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INFRASTRUCTURE: WHAT IS AND WHAT WILL BE?

Infrastructure development acts as a cornerstone for any in order to determine the growth trajectory and to become an economic and real estate powerhouse. While Mumbai is the financial capital of , its infrastructure has not been able to keep pace with the sharp rise in its demographic and economic profile. The city’s 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

CBRE RESEARCH DECEMBER 2018

Dahisar Towards Nasik

What is Mumbai’s Towards Sanjay Gandhi National current infrastructure Park framework like?

Andheri Mumbai not only has a thriving commercial segment, but the residential real estate development has spread rapidly to the peripheral areas of Thane, , -Virar, Dombivli, , Versova 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.

Panvel Bandra Monorail Metro Western Suburban Central Rail Sea Link Phase 1 Rail Network Network

P D’Mello Road Harbour Rail Thane – Vashi – Mumbai Major Metro Major Railway Network Line International Stations Stations NAVI MUMBAI CENTRAL MUMBAI CST BKC Roll over icons to reveal BKC PERIPHERY further details THANE CBD JVLR: Link Road | SCLR: Santacruz Chembur Link Road | WEH: Western Express EEH: | EH: | SPH: Bhiwandi

Dahisar

Towards Nasik

What are the Virar Towards Sanjay Gandhi National Park Borivali Dombivli infrastructure pain Thane points?

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

Bandra Mankhurd

Navi Mumbai Wadala Panvel

Traffic- Bandra Worli Mumbai International Infrastructure heavy Sea Link Airport Pain-points P D’Mello Road WESTERN SUBURBS NAVI MUMBAI CENTRAL MUMBAI EASTERN SUBURBS CST Roll over icons to reveal BKC further details BKC PERIPHERY Churchgate THANE CBD JVLR: Jogeshwari Vikhroli Link Road | SCLR: Santacruz Chembur Link Road | WEH: EEH: Eastern Express Highway | EH: Eastern Freeway | SPH: Sion Panvel Highway Kasarvadavali Bhiwandi

Dahisar

What are the plans Sanjay Thane Gandhi Dombivli National to ease these pain Park points? Lokhandwala Seepz DN Nagar Some of India’s most bustling corridors such as WEH, EEH, EF, etc. are Andheri E in Mumbai; where a commuter can take anywhere between one Vikhroli to four hours to cover a 10 km stretch depending on the road and traffic conditions. Recognizing the tremendous transportation CSIA need in the city, the government has several major projects in the pipeline. Mankhurd BKC Metro Line 2A & 2B - Metro - Metro - Metro - Navi Mumbai Dahisar-DN Nagar- () Wadala-Thane Thane-Bhiwandi- Mankhurd (Mandale) To Seepz (Kasarvadavli) Kalyan Wadala Chirle

Metro - Metro - Major Metro Mumbai Trans Andheri (Lokhandwala) - Andheri East - Dahisar Stations Harbour Link Vikhroli (Planned extension from Dahisar to Mira Road - Metro & from Andheri to WESTERN SUBURBS CSIA - Metro Line 7A) NAVI MUMBAI CENTRAL MUMBAI EASTERN SUBURBS BKC Roll over icons to reveal further details BKC PERIPHERY Cuff Parade THANE CBD CSIA: Chhatrapati International Airport Thane Navi Mumbai: Dombivli Transformation from the to a bustling town

Pendhar With the upcoming Navi Mumbai International Airport and enhanced Mumbai Taloja 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.

Khandeswar Proposed Mumbai Trans Navi Mumbai Navi Mumbai Waterway Harbour Link Metro Line 1 Metro Wharf

Navi Mumbai Navi Mumbai Navi Mumbai Major Metro Sewri Metro Line 3 Metro Line 4 International stations Chirle Airport (NMIA) NAVI MUMBAI NAVI MUMBAI AIRPORT INFLUENCE AREA (NAINA) Roll over icons to reveal NAVI MUMBAI SPECIAL further details ECONOMIC ZONE (NMSEZ) The new commercial district – BKC and its connectors

Over the last ten years, the central business district has gradually shifted from to the planned commercial entity – Bandra 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.

Proposed Railway Main Connectors Line Road

Metro Line 3 - Major Railway Colaba (Cuffe Parade) Stations To Seepz

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SCLR: Santacruz Chembur Link Road | WEH: Western Express Highway EEH: EasternExpress Highway Sanjay Gandhi Strengthening National Park Mumbai’s Lifeline: Supplementing the “Local” with the “Metro”

1.Connecting CBD to BKC 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 is likely to decline during peak office hours.

