Buying an apartment is one of the biggest financial decisions most families make, and the stakes are higher than ever. With property prices in the Mumbai Metropolitan Region (MMR) on a steady rise—Thane alone has seen a 46% increase in rates over the past three years, from about Rs. 13,550 to nearly Rs. 19,800 per sq. ft—evaluating the true worth of a home has become critical before signing on the dotted line.
So how can a buyer distinguish between a fair deal and an overpriced property? Experts point to six factors that determine value, but not all deserve equal weight.
Location
Time and again, data shows that location and connectivity remain the top driver of value. Apartments near metro lines, arterial roads, business hubs, schools, and hospitals consistently outperform others in both appreciation and resale. Even a modest flat in a prime neighbourhood tends to hold its value better than a luxury tower in a far-flung suburb.
Space
The second most important factor is space. Buyers should look closely at the carpet area versus super built-up area. In Mumbai, the gap is the widest in India, with as much as 43% of space lost to loading—meaning buyers often pay for areas they cannot use. Understanding the price per usable square foot is key to judging whether the apartment is truly worth the asking price.
Growth
Historical appreciation offers clues about where values are headed. Mumbai’s median rate stood at around Rs. 27,500 per sq. ft in FY 2024-25, growing about 6% year-on-year. Micro-markets like Jogeshwari to Borivali saw the highest sales in the city, highlighting where demand—and therefore value—is rising fastest.
Gauge
Other factors matter too: the developer’s reputation and track record, the quality and age of construction, and the range of amenities on offer. While lifestyle perks such as gyms and clubhouses can tip the scales between two similar projects, they should never outweigh fundamentals like location and legal clearances. With Mumbai still carrying an inventory of over 84,000 unsold flats worth Rs. 2.57 lakh crore, buyers must also check demand-supply balance in the area.
Value
When evaluating an apartment, prioritize location, usable space, and appreciation trends above all else. Amenities, design flourishes, and marketing glitz may dazzle, but long-term value lies in fundamentals. In today’s fast-moving market, an informed decision today can safeguard not just your savings, but your family’s future prosperity.
The writer is Partner at Palladian Partners Advisory Ltd.
