How will the market react to the Mumbai-Trans Harbour link
Subhankar Mitra of Jones Lang LaSalle (JLL) India elaborates on how the real estate market in Mumbai will react to the ongoing Mumbai-Trans Harbour Link.
August 08, 2013 / 19:41 IST
Subhankar Mitra
JLL India
The Mumbai-Trans Harbour Link – a Rs 8800 crore undertaking - is a major infrastructure project which will take between 5-6 years to complete even after commencement of actual construction. Moreover, on-ground action on this undertaking has already been postponed three times over the last eight years.Also read: Here's how to form an apartment owner’s association Technically, another year’s delay would not make much of a difference. The announcement of the Mumbai-Trans Harbour Link has definitely played a role in the marketing of properties in areas like Ulwe and Panvel and raised the overall desirability quotient for end-users, investors and developers. However, the anticipation was tempered with an understanding of how things work when it comes to infrastructure in Mumbai. If we look at the present status of similar infrastructure projects – such as the Worli-Haji Ali Sea Link, and the Charkop-Bandra-Mankhurd and Colaba-Bandra Corridor metro lines, most of them are stuck in various bottlenecks and running abysmally behind schedule. This is more or less an accepted state of affairs in the financial capital. Therefore, immediate demand for residential properties – and therefore their appreciation potential - in areas such as Ulwe and Panvel will not be affected by this new implementation deferment of the Mumbai-Trans Harbour Link.That said, there are certainly mid-to-long term real estate implications of the further delay in commencement of this project. One of the main segments that this project is expected to boost is commercial development in these and other areas that it will affect. In other words, the immediate viability of commercial spaces will reduce in these areas, and this will result in developers deferring their projects further. This will impact the overall economic potential and job generation in these areas, which will also have negative implications on the demand for residential property. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
