Surge in Property Prices in Western Suburbs Attributed to Mumbai Coastal Road

The Mumbai Coastal Road project is redefining the real estate landscape in Mumbai’s western suburbs, marking a significant surge in property prices within the Bandra-Andheri area and promising a revitalization of office rentals in the prime locations of Nariman Point and Colaba in South Mumbai.

Transformative Impact on Real Estate

The first phase of the Mumbai Coastal Road, extending from Princess Street Flyover to Worli along the picturesque seafront, has emerged as a pivotal force in the real estate market across the western suburbs of Mumbai. This monumental infrastructure development has ushered in a price appreciation of 5-15% in the Bandra-Andheri area and is expected to extend its positive influence up to the Goregaon-Borivali belt.

Stakeholders are witnessing a remarkable 5-15% escalation in property values in the vicinity of the Bandra-Andheri area, an effect that is anticipated to also positively impact office rentals in the esteemed locales of Nariman Point and Colaba in South Mumbai. The onset of the Coastal Road project has catalyzed this uptrend, enhancing the connectivity and appeal of seaside properties, thereby reinforcing Mumbai’s position as a coveted destination for property investment.

Economic Prospects and Future Growth

According to Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO-Maharashtra, the Mumbai residential market has observed a staggering 21% year-on-year increase in property registrations in February 2024. This upsurge, the highest in 12 years for the month of February, signifies the city’s unwavering allure for property investment, fueled by robust economic forecasts and the ongoing development of the Mumbai Coastal Road project.

The project’s first phase, a 10.58 km stretch from Princess Street Flyover at Marine lines to the Worli end of the Bandra-Worli Sea Link, costing Rs. 12,721 crore as reported by the Brihanmumbai Municipal Corporation (BMC), is not just a feat of engineering but a strategic initiative to decongest existing roadways and enhance citywide connectivity.

Reversal of Office Relocation Trends

Vijay Agarwal, Director-Investment Banking at Equirus, highlighted the potential of the Coastal Road to reverse the recent trend of office relocations from South Mumbai to alternative business hubs like the Bandra Kurla Complex. Improved accessibility and the allure of prestigious addresses are expected to lure corporates back to Nariman Point and Colaba, thereby elevating office rentals in these areas.

Next Steps in the Coastal Road Project

As the city anticipates the completion of the current phase in 2024, plans for the next phase are already in motion, with Larsen & Toubro securing certain sections for future development. This continuation of the project is poised to extend connectivity further, from South Bombay to Dahisar and potentially beyond, promising a transformative impact on both residential and commercial real estate along its path.

The integration of advanced LED technology and smart control systems in the Coastal Road tunnels, as undertaken by Bajaj Electricals Ltd, promises not only enhanced commuting experiences but also a reduction in travel time and fuel costs, further alleviating traffic congestion.

Conclusion

The Mumbai Coastal Road is set to redefine urban living and investment in Mumbai, driving property prices in the western suburbs and revitalizing office spaces in South Mumbai’s most prestigious locales. With the project expected to be completed by the end of the decade, the next generation of real estate investors and homebuyers can look forward to transformative connectivity, significant price appreciation, and a boost in consumer and tourism demand along these new urban corridors.