Mumbai Metro Boosts the Property Prices in Mumbai (Andheri and Ghatkopar)
The new launching Mumbai Metro, which was in the news for a long while , will finally be running over the city in another six months. Boosting the connectivity and reducing pressure on the roads, the Metro is expected to influence the property values of Mumbai localities falling on its route. Two major localities to be significantly impacted by the Metro’s functioning are Ghatkopar and Andheri. The Metro in its first phase will run along Versova, Andheri and Ghatkopar and is expected to become functional by the end of 2013.
Ghatkopar witnessed a rise of nine per cent in the capital values during the Jan-Mar 2013 quarter. Inspite of being well connected by the Eastern and Western Express Highway, Ghatkopar-Andheri link and MG Road through the Jogeshwari-Vikhroli Link Road (JVLR), demand for residential apartments in Ghatkopar has risen due to the upcoming metro. Eastern Express Highway faces heavy traffic jams during office hours which can be avoided while travelling by metro.
Similarly, many people travel daily to Andheri East since it is a major business destination. Andheri East houses the Maharashtra Industrial Development Corporation (MIDC) and is one of the Central Business Districts (CBD) of Mumbai. Being connected to Eastern Express Highway, the daily travellers face heavy traffic clutter. Functioning of the Metro will provide relief to many such commuters. An appreciation of 15-20 per cent in capital values is anticipated with the functioning of the metro.”
Currently, the capital values in Andheri East range between Rs 10,500-14,000 per sq ft and Rs 15,000- 16,500 per sq ft in West. In Ghatkopar, the property values vary from Rs 13,000-16,000 per sq ft. Though the rental values in these areas have witnessed a hike of 10-15 per cent in the last one year, with the completion of the metro construction and reduced congestion on the roads, these values are expected to increase by 20-25 per cent.
The rise in property and rental values due to infrastructural developments is apparent. For instance, when the metro first came in Delhi, capital and rental values shot up by almost 25-30 per cent. Similarly, Bangalore saw a hike in property values for localities directly connected through the metro.