We are deeply rooted in the western region of India, particularly in Mumbai.
Bhavik Bhandari
Chief Sales & Marketing Officer, Ashwin Sheth Group
How do you view the current scenario of the real estate market in India’s western region?
The real estate market in India’s western region is thriving, continuing its upward trajectory despite consecutive interest rate hikes over the past year. This resilience is largely driven by rapid infrastructure developments, which have bolstered investor and buyer confidence. A notable trend is the sharp increase in demand for luxury homes, which has surged from 16% in 2018 to an impressive 34% in 2023. This spike is being fueled by rising disposable incomes, high-paying jobs in sectors like IT and finance, and an expanding base of HNIs and UHNIs. Post-pandemic, the real estate sector has made a strong comeback, with 2023 recording the highest residential sales in a decade, growing by 33%. As India advances towards 2047, the centenary of its independence, several new real estate hotspots are expected to emerge, with various segments evolving to meet the needs of a rapidly urbanizing population.
What is the demand trend in residential and commercial segments?
The demand in both residential and commercial real estate continues to grow robustly. In the residential segment, while affordable housing maintains steady demand, luxury housing is on the rise, driven by urbanization, rising incomes, and a millennial generation that is more focused on homeownership. On the commercial front, despite global trends toward remote work, the office market in major Indian cities has shown impressive resilience. The IT/BPM sector and global capability centers remain key drivers, along with the rising demand for strategically located warehouses and distribution hubs spurred by the e-commerce boom. Cities like Bengaluru, Pune, Chennai, and Hyderabad are leading this transformation. Additionally, government initiatives, such as the Smart Cities Mission and the ongoing expansion of Mumbai’s metro network, are pushing the demand for commercial spaces in areas like Thane, Bhandup, and Kalyan-Shil Road, which are rapidly becoming prime investment zones.
How is the redevelopment market growing in Mumbai and the MMR? Do you have a presence in the redevelopment market?
Mumbai and the Mumbai Metropolitan Region (MMR) have seen a significant uptick in the redevelopment market, which is now a critical component of the city’s real estate ecosystem. Many buildings, particularly in South Mumbai and other older parts of the city, are over 30 years old, with some deemed unsafe by the Municipal Corporation of Greater Mumbai (MCGM). This has opened up immense opportunities for redevelopment, transforming these aging structures into modern, sustainable, and more efficient living spaces. Although we have not yet entered the redevelopment market, we recognize its potential and are exploring opportunities to participate when the timing aligns with our broader strategic vision.
Can you give us an overview of your presence in the western region market?
At Ashwin Sheth Group, we are deeply rooted in the western region of India, particularly in Mumbai, where we have delivered landmark projects across high-demand locations such as Prabhadevi, Thane, Borivali, Andheri, Mulund, Dahisar, and Kanjurmarg. To date, we have developed over 13 million sq. ft. of residential, commercial, and mixed-use spaces not only in Mumbai but also in international markets like Dubai. Our strategy revolves around crafting modern living and working environments that enhance lifestyle quality while promoting comfort and functionality. Looking ahead, we are committed to integrating sustainability into our projects, with plans to significantly invest in green initiatives and eco-friendly construction methods over the next 3 to 5 years.
How do you view the overall market opportunities in the region, and what trends could emerge in the future?
The future of the real estate market in the western region is brimming with potential. As the supply of new homes remains tight, we anticipate a seller's market to emerge, particularly in the affordable and mid-range housing segments, which are expected to perform well. Additionally, luxury housing will continue gaining momentum in urban hubs. Several factors, including domestic economic growth, inflation trends, and employment levels, will play pivotal roles in shaping the sector’s future. In terms of trends, we foresee increased adoption of cutting-edge technologies like virtual reality tours, AI-driven property management, and blockchain for secure, transparent transactions. Furthermore, eco-friendly and energy-efficient homes are becoming more sought after by environmentally-conscious buyers. At Ashwin Sheth Group, we have already pivoted to capture these emerging opportunities. With real estate expected to contribute 13% to India’s GDP by 2025 and the sector projecting a 9.2% compound annual growth rate (CAGR) from 2023 to 2028, the industry’s importance to India’s economic landscape cannot be overstated.
