With the inauguration of a new arm of the bow-string arch bridge by Maharashtra Chief Minister Eknath Shinde, connecting the Mumbai Coastal Road to the Bandra Worli Sea Link, travel times in the city are set to reduce dramatically. As per reports, motorists will now be able to travel from Marine Drive to Bandra in just 10 minutes, marking a significant improvement in connectivity between South Mumbai and the suburbs.

Positive Impact on Real Estate Market

The completion of this new infrastructure is likely to have a notable impact on Mumbai’s real estate market, particularly in the redevelopment of old buildings. According to experts, redevelopment activity has already gained momentum in South Mumbai and Central Mumbai, and this trend is expected to continue, benefiting the city’s housing landscape.

The bridge has opened for northbound traffic between 7 am and 11 pm on weekdays, starting from September 13. However, southbound traffic will need to take existing routes until both arms of the Coastal Road are fully operational and connected with the sea link.

Boost to Suburban and South Mumbai Connectivity

The Mumbai Coastal Road project is expected to directly benefit areas like Nariman Point, Cuffe Parade, Churchgate, Mumbai Central, and Worli, while suburban localities such as Bandra, Versova, Andheri, Malad, and Dahisar will experience an indirect boost in connectivity. This improved accessibility between the suburbs and the city center could lead to an increase in demand for both residential and commercial properties.

Stabilization of South Mumbai’s Real Estate Market

Once known as one of India’s most expensive real estate markets, South Mumbai has seen price stabilization over the years as businesses shifted to Bandra Kurla Complex (BKC) and other business districts. Experts suggest that infrastructure projects like the Coastal Road and Mumbai Metro 3, which connects Cuffe Parade to Aarey Colony, could revitalize the area, bringing renewed interest from businesses and developers.

According to a report by Savills India, the impact on real estate prices in South Mumbai may be limited. Office rentals in the area have stabilized at ₹200-240 per square foot due to a lack of quality space. In contrast, rates in BKC have risen, ranging from ₹250 to ₹500 per square foot and even touching ₹700 for shorter leases.

Redevelopment Surge Post-COVID

Redevelopment projects have gained momentum in Mumbai post-COVID, particularly in the western and central suburbs. Over the last year, the trend has extended to South Mumbai with several new projects launched. A recent example is Bengaluru-based developer Puravankara, which secured redevelopment rights for Miami Apartments in Breach Candy. Similarly, Lodha’s redevelopment project in Malabar Hill has attracted significant attention, especially after the sale of a ₹252.5 crore triplex to Bajaj Auto chairman, Niraj Bajaj.

On a year-on-year basis, South Mumbai’s real estate market has shown a 41% growth in sales in FY’24, with the number of housing units sold rising to 2,154 from 1,525 in FY’23, according to a report by CREDAI-MCHI and CRE Matrix.

The Future of South Mumbai’s Commercial Market

As per experts, commercial Grade A buildings in South Mumbai currently command rates of ₹50,000 per square foot, while residential projects can reach ₹1 lakh per square foot. The completion of infrastructure projects like the Coastal Road and Metro rail is expected to influence the prices of redeveloped commercial spaces in the area.

Maharashtra Chief Minister Eknath Shinde emphasized the transformative potential of the Coastal Road, stating that the project is a “game-changer” for the city. He further mentioned that the road will be extended to Bhayander, Virar, and Palghar, which would also benefit the Vadhvan port—a mega-port project recently inaugurated by Prime Minister Narendra Modi.

The extension of the Mumbai Coastal Road promises to drastically reduce travel time across the city, benefiting commuters and businesses alike. While experts are cautiously optimistic about its impact on real estate prices, the new infrastructure will undoubtedly play a crucial role in shaping the future of Mumbai’s property market and overall development. As per a report by Hindustan Times, the game-changing project has already started to shift real estate dynamics in South Mumbai and beyond.