The inauguration of the Mumbai Trans Harbour Link (MTHL), also known as Atal Setu, on January 12, 2024 is not just a landmark achievement in infrastructure but a transformative force for the real estate landscape in Mumbai and Navi Mumbai. Spanning 21.8 kilometres, MTHL is poised to reshape the urban development and property markets of these regions.
Catalyst for growth
The MTHL directly connects South Mumbai and Navi Mumbai, two of the region’s most dynamic areas. This linkage is expected to catalyse significant growth in real estate, both in commercial and residential sectors. The reduced travel time, down from two hours to a mere 15-20 minutes, makes Navi Mumbai more accessible, increasing its attractiveness for residential developments and commercial investments.
Impact on residential segment
Boost in property values: The enhanced connectivity is anticipated to increase property values in Navi Mumbai and surrounding areas. A preliminary forecast suggests a 10-15% rise in property prices within the first year of MTHL’s operation.
Surge in housing demand: The area is expected to witness a spike in housing demand, especially from professionals who work in Mumbai but prefer more spacious and affordable housing in Navi Mumbai.
New residential zones: Previously underdeveloped or inaccessible areas along the MTHL corridor are likely to see new residential projects, further expanding the city’s housing market. A potential 20-25% increase in new residential projects in Navi Mumbai within two to three years post the MTHL inauguration is foreseeable.
Commercial segment transformation
Attraction of businesses: The improved connectivity makes Navi Mumbai a viable location for businesses, leading to a rise in demand for office spaces.
Growth in retail and hospitality: Anticipating an increase in footfall, there’s likely to be a boom in retail outlets, shopping centers, and hospitality services in Navi Mumbai.
Industrial development: The link could spur industrial development in the region, given its enhanced access to the Mumbai market.
Commercial real estate, particularly office spaces, is projected to witness a 15-20% increase in rental values over the next two years.
The MTHL is more than just a bridge; it’s a gateway to new opportunities. It is expected to redistribute population and economic activities between Mumbai and Navi Mumbai, leading to a more balanced urban development. This redistribution also implies a potential easing of congestion in Mumbai, as more people opt to reside in less crowded areas of Navi Mumbai.
The Mumbai Trans Harbour Link stands as a transformative project with far-reaching implications for real estate in Mumbai and Navi Mumbai. It’s not just about connecting two points on a map; it’s about unlocking new potentials in real estate, reshaping urban landscapes, and fostering sustainable growth in one of India’s most dynamic regions.
(The writer is Director, Palladian Partners Advisory LLP)