‘In­fra de­vel­op­ment projects will fuel the real es­tate in Mum­bai’

Hindustan Times (Chandigarh) - Estates - - HT ESTATES - Ni­bodh Shetty ht­spe­cial­pro­jects@htlive.com The au­thor is a con­sul­tant – Re­search at Knight Frank In­dia

Res­i­den­tial real-es­tate rates in the city vary across a steep gra­di­ent as one moves from Mum­bai city to Mum­bai Met­ro­pol­i­tan Re­gion (MMR).

The prices vary from Rs 100,000 per sq ft. to Rs 3,000 per sq ft. Such huge price gra­di­ent arises be­cause of mul­ti­ple fac­tors –com­mut­ing time to em­ploy­ment hub sand other places of im­por­tance such as ac­cess to ed­u­ca­tion, health­care, en­ter­tain­ment av­enues, lo­ca­tion pro­file and gen­try.

These fac­tors vary across lo­cal­i­ties and so does the prop­erty price.

The of­fices are mainly con­cen­trated in Mum­bai whereas the pop­u­la­tion re­sides in neigh­bour­ing MMR where hous­ing prices are more af­ford­able.

Since a ma­jor chunk of the pop­u­la­tion trav­els from the place of res­i­dence to work, it makes the role of in­fra­struc­ture, in par­tic­u­lar the trans­port in­fra­struc­ture very cru­cial.

The trans­porta­tion needs of the pop­u­la­tion have been iden­ti­fied by the Govern­ment and it came up with a nodal agency to plan and co­or­di­nate the im­ple­men­ta­tion of trans­porta­tion projects in Mum­bai— The Mum­bai Met­ro­pol­i­tan Re­gional De­vel­op­ment Author­ity (MMRDA).

IN­FRA­STRUC­TURE AS A CAT­A­LYST

The Mum­bai Metro-I has changed the faceo feast-west con­nec­tiv­ity for­ever. It has led to rapid de­vel­op­ment of of­fice and res­i­den­tial spa­ces in be­tween And­heri to Ghatkopar with the rates in­creas­ing sig­nif­i­cantly since the an­nounce­ment of the project.

The res­i­den­tial rates went up from Rs 2800 per sq ft from 2004 when the State Govern­ment ap­proved the metro plan to Rs 15,500 per sq ft in 2014 when it be­came op­er­a­tional.

UP­COM­ING PROJECTS A. COLABA-BAN­DRA-AIR­PORT-SEEPZ METRO

The MMRDA has started im­ple­ment­ing the 33.5 km all un­der­ground metro route of the Metro Line-III con­nect­ing Colaba to SEEPZ via Ban­dra.

The pro­jected is slated to be com­pleted in 2021. The res­i­den­tial price gra­di­ent along the metro line varies from over Rs 75,000 per sq ft at Colaba to Rs 17,000 per sq ft at SEEPZ.

The av­er­age of­fice rental varies from ap­prox­i­mately Rs 220 per sq ft. per month at Na­ri­man Point to Rs 250 per sq ft per month at B KC; how­ever, it re­duces to Rs 110 per sq ft per month to­wards And­heri-SEEPZ belt.

Once the Colaba-Ban­dra- SEEP Z metro line be­comes op­er­a­tional MID C-SEEP Z belt will wit­ness in­crease in de­mand for res­i­den­tial and com­mer­cial projects as it would get con­nec­tiv­ity to the ma­jor of­fice and res­i­den­tial districts of Mum­bai and also the Versova-And­heri-Ghatkopar metro line via this metro. Cur­rently there area large num­ber of old in­dus­trial sheds and ware­houses lo­cated in this area most of which are non-op­er­a­tional; these may give way to an­other busi­ness district emerg­ing in the area like we wit­nessed in case of Lower Parel.

In ad­di­tion to the metro lines the Govern­ment has also planned two ma­jor road in­fra­struc­ture projects —The Coastal road and Mum­bai Trans-har­bour Link (MTHL).

B. THE COASTAL ROAD

In or­der to de­con­gest the high­way the Govern­ment has planned the 35.6 km long Coastal Road Project. The project is es­ti­mated to be com­pleted by 2020. Run­ning along the city’s coast­line, this road will be the first of its kind, which will pro­vide high­speed con­nec­tiv­ity be­tween the western sub­urbs and south Mum­bai.

The coastal roads would have exit ramps which would pro­vide seam­less con­nec­tiv­ity to Marine Lines, Princess Street, Tardeo, Ma­ha­laxmi, Worli, Girga on, Kalb­hadevi, Tulsi Wadi and Ped­dar Road. The res­i­den­tial ar­eas of North Mum­bai may wit­ness re­duc­tion in price gra­di­ent com­pared to South Mum­bai with the project. We fore see mar­kets such as Charkop and Gore­gaon to be the ma­jor ben­e­fi­cia­ries and ex­pect a price up­side here.

C. MUM­BAI TRANS-HAR­BOUR-LINK

To ease the bur­den of traf­fic and pro­vide ac­cess to Navi Mum­bai air­port, the Govern­ment has planned the 22.5 km six-lane sea bridge—the-Mum­bai-trans-har­bor link (MTHL) con­nect­ing Sewri in South Mum­bai to N ha va Sheva near the­new air­port. The work on the project is ex­pected to be­gin this year.

Nhava Sheva was ear­lier a re­mote area in Na vi Mum­bai hav­ing lim­ited ac­cess with very lit­tle real es­tate po­ten­tial.

The av­er­age rate in Sewri is Rs 30,000 per sq ft and in Nhava She va the com­pa­ra­ble de­vel­op­ment from or­gan­ised devel­op­ers is vir­tu­ally non-ex­is­tent, the prices at Dron­gari 10km from Nhava Sheva is around Rs 3,000 per sq ft.

Once the MTHL is con­structed, prox­im­ity to Sewria nd other ar­eas in South Mum­bai will drive real es­tate prices in this area.

HT FILE PHOTO

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.