Introduction: Business Problem
Description & Discussion of the Background:
Mumbai is the financial capital of India. People from all over India come to Mumbai to earn a livelihood. Due to this, the population of Mumbai has increased tremendously. With the increase in population comes the problem of housing. As the demand of housing increases so do the prices. As residential property rate's increase it will get difficult for the normal or say middle income group people to buy their own house in the city.
They will have to travel from the outskirts of the city which is very time consuming and the facilities there are not up to the mark. That is there are no shopping malls there, less number of quality schools, colleges, hospitals and restaurants and so on.
So Investors want to find out places in Mumbai where there could develop residential buildings which could be affordable to the middle income group people. These places should be low in rates when compared to other places in the city and should have good connectivity to all the facilities.
We will create maps and using Foursquare API will explore these low price rate neighborhoods and find out whether all the facilities are available to them. Thus Investors will be confident that their products that is the residential buildings will have a good chance of being sold out.
We have collected the data of location and property rates per square feet from the website. We have filtered out 30 locations which are uniformly distributed in the city of Mumbai from this website.
As the latitudes and longitudes of these places were not readily available we have individually searched for their latitudes and longitudes and added them to our database.
The above data will help us to solve our problems as follow:
- The per square feet rate prices of residential buildings will help us to find the places where the rates are less when compared to the other parts of the city.
- Using Foursquare API, the latitudes and longitudes will help us to explore these location and decide whether these places are suitable for affordable housing.
We have got the data of the neighborhoods of Mumbai like price per square feet, latitudes and longitudes.
Using these latitudes and longitudes we can use Folium function CircleMarker to see their location on the map of Mumbai.
This will help us to visualize the distribution of neighborhood's of Mumbai on the map.
We will then plot bar charts with Price per Square feet and neighborhoods to see the price distribution of each neighborhood.
We will then sort the data as per price per square feet in ascending order to get the top 7 neighborhoods with the lowest rates and then perform the Analysis on them.
We will use Foursquare API to explore the 7 neighborhoods to find out as to how many venues are located around each one of them.
By combination of price per square feet and number of venues surrounding a neighborhood we will decide the final result.
We can see that 2 neighborhoods are located in the northern part of Mumbai City while 3 are in the north east part and the remaining 2 are some what in central part.
Northern Part of Mumbai City
- Kandevali - 15,000 per sq ft rate
- Borivali - 15,000 per sq ft rate
North Eastern Part of Mumbai City
- Bhandup - 12,000 per sq ft rate
- kanjurmarg - 14,600 per sq ft
- Mulund - 16,000 per sq ft rate
Central Eastern Part of Mumbai City
- Kurla - 14,200 per sq ft rate
- Mankhurd - 13,000 per sq ft rate
We have come to know that Bhandup is the neighborhood where the price per sq ft is lowest but does it meet our second criteria of having all the facilities.
For further Analysis we use Foursquare API to explore the neighborhoods of all these 7 Locations and find out all the venues within the radius of 1.5 Kilometer.
We get the following results:
It is quite clear that Borivali and Kandevali have 83 and 79 venues located near them while Mankhurd has just 9 Venues near it.
Lets see the top 5 most common venues for each location
Results and Discussion
Although Bhandup and Mankhurd are cheapest in per square feet price but they have only 29 and 9 venues only with in the radius of 1.5 Kilometer. So if some one wants to buy a residential apartment he will get it a less price when compared to other parts of Mumbai city but venues such as restaurants, cafe, multiplex, Gym, Bakery, etc are in less numbers.
So the potential buyers will be of middle class lower income people who just want a house of their own in the city and are ready to travel to surrounding neighborhoods for more venues like cafe, Gym, multiplex, etc.
On the other hand Borivali and Kandevali are slightly costlier when compared to Bhandup and Mankhurd but have 83 and 74 venues surrounding them which is quite impressive.
So the middle income group people will buy residential apartments in these places quite easily. Although it will cost their pocket some extra money but the prospect of every thing available quite easily in the neighborhood will inspire them to buy the property.
So the investors can target Borivali and kandevali for building of affordable housing projects as it is assured that they will sell more faster.
On the other hand Bhandup and Mankhurd too are a good option as lower middle income group will readily buy it, to have their own house in the city of dream's Mumbai.