Green signal for Mumbai Metro line-3

As discussed previously, Mumbai metro line-3 was stuck because it did not get environmental clearance from the government. However, with the recent sanctioning of the 33.5km corridor (running from Colaba to SEEPZ through Bandra) by the government,the Mumbai Metro route came one step closer to its completion due date.

Mumbai Metro route is specifically designed to cut down the growing traffic issues in the city. The entire system is divided into three phases which is subject to completion within 15 years.

Mumbai Metro Line-3 Corridor

Mumbai Metro line-3 corridor, which was stuck due to environmental clearance, finally got a nod from the Cabinet. The Rs 23, 136 crore project will be completed by Mar. 2019 and will include 27 stations that connects industrial districts and business points like Dadar, Nariman Point, MIDC, Worli and BKC. The 33.5 km Metro corridor, running from Colaba to Santa Cruz Electronics Processing Zone( SEEPZ) through Bandra will have a standard underground gauge line and is expected to have a ridership of 13.80 Lakh by 2025 and 17 Lakh by 2031.

Sources confirm that the Cabinet has sanctioned the conversion of the existing SPV(state-level special purpose vehicle)-Mumbai Metro Rail Corporation, into a lucrative joint venture with metro projects in other cities. Such a joint venture firm will be known as MMRC, and state along with Central government will have a 50:50 equity partnership in it.

Impact on real estate

With the implementation of the project, the transport infrastructure of Mumbai will be greatly benefited and will significantly boost the real estate in the area. According to property consultants and developers, government nod to Metro line corridor-3 will contribute to an upsurge in realty prices near Colaba, Bandra, Andheri, Dadar, Nariman Point etc.

Prices for residential properties have already gone up to 20-30% in the last few years due to metro construction and is expected to witness an escalating path in the coming years. JLL reports further confirm that approval of the metro corridor-3 will escalate the capital values in the region and increase the demand for residential plots. Easy access to domestic and international airport further adds to the growth of property rates in the area.

Many people travel to Andheri East and Bandra-Kurla complex, since they are major business destinations. Furthermore, Andheri-East is one of the Central Business Districts of Mumbai and witnesses huge traffic snarls due to its proximity to Eastern Express Highway. Functioning of the Mumbai metro corridor-3 will offer huge relief to commuters, and is likely to fuel an appreciation of 15%-20% of the capital values in the region.

At present, the price per sq ft for a residential property in Andheri East ranges between Rs 15,180- Rs15,673. With the functioning of the metro corridor and less congestion on roads, the capital values are expected to jump to 20%-25% while the rental values may climb to 10%-15%.

Hike in property rates and rental values because of growth in infrastructure is apparent. Localities directly connected to the metro are likely to experience a shot-up of 25-30% in rental and capital values with the onset of the metro line. Hence, investing in properties along the Mumbai Metro corridor-3 is a lucrative prospect for developers and buyers.