NAVI MUMBAI: MAGNET FOR REAL ESTATE INVESTORS & DEVELOPERS
In India, Mumbai is undoubtedly the most densely populated city and one of the most profitable property markets. The city continues to witness major infrastructure developments that are going to take the burden off the busiest areas -within the island city. While the COVID-19 pandemic lockdowns halted multiple projects, the city expects to complete ongoing projects over the next 3- 5 years. The development is not limited to the city but extends to its satellite arms for holistic growth. As a result, major real estate and infrastructure development projects are going on around Thane Belapur Road and moving east towards Panvel. These projects will play a key role in developing the Mumbai Metropolitan region and de-congesting the prime locations in the city. With big-scale infra projects, the development of business hubs, and residential projects, these areas are treading the path of rapid progress. The city is undergoing a significant transition to address the overarching concerns that affect employee movement— due to impediments caused by the city's topography. In addition, improved infrastructure initiatives promote public transportation and boost connectivity in the city's east-west and north-south directions. The Delhi-Mumbai Industrial Corridor, Mumbai Coastal Road, and Trans Harbour Link, to name a few, are some of the major projects that will transform the city's topography and further improve the lives of the Mumbaikars. These initiatives in the upcoming year would significantly impact the real estate market. Mumbai not only has a thriving commercial segment, but the residential real estate development has spread rapidly to the peripheral areas of Thane, Navi Mumbai, Vasai-Virar, Dombivli, Kalyan, and others due to their affordability quotient. Commuting is one of the biggest challenges for any Mumbai citizen. As a result, a physical infrastructure upgrade has become the top priority for the citizens and the government. The development of Navi Mumbai started between 1983 – 1984. It was on the radar and came into the limelight post the announcement of the Maharashtra IT/ITes policy. Incentives and subsidies for companies attracted investors to Navi Mumbai and grew into one of India's first planned cities. Real estate investors and developers are drawn to Navi Mumbai for its affordably priced land, rapidly developing infrastructure, and availability of skilled labour in abundance. The completion of major projects, including the airport, metro, and MTHL, is all set to influence the demand for residential and commercial spaces positively. Navi Mumbai is undergoing a metamorphosis because of the development of numerous large-scale projects, including the Kharghar Business District, MTHL, and the Navi Mumbai International Airport. Due to its growth potential, the area is growing in popularity. Some of the largest upcoming projects in and around the area have the potential to transform Navi Mumbai's appearance and enhance its appeal as an investment opportunity/ destination, residential hub, and commercial development. Transport The city is well connected to other state and country parts. In terms of public transportation, NMMT and BEST buses ply the roads, with the Mumbai suburban railway, a fleet of auto rickshaws and Taxis for intra-nodal commute, and the Mumbai-Pune Expressway also present. The railway network connects locations, including Vashi, Nerul, Belapur, and Panvel. Also, the proposed Navi Mumbai International Airport is expected to be completed by 2032 at INR 16,700 crores. The new airport is expected to handle 10 million passengers a year post-competition of its first phase, 25 million passengers a year in the second phase, and 60 million passengers annually by 2032. The first phase of the airport is expected to be completed by the end of 2024. Further, the city also has a metro system, with several lines currently under construction. It also houses the Jawaharlal Nehru Port at Nhava Sheva near Uran, with the largest container terminal. Prospects The city is expected to continue to attract investor interest, mainly due to the completion of all ongoing infrastructure initiatives. The Mumbai Trans Harbour Link (MTHL), for instance, will be completed by 2023, will stretch along 22 km, and will connect Chirle (Navi Mumbai) and Sewri (South-Central Mumbai. It is expected to streamline movement between cities, bolstering further real estate demand. Airports Authority of India (AAI) recently announced the relaxation of earlier cap imposed on the elevation levels of city buildings in Navi Mumbai, the realty projects worth ?5,000Cr will get consent along with mega development plans of ?5,000 Cr on the open plots across the city, as per the estimates of CIDCO. Key projects that will transform the face of Mumbai and make Navi Mumbai a lucrative