Transport infrastructure projects worth around Rs 2.5 lakh crore underway in the Mumbai Metropolitan Region (MMR) will boost supply of office space by around 127 million square feet in the megapolis, says an industry study. The MMR is witnessing the biggest-ever transport infrastructure push — 14 metro lines, a new international airport, a trans-harbour bridge connecting south Mumbai to the new airport across the sea, and a long west coast road project connecting the southern tip of the city to the northwestern end among others, involving close to Rs 2.5 lakh crore.
Of this Rs 2.1 lakh crore is for metro projects only. According to an assessment by realty consultant Knight Frank India, the upcoming metro lines alone will add around 127 million sqft of commercial realty to the space-starved megapolis.The Metro Line 2A will add an estimated 11 million sqft of office space in the Malad-Kasturi Park belt alone, while Metro Line 3 will add another 2.8 million sqft to the already established business districts of BKC and Lower Parel, and Metro Line 4 will boost connectivity and realty supply to the tune of around 50 million sqft in this region, says the report.
Metro Line 1 will spur development interest in Andheri East and Kanjurmarg at the Vikhroli-end, which can potentially create office space development north of 32 million sqft, or around 20 percent more than the existing stocks in this region and Metro Line 7 has a potential to add an estimated 30 m sqft of office space which is another 20 percent of the existing inventory.The metro projects in suburbs and satellite cities will add around 20 million sqft, the report said.
The MMR is getting around Rs 2.5 lakh crore of transport infrastructure including the Rs 24,000 crore Navi Mumbai international airport.The Bandra-Worli Sea Link, the Eastern Freeway and Metro Line 1 were the largest projects completed in the Mumbai region since the turn of the century at an investment of Rs 7,400 crore, But this is just 4 percent of the investments committed now.Of the 14 metro lines, the Metro Line 3 connecting Navy Nagar in the extreme south of the city to the SEEPZ in Bandra is the most salient of all as this is the only fully underground line, traversing 33.5 km deep under the city with a staggering investment of over Rs 32,000 crore, up by Rs 10,000 crore from the initial estimate as the line faced many hurdles.The Metro Line 3 is the city’s first underground metro with 27 stations connecting six business districts, and airport.The over Rs 31,000 crore coastal road will connect Marine Lines in the south to Kandivali in the northwest cutting the distance to just 29.8 km and is expected to be completed next year.
The 21.8 km-long Mumbai Trans-Harbour Link being built at an investment of around Rs 18,000 crore, fully funded by the Japanese Jica is also expected to be completed next year.The trans-harbour link, connecting Sewri in south Mumbai to Chirle near the airport in Navi Mumbai was envisaged 35 years ago to facilitate decongestion between the island city and Navi Mumbai but failed to see the light of the day for almost three decades.
But now the project is close to 70 percent complete and will be crucial for the operations of the Navi Mumbai international airport. The bridge will cover the distance in 30 minutes which now typically takes around 3 hours now.The 21.8 km bridge is expected to help commuters traveling from Mumbai towards Navi Mumbai, Navi Mumbai airport, the Jawaharlal Nehru Port, Panvel, Alibaug, Pune and Goa.Another major road project is the Virar-Alibaug Multimodal Corridor involving an investment of Rs 40,000 crore and running a distance of 128 km In total, the region will get over Rs 2.5 lakh crore investment across 246 km of metro network and 196 km of roads and a new international airport.Of this around 250 km of metro lines and 70 km of the road projects are in various stages of construction.
It can be noted that the Mumbai residential market, one of the costliest in the world, was in a slowdown for close to a decade, and has come out of the woods only in the mid-2020 following some price correction and lower interest rates.Mumbai residential market saw its best demand way back in 2010 selling 0.11 million units and saw the launch of 0.14 million units. However, in subsequent years, the market contracted sharply again.Until 2013, the annual supply outpaced the annual demand, however post 2014, the new supply began to tumble as developers turned cautious considering the slowing demand and unsold inventory. And the agency expects these transport infrastructure projects will give a big fillip to the residential property market as well.