Kalyan-Dombivli Analysis: A CommonFloor Report

Kalyan-Dombivli is a twin city on the outskirts of Thane. It is governed by the Kalyan-Dombivli Municipal Corporation (KDMC) and forms a part of Mumbai Metropolitan Region (MMR). Kalyan lies on the east side of Ulhas River. It was once an important port. Though its significance has diminished as a port, there is still considerable trade that takes place in the city. The twin city has a large industrial belt to its south-east from Kalyan to Badlapur. There are several small and large industries concentrated on this belt. Dombivli is a town in Kalyan tahsil, located at a distance of six kilometers from Kalyan and 20 km from Thane. The availability of local trains from Dombivli has made it a prominent suburb of MMR. Dombivli has seen a rise in population in recent years, by the people who work in Mumbai and settle down here. The Maharashtra Industrial Development Corporation (MIDC) has developed a big industrial complex around Dombivli.

“As part of ‘Real Insights’ into real estate, CommonFloor.com has come up with a detailed report on Kalyan-Dombivli real estate market in MMR with in-depth analysis based on CommonFloor data.

For detailed report“

Factors driving real estate growth

The primary factor driving the real estate sector in Kalyan-Dombivli is the sky-rocketing prices in Mumbai suburbs, coupled with the growing demand for affordable housing. Mumbai continues to attract migrants who come to the financial capital with hopes of employment opportunities. This has increased the demand for affordable housing. Yet, the present capital values have led a huge gap in demand and supply, though there is unsold inventory of up to four years. As such, the demand for housing has spilled over to the peripheral areas and areas of MMR.

Property values in the Kalyan and Dombivli area offers projects within the affordable range. For example, the average property value in Dombivli East is about Rs 5,440 per sq. ft while it is about Rs 6,040 per sq. ft in Dombivli West. The average property value in Kalyan East is about Rs 5,230 per sq. ft while the average property value in Kalyan West is about Rs 5,920 per sq. ft.

Residential market analysis

The Kalyan-Dombivli region’s residential real estate is driven by end-users as well as investors as the region has a good mixture of under-construction and ready-to-occupy projects.

Challenges

The biggest challenge currently facing Kalyan-Dombivli is the lack of sufficient civic and social infrastructure as well as major highways directly connecting the region to Mumbai suburbs and South Mumbai, where the central business districts (CBDs) are located. The major mode of transportation is the Mumbai local train. Hence, it is time consuming for people to travel from Kalyan-Dombivli to the Mumbai CBDs. However, the region is more suitable for people looking for affordable housing as well as people working in Thane and Navi Mumbai.

Future growth prospects

With property values in Greater Mumbai (Island city and suburbs) skyrocketing and the lack of affordable houses, people are looking at buying property around this region. With increasing construction costs in Mumbai and Navi Mumbai, several developers too are coming up with projects around Thane and Kalyan-Dombivli. Hence, one may expect a good supply and demand of residential projects in the region.