The Mumbai Trans Harbour Link (MTHL), also known as Atal Setu, has shortened the commuting time and is about to redefine Mumbai’s real estate market. India’s longest sea bridge, the MTHL, recently being inaugurated, is much more than just an engineering marvel. It is poised to be a game-changer for Mumbai’s fast-changing real estate landscape.
Improving the connectivity
Spanning 22 kilometers with a 16.5-kilometer extension over the sea, the MTHL promises to catalyze transformative growth in the Mumbai Metropolitan Region. The most immediate impact on the city and surrounding areas will be the connectivity. Travel time between Mumbai and Navi Mumbai, which could at times stretch up to hours, has now been reduced to a mere 20 minutes.
Effect on property prices
Prices of properties in Navi Mumbai have already started witnessing an upward trend. Average property price in Navi Mumbai has increased from Rs 6,650 per square feet in Q3 FY2015 to over Rs 8,300 per square feet in Q3 FY2023, reflecting a growth of more than 25%.
Property owners can expect a 10-15% price rise within one year. Properties in the vicinity, like Panvel, Ulwe, and Kharghar, stand to double in real estate value within the next three years. These areas are expected to experience increased demand due to better accessibility, with Panvel standing out as one of the most affordable housing markets in the region.
Other reasons for the boom
Improved commuting facilities are not the only reason for the rise in property prices. From affordable houses in Ulwe and Panvel to luxurious villas in Alibaug, these new residential hubs cater to everyone. These areas, which were previously considered weekend getaways, are now being developed into self-sufficient satellite cities with thriving business districts and educational institutions.
Moreover, the Navi Mumbai International Airport, currently under construction, makes Panvel a prime location. This is also attracting leading educational institutions like DY Patil University and the Indian Institute of Technology (IIT) Bombay, as well as major companies like Reliance Jio to invest here. These developments are not only adding intellectual charm to these emerging areas but also creating a vibrant job market. Areas like Dronagiri are poised for growth with the start of the MTHL.
New alternatives without sacrificing urban convenience
Named after former Prime Minister Atal Bihari Vajpayee, the MTHL also opens new opportunities for co-living space and serviced apartments for young professionals seeking flexible and commutable work arrangements. It will be the perfect avenue for investors seeking affordable real estate alternatives without sacrificing urban convenience. Therefore, there is a renewed focus on the integration of technology near these areas, offering high-speed internet, smart home features, and co-working space. This will be driven by improved accessibility and the emergence of new residential hubs catering to diverse needs.
Real estate developers are taking note of this shift, tailoring their approaches and offerings to cater to the changing preferences of this new wave of potential residents and property owners.
Similarity with the Delhi Metro
The opening of the Delhi Metro in 2002 led to a similar transformation of real estate business in Delhi’s suburbs, with cities like Noida and Gurgaon experiencing rapid growth and rise in property value. These regions were once considered distant suburbs and practically inaccessible from the city center.
With the Delhi Metro reducing commuting time, these regions experienced a surge in demand, witnessing rapid development of residential and commercial real estate. It connected the Noida Special Economic Zone and Cyber City Gurgaon with the rest of the national capital. These areas are thriving business hubs now, providing thousands of jobs every year.
Similarly, the opening of the MTHL is expected to increase the real estate value, with properties in old CBD areas of South Mumbai also presenting new opportunities for growth.
(The author is founder and director at Blitzkrieg Co.)
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Pankaj Narang is the Founder & Director of Blitzkrieg Co and a seasoned sales and marketing professional with over 16 years of experience in the real estate and technology sectors. He has successfully delivered over 2000 Crores in value for the Indian real estate industry and has expertise in high-octane product launches, sustenance business, business partner meets, expos and events in both domestic and international markets, including Middle East, Hong Kong and Singapore.
Pankaj has played a pivotal role in assisting top real estate developers in embracing disruptive technologies to advance their businesses. With a background in engineering and digital marketing, he brings a unique skill set. Beyond his professional pursuits, Pankaj is an avid reader, traveller, and eternal student of customer buying behaviour.
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