By Aksha Kamboj, Executive Chairperson, Aspect Global Ventures Pvt. Ltd.
Currently, ongoing road and flyover construction projects are significantly influencing the real estate market in the city, particularly in Mumbai. The enhanced connectivity from these projects attracts the attention of buyers and investors toward previously underdeveloped areas, thereby increasing demand and subsequently raising property values.
For instance, areas such as Kandivali, Malad, and Thane are being revitalized through the development of the Coastal Road and the expansion of the Eastern Freeway. The reduction in travel time to important business centres makes these locations more appealing to homebuyers seeking convenience.
Experts note that this has significantly boosted property prices in these areas, attracting not only end-users but also investors betting on future appreciation.
The anticipation of infrastructure upgrades can create speculative demand, leading investors to purchase properties near ongoing construction projects.
For example, in Thane, the flyover construction currently underway has sparked greater interest in nearby residential projects, many of which have seen a surge in demand as their completion dates approach. Buyers view these connectivity upgrades as factors that will eventually drive more demand, creating a sense of urgency.
However, the construction itself poses challenges. Directly affected areas may temporarily experience a decline in property values due to heavy machinery usage, noise, and traffic congestion. Neighbourhoods with ongoing construction may be less attractive to tenants or homebuyers, as the disruption can deter potential occupants.
Property owners may need to adjust their pricing strategies to mitigate these short-term losses while balancing current market conditions with the long-term benefits of infrastructure improvements.
Developers are responding by upgrading their offerings. Many are addressing the disturbances caused by construction by incorporating amenities that enhance liability, such as noise-proofing and easy access to alternative routes. These improvements can help alleviate perceived drawbacks for buyers and keep the market active.
In summary, ongoing road and flyover construction in Mumbai appears to be shaping the property market. These developments will contribute to the growth of the Kandivali and Thane areas while presenting challenges in execution.
Buyers and investors must consider these dynamics, weighing immediate inconveniences against the long-term benefits of improved connectivity and enhanced property values in this vibrant metropolis.
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