Abhishek Kiran Gupta, head ( research), Jones Lang LaSalle Meghraj, said, " Among the huge population base, there is always a component of people who seek to own property.

With more and more suburbs getting developed, there are always opportunities to enter the residential market at a relatively affordable level." Gupta added, " They will benefit from the inevitable price rise as these areas develop in terms of connectivity and infrastructure.

Therefore, there is also a perennial demand for owned residential properties among those who can afford the capital outlay necessary to avail of the investment potential of Mumbai's high appreciation rates.

Lowered home loan interest rates serve to keep this demand at a healthy level." New project launches from developers such as Hiranandani, Mantri Developer, Mahindra Lifespaces and Orbit have also added to this rate rise. As per the latest data made available by Gurgaonbased research firm PropEquity, Mumbai will offer 172 million sq ft of residential space by 2012.

Its eastern suburbs -- Thane and Navi Mumbai -- have become favourable investment destinations. Delhi- NCR, too, has upcoming suburbs such as Faridabad, Greater Noida, Noida, Ghaziabad and Gurgaon. Small towns in the distant suburbs like Hapur, Meerut, Sonipat, Panipat, Palwal and Kundli have, however, taken a backseat.