Navi Mumbai metro to start soon boost property prices in micro-markets - Moneycontrol

The Navi Mumbai metro line-1 between Belapur and Pendhar is set to become operational by next month, boosting the real estate micro-markets of Kharghar, Belapur and Taloja along the 11 km route, developers and experts said. The metro line in Navi Mumbai, a satellite town of Mumbai, was planned in 2010. Construction started in 2011 but was delayed due to several reasons. The Commissioner of Metro Rail Safety granted the certificate on June 21 for the commencement of commercial operations between Central Park and Belapur station on line 1 of the project, the City and Industrial Development Corporation of Maharashtra (CIDCO), said in a statement. “Now the complete line 1 from Belapur to Pendhar stations will be ready for commercial operations very soon," the planning agency of Navi Mumbai said. According to CIDCO officials, line 1 was built at a cost of about Rs 3,000 crore and there are 11 stations on the route. Commercial operations are expected to start in the next one month, according to officials. The metro line will be a crucial mode of public transport for people who have to take a bus or auto to reach Pendhar from Belapur and Kharghar. Pendhar micro-market near Taloja is crucial considering its proximity to an industrial park. According to CIDCO, three additional metro lines are coming up in Navi Mumbai to boost connectivity between Taloja and Khandeshwar railway station, Pendhar and Taloja, and between Khandeshwar Railway station and Navi Mumbai International Airport. Additionally, the Mumbai Metropolitan Region Development Authority is working on a plan to connect Mumbai International Airport with the under-construction Navi Mumbai Airport via an express metro line. Impact on real estate According to real estate developers, Kharghar and Belapur have good connectivity via suburban local trains and buses. However, the Pendhar-Taloja belt is not well connected. The metro’s biggest impact will be in these two micro-markets, pushing up prices of apartments by 5 to 15 percent. Also read: Property tax waiver for flat owners of up to 500 sq ft flats in Navi Mumbai? “The per square foot carpet rate in Taloja on an average is in the range of Rs 6,000 to Rs 7,000, and we can safely assume that there might be a price increase of around 5 to 8 percent due to metro connectivity," said Raajesh Prajapati, founder-president of the Raigad chapter of the Maharashtra Chamber of Housing Industry-Confederation of Real Estate Developers' Associations of India (MCHI-CREDAI). According to developers, prices in Pendhar, Taloja, Kharghar and Belapur are in the range of Rs 5,000 to Rs 20,000 per sq. ft. The costliest area of Navi Mumbai remains Palm Beach Road, Sanpada, where prices touch Rs 35,000 per sq. ft. "Supply in the Navi Mumbai real estate market currently is very high when compared with demand. Homebuyers want to buy ready-to-move-in homes, and this price escalation becomes challenging,” said Manohar Shroff, senior vice president of the Navi Mumbai chapter of MCHI-CREDAI. “Nonetheless, there will be a price increase due to metro connectivity of 10 to 15 percent over time. However, the real price increase will only be after all four metro lines get operational.” The price of a one-bedroom apartment in the Lodha Crown Taloja project of Macrotech Developers is Rs 29.49 lakh, while a two-bedroom flat costs Rs 47.99 lakh, according to the company's website. In Kharghar, a two-bedroom flat in the Arihant Clan Aalishan project developed by Arihant Superstructures is priced at Rs 95 lakh and a three-bedroom apartment at Rs 1.35 crore, according to the project listing on housing.com. Also read: Boost for real estate: AAI allows Navi Mumbai buildings to climb 48 floors Should you invest? According to real estate consultants, investors in residential property in the Mumbai Metropolitan Region including Navi Mumbai should expect an annual appreciation of 7-14 percent. "Whenever there is a boost in connectivity in some city or macro-market, the places having inconvenience in travel or connectivity gain more compared to say high-end locations. In this case, it can be the micro-markets of Pendhar and Taloja that might gain more over Kharghar and Belapur as Kharghar and Belapur are already well connected. Also, several micro-markets like Dronagiri that are going to get a connectivity boost will also see more in terms of appreciation," said Pankaj Kapoor, managing director of Liases Foras, a real estate research firm. Also read: What the 2 new Metro lines mean for Mumbai real estate — check details of land appreciation and property prices He added, "Overall, in general I could say that the price appreciation for residential market in Navi Mumbai including Mumbai Metropolitan Region to be around seven to 14 percent with certain exceptions of course."

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