The fully operational 19.54 km Mumbai’s monorail has not only addressed the mobility needs of the residents but also created a positive impact on the property values of the micro-market alongside. Lower Parel and Wadala East are two of the prominent housing clusters which benefitted from the project. 99acres.com tries to examine its impact in details.

The country’s first monorail project  planned between Chembur and Jacob Circle has finally seen the light of the day. The 19.54 km rail corridor comprises 18 stations, of which seven stations were inaugurated in 2014, and the remaining stations MONORAIL in mumbaihave been thrown open recently in March 2019. Key stations that the monorail runs along include Chembur, Chembur Naka, Fertilizer Colony, Bharat Petroleum, Mysore Colony, Bhakti Park, Wadala Depot, GTB Nagar, Acharya Atre Nagar, Wadala Bridge, Dadar East, Naigaon, Ambedkar Nagar, Mint Colony, Lower Parel, Chinchpokli and Jacob Circle.

 Real estate impact of monorail in Mumbai

The development has not only expanded Mumbai’s connectivity network but also catalysed the real estate sentiment in many emerging pockets alongside. Ajay Mishra, real estate agent, Poonam Realtors, shared that the rapid rail system has sustained the real estate values in the housing clusters that have been grappling owing to limited buyers. For instance, Lower Parel that continually reported a diminishing trend in the average weighted capital ‘asks’ in the last six months of 2018 experienced a marginal revival post the monorail inaugural.

Wadala East also reciprocated a similar trend. While the average weighted property values in the locale registered more than 15 percent hike since 2014, when the first phase of the monorail was commissioned, the growth has been relatively slower in the last few quarters owing to the limited enquiries from potential homebuyers. However, the industry stakeholders have pinned high hopes after the commencement of the Phase II corridor, averred Mahesh, property broker from the Star Real Estate, Mumbai.  

Moreover, the MMRDA’s increased focus on Wadala might also alter the realty dynamics in and around the locale. Since Wadala is in proximity to the Eastern Freeway, monorail and the upcoming Metro-4 corridor that is touted to connect Wadala to the neighbouring city of Thane, the authority has planned to increase the area’s Floor Space Index (FSI)  to 4 as a part of its Transit Oriented Development (TOD) plan. The expansion would not only increase the residential and commercial capacity in the micro-market but would also encourage ‘walk-to-work culture’. It would improve people’s dependency on public transport and would considerably reduce the vehicular congestion in the area, particularly during the monsoon.

Localities

Average Weighted Capital ‘Asks’ (in per sq ft)

Average Capital Appreciation (QoQ)

Dadar East

Rs 28,600

3.63%

Wadala East

Rs 20,100

0.60%

Lower Parel

Rs 27,200

0.16%

Chembur

Rs 17,250

1.00%

Kurla East

Rs 14,320

0.70%

Ambedkar Nagar

Rs 16,250

3.00%                       

Source: The capital values are based on listings posted on 99acres.com

Holistically, the monorail is set to alter the real estate dynamics in the eastern and southern pockets of Mumbai. While the market enquiries have been low owing to the reformatory moves in the past and the General Elections, the sentiment is expected to improve in the near term with the wider acceptance of Real Estate (Regulation and Development) Act (RERA) 2016 and the stable government at the Center. Besides, the rail development will be a boon to flood-hit areas, particularly Parel, Antop Hill, Pratiksha Nagar in Sion, and Suman Nagar in Chembur.