The Mumbai Metropolitan Region's office leasing, data center, and residential segments are anticipated to grow as the Mumbai Metro, Mumbai Trans Harbour Link, first phases of the Coastal Road Project, and the Navi Mumbai International Airport are near completion. According to a report titled MMR Infrastructure Upgrading Real Estate by the real estate consulting company Colliers India, the infrastructure upgrades are anticipated to draw up to $4 billion in investments for data centers for Navi Mumbai alone in the next three to five years. With improved connectivity, annual leasing is anticipated to pick up in the commercial office micro markets of Bandra Kurla Complex and the western suburbs of Mumbai. Additionally, the upcoming metro lines will bring homogeneity in residential prices in the western suburbs. Once the DN Nagar-Mandale and Colaba-SEEPZ metro lines are operational.
They will augment the public transportation system in BKC, the costliest commercial real estate market in Mumbai, and the annexe. Annual leasing will likely increase 1.5 times starting in 2025 from 1 million square feet in 2022. The upcoming availability of 7 million sq. ft of space in the next three years will increase the current stock (14 million sq. ft) in BKC and annexe by about 50 percent, with the largest chunk to be ready once the metro lines are operational. Moreover, according to the report, elevated demand is likely to drive average monthly rentals of BKC and annexe higher by 5-10 percent by 2025. Colliers said while earlier, average housing prices declined as one moved northwards in the western suburbs of Mumbai, with the upcoming infrastructural developments, "a sense of homogeneity is expected in housing prices over the next few years".
With the metro work reaching an advanced stage, the market holds immense potential for investments as the housing price differential, which was more than 80 percent in Dahisar (compared to Santacruz) a few years ago, has already moderated to less than 50 percent. Although the price differentiation within the western suburbs will continue to narrow, overall residential prices will likely climb further in the next two to three years. Colliers said that residential prices in Andheri, Jogeshwari, Malad, Goregaon, Lokhandwala, Kandivali and Borivali have already risen 5-10 percent over the past one or two years.
With the completion of phase 1 of the Coastal Road in South Mumbai and the Mumbai Trans Harbour Link (MTHL) from Sewri to Navi Mumbai, connectivity will improve between the old Central Business District (CBD) in South Mumbai and the western suburbs, Central Mumbai, and Navi Mumbai, according to the report. The completion of the MTHL and the Navi Mumbai International Airport can boost annual office leasing by 20-25 percent starting in 2025 from 2 million sq. ft in 2022. About 9 million sq. ft of supply is expected to come up in this area in the next three years, more than 75 percent of which will be for IT companies, it said. According to Colliers, the upcoming infrastructure upgrade is likely to transform the real estate landscape of Navi Mumbai holistically across segments, including the residential sector.
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