Mumbai Gets Additional Metro Lines; Thane To Come Closer
Commuting in the Mumbai metropolitan region is all set to get easier as the Maharashtra government has approved two more Metro rails that would bring the extended suburb regions of Thane closer to Mumbai and facilitate easy travel between west and east Mumbai. This will substantially impact the affordable real estate markets in Mumbai metropolis owing to faster connectivity to main commercial hubs of the city.
Additional Metro lines
The recently approved Metro route will be the fifth and sixth Metro corridors in the region. The fifth route would connect Kalyan and Bhiwandi, the warehousing hub with main Thane while the sixth route will be built between Swami Samarth Nagar (Andheri West) and Vikhroli. This would be the second metro route between western and eastern counterpart of Mumbai, Versova-Andheri-Ghatkopar being the first and already operational. The entire cost of construction is pegged at Rs 15,088 crore and is expected to start its operations by 2021.
The Thane-Bhiwandi-Kalyan route would join the Metro Line 4 that would run between Wadala-Thane- Kasarvadavali and Metro Line 11 connecting Taloja in Navi Mumbai to Kalyan in Thane. The entire Metro network would be connected to the Western and Central Railway suburban network at Dahisar, Wadala and Colaba for quick interchange between local train and Metro routes.
Impact on real estate
With the announcement of the new Metro lines, several far-off real estate locations of the Mumbai metropolitan region which were so far connected only through local train network, would get a major boost. Areas falling along the Thane-Bhiwandi-Kalyan route are known for their affordable offerings, and are currently considered by those end-users, who prefer to stay on rent close to their offices while renting out these units to finance their home loan EMIs.
With improving connectivity, these places would witness sharp price rise as was seen during the construction phase of the first metro phase, resulting in property price rise of 400 per cent in eight years and was considered as a major real estate game changer.
The proposed Metro station at Kalyan and Bhiwandi would enable homebuyers to commute to their work locations easily while staying miles away. Currently, the local trains run with full capacity during peak hours. Dombivli would be another beneficiary of this proposed infrastructure due to proximity to Metro connected areas.
Property prices in these real estate pockets ranges from Rs 4,500-6,000 per sqft which is affordable as compared to other areas of Navi Mumbai with a similar profile. Historical data show that as the construction work would start and speed up, initial rise of 10 per cent is undeniable. By 2021, these areas that may be lacking in infrastructure, good quality schools, medical facility and commercial area as of now could turn into a job hub as well. The availability of vast tract of land would give way to more project launches in next three years. Currently, the area has a sizeable stock with over 190 projects available for possession in Kalyan alone.
For Swami Samarth Nagar- Vikhroli Metro route, impact on real estate would remain more or less stable as these pockets are already saturated and have little scope for further appreciation. Though the boost in connectivity to the commercial area of SEEPZ and Powai would make it comfortable for the commuters staying in Andheri West to travel towards the Eastern Express Highway without passing through Bandra Kurla Complex or the Santa Cruz-Chembur Link Road, the impact would be less on the western counterpart as compared to the eastern end of the metro route.
The property prices along this corridor are in range of Rs 8,000-14,000 per sq ft with limited new stock and scope of new development. Therefore, the demand would move to further areas on Eastern Express Highway such as Kanjurmarg and Vikhroli where a number of projects are already in construction phase offering flats of smaller ticket size, selling like hot cakes. With the proposed metro station in both of these locations, a home here would remain in high demand due to the robust connectivity and right ticket-size.
With inputs from Housing News