On February 18, 2018 Prime Minister Narendra Modi laid the foundation stone for the first phase of the second airport in Mumbai, the Navi Mumbai International Airport, it will be a 21-year-old dream for the megapolis nearing realisation.
With the PM laying the foundation stone tomorrow, the Navi Mumbai International Airport, being built by the state-run Cidco and the GVK Group which also runs the Mumbai international airport, is all set to take off at a big cost of over Rs 16,700 crore.
Unlike the Chhatrapati Shivaji International Airport of Mumbai which is a single-runway affair, the new airport in neighboring Navi Mumbai will have two parallel runways, and will handle close to 80 flights an hour.
The first phase is expected to be completed by the end of 2019, with one runway and the terminal building ready to handle up to 10 million passengers. The second phase, to be completed by 2022, will take the handling capacity to 25 million passengers.
The third phase of the Navi Mumbai airport is expected to be completed by 2027, and at the completion of the fourth phase by 2031, the capacity will be 60 million passengers.
Investing in Navi Mumbai Real Estate
The Navi Mumbai city has been witnessing a shift in buyer interest from posh localities to affordable neighbourhoods.
Satellite towns such as Navi Mumbai continue to reap the benefits of good infrastructure and connectivity to the main city—Mumbai. “Its connectivity will improve significantly once the proposed new Navi Mumbai airport is completed. Buyers’ interest has already increased in the 10 km radius of the airport’s proposed site,” says Ajay Jain (Joint MD, Sun Capital Advisory Services). Due to lower operational costs, a large number of IT companies have been shifting to places like Vashi and Airoli in Navi Mumbai.
Navi Mumbai has been witnessing a shift in homebuyer interest from posh localities to affordable neighbourhoods. This has brought down prices in posh areas such as Palm Beach Road. Surprisingly, prices have fallen in relatively cheaper locations such as New Panvel as well, where big builders have constructed several large housing projects in the past 5-7 years.
Karanjade, a recently developed area near Panvel, Navi Mumbai, is generating good homebuyer interest, mainly because of its proximity to the proposed Navi Mumbai airport. Speedy connectivity to Mumbai through the JNPT Road is another attraction. Vashi, one of the first area developed in Navi Mumbai, after losing its star status to other locations, is now slowly gaining prominence again, mostly due to its proximity to Mumbai. Ulwe, another low-cost location has also seeing an increased homebuyer interest as it is close to the central business district of Belapur in Navi Mumbai.
Indian government agencies announcing fast-tracking of permissions and clearances for the Navi Mumbai International Airport (NMIA) has created a ‘positive push’ for a totally new real estate development for the Mumbai Metropolitan Region (MMR), the Aerotropolis.
Navi Mumbai Airport to Impact Property Prices
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.
Cashing in on the international airport, CIDCO has made 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.
The 5 key micro-markets that are likely to benefit due to the upcoming Navi Mumbai International Airport (NMIA) are Ulwe, Kamothe, Kharghar, Taloja and Panvel. The prices in these five regions have seen less than 4 percent appreciation over the last 3 years.
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Source: JLL India
According to real estate experts, there is already an inventory to project so as to be over something 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.
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.
Aerotropolis will be a Game Changer for Navi Mumbai & Panvel Realty
International Aerotropolis in recent times has become ‘trendy’ neighborhoods. This is what Navi Mumbai’s real estate scenario will gain from, as it is a scenario where unlike real estate development being planned around an existing airport, the Aerotropolis in Navi Mumbai will have the advantage of the international airport which is being under construction.
When one looks at the potential that the Aerotropolis offers, Navi Mumbai, especially the Panvel region, has been attracting attention from Mumbai-based Corporate Entities looking out for commercial real estate, offering large floor plates and global standards of amenities and facilities. The new trend of consolidation and relocation has been driving interest in new developments which integrate residential and commercial real estate.
The Real Estate in Navi Mumbai has witnessed demanding enquiries and sales at finished as well as under-construction projects in nodes like Panvel, Ulwe and Dronagiri. Similarly, projects within the proposed NAINA region are also attracting end-user buyers and investors.
The Navi Mumbai International Airport (NMIA) has impacted realty growth in many locations in Navi Mumbai, especially in its vicinity, including Panvel. NMIA has a huge employment generation potential. It is estimated that the airport will generate 1.42 lakh new jobs directly, along with another 2 lakh jobs on an indirect level. The Aerotropolis will definitely be a game changer for Navi Mumbai and Panvel real estate.
Navi Mumbai is the affordable housing hotspot of the future
According to recent industry reports, Navi Mumbai is definitely the affordable housing hotspot of the future due to its comparatively lower prices, good road and railway connectivity and growing infrastructure. Navi Mumbai realty soars as new airport project takes wing, real estate investors have deployed investments in and around Navi Mumbai.
City and Industrial Development Corporation (CIDCO) Vice-Chairman and Managing Director Bhushan Gagrani on Tuesday said the overall investments for Maharashtra in the housing sector would be an estimated Rs 3.6 lakh crore. In the affordable housing sector during the three-day Magnetic Maharashtra: Convergence on February 18, 2018, Navi Mumbai is expected to see investments of worth Rs 1.5 lakh crore.
Under the category of economically weaker sections, the cost of CIDCO houses will range between Rs 16 lakh and Rs 17 lakh. Houses for the low-income group will be between Rs 20 lakh and Rs 22 lakh. The rates are evolved on carpet area, not built-up area. The projects undertaken by private developers would be marginally higher varying between 5 and 10 per cent. Stating that Navi Mumbai has become an alternative destination “by default”, Bhushan Gagrani said the single factor that made it more acceptable was the rapid multi-transport connectivity by road, rail and air.
Navi Mumbai has a lot of scope for future development and growth. Several MNCs have already set up their offices in Navi Mumbai and this has spurred demand for social amenities and residential units alike. CIDCO is focusing hugely on the development prospects in Navi Mumbai and residential real estate demand should hit the roof in the near future!