Across the globe, an upgraded transportation infrastructure is often directly proportional to a positive impact on the real estate industry. The same can likely be ascertained that Mumbai’s developing metro rail is bound to provide a boost to the realty sector. The VGA (Versova-Andheri-Ghatkopar) metro line serves as proof in enabling a large number of commuters daily between the western and the eastern parts of the city.
Impact on real estate growth
Historically, Andheri East served as a commercial area. However, in recent years it has now become a residential hotspot as well. With the metro operational in the area, the often-unbearable traffic has been controlled with major roads now relatively free. These features have positively impacted the demand for housing in the area with affluent builders already starting projects there.
Effect on suburbs
The combined effect of mega-projects like the Eastern Freeway, Monorail & Metro have positively impacted the residential and commercial market in the suburbs. Development is gaining momentum on the metro routes. Micro-markets are likely to gain from these developments. A similar outcome is expected with the upcoming metro lines in suburbs like
Malad, Kandivali and Borivali. Learning from the success of Andheri many real estate companies have already started projects in the area. Most of these projects are already completed or will be completed in time with the commencement of the metro line.
Should buyers invest in projects near metro?
When a project like the metro starts, the prices near the area start low but gradually increase as the project reaches completion. People have a keen interest in these projects as it provides convenient commute option to them. Metro’s connectivity with other parts of the city is another a major reason to invest in these projects. As the population density of residential areas near metro increases, its prices increase as well making it a wise investment. Moreover, the central bank has taken a positive stance by announcing a reduction in key lending rates. Home buyers now stand to benefit via a higher purchasing power, enabling them to buy premium homes of their choice
With the average property price rising by 2-3% in the past five years in Mumbai, it is wise to invest in a project, where a metro rail is expected to come up in the vicinity, to get good returns.