Re­gion fo­cus

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The Rise of the City

It is of­ten said, Navi Mum­bai is to Mum­bai what New Jersey is to New York. Slow on up­start, the place is now buzzing with cos­mopoli­tan de­vel­op­ment. But is there more to this façade of moder­nity, Realty Plus finds out.

Le­gendry In­dian ar­chi­tect Charles Cor­rea con­ceived the idea of Navi Mum­bai as one of the world’s great­est cities. The city de­vel­op­ment was ini­ti­ated by CIDCO in 1971 and Cor­rea was its chief ar­chi­tect for five years. Anil Dharkar, Cor­rea’s friend with­out minc­ing words had stated that Cor­rea knew, the city had failed in its main ob­jec­tive and the fail­ure was not of the plan­ners but, was a re­sult of po­lit­i­cal will.

If Cor­rea’s pro­posal to shift Mantralaya and other gov­ern­ment of­fices to Navi Mum­bai had been im­ple­mented, it would have in­stantly de­con­gested Mum­abi and turned Navi Mum­bai into Mum­bai’s twin city in a true sense. How­ever, with gov­ern­ment’s re­fus­ing to do so, for the first three decades, Navi Mum­bai just man­aged to cross the half­way mark of the two mil­lion pop­u­la­tion, that was en­vis­aged.

fast FOR­WARD to to­day

Though the gov­ern­ment set-up did not re­lo­cate to Navi Mum­bai, mas­sive in­fra­struc­ture growth in the form of roads, fly­overs, rail net­work as well as city’s planned ap­proach and prox­im­ity to Mum­bai at­tracted cor­po­rates and IT sec­tor that needed large of­fice spa­ces. No won­der, ccom­mer­cial busi­ness dis­tricts slated to come up around Ma­hape are set to be the growth driv­ers for res­i­den­tial and com­mer­cial realestate here. Some of the ma­jor cor­po­rate parks in Navi Mum­bai are Re­liance Cor­po­rate Park, Dhirub­hai Am­bani Knowl­edge City, MIDC, CBD- Be­la­pur and in­sti­tu­tions like NIFT and TATA Memo­rial Re­search Centre in Kharghar.

More­over, this 350 square kilo­me­tre satel­lite city across the har­bour and east of Mum­bai is now part of the Smart City ini­tia­tive and has new de­vel­op­ments com­ing up in­clud­ing an in­ter­na­tional air­port, many SEZS, ex­pan­sion of the Jawa­har­lal Nehru Port Trust and re­vival of Sewri-nhava-sheva tran­shar­bour link. Manohar shroff –Part­ner, Shivam Builders is of the view that, there is a lot of po­ten­tial in Navi Mum­bai be­cause of the plan of the de­vel­op­ment has taken place in a very proper way. “The ad­van­tage of Navi Mum­bai is that it is still af­ford­able and 2 BHK flat is eas­ily avail­able in 52-55 lakhs in Ulwe & Pan­vel whereas in Mum­bai min­i­mum cost­ing for 2 BHK is 1.25 CR. Emerg­ing av­enues in Navi Mum­bai are Inor­bit Mall, Sea­wood Mall as well as Branded ed­u­ca­tional in­sti­tutes. Sea­wood Uran Rail­way Line re­mains one of the de­layed in­fra­struc­ture pro­ject but, fu­ture prospects re­main strong. We have com­pleted four projects in Kopar Khairane and our up-com­ing projects are in New Pan­vel and Ulwe.”

