24 October 2016
FURTHER DELAY IN THE NAVI MUMBAI INTERNATIONAL AIRPORT MAY AFFECT REALTY PRICES NEGATIVELY
Almost two decades after the Navi Mumbai International Airport (NMIA) project was proposed, the work for the same has finally begun with levelling of land in the core airport area. City and Industrial Development Corporation (CIDCO) will undertake the cutting of 92 metre high Ulwe hill and diversion of the eponymous river. Basic work has started even as the crucial stage II of forest clearance is awaited from the Union ministry of environment and forests (MoEF). In addition to commencement of the site work, the two-part technical and financial bidding for Rs. 16,000 crore second international airport, announced earlier in May, will close on November 7, 2016.
Residential & Office Services View
Since the announcement of NMIA project a few years back, a positive impact has already been factored in the Navi Mumbai real estate market. However, if the airport project is delayed further, realty prices may affect adversely.
Navi Mumbai International Airport, perceived to be a game changer as the Navi Mumbai realty market has been famously delayed for several years. Accordingly, investor and end user interest in real estate has risen and fallen every time the project was plagued with delays. However, with the outset of airport development work by CIDCO, Navi Mumbai real estate market is all set to be back in focus. Navi Mumbai micro markets have catered to the affordable segment for many years and existing nodes in Navi Mumbai such as Kharghar, Belapur and Panvel have also experienced steady appreciation over these years. Several buyers have invested in new localities such as Ulwe, Karanjade, Dronagiri and Vadghar at fairly affordable rates. Navi Mumbai real estate market was dominated by small time developers for a long time but several top developers have turned their heads towards this upcoming real estate hub. Upcoming infrastructure developments like Mumbai Trans Harbour Link (MTHL) and the Navi Mumbai Metro Line 1, set to be functional by 2017, will undoubtedly provide required fillip to the residential as well as the commercial real estate in Navi Mumbai.