In recent years, Powai has fashioned itself into one of the most prominent lifestyle and cultural hubs of Mumbai. An ultra-modern suburb , it houses exclusive residential complexes, luxury hotels, recreational centres, and cultural destinations.

A well-established locality in Mumbai, Powai is bordered by Lal Bahadur Shashtri (LBS) Marg in the north-east, Sanjay Gandhi National Park in the North, Chandivali in the south-west, and Vikhroli Park site in the south-east.  The locality is connected to the rest of the city via major roads, such as Jogeshwari-Vikhroli Link Road (JVLR) and LBS. Kunjurmarg railway station, which is at a distance of four km from Powai, is the nearest station on the central line of the Mumbai suburban rail network. The area also enjoys connectivity via Saki Naka metro station, which is around three km.

The locality has witnessed substantial development over the last three decades and has emerged as the city’s most prominent residential cum commercial hub.. The presence of Powai Lake and ample greenery makes this place an attractive destination for the masses.

Real estate development in Powai

Society apartments constitute over 95 percent of the total residential inventory available for sale in Powai. Mid-sized 2 BHK units, account for the maximum inventory share of about 40 percent . Over 20 percent properties in Powai are in the range of Rs 1 crore- Rs 2 crore.  Several prominent developers who have marked their presence in the area include Hiranandani Group, Wadhwa Group, Kanakia, K Raheja, and Ekta World.

In terms of commercial development, Powai houses several office complexes, including Hiranandani Business Park, Hiranandani Kensington SEZ, and other standalone buildings. Schindler India, CRISIL, TCS, Cognizant, and Deloitte are known multinationals having their offices in Powai.

Capital and Rental Trends

As per the  99acres listings, the average property values in Powai hover around Rs 21,250 per sq ft. If we compare the previous two quarters, i.e. Jul-Sep 2020 and Oct-Dec 2020, the locality has reported a marginal increase of 0.8 percent, QoQ, in Q4 2020. However, in the last five years (Oct-Dec 2016 vs Oct-Dec 2020), the capital prices have surged by four percent on the back of multiple factors, including excellent connectivity, increased employment opportunities, and a convenient lifestyle.

In terms of rental housing, nearly 25 percent of properties in Powai are available within the range of Rs 40,000-Rs 50,000 per month. Mid-sized2 BHK apartments account for 55 percent of the total properties available on rent.

Other than the presence of IIT Bombay, the locality boasts of being the start-up hub for new-gen entrepreneurs.  Grocshop, Purple Squirrel, Bewakoof, TinyOwl, and Bizongo are some of the  start-ups firms..

A 1 BHK in this locality is available for Rs 23,000-Rs 30,000 per month, whereas, for a 2 BHK, you have  to shell between Rs 37,000 per month and Rs 46,000 per month. A 3 BHK in Powai may cost around for Rs 61,000-Rs 80,000 per month. Led by the crushing economic impact of the Coronavirus outbreak, rental ‘asks’ in Powai have witnessed a dip of four percent, YoY, in Oct-Dec 2020.

Property values in Powai (per sq ft)

Capital ‘asks’

YoY Change

Rental ‘asks’

YoY Change

Rs 19,100

-1%

49

4%

Source: 99acres Insite Report Oct-Dec 2020

As averred by Tauqeer Hashmi, Proprietor, Maharashtra Properties, “Powai has emerged as a coveted capital and rental hub due to the presence of several multinational companies within its vicinity. A 1 BHK residential apartment, measuring up to 450 sq ft, is the most sought-after in Powai by buyers and tenants alike. However, this configuration accounts for only a miniscule portion of the total residential stock. Also, these are old constructions.  Nevertheless, given the demand, we advise investors to invest in 1 BHKs in this locality. Investment in this property type is likely to attract up to 20 percent return in the next three years.”

While the locality scores high on liveability index, certain issues such as the delay in the Veravali-Powai-Ghatkopar water supply project and the overflow of Powai Lake during rains have posed concerns for the residents over the years.

Overall, Powai is a good locality to invest in if you are looking for decent returns on investment. Line 6 of the Mumbai metro (Lokhandwala-Vikhroli), which is likely to be completed in 2021-22, is further expected to boost the demand for properties in the region and the capital returns in the future.