Why Investing in Property in Matunga Makes Long-Term Sense?

Traditionally known for its academic vibe and classical roots, Matunga is now one of the city’s most strategic hotspots for real estate development. Its limited land, the presence of residential projects like those at Rustomjee 180 Bayview, and its sound connectivity are attracting an increasing number of buyers to the region.

Furthermore, once you consider the high rental yields and consistent increases in prices of apartments in Matunga, it becomes clear that the region isn’t just a spot for your home; it’s truly lucrative for investment. Let’s dive deeper into this topic!

Matunga’s Strategic Central Location Advantage

Explore how Matunga’s strategic central position offers seamless access to key city hubs, making daily life more convenient for families.

• Access to The City’s Significant Business Hubs: The region is situated at a short distance from the primary commercial centres of Mumbai, viz. Bandra-Kurla Complex, South Mumbai, and Lower Parel. This provides unmatched accessibility to people commuting to the business hubs regularly or frequently.
  
• Efficient Connectivity to South Mumbai and Western Suburbs: Matunga, located in central Mumbai, is connected to the western suburbs and South Mumbai through well-developed rail and road infrastructure.

These include the Eastern and Western Express Highway, the Bandra-Worli Sea Link, and the Mumbai metro and suburban railway networks.

• Overview of Connectivity to Key Areas: To sum it up for home buyers interested in Matunga’s real estate projects, here’s a round-up of Matunga’s connectivity to different parts of the city.

Read Also: Why is Matunga a Great Residential Location for Home Buyers?

Strong Historical Property Appreciation Trends

With a track record of strong historical property appreciation in Matunga, your investment is poised to grow over time.

• Consistent Annual Property Value Growth: The value of apartments in Matunga has steadily grown in the last two years. In 2022, the values grew by approximately 8%, while there was a growth of 12% and 10% in 2023 and 2024, respectively.

This indicates a sustained demand for residential properties in the region, which is partially driven by its vibrant cultural scene and the limited supply of such properties there.

• Outperformed Many Mumbai Suburbs in the Last 5 Years: While there was considerable growth in the real estate sector in several peripheral suburbs, Matunga outpaced these regions substantially.

As per 99Acres, property rates have increased by 14.1% in Bandra West and 10.2% in Santacruz.

• Year-over-Year Increase in Central Location Premium: Matunga is positioned centrally, linking BKC, South Bombay, and Lower Parel, which are leading business hubs and commercial centres.

  This aspect has elevated the appeal of the region, with an appreciation of 1.5% and 2% witnessed in Matunga East and Matunga West, respectively. As for the average property rate, the Eastern part of Matunga recorded a cost per square foot of Rs. 49,700, while the rate was Rs. 49,150 in Matunga West.

Excellent Rental Yield Potential

Matunga’s excellent rental yield potential makes it a smart investment for families and investors alike.

• High Demand from Working Professionals: Matunga is located in proximity to business hubs, which makes it a preferred spot for rental homes. As per 99 Acres, Matunga has over 140 properties available for rent, with rental charges ranging from Rs 55,000 to 1.3 lakhs.

Working professionals who seek short commutes, a peaceful vibe amid the fast-paced environment of the city, and a well-connected transit point generally consider renting homes here.

• Families Prefer Matunga for Long-Term Rentals: The region also boasts renowned educational institutions, a thriving cultural environment, and several green spaces, which make it ideal for families seeking long-term rental homes.

Moreover, the strong sense of belonging to a community and the safe surroundings enhance the demand for 2-4 BHK rentals in luxury residential projects. Due to such high demand, the rent for 2 BHK apartments ranges from Rs 59,600 to Rs 1.66 lakhs per month, while 4 BHK properties are available at rentals as high as Rs 2.8 lakhs.

Infrastructure Development Boosting Investment Value

Matunga’s investment value is expected to benefit from enhanced connectivity and urban amenities.

• Metro Connectivity Projects in the Planning Phase: Upcoming metro railway projects, such as Metro Line 3 in the region, could reduce congestion on roads and ease commutes considerably.

Once these are operational, the value of apartments in Matunga is likely to receive a major boost due to improved accessibility and lower travel times to different regions of the city.

• Ongoing Road Infrastructure Improvements: The widening of arterial roads, smooth linkages to routes such as the Eastern Express Highway, and measures for traffic decongestion are ongoing in the region.

Due to such upgrades, commuting to areas across Mumbai is becoming more efficient, which, in turn, is driving the interest of potential homebuyers.

• Smart City Initiatives Enhancing Livability: The region is also benefiting from the Smart City agenda adopted for Mumbai, as improved waste management measures, better street lighting, and efficient digital infrastructure are enhancing safety and comfort.

These upgrades are also contributing to Matunga’s rising appeal among modern homebuyers.

Limited Land Supply Creates Scarcity Value

Limited land supply creates scarcity value, driving both demand and long-term appreciation in Matunga.

• No Major Vacant Land Parcels Available: Matunga is well-established already and has minimal unused land. As such, there’s less scope for greenfield development in the region, and new residential projects are scarce. This trend, in turn, ensures sustained demand, and prices are consistently on an upward trajectory.

• Redevelopment Projects Limited by Heritage Regulations: Matunga also includes land that comes with regulations restricting its diverse use, owing to its architectural character and historical background.

Such regulations limit the possibility of new construction, thereby creating a bottleneck in supply that only enhances the value of existing residential properties.

For instance, the Dara-Matunga-Wadala-Sion scheme, which was one of the first few planned schemes for the suburbs, limited buildings to three stories and made it mandatory to include open spaces between the properties.

There are also certain Art Deco buildings in Matunga, such as the Gold Finch, which were designed with specific limitations on open space and height.

• FSI Restrictions Preventing Over-Construction: Due to the regulations set as per the Floor Space Index (FSI), there is limited construction of high-rise buildings.

This, in turn, ensures the region doesn’t have overwhelming infrastructure, which helps preserve the quality of life and sustain the premium value of upcoming and existing real estate projects.

Read Also: Rustomjee 180 Bayview Real Estate: Elevating Matunga’s Skyline

Final Thoughts

All in all, Matunga is undoubtedly one of the most lucrative locations when it comes to investing in a home in Mumbai. Its locational advantages, coupled with high-end infrastructure, scenic value, and high rental yield, make it favourable for working professionals, NRI investors, and families alike.

If you dream of having a home that provides a peaceful atmosphere with premium amenities amidst the chaos of the city, then Rustomjee 180 Bayview is definitely an option to consider. To know more about the property, get in touch with us today.

FAQs

• What is the average ROI for apartments in Matunga over the last 5 years?

Matunga has shown a 20.3% growth in property values over the last 5 years, which has put it behind several suburbs. This reveals the rising investor confidence in this locale and the consistently increasing demand for homes in the region.

• How does Matunga compare to other central Mumbai areas for investment?

The better rental stability, price appreciation, and limited supply of land compared to several central suburbs differentiate Matunga from other regions. Its cultural appeal and central location keep it ahead of other locations such as Dadar, Mahim, and Sion with regard to long-term investment in real estate.

• What are the rental yields like for properties in Matunga?

The yield from rental homes in Matunga typically ranges from 2.5% to 3.5%. Thanks to its proximity to offices, transit hubs, and colleges, rental demand grows steadily among professionals, families, and students.