WHAT IS AND WHAT WILL BE? · Borivali Andheri Versova Bandra Wadala Mankhurd Chembur hatkopar Vashi P D’Mello Road Uran CST Churchgate Panvel Towards Virar owards Nasik Thane Dombivli

Infrastructure development acts as a cornerstone for any city in order to determine the growth trajectory and to become an economic and real estate powerhouse. While Mumbai is the financial capital of India, its infrastructure has not been able to keep pace with the sharp rise in its demographic and economic profile. The city’s road and rail infrastructure is under tremendous pressure from serving a population of more than 25 million people. This report outlines major upcoming infrastructure projects and analyses their impact on the Mumbai real estate market.

This report is interactive

DECEMBER 2018CBRE RESEARCH

INFRASTRUCTURE:WHAT IS AND WHAT WILL BE?

MUMBAI

Sanjay GandhiNational

Park

Bhiwandi

Dahisar

Borivali

Andheri

Versova

Bandra

Wadala

Mankhurd

Chembur

Ghatkopar

Vashi

P D’Mello Road

Uran

CST

Churchgate

Panvel

Tow

ards

Vira

r

Towards N

asik

DombivliThane

WESTERN SUBURBS

NAVI MUMBAI

CENTRAL MUMBAI

EASTERN SUBURBS

BKC

BKC PERIPHERY

THANE

CBD

Harbour Rail Network

Bandra Worli Sea Link

Thane – Vashi – Panvel Line

Monorail Phase 1

Metro Line 1

Western Suburban Rail Network

Central Rail Network

JVLR: Jogeshwari Vikhroli Link Road | SCLR: Santacruz Chembur Link Road | WEH: Western Express HighwayEEH: Eastern Express Highway | EH: Eastern Freeway | SPH: Sion Panvel Highway

Major Metro Stations

Major Railway Stations

Mumbai International

Airport

Roll over icons to reveal further details

Mumbai not only has a thriving commercial segment, but the residential real estate development has spread rapidly to the peripheral areas of Thane, Navi Mumbai, Vasai-Virar, Dombivli, Kalyan, etc. due to their affordability quotient. Commuting is an inevitable pain for most Mumbai citizens and on an average, a Mumbai resident spends at least 4 hours a day in commuting. As a result, a physical infrastructure upgrade has become the top priority for the citizens and the government.

What is Mumbai’s current infrastructure framework like?

Borivali

Andheri

Versova

Bandra

Wadala

Mankhurd

ChemburVashi

Thane

Panvel

Ghatkopar

CST

Churchgate

P D’Mello Road

Tow

ards

Vira

r

Towar

ds N

asik

Dahisar

Juhu

Sanjay GandhiNational Park

Navi Mumbai

WESTERN SUBURBS

NAVI MUMBAI

CENTRAL MUMBAI

EASTERN SUBURBS

BKC

BKC PERIPHERY

THANE

CBD

Traffic-heavy Roads

Bandra Worli Sea Link


Infrastructure Pain-points

Mumbai International Airport


Bhiwandi

Dombivli

The city will continue to attract workers from across the country as it is one of the largest commercial markets in Asia. As a result, its infrastructure needs are expected to amplify over the next few years. Anticipating such requirements, the government has already planned several infrastructure projects that are likely to ease traffic snarls in the city.

What are the infrastructure pain points?


Park

Dombivli

Navi Mumbai

WESTERN SUBURBS

NAVI MUMBAI

CENTRAL MUMBAI

EASTERN SUBURBS

BKC

BKC PERIPHERY

THANE

CBD

Bhiwandi

Mankhurd

Vikhroli

Cuff Parade

Mira Road

Dahisar

Seepz

Wadala

Sewri

Chirle

BKC

DN Nagar

Thane

Kasarvadavali

Lokhandwala

Andheri E

CSIA

Some of India’s most bustling corridors such as WEH, EEH, EF, etc. are in Mumbai; where a commuter can take anywhere between one to four hours to cover a 10 km stretch depending on the road and traffic conditions. Recognizing the tremendous transportation need in the city, the government has several major projects in the pipeline.

What are the plans to ease these pain points?

