October 3, 2023
Ms. Hiral Sheth Gandhi, Director - Marketing, Sheth Creators

The real estate sector in Mumbai is booming – once again

Article By – Ms. Hiral Sheth Gandhi, Director- Marketing, Sheth Creators

The real estate sector in Mumbai is again on the rise. With Covid-19 related restrictions been relaxed in the city, the infrastructural, economic and business activities have taken pace to make it the best time to invest in the real estate sector in the Mumbai Metropolitan Region. There are many factors – both specific and generic, that have spurred investors’ interest to invest in real estate for a great value appreciation.

Mumbai is a city of strategic importance. It contributes 20 percent to the state’s GDP and 6.16 percent to India’s total GDP. And at present Mumbai is preparing itself for the future. It is in the process of a systematic sustainable change to cater to the needs of its growing urbanisation. As a result, to ensure exponential growth, the Mumbai Metropolitan Region is witnessing infrastructural works to connect residential areas to its business and economic hubs. A move, making Mumbai an investment-worthy city. The unprecedented development works, to complete 250 km of Metro lines and more than 70 km of road projects will ensure better connectivity, increased flow of human resources, fulfilment of last-mile needs, and an elevated standard of living in the city and make Mumbai and its surrounding regions a preferred destination to invest in real estate.

1. The upcoming metro lines in the Mumbai Metropolitan Region Mumbai is expanding its network of Metro lines to cover the untapped areas of the city and its outskirt regions.

The Wadala-Thane Metro line:

One of the most ambitious projects in Mumbai is the MMRDA’s Metro line 4. The implementation of this has resulted in mega real estate developments in the city. The Metro line 4 will connect Wadala to Kasarvadavali in the satellite town of Thane. This 32.3 km long corridor with 32 stations on its route will interconnect with the existing Eastern Express Roadway, Central Railway, the ongoing Metro Line 2B, the proposed Metro Line 5, Metro Line 6, Metro Line 8, and to the Monorail to connect a vast number of residential areas to office hubs and government bodies in the city.

This Metro line has encouraged mixed-use developments starting from Wadala, Sion, Vikhroli to Kasarvadavali at Ghodbunder Road in Thane. Owing to Metro line 4 and its proximity to suburban areas and satellite towns like Thane and Navi Mumbai, Sion is emerging as one of the major commercial and residential hubs. With Sion’s immediacy to nearby CBD’s of BKC and Nariman point, corporate leaders and office-goers are flocking here. An indication that property rates will go up in the coming future in the area.

Metro lines 2 and 5: 

Other major infrastructural works underway in the city are Metro lines 2 and 5. Metro line 2, a 42.23 km long route with 37 stations, will connect Dahisar to Mankhurd. The adjoining areas of this upcoming Metro line like Goregaon, Kandivali, Malad, and Dahisar are bustling with real estate activities as commuting to international and domestic airports and CBDs like Andheri will be an easy affair. The property rates are expected to rise by 15-20% in these regions. Metro line 5, a 24.90 km long corridor with 15 stations on its route, will connect Thane to Bhiwandi and Kalyan to reduce the travel time by almost 75 percent. It will tap far- flung areas of Kapurwadi, Bhiwandi, and Kalyan. And the regions are already witnessing high real estate demand among the workforce and developers.

2. The game-changer: Mumbai Trans Harbour Link 

The existing and upcoming sea links within the MMR region are proving the island city Mumbai a desirable place to be in. And so does the proposed Mumbai Trans Harbour Link – a game-changer in the real estate world in Navi Mumbai. The 21.8 km long sea link will ensure one reaches Sewri from Chirle in Navi Mumbai within no time. It will bring office hubs of South and Central Mumbai within proximity. The real estate rates from Panvel to Vashi are increasing multifold and are expected to increase further in the coming years.

3. The Mumbai Coastal Road Project

Considered as a major infrastructure upgrade, Mumbai Coastal Road Project will connect Nariman Point in South Mumbai to Kandivali in the north. After completion, it will ease the city’s traffic especially on the Western Express Highway – one of the biggest reliefs in terms of commuting in the city. Owing to this project, the demand for mixed-use developments in Kandivali and its adjoining suburban areas is soaring. Further, with the civic body announcing 85% completion of the project by 2022, the region is witnessing high property rates and an upward pricing momentum.

4. Beyond the infrastructural growth

With record low level of housing interest rates, reduced stamp duty – from 6 percent to 3 percent – and tax-related benefits, the government has boosted the purchasing power and brought back consumer’s confidence in the market making it a suitable time to invest in real
estate for good ROI.

Knight Frank India, a leading international property consultant, recorded a whopping 6,784 units of property registration in August 2021 in Mumbai’s Brihanmumbai Municipal Corporation region – 16 percent higher compared to the same month in August 2019. A growth of 157 percent on a year-on-year basis. Further, Mumbai ensures to enrich the quality of living and offers a best-in-class social and civic ecosystem, and a lot more is in making. Be it prominent schools, healthcare facilities, entertainment zones, or malls, you name it and Mumbai has it all.

In conclusion, there is no denying that Mumbai is the future. And with an unmatched infrastructural boom to bring economic hubs closer to residential areas with excellent connectivity, rise in property rates, and great Return on Investment, this is certainly one of the best times to invest in real estate in Mumbai in decades.

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