Infrastructure development to give MMR 28 new growth locations
International property consultant Knight Frank India in its latest report ‘India Urban Infrastructure report’ assesses the real estate impact of the massive INR 1.8 trillion of transport infrastructure projects currently underway in the Mumbai Metropolitan Region (MMR). The report analyses their impact in terms of the locations/ corridors that are likely to see the most traction in terms of real estate development due to the improved connectivity.
The report has identified 28 locations as the next real estate growth corridors in MMR as a direct outcome of the infrastructure development. Primarily the result of approximately 250 km of Metro lines and 70 km of road projects cumulatively worth over Rs 1.8 trillion (Rs 1.8 lakh crore) at various stages of construction in the region. The extent of real estate traction in the resulting locations has been evaluated based on the availability of land for greenfield development or the redevelopment potential that the catchment offers.
The study does not gauge the scope for price appreciation in the key impacts markets as it is based on a different set of parameters which are not covered as part of this report.
“Mumbai, being the financial hub of the country, is growing at a rapid pace which is a need for the development of newer locations for residents and businesses to continue its organic growth. A strong infrastructure base is therefore needed to bring more locations into accessible distances from current business centres and indeed open up possibilities for new commercial locations. The massive Metro development along with the Mumbai Trans Harbour Link (MTHL) and other transport infrastructure projects are key to sustainable real estate in Mumbai for the future.” said Shishir Baijal, Chairman and Managing Director, Knight Frank India. “Infrastructure development and connectivity to employment hubs of the city play a crucial role in determining the fortunes of a real estate catchment. As several million residents would use the upcoming infrastructure projects daily, most catchments along the project corridor stand to gain,” added Shishir. The report also delves into the environmental conflicts that urbanisation brings about in a developing country like India and the role that systematic infrastructure development can play in mitigating them. Taking note of the contemporary trends and best practices, the report highlights that the debate on urban infrastructure has moved beyond transport and mobility projects and that the quality and adequacy of infrastructure parameters like air, water and waste management have become equally important considerations. Environmental conflict in urban India has a severe impact on the quality of life and is responsible for a multitude of diseases and scarcity of basic requirements such as clean air and water. The Ministry of Housing & Urban Affairs (MoHUA), India that launched the ‘Ease of Living’ Index for 111 Indian cities assesses the quality of life that a city provides. It evaluates several parameters such as transportation, pollution and availability of civic amenities, and ranks cities in the order of ease of living or quality of life that they provide. Out of the cities tracked by Knight Frank, the 2018 index ranks Pune as the most liveable city in India with Navi Mumbai, Greater Mumbai and Thane ranked 2,3 and 6 respectively. Bengaluru and New Delhi are ranked 58 and 65 respectively while Gurugram is placed at a distant 88th rank.
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