The city com­prises mini towns or nodes con­nected with wide roads and rail­ways. The cen­tral busi­ness district (CBD) Be­la­pur is en­vi­sioned as an of­fice district, Kharghar, an ed­u­ca­tional and res­i­den­tial zone, Ma­hape as an IT and tech­nol­ogy node and Vashi as a re­tail hub. In a span of four decades, Navi Mum­bai has also be­come the sec­ond-largest set­tle­ment within the Mum­bai Metropoli­tan Re­gion (MMR) in terms of pop­u­la­tion share Har­jith.d.bub­ber, M.D & c.e.o, ri­vali Park com­mented, “Navi Mum­bai real-es­tate mar­ket is linked to IT, ITES in­dus­tries. In last few years quite a few cor­po­rates have moved their of­fices and have es­tab­lished them­selves in Navi Mum­bai. These move­ments help in gen­er­at­ing de­mand in com­mer­cial as well as in res­i­den­tial sec­tor. Navi Mum­bai de­vel­op­ment had started in a phase wise / sec­tor wise man­ner and its ma­jor driv­ing force are the pro­posed air­port, ex­pan­sion of JNPT, Metro pro­ject, Mono rail, high­way ex­pan­sion, huge open spa­ces, re­cre­ation ar­eas etc.”

the emerg­ing Mar­kets

The ex­ten­sion of the sub­ur­ban rail­way line, link­ing Vashi to Thane and now Pan­vel has boosted growth in the en­tire Navi Mum­bai cor­ri­dor, from Airoli in the north to Pan­vel in the south. The widen­ing of the Sion-pan­vel high­way has made Pan­vel the fast ris­ing mi­cro-mar­ket, Prices in Kharghar, one of the wellplanned nodes, shot up by 87 per cent be­tween 2007 and 2012 af­ter the an­nounce­ment of the air­port. Sim­i­larly, the an­nounce­ment of spe­cial eco­nomic zones at Dron­a­giri, Ulwe and Kalam­boli have made them at­trac­tive for de­vel­op­ers and in­vestors. Lo­cal­i­ties be­yond Navi Mum­bai, Kamothe, Taloja and Karan­jade are the other up­com­ing nodes. • Pan­vel has ma­jor in­dus­tries like Larsen & Toubro Ltd., Re­liance, Hin­dus­tan Or­ganic Chem­i­cals Ltd., ONGC and IPCL which of­fer huge employment hence in­creas­ing hous­ing de­mand. It also houses var­i­ous ed­u­ca­tional in­sti­tu­tions.

• New Pan­vel be­ing de­vel­oped as res­i­den­tial and com­mer­cial node is strate­gi­cally lo­cated on the Mum­bai-pune­ex­press­way and east­ern side of Ban­ga­loreMum­bai Na­tional High­way. The up­com­ing metro will pro­vide more con­nec­tiv­ity op­tions and with the pro­posed Mum­bai Trans Har­bour Link (MTHL), the travel dis­tance be­tween New Pan­vel and JNPT and Sewri in Mum­bai will get dras­ti­cally re­duced.

• •

Ulwe has emerged as one of the fastest de­vel­op­ing nodes of CIDCO. Apart from prox­im­ity to the up­com­ing in­ter­na­tional air­port, recre­ational ac­tiv­i­ties and af­ford­abil­ity drive Ulwe mar­ket. It lies on the junc­tion of Sion Pan­vel Ex­press­way, Pan­vel By Pass, NH-4 and NH-17. All these roads pro­vide the re­gion bet­ter con­nec­tiv­ity to other cities.

ac­cord­ing to the cen­sus of in­dia, Navi Mum­bai saw a fren­zied growth of 88 per cent over the past decade.

Kalam­boli, city in the east­ern pe­riph­ery of Navi Mum­bai ad­joins Taloja In­dus­trial Es­tate pop­u­lar for the steel and iron mar­ket build by CIDCO and is spread across 302 acres The growth driv­ers of Kalam­boli

are pro­posed metro sta­tions, re­cently an­nounced in­ter­na­tional air­port and prices which are af­ford­able as com­pared to Kharghar and Kamothe.

