Impact of upcoming Mass Transit system on Mumbai real estate
Mumbai: Delhi, Bangalore, Kolkata and Hyderabad have been experiencing a boost in property prices with the initiation of Metro. Following the same trend, it is predicted that the upcoming metro in Mumbai will have a positive impact on all the micro markets and the property prices are expected to increase along the route of metro. Along the main areas, the peripheral areas of Mumbai will also see a drastic property price increase due to the improved connectivity.
Mumbai metro plan:
The much-awaited Versova – Andheri- Ghatkopar connectivity through MRTS will be operational by the end of this year. This link has 12 stations and it will provides East-West rail based connectivity to Central and Western suburbs and office locations of Andheri like MIDC and SEEPZ.
II phase of the metro is 30.4 Km long. This link runs through Charkop – Bandra- Mankhur and will enhance the connectivity of residential pockets like Charkop and Oshiwara in the western suburbs and Chembur and Mankhurd in the central suburbs. This link is in its planning stage and will be completed by 2017 only.
How the property prices will increase?
Analyzing the impact of metro on the real estate of other cities of India, metro connected areas have witnessed a significant launch of projects in the pre-construction phase of metro. The under construction phase witnesses a nominal increase in property price of 5 – 10% in the metro connected areas. The major impact happens one the metro is functional, the post construction phase will see a significant increase in the property prices of about 25-30% in the areas connected to the metro routes.
With the first phase of metro to be complete in another 6 months, one can already see the influence of metro on the property prices of Andheri. Prices in Andheri have already increased by 20-30 percent over the 2008-09 levels due to the upcoming metro. Once the metro line between Versova (Andheri West) and Ghatkopar (West) will be operational, it will reduce the travel time from the present 2 hours to about 20-30 minutes and the property prices are expected to increase further by about 15 percent.
There are a few recent launches & redevelopment projects in the Andheri East. This belt has gathered a huge investor interest as you can get quality products from reputed developers within the price bracket of Rs 9,500-12,450 psft. Andheri West is already a developed market and the new launches in this belt are in the price bracket of Rs 14000- 16000 psft. For an end user Andheri West is a better area to invest, as the quality of life will be good while for an investor, investing in Andheri East will bring him good gains.
According to real estate experts, the property owners having property in metro connected areas can benefit largely by either selling or renting their property. Once the metro becomes operational, owners can also gain benefits by putting commercial establishments in their property. In addition, if you are planning to buy a property than this is the right time as metro will be operational in another 6 months.
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Image courtesy of Vichaya Kiatying-Angsulee FreeDigitalPhotos.net
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