Controversy Over MTHL's Impact On Real Estate Prices
Prime Minister Narendra Modi inaugurated the 21.8-kilometer Mumbai Trans Harbour Link (MTHL) on January 12. The aim of this sea link is to reduce travel time between Mumbai and Navi Mumbai to 15 to 20 minutes, and it will also shorten travel times to major cities like Pune and Gia. This development is expected to promote economic growth, especially since Navi Mumbai is home to a mega port and an upcoming international airport.
Potential Effects on the Real Estate Market
As with most new infrastructure projects, a key question is whether the MTHL will alter the Navi Mumbai real estate market and drive up property prices. It's important to note that the 11-kilometer Navi Mumbai Metro Line 1, which began operations in November last year, has already contributed to an increase in real estate prices in nearby markets like Kharghar, Belapur, and Taloja.
Expert Opinions on Real Estate Prices
- Some real estate experts believe that new infrastructure projects in Navi Mumbai will cause prices to rise by 10-15% over the next two to three years.
- Others believe that prices will remain low because more land will become available along the MTHL corridor.
- There is also an expectation that improved connectivity could lead to an increased demand for upscale real estate in Alibaug.
Project Details and Economic Benefits
Starting in Sewri, South Mumbai, the MTHL runs north across the Thane Creek of Elephant Island and ends in Chirle village in Navi Mumbai, close to Nhava Sheva. The project aims to reduce the two-hour travel time from South Mumbai to Ulwe to just twenty minutes. Areas expected to benefit from the direct connection include Dronagiri, Ulwe, and Panvel.
Real Estate Opportunities in Navi Mumbai
Global real estate consultancy Colliers expects the infrastructure development to improve accessibility throughout MMR, generating affordable opportunities in several developing residential hubs. New residential communities, such as Panvel, Ulwe, and Kharghar, are expected to develop close to Navi Mumbai’s edge.
Panvel
Panvel, which is 20 minutes from the under-construction Navi Mumbai International Airport and 15 to 20 minutes from the MTHL project, focuses primarily on affordable housing. According to local brokers, the price of a two or three-bedroom apartment in Panvel ranges from Rs 8,000 to Rs 15,000 per square foot.
Ulwe
Ulwe, located in Navi Mumbai, offers 2 BHK apartments starting at around Rs 1 crore. Prices reportedly ranged between Rs 25 and Rs 30 lakh approximately eight years ago. Currently, Dronagiri fetches between Rs 5,500 and Rs 6,000 per square foot.
Third Mumbai Project
The Ulwe end of the sea link is expected to see the development of a 'Third Mumbai'. The Mumbai Metropolitan Regional Development Authority (MMRDA) is responsible for this development, which includes creating a second business hub like the Bandra-Kurla Complex on a 150-hectare plot at Kharghar in Navi Mumbai. The Third Mumbai project includes the towns of Ulwe, Pen, Panvel, Karjat, and Alibaug in the Raigad district.
Beneficiaries of the MTHL Project
According to data from Anarock, Ulwe and Panvel will continue to be the main beneficiaries of the MTHL project in Navi Mumbai. Additionally, the two areas have already benefited from the simultaneous construction of the international airport and MTHL, and they will continue to do so. The areas of Seawood and Kharghar have also benefited.
Real Estate Price Trends
As of Q3 2023, the average price of real estate in Navi Mumbai was over Rs 8,300 per square foot, according to ANAROCK Research. Prices have increased by over 25% since Q3 2015, when the average price was Rs 6,650 per square foot. In the next 2-3 years, the city is expected to see price increases of 10-15% due to various infrastructure projects that will improve connectivity with mainland Mumbai and MMR.
Alternative Viewpoints
Gulam Zia, Senior Executive Director of Knight Frank India, has a different perspective. 'Most of the real estate in these areas has already expanded and changed. The juice has already been squeezed out of it financially. Prices in Ulwe started at Rs 2000 nearly ten years ago, and before the link went into service, they reached Rs 5000 per square foot,' he stated. 'We expect a consistent price increase of 7 to 10 percent in all areas that fall under this corridor,' he added.
Recent Developments
A few months ago, Prime Minister Narendra Modi officially opened the 17-kilometer priority section of the Regional Rapid Transit System (RRTS) train, also known as RAPIDX. This is the country’s first mass rapid transit system dedicated to regional connectivity. The 82.15 km connector between Delhi and Meerut is projected to reduce the travel time to just under an hour.