Bangalore, June 18, 2014 – While transportation and connectivity becomes much easier, the impact on the Mumbai realty market is expected to be more pronounced. Historically, infrastructure developments related to transportation always had a positive impact on the capital values of the property market. Mumbai is no exception. Commercial and residential properties in and around the region definitely command a rise in its prices. An independent study conducted revealed that vicinity of a realty project to the metro railways have the authority to influence property prices in leaps and bounds. Mumbai properties lying close to the metro corridor are expected to boost up to at least 22%. Other factors contributing to the same include distance, location and income groups.
Experts are of the opinion that the metro is expected to have a long-term impact.
The Suburban Business Districts of Mumbai will experience an immense positive impact. Absorption rates along the corridors have increased considerably and will continue to remain so in the coming months. The Eastern and the Western suburbs will derive considerable benefits from the launching of the metro railways.
Years later after the New Delhi Metro Railway transformed the city’s landscape, now it is time for the Mumbai metro. The Mumbai Metro that has already started rolling is all set to experience something similar in the near future. Experts opine that with the imminent commissioning of one of the corridors, the commercial capital’s realty market is expected to undergo similar transformation. What is more significant is the fact that the PPP venture–equity participation by Reliance Infra and Veolia, a French transportation major–has set ultimate standards not only for the city’s transportation but also its real estate markets.
Currently, the Versova Andheri-Ghatkopar (VAG) is functional and several facts surrounding the same have been extremely well documented:
ü A project investment of USD$ 720 million
ü A fleet comprising 16 rakes with 4 coaches that are fully air-conditioned
ü Total capacity of 375 passengers
ü Travel time reduced to 21 minutes from 90 minutes
ü Improved connectivity of east to west
The construction and operation of the metro railway has been accentuated by other infra projects such as the Jogeshwari-Vikhroli Link Road (JVLR), the Wadala-Chembur-Monorail and the Santacruz Chembur Link Road (SCLR) will further boost the overall property of the city.
Impact on Mumbai Real Estate Market
The adjoining micro-markets of the region such as Andheri, Wadala, Chembur, Jogeshwari and Santacruz will record buoyancy in the property prices. Once the monorail became functional, the realty souks of micro-markets like Chembur and Wadala have recorded a boom in its property prices within a short span of only 4 years. This is also applicable to the Chembur micro-market that lies very close to the SCLR. Areas within the Mumbai residential market that will benefit from the metro railway have already recorded a price hike from the last five years. Needless to say that this trend in expected to continue in the forthcoming years.
In the short-term impact, developers across the region is have been benefitting. Their interests have increased and this has led to the launching of several projects in and around. Following the current trajectory, and the changing dynamics of the region, it can be said that the Mumbai real estate market definitely has a long way to go.
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