Government agencies announcing fast-tracking of permissions and clearances for the Navi Mumbai International Airport (NMIA) has created a ‘positive push’ for a totally new real estate development for the Mumbai Metropolitan Region (MMR), the Aerotropolis.
Recently, Civil Aviation Minister P Ashok Gajapathi Raju stated that the Maharashtra State Government agencies and the Airport Authority of India were working towards NMIA’s completion ‘at the earliest’. Among the fastest growing within the MMR, the Navi Mumbai – Panvel real estate market has been awaiting the ‘Aerotropolis’ which will literally, ensure the region ‘takes-off’ as regards further growth and development. With permissions and clearances coming through, the nodal agency, CIDCO expects to commission the first phase of the Rs 16,000-crore Navi Mumbai International Airport (NMIA) project, which has an estimated area of 2,320 hectares (9.0 sq mts) by December 2019.
The fast-tracking of the NMIA project is having a positive impact on real estate development in Navi Mumbai and locations in the airport’s vicinity, especially the Panvel region. The Rs 16,000 cr project is being executed by Mumbai International Airport Limited (MIAL), which won the contract in February 2017. MIAL is a Joint Venture between the Airports Authority of India (AAI) and the GVK Industries Ltd-led consortium.
The new airport will cater to 35 mn passengers by 2020, 55 mn by 2025, and 90 mn by 2030, according to CIDCO. CIDCO’s RFQ states that the estimated total project cost for the development of phase 1 and 2 of NMIA will be Rs 9,500 cr .The cost of pre-development work is estimated at Rs 2,358 cr (US$370 mn), which includes Rs 1,538 cr ($240 mn) of land development for airport and Rs 800 cr (US$120 mn) for other works.
Globally, with eco-sensitive norms coming into force, international Aerotropolis have, in recent times become ‘trendy’ neighborhoods. This is what Navi Mumbai’s realty scenario will gain from, as it is a scenario where unlike real estate development being planned around an existing airport, the Aerotropolis in Navi Mumbai will have the advantage of the airport yet being under construction.
When one looks at the potential that the Aerotropolis offers, Navi Mumbai, especially the Panvel region, has been attracting attention from Mumbai-based Corporate Entities looking out for commercial real estate which offers large floor plates and global standards of amenities and facilities. The new trend of consolidation and re-location has been driving interest in new developments which integrate residential and commercial real estate.
Across Mumbai and the MMR, most of the larger spaces available are located on the highways leading out from Panvel; and one such upcoming integrated township is Hiranandani Fortune City, Panvel. When one talks about an Aerotropolis, Hiranandani Fortune City, Panvel fits in perfectly with the overall concept.
The Navi Mumbai real estate has witnessed serious enquiries and sales at finished as well as under-construction projects in nodes like Panvel, Ulwe and Dronagiri. Similarly, projects within the proposed NAINA region are also attracting end-user buyers and investors.
The growing attention that corporate entities are focusing on Navi Mumbai and Panvel has been in sync with fast movement of projects that will create better connectivity on all four aspects – Road-Rail-Air and Sea. While NMIA is obviously the ‘glamorous driver’ of the Navi Mumbai – Panvel growth story, projects on all four means of transport are on the ‘fast track’ and are having a positive impact, be it the trans-harbour sealink, the railway terminus at Panvel, the CST-Panvel fast railway corridor, the upgrading of the Sion-Panvel expressway or even the expansion at JNPT.
These infrastructure projects have resulted in growing positive sentiment when it comes to commercial real estate in the Navi Mumbai – Panvel region. The Trans-Harbour Sealink will bring the NMIA closer to South Mumbai, making the Aerotropolis an ideal location for work spaces, back-end offices as also spaces for BFSI, IT and ITeS sectors – not to mention corporate relocating and consolidating office spaces.
The NMIA has impacted real estate growth in locations in Navi Mumbai, especially in its vicinity, including Panvel. NMIA has a huge employment generation potential. It is estimated that the airport will generate 1.42 lakh new jobs directly, along with another 2 lakh jobs on an indirect level. The Aerotropolis will definitely be a game changer for Navi Mumbai and Panvel’s real estate.
(The author is president, Naredco West. Views expressed here are personal)