The real estate sector in India is seemingly experiencing a slowdown for the past 3 years. The country’s financial capital Mumbai is riddled with a large number of incomplete and stalled projects and an equally large number of unsold units in the city as well as suburbs. However, the sales growth has seen some improvements in the last two quarters of 2019. This gives hope to many developers and sector-related workforce.
In Mumbai, several projects are lined up and underway already. This is currently being experienced at Neral-Karjat precinct of the Mumbai Metropolitan Region. With more than 88 local trains connecting this region with the rest of Mumbai and the host of development already ongoing in this area, more than 50,000 Mumbaikar’s are expected to consider this area their new home. The infrastructure of the area plays a significant role in the value appreciation of a property. Even rents are a direct function of property prices, which are legitimately corresponding to the improvement of the region. As an area matures, services like restaurants, places of entertainment come up that make it more attractive to actual homebuyers. The government, too, is compelled to improve connectivity-related infrastructure.
Even in the city the new Metro system is breathing new life to prior overlooked zones such as Wadala, Charkop etc. These metro routes will help reduce traffic congestion in the city as well as supplement the packed Mumbai Suburban Railway.
Not just Mumbai city, but its outer-edges like MMR developments will likewise bring about a rise of rate appreciation. Regions like Neral and Karjat are in demand for their affordable homes, and many first-time homebuyers are thinking about these areas as a destination to buy their homes. Many new projects like Mumbai Trans Harbour Link as well as Navi Mumbai International Airport are in progress, and will benefit homebuyers of that region. The former is a six-lane sea bridge and the length of the same will be 21.8 km, and lessen travel time among Mumbai and Neral-Karjat by close to an hour. The freeway will also be connected to the Mumbai Pune Expressway and Western Freeway, and positively boost the real estate in Mumbai.
MMRDA estimates that 70,000 vehicles will use the bridge every day, and the travel time from Churchgate to Navi Mumbai area will descend from 40 minutes to 20 minutes. The Navi Mumbai airport will be another game-changer for properties in the region. Having initiated in February 2018, the greenfield international airport will be more than one thousand hectares with the capability of becoming an aerotropolis, currently being built at Ulwe Kopar-Panvel in Maharashtra, India.
Such infrastructural projects impact numerous variables of the city. With these, Mumbai and nearby regions are getting realigned and reconstructed. An array of developers will leverage these infrastructural projects as their selling propositions. Realignments executed by developers in product offerings, as well as the rate basis infrastructural developments along with the understanding of consumer demands are sure to emphatically affect the real estate sector of the nation. This new-age real estate development is, thus, on the rise in lieu of such factors, and is best appropriate for millennials, who make for the primary the target group of many affordable housing developers.
(By Dinesh Doshi, Managing Committee Member, CREDAI MCHI Raigad)