How Navi Mumbai Airport Will Change Realty For Better
On February 18, Prime Minister Narendra Modi laid the foundation stone for the first phase of the second airport in Mumbai, the Navi Mumbai International Airport, about 21 years after the plans to build it were conceived.
The Navi Mumbai Airport Private Limited has said the airport will be designed by the celebrated Zaha Hadid Architects. The architect firm will design the Terminal 1 and the ATC Tower of the airport. The London-based architect firm was selected after a 12-week design competition, which witnessed international architect firms participating. This will be ZHA's first major project in the Indian sub-continent.
What do we need to know about the airport?
When did it all start?
After performing the ground-breaking ceremony, Modi said, "While the aviation sector is growing fast (clipping at 20 per cent for the past many months), aviation infrastructure is lagging behind this. Our endeavour is to increase the speed of work." Navi Mumbai airport project is a perfect example of the projects that are “lagging”. The idea to build the airport was mooted in 1997 at an investment of Rs 3,000 crore. However, issues involving environmental clearances and funding led to the long delay. Those issues still surround the project.
Days after the PM launched the project, the Bombay High Court on February 21 issued notices to the Centre and the state government with regard to a plea that has challenged the validity of the environment clearance given to the project.
"The environment clearance granted by the Union ministry is illegal, bad in law, and is granted without application of mind as construction of the airport cannot be done on mangroves and water bodies," the petition read.
How would it help Mumbai?
To be built at an estimated cost of Rs 16,700 crore, the airport will act a breather for the choked single-runway Chhatrapati Shivaji International Airport in Mumbai. Official data show the Mumbai airport handled over 45 million passengers last year while it has an installed capacity to serve only 40 million passengers.
Who is building?
GVK Group is building the airport, along with state-run infrastructure development agency City and Industrial Development Corporation (Cidco) in a 74:26 equity structure.
What is the layout like?
The new airport will have two parallel runways, and will handle close to 80 flights an hour.
Where is the land?
Over 2,268 hectares of land is needed for the project. However, efforts are still on to acquire the land required for the project.
Also, about 3,500 families across 10 villages of Navi Mumbai have been impacted by the proposed airport. So, the Cidco has rehabilitated about 400 families.
What is the time line of completion?
The airport will be developed in three phrases.
In Phase-I, the terminal building would be constructed with one runway. Work under this phase is likely to be completed by the end of 2020. The airport will have the capacity to handle 10 million passengers.
Work on Phase-II will be completed by 2022. After the completion of this phase, the capacity of the airport will increase to 25 million passengers.
After the completion of works in Phase-III and Phase-IV in 2027 and 2031, respectively, the airport will be handling 60 million passengers.
How would it impact real estate?
The Cidco expects the airport to generate over 4 lakh direct and indirect jobs. This means more and more people will migrate to Navi Mumbai, giving a major boost to the peripheral area’s real estate.
The change is already visible.
According to a report by the Maharashtra Chamber of Housing Industry, of the total property registrations recorded in at near Navi Mumbai between November 2016 and February 2017, around 16-17 per cent was done after GVK won the bid to build the airport.
Since property at Navi Mumbai is comparatively affordable, projects lying unsold at Navi Mumbai would find more willing takers in the times to come.
Which localities will benefit?
Karanjade is another residential neighbourhood near the airport which is also likely to see significant residential development in the coming days.
Khopoli, which is about 40 kilometres from Navi Mumbai, has also seen notable real estate growth in terms of new launches. Ulwe and Dronagiri are other popular localities that are also the key focus of property buyers.
What are the prices like?
The upcoming airport has triggered activity rush in the affordable housing segment. This is likely to go better as the process to complete the project picks pace. On an average, you have to shell out Rs Rs 40 lakh for a 1BHK, Rs 55 lakh for a 2BHK and Rs 75 lakh for a 3BHK at Navi Mumbai.
With inputs from Harnini Balasubramanian