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Will the Navi Mumbai International Airport impact property prices in the region?

Will The Navi Mumbai International Airport Impact Property Prices In The Region?

The 5 key micro-markets that are likely to gain due to the coming up of the NMIA are Ulwe, Kamothe, Kharghar, Taloja and Panvel. The prices in these regions have seen less than 4 percent appreciation over the last 3 years.

After 14 years of delay, the Navi Mumbai International Airport (NMIA) is finally off the ground. The pre-development work for the Rs 16,000-crore project has begun. The City and Industrial Development Corporation or CIDCO has managed to acquire most of the land. The nodal agency CIDCO has already started the construction of temporary roads to the reclamation site.

The final environmental clearance came in April and the Maharashtra government has put the project on fast track. The first tranche of work involving flattening of the Ulwe hill and changing the course of the Ulwe river has begun and CIDCO hopes to finish this leg of work in 18 months.

CIDCO also claims to have ironed out the last hurdle or disputes with Project Affected People (PAP) from 10 villages.

“I don’t think there is any major problem of PAPs which is left unresolved. CIDCO has handled everything on a priority. They have been given a timeline to settle all their issues by June 30. Therefore, with regards to this we don’t see any of kind of major issues. There could be some minor personal issues which can be resolved across the table over a period of time”, says Sanjay Chaudhari, Chief Engineer, NMIA, CIDCO.

With the major problem of land acquisition sorted, CIDCO expects to finish the first phase of the airport by 2019. This is very important for the Mumbai region as it’s really in need for a second airport. Its existing airport is already reaching a saturation point, handling 40 million passengers annually. This new Navi Mumbai airport is expected to add a capacity of 60 million passengers. This means Greater Mumbai will be able to handle 100 million passengers by 2033.

Cashing in on the international airport CIDCO has some ambitious plans for Navi Mumbai as well. A 100 hectares corporate park will be developed in the Kharghar region on the lines of BKC, hoping to attract both investments and corporate occupiers. Dampened real estate sentiments have already started seeing some revival, say industry players.

“We are happy that finally the ground work for NMIA has begun. This will improve the sentiments in the market and we are expecting a spike in enquires. There is a possibility of 10-15 percent increase in the prices”, says Manohar Shroff, Vice-President, MCHI-CREDAI, Navi Mumbai Unit.

The five key micro-markets that are likely to benefit due to the coming up of the NMIA are Ulwe, Kamothe, Kharghar, Taloja and Panvel. The prices in these regions have seen less than 4 percent appreciation over the last 3 years.

According to experts, there is already an inventory overhang of 2,400 unsold units in the Navi Mumbai region. Out of these around 2,000 units are ready to move in and yet there are no takers.

With airport seeing light of day soon these regions are set to see a better growth. But experts advise some caution before investing into these nodes.

“Although with the coming up of the airport several nodes are going to benefit, some of the nodes do not have necessary infrastructure. This means it is not the best area for the end users to immediately move in. Success of the real estate development in these nodes purely depends on what kind of infrastructure CIDO provides in the region, says Ashutosh Limaye National Director, Research, JLL.

Clearly, a lot is dependent on the fate of the Navi Mumbai airport. With GVK having won the bid for developing this project and CM’s office keeping a close eye on the progress, one is a lot more hopeful this time around, that the first flight should take off from the new airport, by 2019.

Courtesy: published on June 22, 2017

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