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Navi Mumbai set to become a prominent office location: CBRE research outlines promising prospects for the area

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  • Major infrastructure development projects across the city have evolved into growth corridors in past 10 years
  • Commercial development to rise in Wadala – Improved connectivity to expedite commercial development
  • As accessibility improves, property prices in prime and accessible locations expected to appreciate further

New Delhi, December 04, 2018: CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm, today announced its latest report on the growth of Mumbai’s infrastructure, highlighting the various infrastructure initiatives and their expected impact on real estate development in the city. As per the findings of the report, major infrastructure development projects across the city have evolved into growth corridors in the past 10 years, fueling commercial and residential development by enhancing connectivity within the major micro-markets of the city. With infrastructure needs expected to amplify over the next few years, the government has planned projects that are likely to ease traffic snarls in the city. With respect to suburbs such as Navi Mumbai, the report also emphasized on the development and transformation of Navi Mumbai as a prominent commercial destination.

Due to space paucity (and the consequent high capital values) in Mumbai, commercial activity in the city is concentrated in a few locations, while residential activity has spread all over the city. Hence, long commutes have become a norm for most Mumbai citizens.  As a result, a physical infrastructure upgrade has become the top priority for the citizens and the government alike. Consequently, Mumbai Metropolitan Region Development Authority (MMRDA) has allocated more than 80% of its INR 121 billion budget for 2018-19 to infrastructure development.

Highlighting the report’s findings, Mr. Anshuman Magazine, Chairman, India and South-East Asia, CBRE said, “The megacity of Mumbai is fast expanding, thereby resulting in a greater focus on rapid and quality infrastructural development. Aided by the new development plan and favorable reforms, the city is set to witness a remarkable shift through expansion across peripheries. With initiatives being taken to improve infrastructure across all spheres, the city will see the emergence of new residential & commercial clusters in future.”

Navi Mumbai – The transformation Story

Although Navi Mumbai is currently a prominent tech and back-office destination, the new airport and the proposed project (NAINA-Navi Mumbai Airport Influence Area) near the airport are likely to significantly elevate its status to a prominent commercial destination. The proposed Mumbai Trans Harbour Link will further give a fillip to connectivity in this region.

Emergence of new commercial locations

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Planned commercial development is expected to lead to the emergence of prominent new commercial districts such as Wadala and the Thane-Belapur belt over the next five years.

Outlook

NAVI MUMBAI TO EMERGE AS A PROMINENT OFFICE LOCATION

Along with the upcoming Airport in the area, a series of infrastructure projects have been planned for the satellite city. These projects are likely to boost rapid commercial development.

INCEPTION OF NEW UPMARKET RESIDENTIAL LOCATIONS

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Currently, residential projects in areas such as Andheri West and Goregaon West come within the affordable price range in comparison to the South Mumbai locations. However, planned development is likely to convert them into prime residential markets over the next few years.

COMMERCIAL DEVELOPMENT TO RISE IN WADALA

Although the Wadala micro-market is widely recognised as a residential market, improved connectivity is likely to expedite its planned commercial development. Proximity to other commercial hubs such as Lower Parel, Worli and Prabhadevi has also positioned this market as a prime future office location.

PORT/LOGISTICS OPERATIONS IN NAVI MUMBAI TO EXPAND

Connectivity between the Mumbai Port Trust (MbPT) and the Jawaharlal Nehru Port Trust (JNPT) in Navi Mumbai will improve considerably once the MTHL becomes operational. This will give a strong boost to the port/logistics operations in Navi Mumbai.

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INTRACITY AND INTERCITY CONNECTIVITY TO IMPROVE

The Maharashtra government aims to work on Mumbai’s infrastructure to bring it at par with megacities of other developing countries. In addition to the intracity projects, other projects such as the Delhi Mumbai Industrial Corridor (DMIC), Mumbai-Nagpur Expressway and Mumbai-Ahmedabad Bullet Train are expected to bring Mumbai’s infrastructure at par with other megacities.

COMMERCIAL AND RESIDENTIAL PROPERTY VALUATIONS EXPECTED TO RISE

As major under-construction projects become operational over the next five years, property prices in prime and accessible locations are expected to appreciate further.

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