destination for investors, home buyers, and office occupiers: Key connectivity projects (Navi Mumbai Airport, Navi Mumbai Metro, MTHL) With the upcoming Navi Mumbai International Airport and enhanced connectivity to the Island city, Navi Mumbai is set to witness one of the biggest infrastructure boom in the city. Over the years, the satellite city of Navi Mumbai has witnessed reverse migration and evolved into a prime residential destination and technology hub. Mumbai is perhaps the only metro city in India where demand has been balanced by supply infusion. But as the scarcity of land increases in prominent districts, the supply-demand gap is expected to narrow over the next two to three years. As a result, several occupiers might prefer to relocate to this micro-market, owing to the fragmented nature of upcoming supply in the Island City and its suburbs. The Navi Mumbai Metro (Line 1) will operate on a stretch of 11.10 km, connecting Belapur, Kharghar, Tolja & other areas in the city via 11 stations. Prime Minister Narendra Modi in 2018 laid the foundation stone of Navi Mumbai airport, and since then, the development has been in full swing. The airport is in its construction phase in Ulwe & Panvel regions and is expected to start operations by 2024. An express metro will connect it with the Chhatrapati Shivaji Maharaj International Airport. The Navi Mumbai airport might have a terminal on the Mumbai-Hyderabad bullet train route, which will further enhance its accessibility. It will make Navi Mumbai an accessible MMR hotspot and thoroughfare for global power centers like the US, Japan, Russia, the Middle East & more. Moreover, it can act as a catalyst in bringing Mumbai & Pune closer. The idea of a second airport will reduce the current operational Mumbai airport burden. It will also boost the economy and create lakhs of job opportunities. The smooth connectivity from the airport will also pave the way for MNCs to set up their offices near Panvel and adjoining areas. Navi Mumbai Transport harbour link is expected to open in 2023 and will bring Navi Mumbai close to the heart of Mumbai by further enhancing its connectivity. It will run between Chirle (Navi Mumbai) and Sewri (South-Central Mumbai). The MTHL will be linked to a Cloverleaf Interchange, opening at Central and South Mumbai. This will save a significant amount of time for people travelling from Mumbai to Navi Mumbai, Jawaharlal Nehru Port, Navi Mumbai International Airport, Pune, Panvel, Alibaug, and Goa. Commercial / Business District– The Kharghar Business District Khargar is a highly developed region in Navi Mumbai and is located strategically at a driving distance of merely 12 km from the Navi Mumbai International Airport. CIDCO (The City and Industrial Development Corporation of Maharashtra) is planning to build a Business District here, in the likes of Bandra Kurla Complex, Mumbai. Apart from being in proximity to the airport, it will also connect with Thane via a 3 km-long tunnel. The road will reduce the travel time for motorists from Mumbai, Thane, and Navi Mumbai to Kharghar by 30 minutes. The business district will support big corporate houses, residential units, education & healthcare institutes, entertainment options, and more. Residential – Khopta New Township The Khopta New Town notified area lies between Navi Mumbai and CIDCO’s Navi Mumbai Airport Influence Notified Area (NAINA). CIDCO is laying the grounds for a development plan that constitutes 32 villages in the Panvel and Uran regions of Navi Mumbai. The development plan for 6 of the villages is already approved. CIDCO plans to develop world-class infrastructure and create opportunities for different sectors and social facilities in the area Navi Mumbai’s infrastructure development, attractively priced land, and supply of qualified talent are fuelling the growth of Mumbai, and the areas around will play a critical role in the development of the Metropolitan. The city witnessed an increase in office absorption, with national & international companies setting up their regional offices. The absorption rate for residential & office spaces will only rise soon as mega projects like the airport, metro, and MTHL near completion. The BKC area, which was set up as an alternative to South Mumbai CBD region, is now witnessing accelerated residential development as well. Mumbai is up for a massive transformation in the years to come, and with the culmination of these projects over the 3-5 years coupled with a large amount of supply around the same time across the city, occupiers will have a good problem on their hands. Navi Mumbai is expected to be one of the most well-planned satellite cities in India, adjacent to the financial capital of India that will offer ideal living conditions, a balanced lifestyle, and strong growth prospects.
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