Mumbai Metro – lifeline for real estate?

Mumbai Metro

Phase 1 of the Mumbai Metro which runs from Ghatkopar to Andheri has resulted in a substantial improvement in the realty development along the metro route and areas close to metro stations due to east-west connectivity within the city saving office goers precious time of commuting to-fro work.

As there was no direct link earlier, this metro route has come as a blessing for commuters by taking the load off the existing road and rail infrastructure. This decongestion has attracted buyers who were hitherto hesitant to buy residential or commercial spaces in these areas. Places like Chandivali and Sakinaka in Andheri (east) are easily accessible now. “The demand for both residential & commercial property is heading northward due to the Mumbai Metro,” says Manju Yagnik, vice-chairperson, Nahar Group.

Experts believe that infrastructure development acts as a catalyst that boosts residential and commercial property segments. In this context, the Phase -1 of the Mumbai

Metro has played a crucial role. Considering the pivotal function of rail infrastructure development in the city, Maharashtra chief minister and chairman, MMRDA, Devendra Phadnavis  has sanctioned an outlay of Rs 35,400 crore for the development of 118-kms Metro network in Mumbai alone.

The network includes a 40-kms Dahisar-CharkopBandra-Mankhurd Metro-2 corridor (Rs 12,000 crore), 40-kms Wadala-Ghatkopar-Thane-Kasarvadavali Metro-4 corridor Rs 12,000 crore), 27-kms Dahisar-E-AndheriE-Bandra-E Metro-5 corridor (Rs 8,100 crore) and 11-kms Jogeshwari-Vikhroli Link Road Metro-6 corridor (Rs 3,300 crore).

All these Metro projects will certainly draw property consumers to adjoining areas due to resultant enhanced connectivity. Infrastructural proposals have always contributed to the real estate boom in the city and Nishant Agarwal, managing director, Avighna, believes that the future infrastructure plans like the new metro routes will also continue to fuel growth in the real estate sector.

Property prices in the neighboring areas of the metro rise significantly once the project gets on track. Ramesh Nair, COO business and international director, JLL India, points out that the areas near Ghatkopar-Andheri Metro line have already seen a price rise of nearly 400 percent over the last eight years. A similar trend may continue with the announcement of the new metro corridors in the city.