Published By: Soham Halder

Mumbai’s 1st Underground Metro Inaugurated: Easier Commutes and Skyrocketing Real Estate

Mumbai's first underground metro - Mumbai Metro-3 or the Aqua Line starts for public use from Monday, Oct 7.

The Prime Minister Narendra Modi inaugurated the Metro line connecting Bandra-Kurla Complex (BKC) to Aarey Colony JVLR on Saturday. Only a 12.44 km stretch is laid open to the public of whole 33.5 km Colaba-Bandra-Seepz line. This strech will operate from 6:30 AM to 10:30 PM on weekdays and from 8:30 AM to 10:30 PM on weekends. With the ticket price ranging between Rs. 10-50, people are expected to prefer Metro service more than ever in this route. How will it impact the real estate sector in Mumbai? Let's understand that.

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Rising Property Prices:

With connectivity improvement, property values will also increase sharply. According to the realestatemumbai.com website, the residential property rates in South Mumbai area varies between Rs. 45,000 to Rs. 1.50 lakh per square foot. This also depends on location as well as property age. With the inauguration of Line 3, rates will increase due to rise in demand from potential investors and buyers.

Meanwhile, famous real estate developers including Lodha, Godrej, Prestige, Puravankara are already present in the South Mumbai real estate market.

Rising Demand for Commercial Real Estate Sector:

"For corporates, senior executives, CEOs, and CXOs, this connectivity opens up opportunities for redevelopment projects. Many senior executives prefer to live in South Mumbai while continuing to work in BKC and Andheri eastern part. The Metro-3 will significantly enhance connectivity, and improved connectivity always benefits real estate. While there are currently limited options or pipelines for new Grade A commercial office spaces in South Mumbai, we can expect that to change in the future,” said Pramod Vyas, President of SMART (South MetroCity Association of Realtors), the apex body of real estate consultants in South Mumbai.

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Currently, the office rental cost in South Mumbai zone varies between Rs. 150 to Rs. 250 per sq ft. As per realestatemumbai.com report, rates in BKC have increased in last five years, ranging between Rs. 250 and Rs. 500. The market experts anticipated, it might touch ₹700 before the inauguration of full stretch of metro.

Opportunities in Nariman Point:

The Mumbai Metro Rail Corporation (MMRC) also decided to monetize a 4.2-acre plot in Nariman Point following a long-term lease contract. This site previously housed various political party offices, which have since relocated. The Nariman Point plot has an overall development potential of more than 1.6 million square feet area. As 1.13 million square feet has been earmarked for rehabilitation, a request for proposals been issued, with a bid submission deadline on November 27, 2024.

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“Accessibility to commercial hubs like Cuffe Parade, Nariman Point, and Marine Lines will gravitate more homebuyers and businesses towards this belt. Reduction in the time spent on commute, ease of travel will encourage development of residential and commercial real estate spaces and generate demand. We anticipate a spurt in home prices in this location," said Niranjan Hiranandani, founder of the Hiranandani Group and chairman of NAREDCO, an apex body of real estate developers.

Future Real Estate Trends:

The market analysts predicted an increased property values for Dadar, Worli, and Bandra due to enhanced connectivity to key business hubs. It is even predicted that, developers will focus on designing more integrated projects, as people will be seeking shorter distance between homes and workplaces.

Develped with a budget of Rs. 32,000 crore, each metro train can accommodate around 2,000 commuters. The Metro line, expected to be fully operational by June 2025, is projected to decrease vehicular traffic by at least 6.5 lakh trips.