• Karan­jade is sit­u­ated be­tween JNPT Road and Kalun­dre River. Var­i­ous in­dus­tries are be­ing set up in the vicin­ity pro­vid­ing employment and the avail­abil­ity of ba­sic ameni­ties make it favourable for af­ford­able hous­ing seg­ment. Ari­hant Su­per­struc­tures Ltd. has nine projects in Navi Mum­bai – MMR re­giont. The projects are at Bad­la­pur, Thane, Pan­vel, Kharghar, Khopoli, Kar­jat, and Taloja, Navi Mum­bai. The res­i­den­tial projects of­fer stu­dio, 1, 2, 3 and 4 BHK cost­ing from Rs 20 Lakhs - Rs 2.0 crore. The pre­mium prop­erty Ari­hant Aal­is­han is the tallest tower of Navi Mum­bai of­fer­ing lux­u­ri­ous life­style. Ashok chha­jer, chair­man and Man­ag­ing Di­rec­tor, Ari­hant su­per­struc­tures ltd said, “Taloja re­gion is one of the emerg­ing av­enues as metro is sched­uled to start in 2018. The res­i­den­tial prices in the re­gion range around Rs. 4000- 4500 per square feet which is half the price of Kharghar res­i­den­tial zone where prices range from Rs 8000 - 10000 per square feet. The con­nec­tiv­ity should have a be­nign ef­fect on the per­ceived value. The Pro­posed Pan­vel-cst el­e­vated train cor­ri­dor is ex­pected to give con­nec­tiv­ity to Pan­vel a ma­jor boost. Also, the 74km Va­sai-pan­vel sub­ur­ban cor­ri­dor will have 10 sub­ur­ban sta­tions and will con­nect Navi Mum­bai di­rectly to the Va­saivi­rar-da­hanu sec­tion. The pro­ject is ex­pected to be com­plete by 2022. The projects ap­proved un­der MUTP III in­volves ex­pand­ing the sub­ur­ban rail net­work up to Da­hanu by con­struct­ing a third and fourth line be­tween Vi­rar­da­hanu (63km) and Airoli-kalwa (4km),which will pro­vide eas­ier ac­cess for com­muters be­tween Kalyan-pan­vel and Pan­vel-kar­jat (28km). On the other hand the am­bi­tious Navi Mum­bai Air­port In­flu­ence No­ti­fied Area (NAINA) will give a huge im­pe­tus to the real es­tate scene in the Pan­vel re­gion.”

With Mum­bai burst­ing at its seams, Navi Mum­bai is where peo­ple would like to set­tle. Land avail­abil­ity, an ag­gres­sive CIDCO (City and In­dus­trial De­vel­op­ment Cor­po­ra­tion) ap­proach, the sec­tor wise well-planned de­vel­op­ment, high-end con­nec­tiv­ity with Mum­bai and the pres­ence of an up­wardly mo­bile com­mu­nity are push­ing Navi Mum­bai growth. With its own eco­nomic and so­cial cen­tres, the city of­fers en­trepreneur­ship and employment op­por­tu­ni­ties as well as af­ford­abil­ity. Prop­erty prices in Nerul range be­tween Rs 6-15,000/ sqft, in Kharghar be­tween Rs 6,000 - 8,000 and in Ulwe and Pan­vel at Rs 4,000 to 7,000 each. The state gov­ern­ment is also pro­mot­ing Navi Mum­bai with 6,600-acre par­cel of in­dus­trial land around Ma­hape in Navi Mum­bai be­ing con­verted in to in­ter­na­tional Busi­ness and Fi­nance Centre (IBFC).

vipul Shah, Man­ag­ing Di­rec­tor- Pari­nee group

elab­o­rated fur­ther, “Ar­eas like Kopar Khairane are wit­ness­ing de­vel­op­ment of new projects from pre­mium de­vel­op­ers. Also ar­eas like Palm Beach Road, Khar­gar and Nerul are great for in­vest­ing. For those want­ing to in­vest in un­der­con­struc­tion projects, ar­eas such as Ulwe and Kamothe will def­i­nitely serve the pur­pose. Af­ford­able projects are greatly spring­ing up in ar­eas be­yond Khar­gar. Airoli in Navi Mum­bai can be called a self-sus­tained sub­urb of­fer­ing en­hanced life­style with su­pe­rior res­i­den­tial projects avail­able at af­ford­able rates. Land rates in Vashi and Ulwe have dou­bled up cre­at­ing in­ter­est across the prop­erty de­mo­graph­ics in these ar­eas. Navi Mum­bai would fur­ther con­tinue to woo de­vel­op­ers and buy­ers with its ap­peal­ing price points mixed with vi­tal in­fra­struc­ture de­vel­op­ments like the forth­com­ing air­port, Metro Cor­ri­dor and the in­creased con­nec­tiv­ity with Thane and Mum­bai.”