CSIA: Chhatrapati Shivaji International Airport

Metro Line 7 - Andheri East - Dahisar

(Planned extension from Dahisar to Mira Road - Metro

Line 9 & from Andheri to CSIA - Metro Line 7A)

Metro Line 3 - Colaba (Cuffe Parade)

To Seepz


Metro Line 6 - Andheri (Lokhandwala) -

Vikhroli

Metro Line 4 - Wadala-Thane (Kasarvadavli)

Metro Line 5 - Thane-Bhiwandi-

Kalyan

Metro Line 2A & 2B - Dahisar-DN Nagar-Mankhurd (Mandale)

Mumbai Trans Harbour Link


Ferry Wharf

Sewri Chirle

Khandeswar

TalojaPendhar

ThaneDombivli

Badlapur

Matheran

Nerul

ProposedWaterway

Mumbai Trans Harbour Link

Navi Mumbai Metro Line 1


Major Metro stations



Navi Mumbai International

Airport (NMIA)NAVI MUMBAI

NAVI MUMBAI AIRPORT INFLUENCE AREA (NAINA)

NAVI MUMBAI SPECIAL ECONOMIC ZONE (NMSEZ)

With the upcoming Navi Mumbai International Airport and enhanced connectivity to the Island city, Navi Mumbai is set to witness one of the biggest infrastructure boom in the city. Over the years, the satellite city of Navi Mumbai has witnessed reverse migration and evolved into a prime residential destination and technology hub.

Navi Mumbai: Transformation from the satellite city to a bustling town

Mumbai


SCLR: Santacruz Chembur Link Road | WEH: Western Express Highway

EEH: EasternExpress Highway

Proposed Connectors

Railway Line

Main Road

Metro Line 3 - Colaba (Cuffe Parade)

To Seepz

Major Railway Stations


Over the last ten years, the central business district has gradually shifted from South Mumbai to the planned commercial entity – Bandra Kurla Complex (BKC) spanning over nearly 370 hectares of land. Although connectivity within BKC is streamlined via wide roads and junctions, the exit points in BKC form bottlenecks and increase the total commute for office workers by at least 40-60 minutes.

The new commercial district – BKC and its connectors

WESTERN SUBURBS


Metro Line 3-Colaba (Cuffe Parade) to SEEPZ

BKC

BKC PERIPHERY

CBD

RESIDENTIAL COMMERCIAL RETAIL


Expected Impact on Real Estate Segments

As property valuations are already peaking in CBD, BKC and BKC periphery locations, commercial and residential prices could increase only marginally on the basis of real estate market sentiments. The launch of Metro Line 3 is expected to have a positive impact on the commercial and residential segments, especially the catchment areas around BKC, as traffic congestion is likely to decline during peak office hours.

Strengthening Mumbai’s Lifeline: Supplementing the “Local” with the “Metro”1.Connecting CBD to BKC

Borivali


Navi Mumbai

Panvel

Juhu

Metro Line 2A & 2B(Dahisar-DN Nagar-Mankhurd (Mandale))

Metro Line 6- Andheri

(Lokhandwala) - Vikhroli

Metro Line 7 Andheri East - Dahisar (Planned extension from Dahisar to Mira Road -

Metro Line 9 & from Andheri to CSIA - Metro Line 7A)


Bhiwandi

NAVI MUMBAI

EASTERN SUBURBS

BKC

BKC PERIPHERY


Vikhroli

Thane

BKC

DN Nagar

Dahisar

Chembur

Mandala

Lokhandwala

Andheri E

Mira Road

CSIA

CSIA: Chhatrapati Shivaji International Airport

Suburban locations such as Vikhroli, Ghatkopar, Sion and Chembur will also benefit from these additional connections. Dahisar, which is currently an affordable residential location in the peripheral areas, may witness increased development activity in the residential sector in the future due to improved connectivity.

2. Easing linkages between Eastern and Western Suburbs


Borivali


Park

Metro Line 4- Wadala-Kasarvadavli

(Thane)

Metro Line 5- Thane – Bhiwandi - Kalyan


Andheri

Navi Mumbai

Panvel

Dombivli

EASTERN SUBURBS

BKC PERIPHERY

THANE



The upcoming metro network may help Wadala (currently a residential hub with limited commercial activity) emerge as a prominent office market due to improved connectivity and proximity to other prime office locations such as Lower Parel, Worli and Prabhadevi. Bhiwandi – one of the most prominent industrial and warehousing hub in the country – could also benefit from the upcoming metro network.

3. Taking pressure off the Suburban and Rail network

Wadala

BKC

Kasarvadavali

Vikhroli

Bhiwandi

Thane

Borivali


Park

Navi Mumbai

PanvelMumbai Trans Harbour

Link (MTHL)

Dombivli

Bhiwandi

Thane

BKC

Andheri

ChirleSewri

Wadala

Seawoods

Vashi

NAVI MUMBAI


As accessibility to the Jawaharlal Nehru Port Trust Influence Area (JNPTIA) improves after the completion of MTHL, Navi Mumbai is likely to emerge as a prominent hub for port/logistic operations.


