Mumbai Real Estate: Affordable Second Home Options Near the Financial Capital
Real estate developers note a growing demand for second homes post-COVID-19, with several emerging locations offering viable options for buyers with a ₹50 lakh budget.
Real EstateMumbaiSecond HomeBudgetKarjatneral BeltReal EstateJul 13, 2025
“For a ₹50 lakh budget, one of the few viable options is buying land in areas like Karjat, Neral, Shahapur, or Murbad from a Grade B developer for around ₹20 lakh, and spending the remaining ₹30 lakh on construction and approvals for a 2BHK independent home,” said Gautam Thacker, chairman and founding president of NAREDCO, Karjat-Neral Belt.
Thacker said that partnering with property management firms can fetch an annual rental yield of up to 10%. Another option is a 2BHK apartment facing the Matheran hills in Neral, available for around ₹30 lakh. However, buyers hoping to buy a villa in more established second-home hotspots like Lonavala or Igatpuri would need a budget of ₹1–2 crore, while prices in Alibaug can go even higher due to its proximity to South Mumbai.
Post-COVID-19, several real estate developers in Mumbai and Pune have launched plotted and villa development projects across Maharashtra, catering to the growing demand for second homes. Popular locations include Lonavala and Khandala near Pune, Dapoli in the Konkan region, Alibaug in Raigad district, Manor in Palghar, Igatpuri, Kasara Ghat near Nashik, and the Karjat-Neral belt near Mumbai. Developers such as Rustomjee Group, Mahindra Lifespaces, Godrej Properties, Wadhwa Group, House of Abhinandan Lodha (HoABL), and Arihant Superstructures have introduced such second-home projects over the past two years.
Experts advise investors to conduct thorough due diligence before purchasing land or independent houses for use as second homes. “When investing in land, it's crucial to understand the difference between agricultural and non-agricultural land. Buyers must verify the ownership title and get legal due diligence done before committing funds,” said Aditya Zantye, a Mumbai-based chartered accountant who practices before MahaRERA.
The property card, 7/12 extract, property tax receipts, and water connection bills are key documents to review. Zantye also stressed the importance of understanding tax implications. “NRIs are barred from buying agricultural land under FEMA regulations. Domestic buyers should factor in stamp duty, registration charges, property tax, and water tax. Additionally, short-term or long-term capital gains tax may apply if the property is sold,” he said.
According to experts, investors need to ensure proper documentation before purchasing a particular land parcel or an independent house for use as a second home. “While investing in land, one should understand the difference between agricultural land and non-agricultural land. We need to be doubly sure about the ownership title of the project. In fact, investors should get the legal due diligence of the project done before investing their money. Documents such as property card, 7/12 extract, property tax bills, water connection bills should be vetted before signing on the dotted line,” said Aditya Zantye, a Mumbai-based chartered accountant who practices in MahaRERA, a real estate regulatory body.
Along with due diligence of the property title, one also needs to keep in mind the tax liability that may accrue to an investor putting in money in a plotted development. Currently, non-resident Indians (NRIs) cannot invest in agricultural land due to restrictions under the Foreign Exchange Management Act (FEMA). Otherwise, one should check the amount due as stamp duty, registration charge, property tax, and water tax. Short-term and long-term capital gain tax (LTCG) liability may also arise if the investor decides to sell the property.
Frequently Asked Questions
What are the viable options for a ₹50 lakh budget for a second home near Mumbai?
One of the viable options is buying land in areas like Karjat, Neral, Shahapur, or Murbad from a Grade B developer for around ₹20 lakh and spending the remaining ₹30 lakh on construction and approvals for a 2BHK independent home. Another option is a 2BHK apartment facing the Matheran hills in Neral, available for around ₹30 lakh.
What are the popular second-home locations near Mumbai?
Popular second-home locations near Mumbai include Lonavala and Khandala near Pune, Dapoli in the Konkan region, Alibaug in Raigad district, Manor in Palghar, Igatpuri, Kasara Ghat near Nashik, and the Karjat-Neral belt.
What are the key documents to review before purchasing land for a second home?
The key documents to review include the property card, 7/12 extract, property tax receipts, and water connection bills.
What are the tax implications for buying a second home near Mumbai?
NRIs are barred from buying agricultural land under FEMA regulations. Domestic buyers should factor in stamp duty, registration charges, property tax, and water tax. Additionally, short-term or long-term capital gains tax may apply if the property is sold.
What is the annual rental yield for a second home in the Karjat-Neral belt?
Partnering with property management firms can fetch an annual rental yield of up to 10% for a second home in the Karjat-Neral belt.
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