Study, News Infra, AND Infra
Mumbai: Transport infrastructure projects worth around Rs 2.5 lakh crore underway in the Mumbai Metropolitan Region (MMR) will increase the supply of office space by around 127 million sq.ft. in the megacity, according to an industry study.
The MMR is witnessing the largest transport infrastructure boost ever — 14 metro lines, a new international airport, a cross-port bridge linking South Mumbai to the new airport across the sea, and a long road project on the west coast linking the southern tip of the city to the northwestern end among others, involving nearly Rs 2.5 lakh crore.
Of this Rs 2.1 lakh crore is earmarked for metro projects.
According to an assessment by real estate consultant Knight Frank India, the upcoming metro lines alone will add an estimated 127 million square feet of commercial real estate to the space-starved megacity.
Metro Line 2A will add approximately 11 million square feet of office space in the Malad-Kasturi Park belt alone, while Metro Line 3 will add an additional 2.8 million square feet to already established business districts from BKC and Lower Parel, and Metro Line 4 will increase connectivity and real estate supply to the tune of approximately 50 million square feet in this region, the report said.
Metro Line 1 will stimulate interest in the development of Andheri East and Kanjurmarg at the end of Vikhroli, which can potentially create a development of office space north of 32 million square feet, or approximately 20 % more than existing inventory in this region and metro line 7 has potential to add approximately 30 m² of office space, or an additional 20% of existing inventory.
Subway projects in suburbs and satellite cities will add about 20 million square feet, according to the report.
The MMR moves around Rs 2.5 lakh crore of transport infrastructure, including Navi Mumbai International Airport of Rs 24,000 crore.
The Bandra-Worli Sea Link, Eastern Highway and Metro Line 1 were the largest completed projects in the Mumbai region since the turn of the century with an investment of Rs 7,400 crore, but this is only 4% investments currently made.
Of the 14 metro lines, Metro Line 3 connecting Navy Nagar in the far south of the city to the SEEPZ in Bandra is the most salient of all as it is the only fully underground line, traversing 33.5 km of depth under the city with a mind-boggling investment of over Rs 32,000 crore, up Rs 10,000 crore from the original estimate as the line faced many hurdles.
Metro Line 3 is the city’s first underground metro with 27 stations connecting six business districts and the airport.
The more than Rs 31,000 crore coastal road will link Marine Lines in the south with Kandivali in the northwest, reducing the distance to just 29.8 km and is expected to be completed next year.
The 21.8 km long Mumbai Transport Link, which is being constructed with an investment of around Rs 18,000 crore, fully funded by Japan’s Jica, is also expected to be completed next year.
The cross-port link, linking Sewri in South Mumbai to Chirle near Navi Mumbai Airport was envisioned 35 years ago to ease congestion between the island city and Navi Mumbai but did not see the light of day for nearly three decades.
But now, the project is almost 70% complete and will be crucial for the operations of Navi Mumbai International Airport. The bridge will cover the distance in 30 minutes, which usually takes around 3 hours now.
The 21.8 km bridge is expected to help commuters traveling from Mumbai to Navi Mumbai, Navi Mumbai Airport, Jawaharlal Nehru Port, Panvel, Alibaug, Pune and Goa.
Another major road project is the Virar-Alibaug Multimodal Corridor involving an investment of Rs 40,000 crore and covering a distance of 128 km In total, the region will get more than Rs 2.5 lakh crore of investment over 246 km metro and 196 km of roads and a new international airport.
Of this total, about 250 km of metro lines and 70 km of road projects are in various stages of construction.
It can be noted that Mumbai’s residential market, one of the most expensive in the world, had been in a downturn for almost a decade and only came out of the woods in the mid-2020s following a price correction and a a fall in interest rates.
Mumbai’s residential market saw its best demand in 2010, selling 0.11 million units and saw 0.14 million units launched. However, in the following years, the market again contracted sharply.
Until 2013, annual supply exceeded annual demand, but after 2014 new supply began to fall as developers became cautious given slowing demand and unsold inventory.
And the agency expects these transport infrastructure projects to also give a boost to the residential real estate market.