Impact Of Navi Mumbai International Airport On Property Prices

2024-01-24

Real Estate Investment

Will the Navi Mumbai International Airport impact property prices in the region?

The 5 key micro-markets that are likely to gain due to the coming up of the NMIA are Ulwe, Kamothe, Kharghar, Taloja and Panvel. The prices in these regions have seen less than 4 percent appreciation over the last 3 years.

After 14 years of delay, the Navi Mumbai International Airport (NMIA) is finally off the ground. The pre-development work for the Rs 16,000-crore project has begun. 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.

In the author’s opinion, I don’t think there is any major problem of PAPs which is left unresolved. CIDCO has handled everything on a priority. They have been given a timeline to settle all their issues as soon as possible. Therefore, with regards to this I don’t see any of kind of major issues. There could be some minor personal issues which can be resolved across the table over a period of time.

With the major problem of land acquisition sorted, CIDCO expects to finish the first phase of the airport at the earliest. This is very important for the Mumbai region as it’s really in need for a second airport. Its existing airport is already reaching a saturation point, handling 40 million passengers annually. This new Navi Mumbai airport is expected to add a capacity of 60 million passengers. This means Greater Mumbai will be able to handle 100 million passengers by 2033.

Cashing in on the international airport CIDCO has some 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, says industry players.

The people residing in the nearby localities are happy that finally the ground work for Navi Mumbai International Airport (NMIA) has begun. This will improve the sentiments in the market and we can expect a spike in enquires. There is a possibility of 10-15 percent increase in the prices.
The five key micro-markets that are likely to benefit due to the coming up of the Navi Mumbai International Airport (NMIA) are Ulwe, Kamothe, Kharghar, Taloja and Panvel. The prices in these regions have seen less than 4 percent appreciation over the last 3 years.

According to experts, there is already an inventory overhang 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.
Although with the coming up of the airport several nodes are going to benefit, some of the nodes do not have necessary infrastructure. This means it is not the best area for the end users to immediately move in. Success of the real estate development in these nodes purely depends on what kind of infrastructure CIDO provides in the region.

Clearly, a lot is dependent on the fate of the Navi Mumbai International 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 2020.

Impact Of Navi Mumbai International Airport (NMIA) On Property Prices:

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