the flip side

Navi Mum­bai could at­tract a lot more for­eign in­vestors by po­si­tion­ing it­self as an in­fra­struc­ture-rich city and an ed­u­ca­tional hub near fi­nan­cial cap­i­tal- Mum­bai. Navi Mun­bai has failed to lever­age its pos­i­tives to be an IT hub like White­field in Ban­ga­lore and Hin­je­w­adi in Pune that came into ex­is­tence much af­ter Navi Mum­bai. Also, the lack of Grade-a prod­uct of­fer­ings in the of­fice space means lim­ited com­mer­cial real-es­tate de­vel­op­ment.

“Con­nec­tiv­ity has to be faster by train from Pan­vel to VT ter­mi­nus, Mum­bai. Even if it gets im­proved by 10 min­utes, it’s a big deal. Se­condly, NAINA has to gain mo­men­tum. CIDCO has to re­ally work hard and get the first phase of NAINA rolling. Once the first phase gets rolling, IT sec­tor gains mo­men­tum and con­nec­tiv­ity im­proves then Navi Mum­bai has great fu­ture prospects. It has the re­quired in­fra­struc­ture as far as res­i­den­tial pur­poses are con­cerned. Pro­gres­sive group has projects in Ulwe, Koparkhairane and Ghan­soli. We have also ac­quired a land bank in the pe­riph­ery of Pan­vel,” stated

De­vang trivedi, Man­ag­ing Di­rec­tor, Pro­gres­sive group.

While there con­tin­ues to be a large po­ten­tial for de­vel­op­ment in the Navi Mum­bai, ow­ing to lower cost of hous­ing, the city is wit­ness­ing strong pop­u­la­tion growth. Hence, it is im­por­tant that sub­ur­ban de­vel­op­ments in emerg­ing pock­ets are taken up on pri­or­ity ba­sis. The chal­lenge also lies in cre­at­ing a more en­vi­ron­men­tally sus­tain­ing de­vel­op­ment as wa­ter avail­abil­ity is fast emerg­ing as the de­cid­ing fac­tor in ur­ban­iza­tion.

Of­fice leas­ing to the IT sec­tor is around 40% of the to­tal de­mand for leas­ing and for­eign com­pa­nies look for green, con­tem­po­rary and en­er­gy­ef­fi­cient build­ings. De­vel­op­ers could fo­cus on cater­ing to such de­mand. In the past, de­vel­op­ers had promised cap­i­tal gains to in­vestors and now the ticket sizes and prod­uct of­fer­ings are not aligned to con­sumer needs.

