Mumbai Trans Harbour Link to spark surge in Navi Mumbai real estate activity

Source: Economic Times

The Mumbai Trans Harbour Link (MTHL), the country's longest sea bridge, is expected to bolster the Navi Mumbai property markets as the connectivity and further infrastructure development is likely to result in surge in real estate activity, demand and prices.

Prime minister Narendra Modi will be inaugurating the 21.8-km-long MTHL on Friday and this bridge is estimated to cater to around 70,000 vehicles daily, connecting Sewri in central Mumbai to Chirle at Navi Mumbai.

The bridge is poised to transform the everyday travel experience for commuters from south and central Mumbai, reducing the current two-hour travel duration to just 20 minutes. The improved connectivity is likely to spur commercial and business activities in Navi Mumbai.

“The MTHL will undoubtedly be a boon for Navi Mumbai's overall economic development, including and especially the real estate sector in the region…In the next 10 years, we expect Navi Mumbai to not just complement the economic growth of MMR, but co-lead it, with other major infrastructure projects including the international airport also bound to have a substantial impact,” said Raajesh Prajapati, MD Prajapati Constructions.

He expects Navi Mumbai’s demand for commercial, retail, office as well as residential for both affordable as well as luxury housing to grow substantially with both users and investors looking at the long term horizon.

“Factors such as lifestyle, easy commuting, improved connectivity, and relatively lower property prices (35-45% less despite being a planned city) in Navi Mumbai will likely influence homebuyers' decisions. Affordable housing in Navi Mumbai is still within the range of Rs 30-40 lakh,” said Bhavesh Shah Joint MD, Today Global Developers.

While the property market of the entire region is expected to gain, more impact will be seen in micro markets such as Panvel, Ulwe, Dronagiri that will get a direct linkage to the bridge, experts said.

According to Shah, several factors including new connectivity and infrastructure development push are expected to lead to a surge in property prices in Navi Mumbai within the next three years. With the added advantage of the MTHL project, residents can now access various parts of Mumbai with reduced travel time and minimal traffic congestion.

The rental market in Navi Mumbai may also witness increased demand, especially in areas with improved connectivity to Mumbai. However, according to experts, the toll rate for MTHL needs to be lowered to ensure higher usage of the inter-city bridge.

The government of Maharashtra has fixed a toll charge of Rs 250 per car for a one-way trip on the MTHL, with a concession option for frequent, regular commuter and pass holders.

The enhanced connectivity is likely to push demand for affordable housing options as more people may explore Navi Mumbai as a viable residential destination as against other locations in Mumbai that are at least two-three times more expensive.

As these infrastructure projects including MTHL, Navi Mumbai Metro, and Navi Mumbai International Airport unfold, the city is likely to experience increased demand for both residential and commercial properties.

Real estate investors and homebuyers are closely monitoring these developments, recognizing the potential for long-term growth in the real estate market.