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