Mumbai’s coastal town Alibag – favourite spot for celebrities:Land prices skyrocket 3 times in 10 years; Is it still a good investment for common man?

Alibag, a coastal town near Mumbai, is becoming a favourite spot for wealthy individuals and celebrities looking to invest in land. Recent purchases by big names like Virat Kohli and Anushka Sharma are drawing attention to this growing trend. But what’s driving this interest, and is it still a good investment for the average person? Kohli’s Purchase Signals Confidence in Land Banking Virat Kohli and Anushka Sharma’s recent purchase of land worth ₹37.86 crore in Alibag signals a growing confidence in land as a long-term investment. According to Sanjay Daga, CEO and Managing Director of Anex Advisory, this isn’t just about celebrities buying fancy vacation homes. It’s about high-net-worth individuals (HNIs) seeing Alibag as a valuable asset to hold for the future. Instead of building right away, these investors are focusing on acquiring large pieces of land. This gives them privacy, control over their investment, and the option to develop the land later. This trend suggests that Alibag is becoming a more mature market driven by serious investors rather than people just looking for a quick profit. Post-COVID Shift: Land First, Luxury Later The COVID-19 pandemic has changed how celebrities and HNIs are investing in Alibag. Buyers like Suhana Khan, Deepika Padukone, and Ranveer Singh are now prioritizing land purchases over ready-made villas. They want control over their property, the ability to build on a large scale, and the flexibility to adapt their investment over time. Bhavesh Shah, Joint Managing Director of Today Group, notes that this shift reflects a desire to escape crowded city life and find destinations that offer both accessibility and a sense of retreat. Unlike previous trends in holiday homes, this demand is driven by a genuine desire to use the property, which makes prices more stable and reduces the risk of sudden drops. Infrastructure Drives Land Price Growth Over the past decade, land prices in Alibag have nearly tripled. This growth isn’t just due to hype; it’s largely driven by improvements in infrastructure. Better roads, improved water transport, and upgraded civic amenities have made Alibag more accessible and desirable. However, not all land has seen the same price increase. Land in remote villages with poor access has lagged behind, while properties with good connectivity have experienced significant gains. Current prices range from ₹400 to over ₹3,600 per square foot, indicating a two-tiered market where access, clear zoning regulations, and future livability are key factors. Is Alibag Still a Profitable Investment? Alibag can still be a profitable investment, but it’s no longer a place for quick profits. Investors should approach land as a long-term asset to hold for 10 to 15 years. The easy gains from early discovery are mostly gone. Future returns will depend on carefully selecting plots, ensuring legal clarity, and aligning with infrastructure development. Investors who understand zoning regulations, development permissions, and access are likely to see continued appreciation. However, buying land without careful consideration may lead to underperformance. Land Availability: Quality Over Quantity While land is still available in Alibag and the surrounding Raigad district, the quality of available land is declining. Clear-title land in popular areas like Mandwa, Zirad, and Revdanda is becoming scarce, and beachfront properties are either rare or extremely expensive. What’s readily available are properties in less desirable locations with poor access. As a result, there’s a wide range of prices, and buyers who can distinguish between available land and genuinely investment-worthy land will be rewarded. Realistic Plot Sizes and Budgets Alibag is an aspirational market, but it’s no longer a bargain for non-HNI buyers. For those with patience and an understanding of development dynamics, small plots of 2 to 5 guntas (a local unit of area) can still be found in fringe or interior villages for under ₹1 crore. Significant price appreciation is typically seen in mid-sized plots located near access corridors or the beach. These properties often require multi-crore investments, and the market favors those who are financially prepared and have a clear plan for their investment. MMR Real Estate: A Preferred Wealth Asset Bhavesh Shah of Today Group also notes that real estate in the Mumbai Metropolitan Region (MMR) has become a preferred asset for celebrities and HNIs. After COVID-19, there’s a growing preference for spacious, low-density developments that offer privacy, wellness, and long-term security. This segment values certainty, quality, and legacy over short-term returns. As infrastructure improves and world-class projects take shape across Mumbai and its emerging corridors, the demand for premium real estate remains strong.