Up on the Monorail

Mumbai’s latest mode of public transport, the Monorail – which is India’s first- has not only revolutionised travel within the country’s commercial capital but has shot up the real estate values of the areas through which it passes like the Chembur Wadala corridor

If you are still planning to buy that house in the Wadala Chembur belt of Mumbai where the Monorail has been operationalised from the first week of February, think again, as the flat costs in the area are now clearly beyond the grasp of the middle-class.

In its first phase, the new mode of transport has started operations on the 8.26-km stretch of the Wadala-Chembur corridor. Later, under first phase itself, more lines linking Jacob  Circle, Wadala and Chembur station will be erected taking the aggregate network to 19.54 km by the end of next year, as per Mumbai Metropolitan Region Development Authority (MMRDA) sources.

The arrival of the Metro and Monorail is going to make life hassle-free for the residents. The Versova-Ghatkopar line of the Metro rail will provide a vital east-west link and will reduce travel time from 90 minutes to just 20 minutes. The Chembur-Wadala corridor houses huge amount of real estate development.

Manju Yagnik, Vice-Chairperson, Nahar Group

The travel time between Wadala and Chembur has been cut by 21 minutes with the inauguration of the Wadala-Chembur Monorail line.
Within just a week of the start of the Monorail, prices in Chembur and Wadala localities and in areas falling on the Chembur-Wadala stretch like Tilak Nagar, Kurla, Chunabhatti, JTB Nagar and Wadala junction, have been escalated by 20% by the wily builders.
Though the Monorail has surely lured developers to launch their projects in areas like Chembur and Wadala, It has failed to attract buyers. The property prices were already so high and with the beginning of Monorail operations, they are escalating further, moving much beyond the capacity of the middle-class buyers.

We believe that both the Metro rail and Monorail will have a great impact on the infrastructure development of the area. They will reduce traffic congestion and make the city smaller.
Shailesh Puranik, MD, Puranik Builders

The first Phase of the Ghatkopar-Versove supposed to become operational this year.In the eight years since the project was announced, prices in many areas that will benefit from the link have risen by as much as 400%
Ashutosh Limaye, (Research and Real Estate Intelligence Service), JLL India

The travel time between Wadala and Chembur has been cut by 21 minutes with the inauguration of the Wadala-Chembur Monorail line.

Within just a week of the start of the Monorail, prices in Chembur and Wadala localities and in areas falling on the ChemburWadala stretch like Tilak Nagar, Kurla, Chunabhatti, JTB Nagar and Wadala junction, have been escalated by 20 per cent by the wily builders.

Last year, the residential space at Chembur was available at a capital value of Rs. 12,000-16,000 per sq ft while in Wadala, which is approximately 8 km away from Chembur, the values ranged between Rs. 1 5,000-30,000 per sq ft.

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• The 19.54Km long Monorail corridor is the world’s second longest after Japan’s Osaka corridor, which is 23.8km. There are seven stations in the first phase – Wadala, Bhakti Park, Mysore colonu, Bharat Petroleum, Fertiliser Township, VN Purav – RC Marg and Chembur
• With the Monorail coming up from Chembur to Jacob Circle via Wadala, many residents have been approached by private developers, seeing redevelopment already. The number is as high as 60.
• The travel time between Wadala and Chembur has been cut by 21 minutes with the inauguration of the Wadala-Chembur Monorail line.
• Within just a week of the start of the Monorail, prices in Chembur and Wadala localities and in areas falling on the Chembur-Wadala stretch like Tilak Nagar, Kurla, Chunabhatti, JTB Nagar and Wadala junction, have been escalated by 20% by the wily builders

“In Mumbai, the property prices have undergone a revision due to the Monorail project. More and more people are enquiring about it, both for investment and end-use purposes”, Harshad Pimpale of Pimpale Properties says that the area is going to witness more development and thus greater price appreciation can be expected in future.

New residential projects by prominent builders and developers such as Ajmera Zeon by Ajmera Group and New Cuffe Parade by the Lodha Group have already come up in Wadala. Another building major DOSTI Builders has not only built luxurious residential projects like DOSTI Imperia but many more commercial projects like DOSTI Acres have been lined up in the Chembur-Wadala corridor.

Though the Monorail has surely lured developers to launch their projects in areas like Chembur and Wad ala, it has failed to attract buyers. The property prices were already so high and with the beginning of Manorial  operations, they are escalating further, moving much beyond the capacity of the middle class buyers. Moreover,  people from outside Mumbai cannot afford to buy any property in the city.

“We believe that both the Metro rail and Monorail will have a great impact on the infrastructure development of the area. They will reduce traffic congestion and make the city smaller,” states Shailesh Puranik, managing director, Puranik Builders Pvt Ltd.

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Rupesh Patil, a resident of Wadala, is upbeat about both the Monorail and the Metro project, even though the projects have been delayed. For many like  him residing in  the suburbs, these projects are going to make life much easier.