BKC BKC PERIPHERY CBD Expected Impact on Real Estate Segments WESTERN SUBURBS Metro Line 3-Colaba (Cuffe Parade) to SEEPZ

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RESIDENTIAL COMMERCIAL RETAIL Mira Road Bhiwandi

Dahisar Sanjay Gandhi National Park Thane

Borivali 2. Easing linkages between Eastern and Western Suburbs Lokhandwala Suburban locations such as Vikhroli, Ghatkopar, Sion and Chembur will also benefit from these additional DN Nagar connections. Dahisar, which is currently an affordable Andheri E residential location in the peripheral areas, may witness increased development activity in the residential sector in Vikhroli the future due to improved connectivity. CSIA Juhu Chembur

BKC Mandala Navi Mumbai

Panvel Metro Line 2A & 2B Metro Line 6- Metro Line 7 Andheri East - Major Metro (Dahisar-DN Nagar- Andheri Dahisar (Planned extension Stations Mankhurd (Mandale)) (Lokhandwala) - from Dahisar to Mira Road - Vikhroli Metro Line 9 & from Andheri to CSIA - Metro Line 7A)

Roll over icons to reveal further details NAVI MUMBAI EASTERN SUBURBS BKC BKC PERIPHERY RESIDENTIAL COMMERCIAL RETAIL CSIA: Chhatrapati Shivaji International Airport Kasarvadavali Bhiwandi

Sanjay Thane Gandhi National 3. Taking pressure off the Suburban Borivali Park and Rail network Dombivli 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 Andheri as Lower , Worli and . Bhiwandi – one of the Vikhroli most prominent industrial and warehousing hub in the country – could also benefit from the upcoming metro network.

BKC

Navi Mumbai

Metro Line 4- Metro Line 5- Major Metro Wadala-Kasarvadavli Thane – Bhiwandi - Kalyan Stations Wadala Panvel (Thane)

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EASTERN SUBURBS BKC PERIPHERY THANE

RESIDENTIAL COMMERCIAL RETAIL Bhiwandi Bringing the Island Sanjay Thane Gandhi National Dombivli City and Navi Borivali Park Mumbai closer

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

BKC

Navi Mumbai Seawoods

Wadala Panvel Mumbai Trans Harbour Link (MTHL)

Sewri Chirle Roll over icons to reveal further details NAVI MUMBAI

RESIDENTIAL COMMERCIAL RETAIL Thane The “new” city gets Dombivli a new airport: Navi Mumbai International Badlapur Airport (NMIA)

Mumbai

Currently, Navi Mumbai is one of the most affordable residential markets in the Navi city. When the airport project was announced almost 15 years ago, property Mumbai 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.

Navi Mumbai Navi Mumbai Navi Mumbai Navi Line 1 Metro Line 2 Metro Line 3 Metro Line 4 Matheran

Navi Mumbai International Major Metro Airport (Nmia) Stations

NAVI MUMBAI

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NMIA | Navi Mumbai International Airport RESIDENTIAL COMMERCIAL RETAIL What happens after Sanjay Gandhi National the infrastructure is Park developed?

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.

New Commercial Mumbai International Locations Airport

WESTERN SUBURBS NAVI MUMBAI Roll over icons to reveal further details CENTRAL MUMBAI EASTERN SUBURBS BKC BKC PERIPHERY THANE CBD JVLR: Jogeshwari Vikhroli Link Road | SCLR: Santacruz Chembur Link Road | WEH: Western Express Highway EEH: Eastern Express Highway | EH: Eastern Freeway | SPH: Sion Panvel Highway OUTLOOK – WHAT IS IN STORE FOR THE ?

NAVI MUMBAI TO EMERGE AS A PROMINENT OFFICE LOCATION PORT/LOGISTICS OPERATIONS IN NAVI MUMBAI TO EXPAND Since the announcement of the Navi Mumbai International Airport around 15 years ago, Connectivity between the (MbPT) and the Trust a series of infrastructure projects have been planned for the satellite city. Although the (JNPT) in Navi Mumbai will improve considerably once the MTHL becomes operational. This development of the airport has been slow due to several challenges at the local level, will give a strong boost to the port/logistics operations in Navi Mumbai. 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 INTRACITY AND INTERCITY CONNECTIVITY TO IMPROVE into a commercial hub over the next 5-10 years. Despite being a megacity, Mumbai’s infrastructure is not at par with the of other developing economies. The government aims to correct that by building world-class infrastructure by 2025. In addition to the intracity projects, other projects such INCEPTION OF NEW UPMARKET RESIDENTIAL LOCATIONS as the Mumbai Industrial Corridor (DMIC), Mumbai- Expressway and Mumbai- As the Western Suburbs remain one of the most densely populated regions in Mumbai, Bullet Train are expected to bring Mumbai’s infrastructure at par with other many under-construction projects in the city have been proposed to ease their traffic megacities. congestion woes. Once these projects become operational, residential areas such as Andheri West and West (which are close to employment hubs) will become easily accessible. Currently, residential projects in these areas are in affordable price- COMMERCIAL AND RESIDENTIAL PROPERTY VALUATIONS EXPECTED TO RISE points in comparison with South Mumbai micro-markets; however, planned development Infrastructure development is almost always followed by a significant rise in property prices, is likely to convert them into prime/luxury residential markets soon. 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. COMMERCIAL DEVELOPMENT TO RISE IN WADALA Although 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. For more information about this major report, please contact:

RESEARCH BUSINESS LINE

Abhinav Joshi Vidhi Dheri Rajesh Prasad Head of Research – India Sr. General Manager – India Research Executive Director [email protected] [email protected] A&T-BKG Occupier Office [email protected] Uttara Nilawar Assistant General Manager India Research [email protected]

For more information regarding global research, please contact:

Richard Barkham, Ph.D., MRICS Global Chief Economist [email protected]

Henry Chin, Ph.D. Jos Tromp Spencer Levy Head of Research, Asia Pacific Head of Research, EMEA Head of Research, Americas [email protected] [email protected] [email protected]

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CBRE RESEARCH This 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.

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