While, Mum­bai’s poor in­fra­struc­ture and high prices have been the push fac­tor for Navi Mum­bai growth, there is no strong pull fac­tor to drive res­i­den­tial and com­mer­cial real-es­tate de­mand. Srini­vasan gopalan, group ceo - Ozone group added, “CIDCO has done a bril­liant job in ex­e­cut­ing mi­cro-mar­kets like Kharghar and Palm Beach Road. If the Gov­ern­ment is able to com­plete all the pro­posed projects in a time­bound man­ner, Navi Mum­bai has the po­ten­tial to be­come the big­gest satel­lite city in In­dia. In my opin­ion, there are two main in­fra­struc­ture chal­lenges for Navi Mum­bai – in cer­tain mi­cro-mar­kets, real-es­tate growth has out­paced the re­quired so­cial and ur­ban in­fra­struc­ture re­quired to sup­port that kind of growth. Se­condly, con­nec­tiv­ity from main­land Mum­bai needs to be fur­ther im­proved. Ini­tia­tives like the metro and trans-har­bour link need to be de­liv­ered as soon as pos­si­ble.” At present, both com­mer­cial and res­i­den­tial real-es­tate in Navi Mum­bai have good growth po­ten­tial. Be­ing a well-planned city, Navi Mum­bai has good pub­lic in­fra­struc­ture and well bal­anced ecol­ogy. Fur­ther­more, the city is wit­ness­ing con­sid­er­able growth in terms of IT and com­mer­cial de­vel­op­ment. As a re­sult Navi Mum­bai stands among the most liv­able cities in the MMR from end user per­spec­tive. Even from in­vestor point of view, prop­er­ties in Navi Mum­bai have reg­is­tered healthy growth in cap­i­tal val­ues and lease rentals.

Dur­ing the past quar­ter, Navi Mum­bai was amongst the high­est ap­pre­ci­at­ing mi­cro-mar­kets for res­i­den­tial yields and had sta­ble com­mer­cial yields. Pres­ence of large employment cen­tres makes Navi Mum­bai a sought af­ter res­i­den­tial mar­ket. Also, Navi Mum­bai real-es­tate com­po­si­tion ben­e­fits both - large in­vestors in­ter­ested to ac­quire RIET type prop­er­ties and Hni/in­sti­tu­tional in­vestors who can ac­quire smaller com­mer­cial strata.

The city, which was de­vel­oped sys­tem­at­i­cally, of­fers from af­ford­able res­i­den­tial units and stu­dio apart­ments, to 1BHK, 2BHK and 3BHK apart­ments with life­style ameni­ties. There are also bun­ga­low plots, vil­las and projects that cater to the lux­ury seg­ment. It is well­con­nected to all the rail­way nodes of Mum­bai, and also has prox­im­ity to Pune. Fur­ther­more, the up­com­ing in­ter­na­tional air­port at Ulwe has led to a healthy price ap­pre­ci­a­tion.

Ghan­soli is one of the most emerg­ing mi­cro mar­kets of Navi Mum­bai ow­ing to its ad­van­ta­geous lo­ca­tion and good sup­ply of res­i­den­tial units. It has prox­im­ity to key IT and in­dus­trial cor­ri­dors of Navi Mum­bai. Fur­ther­more it has strong con­nec­tiv­ity with Thane which is an­other im­por­tant com­mer­cially driven lo­cal­ity in the MMR. A ma­jor in­fra­struc­ture planned around Ghan­soli is the Jvlr-koparkhairaneghan­solib­ridge which will di­rectly con­nect the mi­cro-mar­ket to com­mer­cial hubs of Powai and SEEPZ.

The rapid de­vel­op­ment of the SEZ and other projects are bound to cre­ate nu­mer­ous employment op­por­tu­ni­ties in Navi Mum­bai. This will have a domino ef­fect, re­sult­ing in an in­crease in the de­mand for res­i­den­tial prop­er­ties and an es­ca­la­tion in prices. Navi Mum­bai is slated to emerge as an IT hub within the next five to ten years. Real-es­tate In­vestors are ex­pected to earn by gain­ing high yields by in­vest­ing in res­i­den­tial units in Navi Mum­bai. The mar­ket had been lan­guish­ing ear­lier due to the long de­lay of land ac­qui­si­tion for the air­port. The non-ex­is­tence of such con­straints now and the com­ple­tion of other in­fras­truc­tural en­deav­ours would soon re­sult in the in­crease in prices of real-es­tate.

NAVI mum­bai

MANOHAR shroff

HAR­JITH. D. bub­ber

Palm beach ROAD, NERUL, NAVI mum­bai PANORAMIO

Ashok CHHA­JER

DE­VANG TRIVEDI

VIPUL shah

SRINI­VASAN GOPALAN

vikram Goel, CEO, hdfc Realty

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