Bringing the Island City and Navi Mumbai closer

NaviMumbai

ThaneDombivli

Mumbai

Badlapur

MatheranNavi Mumbai Metro Line 1

NMIA | Navi Mumbai International Airport




Navi Mumbai International Airport (Nmia)


NAVI MUMBAI



Currently, Navi Mumbai is one of the most affordable residential markets in the city. When the airport project was announced almost 15 years ago, property prices had surged tremendously within a span of 1-2 years. A similar trend may be witnessed again once the airport becomes operational in the next 5-10 years.

The “new” city gets a new airport: Navi Mumbai International Airport (NMIA)

WESTERN SUBURBS

NAVI MUMBAI

CENTRAL MUMBAI

EASTERN SUBURBS

BKC

BKC PERIPHERY

THANE

CBD


Park

New Commercial Locations


Mumbai International Airport


Enhanced connectivity due to the upcoming metro lines is expected to affect the residential catchments of major commercial districts. The primarily residential area of Wadala is expected to evolve into a prominent office market. On the other hand, the improved physical infrastructure might accelerate the pace of commercial development along the Thane-Belapur belt, which has so far seen fragmented commercial development.

What happens after the infrastructure is developed?

OUTLOOK – WHAT IS IN STORE FOR THE MEGACITY?

NAVI MUMBAI TO EMERGE AS A PROMINENT OFFICE LOCATIONSince the announcement of the Navi Mumbai International Airport around 15 years ago, a series of infrastructure projects have been planned for the satellite city. Although the development of the airport has been slow due to several challenges at the local level, an operational international airport is likely to boost rapid commercial development within the city. In addition to the airport, other planned infrastructure projects and the availability of land resources in the city at affordable prices may transform this region into a commercial hub over the next 5-10 years.

INCEPTION OF NEW UPMARKET RESIDENTIAL LOCATIONSAs the Western Suburbs remain one of the most densely populated regions in Mumbai, many under-construction projects in the city have been proposed to ease their traffic congestion woes. Once these projects become operational, residential areas such as Andheri West and Goregaon West (which are close to employment hubs) will become easily accessible. Currently, residential projects in these areas are in affordable price-points in comparison with South Mumbai micro-markets; however, planned development is likely to convert them into prime/luxury residential markets soon.

COMMERCIAL DEVELOPMENT TO RISE IN WADALAAlthough the Wadala micro-market is widely recognised as a residential market, improved connectivity may 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 EXPANDConnectivity 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.

INTRACITY AND INTERCITY CONNECTIVITY TO IMPROVEDespite being a megacity, Mumbai’s infrastructure is not at par with the megacities of other developing economies. The Maharashtra government aims to correct that by building world-class infrastructure by 2025. 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 RISEInfrastructure development is almost always followed by a significant rise in property prices, a trend that was visible after the announcement of the NMIA. As major under-construction projects become operational over the next five years, property prices in prime and accessible locations are expected to appreciate further.

For more information about this major report, please contact:

RESEARCH

Abhinav JoshiHead of Research – [email protected]

Uttara NilawarAssistant General ManagerIndia [email protected]

Vidhi DheriSr. General Manager – India [email protected]

Rajesh PrasadExecutive DirectorA&T-BKG Occupier [email protected]

BUSINESS LINE

For more information regarding global research, please contact:

Richard Barkham, Ph.D., MRICSGlobal Chief Economist

[email protected]

Henry Chin, Ph.D.

Head of Research, Asia Pacific

[email protected]

Jos Tromp

Head of Research, EMEA

[email protected]

Spencer Levy

Head of Research, Americas

[email protected]

CBRE RESEARCHThis report was prepared by the CBRE India Research Team, which forms part of CBRE Research—a network of preeminent researchers who collaborate to provide real estate market research and econometric forecasting to real estate.

All materials presented in this report, unless specifically indicated otherwise, is under copyright and proprietary to CBRE. Information contained herein, including projections, has been obtained from materials and sources believed to be reliable at the date of publication. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. Readers are responsible for independently assessing the relevance, accuracy, completeness and currency of the information of this publication. This report is presented for information purposes only exclusively for CBRE clients and professionals, and is not to be used or considered as an offer or the solicitation of an offer to sell or buy or subscribe for securities or other financial instruments. All rights to the material are reserved and none of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party without prior express written permission of CBRE. Any unauthorized publication or redistribution of CBRE research reports is prohibited. CBRE will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on information in this publication.

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WHAT IS AND WHAT WILL BE? · Borivali Andheri Versova Bandra Wadala Mankhurd Chembur hatkopar Vashi P D’Mello Road Uran CST Churchgate Panvel Towards Virar owards Nasik Thane Dombivli