in

the area. The main culprits for high pollution levels are big players like RCF, HPCL, and BPCL.

Although there is a general agreement on the fact that pollution has significantly decreased

after RCF plant was partly moved away.

Two upcoming projects, close to the Tata Power site are Sheth Heights by Sheth Enterprises &

a project by Charisma Builders.

The residential rates in this region range from 5,000 from 6,000.


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Chembur Residential Development: Some Key Insights

Short Supply of 1 BHK apartments in Chembur

Most of the real estate agents felt that Chembur had a short supply of 1 BHK projects. They get

a lot of enquires from people with a budget of 25-30 Lacs which they are unable to service. The

builders prefer to build 2 BHK & above flats since the incremental profit that a builder makes

by adding a room is high. Also, they have a less number of units to sell.

For the 71 new projects listed in Chembur in the www.mumbaipropertyexchange.com, only 14

had 1 BHK options available, as opposed to 32 projects which had 2 BHK options. Of the eight

projects listed in Tilak Nagar, Chembur in www.mumbaipropertyexchange.com which had 2

BHK option, only 3 projects had an option of 1 BHK. Some of the prestigious projects in Deonar

area like Neelkanth Gardens, Raheja Acropolis etc. do not have 1 BHK option.

The real estate agents get a lot of enquiry of 1 BHK projects and are unable to service such

enquiries. Typically, these enquiries come for buyers who have a budget of 25-30 Lakh for a 1

BHK flat. These buyers typically have a Monthly Household Income of 25,000- 50,000. These

buyers are thereafter forced to explore properties, across the bridge in Vashi, Navi Mumbai.

Residential Market: High Occupancy, Dominated by Users

Chembur along with Wadala, Matunga, and Sion are few locations which are dominated usually

by actual users than investors. Most of the projects completed in the last 1-2 years have shown

has shown 90-95% occupancy by the time the construction is completed. Some other projects

like Neelkanth Gardens has shown 100% occupancy, which was completed in 2006, while the

upcoming constructions like Mahavir Platinum with likely completion of phase I in 2008, has

shown 85% occupancy. Safal Twins has shown 95% occupancy and the building was completed in

March 2007.

On an average, the residential projects in Chembur have shown high occupancy rates. The

buildings under construction and with expected completion of 6-8 months has shown the

occupancy in the range of about 80-85% and by the time the construction of building is

completed, almost 90-95% of the residential projects gets absorbed.


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Outlook

With the increased number of mill lands being freed up for development, Central Suburban

Mumbai is also likely to witness the launch of several new residential projects in the near

future. The demand for residential properties in Chembur is likely to increase as more and

more developers acquire land for planned development.

Further the development of infrastructure projects like metro rail will give tremendous

impetus to the real estate market of Chembur and surrounding areas. Also the proposed

development of IT/ITeS Park will give a further boost.

The demand for quality residential projects is likely to be high in the next 2-3 years in higher

income level segment as well as middle income level segment. If certain gaps like viable 1 BHK

housing is addressed, a new segment of buyers will generate the demand for entry level

housing in Chembur.


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Chembur Commercial & Retail Market


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Commercial cum Retail Model Of Development

Most of the recent commercial development is of commercial cum retail with retail activities

on ground floor and office space on the above floors. The few commercial development

activities which have taken place in Chembur, have been along Sion Trombay Road, near

Ambedkar / Diamond garden.

Ambekar/Diamond Garden : Commercial & Retail

Kukreja Builders have developed one such project ‘Omparakash Arcade’ near Ambedkar Garden

Circle. The project has total built up area of 60,000 sq.ft with average floor plate area of 6,000

sq.ft. The building is of G+9 storey structure and has retail shops on the ground floor and office

space on the above floors. The current rates on the ground floor are in the range of Rs.20, 000-

25,000 per sq.ft and on the above floors meant for offices are in the range of Rs.10, 000-12,000

per sq.ft.

On an average the rates for outright purchase of commercial are in the range of Rs. 12,000- Rs.

15,000 per sq. ft in Ambedkar Garden area . The rate for monthly rental of commercial space

in the area range from Rs. 110-Rs.150 per sq. ft.

Monthly rental for retail space in Ambedkar Garden varies from Rs. 200- Rs. 250 per sq. ft.

Deonar Area : Commercial & Retail

For retail space in the Deonar region the rates for outright purchase on the ground & 1st floor

rates are Rs. 18,000- 20,000. The rates for monthly rental for retail in Deonar area ranges from

Rs. 125- Rs. 150 per sq.ft.

The purchase of ongoing commercial space in Deonar the station area are in the range of Rs.

8,000 to 12,000 per sq. ft. The monthly rental for commercial space ranges from Rs. 80- Rs.

125 per sq. ft.

Some of the well known commercial complexes of Chembur are the Swastik Chambers,

Bezzola Complex, Corporate Park, Shrikant Chambers, and Acharya Commerical Estate etc. The

rates for outright purchase of offices range from Rs. 9,000 to 15,000 per sq. ft.


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Chembur is home to Shipping Companies & Few Other Big Companies

Since it falls midway between Colaba & Nhava Sheva, Chembur is host to a lot of Shipping &

Transportation companies, and in some ways has become a mini-hub for them. Some of the

famous shipping companies based in Chembur are Sanmar Shipping, Varun Shipping, Shreyas

Shipping, Transworld Group, United Arab Shipping Company etc.

Besides shipping, there are a very few companies of other sectors. Chembur is home to some

very big players like Tata Power, RCF, HPCL, and BPCL. Other companies having offices in its

key commercial complexes are Reliance, Apar, SPANKO, Aditya Birla, Thomas Cook, Pepsi

Factory, Lakme, US Vitamins etc.

K Stars Mall, Chembur

The most exciting retail mall coming up in Chembur is the K Stars Mall, being developed by the

Kukreja Constructions. The mall consists of ground plus 6 upper floors. The mall promises a

mix of a five screen multiplex, an entertainment zone, a multi-cuisine and exclusive

restaurant. It plans to allocate exclusive zones for reputed brands in clothing, jewellery,

watches, electronics and other categories.

The rates for monthly rental in K-Star Mall range from Rs. 175- Rs. 200 per sq. ft. The retail

space in the Mall is not available for outright purchase. K-Star Mall is scheduled to open by

March 2008.


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Outlook

The planned infrastructure developments are going to change the face of commercial

development in Chembur- for the good. Last but not the least the announcement of Chembur

as a commercial IT/ ITES hub confirms its commercial viability.

Also, the trend of companies to moves closer to suburbs is motivated by opportunity to move to

swankier- larger offices at lesser rates. An added benefit could that it reduces the commute

time for employees. The is supported by the fact that a lot of commercial development is

already coming up in central suburbs of Mulund/ Vikhroli / Bhandup.

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Study of real estate market chembur

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