Many property analysts view these projects as veritable gamechangers in terms of connectivity – reducing both traffic congestion and commuting time.

The introduction of the limited edition of Monorail on the Wadala-Chembur corridor has already eased the traffic problems and come  as   a major relief for residents, especially those residing in the eastern suburbs, who spend half their time travelling to and from the railway stations.

The 19.54 km long Monorail corridor is the world’s second longest after Japan’s Osaka corridor, which is 23.8 km. There are seven stations in the first phase-Wad ala, Bhakti Park, Mysore Colony, Bharat Petroleum, Fertiliser Township, VN Purav-RC Marg and Chembur.

“The arrival of the Metro and Monorail is going to make life hassle-free for the residents. The Versova-Ghatkopar line of the Metro rail will provide a vital east-west link and will reduce travel time from 90 minutes to just 20  minutes. The Chembur-Wadala corridor houses huge amount of real estate development”, says Manju Yagnik, vice-chairperson, Nahar Group.

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“If you are an investor, it makes sense to keep track of these plans and act in time, before property prices in areas that the project will connect and rise. Locations that will gain from it are Andheri, Ghatkopar, Chembur and Wadala, which have already seen a decent jump in property prices,” explains Surendra Dewan, a property consultant in Chembur.

As for the Metro project, Ashutosh Limaye, head research and real estate intelligence service, Jones Lang LaSalle India, says: “The first phase of the GhatkoparVersova link is supposed to become operational this  year. In the eight years since the project was announced, prices in many areas that will benefit from the link have risen by as much as 400 per cent.”

“The government is also supporting the efforts with higher Floor Space Index (FSI), increasing the value of  land parcels and built-up spaces. Prices in these locations have risen more than in others. The demand, too, is healthy,” an official of the MMRDA says.

The Mumbai Transformation Support Unit has also come up with a suggestion to give higher FSI around the area of the upcoming Metro stations. This should make those who wish to opt for redevelopment happy.

With the monorail coming up from Chembur to Jacob Circle via Wadala, many residents have been approached by private developers, seeking  redevelopment already. The number is as high as 60. Residents must understand that their property value is most likely to jump substantially, once the Metro or Monorail runs through their area.

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In Mumbai, the property prices have undergone a revision due to the Monorail project. More and more people are enquiring about it, both for investment and end-use purpose
Harshad Pimpale, Pimpale Properties

Mumbai is currently, under a phase of transformation with several major infrastructural plans being executed simultaneously in different parts of the city. While some have already been realised and opened for public use, some are still awaiting the green signal. Whatever stage they are at today, the impact of such planned infrastructure is already apparent in the real estate markets of the areas that are benefiting from such projects. One such locality which is making the most out of its location advantage of being close to all the
new developments is Chembur. Projects such as the Eastern Freeway, the elevated road and the Monorail are major contributors to the suburb’s fast paced growth.

Amit Jaisingh, managing director, Realty Pros India, says: “Once the Monorail is fully operational, it will ease travel to south Mumbai and the western suburbs to a significant extent.”

After the launch of Monorail, several home buyers have started eyeing Chembur as a prospective residential destination. High demand and the ongoing infrastructural developments have provided a thrust to  the property values in Chembur and pushed them by nearly 17 per cent in the last one year and 25 per cent in  the last two years. Even the rental values have appreciated by nearly 7-13 per cent in the last two years.

Property rates at Chembur range between Rs. 12,000- 13,000 per sq ft in the peripheral areas and Rs. 20,000 – 22,000 per sq ft in the central areas. The rental values stand between Rs. 19,000-45,000 per month. Chembur is preferred over other neigh bouring locations such as Sion or Dadar, as its property values are almost 30 per cent lower even at the current market rate.

Chembur has been able to attract several renowned real  estate developers such as Godrej Properties, Hiranandani Constructions, Akcruti Group, Omkar Realtors & Developers, Supreme Builders and Developers, Ekta  World, The Wadhwa Group, etc. Chembur is also likely to see faster completion of many under-construction projects after the Monorail project.

According to property consultants, improved connectivity has impacted consumer sentiments to a large extent. Chembur has not only attracted end-users, even investors find the area a lucrative investment  destination. The prices have already risen manifold and there is an estimate of almost 20-25 per cent annual appreciation after all the projects are complete. The paucity of land and poor supply of ready-to-occupy inventory makes Chembur an even better investment option.

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Meanwhile, real estate experts feel there is nothing unusual about this phenomenon. Whenever any infrastructure development initiative is launched, the  property costs of that space appreciate. When these projects are complete, costs go up. However, investors
still like to invest in a place where they don’t have to spend beyond their budget limit and yet can enjoy good returns in the near future. So what new price benchmarks will the Monorail set for Chembur and Wadala’s realty properties, only time will tell.

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