Those Vital Links
The Year 2014 has been very important for Mumbai city from the perspective of infrastructure and an under developed and high-density population city deserves far more such projects. We feel proud for sure, but I will say, we are late by 20 Years in our infrastructure, keeping in mind we are India’s financial capital and one of the most important cities in Asia.
The Best 5 Projects which were thrown open to the Public in 2014.
- Mumbai International Airport and the Road Connecting to W E Highway.
- Mumbai Metro
- Eastern Free Way – Ghatkopar Loop Connectivity.
- Santacruz Chembur Link Road.
- Mumbai Mono Rail
Whenever we buy or sell real estate, we always refer to the locational infrastructure impact in the pipeline and justify the current price or the future appreciation.
The appreciation happens generally because of better connectivity and infrastructure development and thus making a location suddenly attractive and hence the traction begins and the prices rise.
Let us look at the impact on the real estate market due to these projects on the whole:
- The New Mumbai International Airport firstly has given a superb connectivity to the Sahar Road and therefore, it has boosted the demand in the locations which are closer to Marol, Saki Naka, Saki Vihar Road and surrounding areas. The rates till last year in most of the under construction projects were in the range of 10,000 to 12,000 PSF and now the same are quoted 20 to 30% higher if not more. Andheri East has always been seen as a Business District and its one of the most popular CBD in Mumbai with lease rental values ranging from Rs.70/ to Rs.140/- Per Square Feet, giving the office renters a great choice with good complexes with renowned names.
Because of the fact, that majority of the people would like to reside as close as possible to their homes, any good complex in any vicinity with New Infrastructure and connectivity sees the maximum traction.
Vasant Oasis at Marol, Kanakia Rain Forest, Kanakia Sevens etc. are a few projects which have gained the maximum sales and traction in the past with a lot of buyers relocating themselves to be near their places of work etc.
This is going to be a New Trend in Mumbai going forward. If developers, within their means are able to follow the basic rules of Relocation – “Kids First, Wife Second and Husband Third” and provide Schools, Malls and basic infrastructure around their complexes, then they can be winners all the way. An average Mumbai citizen does not want to travel and with any complex giving a better quality of life.
- The Mumbai Metro has been the best of the lot as it has decreased commute time from Ghatkopar to Andheri West to nearly 20 odd minutes. This has triggered off a spark in the Eastern Suburbs as if people don’t like the 3 tier connectivities. From Home to Station, Station to the destination Station, Destination Station to Office. So what the connectivity has done on both stations is that it has cut down the difficult commute etc. and has helped the commuter cut down time and provided air-conditioned comfort in one of the legs of the journey. Why, the spark in Eastern Suburbs, because home buyers, who could not afford the western suburbs and had to be here due to compulsion, have found an alternative in Eastern Suburbs, where due to the Eastern Express Highway, the connectivity is far better. The prices in Ghatkopar, Chembur have surged by at least 15 to 20% in locations abutting the Metro through. Although, since the prices were as it is higher in Andheri West, we have not witnessed a significant increase in this belt.
- The Eastern Freeway is one of the best things that can happen to people residing in Ghatkopar, Chembur, Vikhroli and Thane and even Navi Mumbai. Once you are in the loop, you can reach South Mumbai in the most convenient and effortless manner cruising in your New Car. This has given impetus to the entire eastern suburbs and prices have gone up in suburbs pretty steadily owing to this, however, I would focus more on the number of transactions than actual pricing. Locations like Kanjur Marg, Bhandup, Vikhroli have seen roaring business and at an estimate around 1000 Units have been sold between the New Launches by Wadhwa, Runwal, Lodha, Godrej and a few other developers, which surpasses the numbers in the Western Suburbs by leaps and bounds, thus confirming the growing demand for the Eastern Suburbs.
- The Santacruz-Chembur Link Road has been again a boon to the office going commuter from Eastern Suburbs towards Bandra or Santacruz and vice versa to a commuter going to Thane, Navi Mumbai and Chembur or even South Mumbai through the loop at Mankhurd to South Mumbai.
If you have better connectivity, the horizons expand and this is exactly what has happened with the SCLR, which has given home buyers a lot of option suddenly to be in any part of Mumbai without worrying about traffic woes.
The prices in Chembur have got the max impetus and Santacruz East belt is the next belt to watch out for maximum price appreciation.
It’s amazing how with better connectivity, every second location starts looking at a city center and an epicenter of growth.
- The Mumbai Mono Rail is still to be completed, the Wadala – Chembur link currently is ready and once the connectivity is done till Parel, we shall surely see better results than now. Mono Rail once fully operational perhaps will help in decongesting the traffic from the roads in these locations and especially of Taxis primarily.
A few infrastructure projects to look forward to which will again be the game changers for the real estate sector:
- Lokhandwala to Jogeshwari Vikhroli Link Road – Connectivity
This is one of the most important connectivity’s of the future, once ready, this will decongest the entire Link Road going to Highway, Bandra etc, both through SV Road, Juhu Tara Road, and Linking Road.
The impact of this would be a jump in prices in Andheri West for sure.
- Goregaon S V Road/Ram Mandir Road – Western Express Highway.
This road is half ready and still at least a year or two away. This would connect the Highway to S V Road, Goregaon and all the adjoining locations with in minutes. There are several ongoing projects in Goregaon, Malad, and Oshiwara and all these projects will get a shot in the arm. Presently, the sales are sluggish in these locations owing to the fact that most of the top developers who have similar projects are in competition with each other and sales are sluggish due to high prices. I don’t see a major price rise, but surely traction, what we need more Sales than more price hike.
- Mulund – Goregaon Link Road
Once this happens, this would be the finest connectivity’s connecting Goregaon to Mulund through the National Park. This would give a boost to both locations equally from the travel perspective. Also, this road links further to the Airoli bridge connecting Navi Mumbai, which would mean much better connectivity to reaching Airoli and Navi Mumbai.
Articles by Sandeep Sadh – CEO – Mumbai Property Exchange