Infrastructure and connectivity are the two main factors that directly impact the real estate market of a city. As the physical infrastructure is given a facelift by the government, the scope for other developments around the area also multiplies manifolds. A city’s transportation network is like its nerves running all across and connecting every far end with the other. Metro trains are the latest modes of rapid transit in Indian cities. Delhi came out as the pioneer of bringing metro in India and now other cities are following the lead.
Mumbai has joined the bandwagon recently and Mumbai Metro has also become the talk of the town. It is a PPP (Public Private Partnership) initiative by the government with participation from French transportation giant Veolia and Reliance Infra. Initially, the Versova-Andheri-Ghatkopar (VAG) Corridor had been commissioned by the department which is now fully functional. It has drastically reduced the travel time between east and west Mumbai. The effects of metro development on Mumbai’s realty landscape was witnessed soon after the announcement was made. The micro markets adjoining the metro line have seen perceptible price rise and the Mumbai residential realty market is showing signs of revival.
Let us learn about the impact of metro connectivity on Mumbai real estate from short term and long term perspective.
As the construction work for the first line of Mumbai metro kicked off, new real estate offerings came up in the area. The prices of land adjoining the line shot up. The same trend will be seen with further improvements in the rapid transit system. Developers will come up with more projects in both residential and commercial segment. Since the property prices in fully developed localities are beyond the reach of mid-segment buyers, they will also turn to these newly developed location in search of more affordable options.
In the long-run, the property values in these now affordable localities are going to touch new heights and soar high above their present counterparts. Move value will be captured through increase in Floor Space Index (FSI). If the plan of increasing the FSI is improved, it will completely transform the landscape of these adjacent locations. Foreign nationals are also seeing tremendous real estate development in the area and are pumping funds into the market.
Nearly 7 lakh passengers will commute between Eastern and Western suburbs daily via metro. This will also encourage more commercial development around these suburban areas as connectivity improves. When working in coordination with the city’s existing trains and monorail network, metro connectivity in Mumbai is poised to completely metamorphose the real estate landscape of Mumbai.
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