File photo of a Metro train in Mumbai.
Credit: PTI Photo
With four key infrastructure projects of Mumbai Metropolitan Region - Mumbai Metro, especially the lines which are set to be operational by 2024, Mumbai Trans Harbour Link (MTHL) and Phase 1 of both Coastal Road Project (CRP) and Navi Mumbai International Airport (NMIA), getting nearer to completion, the real estate market of the region is envisaged to see heightened activity.
The MMR comprises the twin districts of Mumbai City and Mumbai Suburban and neighbouring Thane, Palghar and Raigad districts.
As per Colliers’ latest report “MMR Infrastructure – Upgrading Real Estate”, in tandem with improved connectivity, commercial office micro markets of BKC and Western suburbs will see an uptick in annual leasing. The traditional micro markets of old CBD & Central Mumbai are set to receive a major facelift while the satellite market of Navi Mumbai will offer a plethora of real estate opportunities.
While coverage and usage adoption are of paramount importance in determining the success of upcoming infrastructure projects in the real estate growth story of MMR, timely completion is equally critical in achieving the desired socio-economic outcomes. Moreover, the projects will have a multiplier effect in the region, where it will not only reduce the burden on the existing infrastructure but boost the overall economy of the region. Decongestion, connectivity improvement and a sustainable growth across micro markets are likely to solidify MMRs preferred positioning for real estate investments in India.
Badal Yagnik, Chief Executive Officer, Colliers India said: “The upcoming metro lines, especially those likely to be operational in the next 1-2 years, will play a key role in decongesting areas like Bandra Kurla Complex and Western suburbs to a large extent. BKC, particularly stands to benefit the most from improved connectivity.”
A healthy visibility of near to mid-term demand and supply scenario, will eventually firm up rentals across MMR. Average rentals in prominent micro markets are likely to rise by about 5-10% by 2025 compared to current levels.
With the completion of Phase 1 of the Coastal Road and MTHL, the entire Old CBD area will witness improved connectivity with Western suburbs, Central Mumbai and Navi Mumbai. This much awaited infrastructure upgrade holds innate potential to revive office demand in the micro market, which would open fresh avenues for investments.