Unlocking Opportunities with Infrastructure Development

Residential sales in Mumbai estimated to cross the INR 2 lac crore mark in 2030: JLL-NAREDCO Report

September 15, 2023
  • Samantak Das
  • Rohan Sharma
  • Ankit Bhartiya
  • Srija Banerjee

In keeping with the winds of change around the country, Maharashtra has taken remarkable strides towards rapid economic development through its extensive infrastructure development plan. The impact of these infrastructure initiatives extends significantly to the real estate sector, benefiting all major asset classes. In particular, increased economic activity, driven by infrastructure investments, has led to a growing demand for housing. Against this backdrop, this report explores the major infrastructure projects being implemented in Maharashtra and analyzes their economic benefits by focusing on its two biggest economic centres – Mumbai and Pune.

Average travel time expected to reduce by 50% over the next 5 years

The realization of the infrastructure development plan can herald a new era for public transportation in Mumbai. The upcoming developments will improve east west connectivity, connect areas not served by the suburban rail and reduce travel time between residential and commercial hubs by driving a modal shift away from motorized vehicles. The modal share of public transport is expected to increase from 65% in 2016 to 75% in 2030. Resultantly, the average travel time within the city is expected to reduce by 50% over the next five years.

In 2023, Mumbai residential market is expected to cross INR 1 lac crore in sales value terms

The Mumbai market witnessed a strong recovery in sales, with 2022 surpassing 2018, both in terms of sales value and sales volume. In 2023, sales of residential units in Mumbai is expected to increase further and residential sales value is likely to breach the INR 1 lac crore mark.

Four residential clusters to drive the next phase of growth
  • Mulund expected to become the new Bandra of Eastern Suburbs with residential capital values (on carpet area) likely to reach INR 50,000 per sq ft in 2030

  • With the proposed Eastern waterfront development, Sewri & Wadala could become the next Worli

  • Thane-Bhiwandi belt prices estimated to reach Majiwada levels

  • Pushpak Nagar will emerge as a prominent residential node
Massive push towards establishing an integrated multi-modal transportation system

Currently, only about 20% of the population of Pune City uses public transit. In order to propel Pune into the next phase of growth, the focus needs to be on enhancing the city’s urban infrastructure. In the coming years, substantial investments are slated to be made towards the construction of metro rail links, a new airport terminal, and a ring road. The main objectives are to alleviate traffic congestion, encourage the use of public transport, develop last-mile connectivity, and establish an integrated multi-modal transportation system.

In 2023, Pune residential market is expected to cross INR 40,000 crore in sales value terms

The Pune market witnessed a strong recovery in sales in 2022. In 2023, sales of residential units in Pune is expected to increase further and residential sales value is likely to cross INR 40,000 crore.

Five high potential residential nodes identified
  • Wagholi prices expected to reach current Koregaon Park levels in 2030

  • Mahalunge prices likely reach current Baner-Balewadi levels in 2030

  • Baner-Balewadi could emerge as a premium residential market

  • Tathawade residential capital values will witness steady growth

  • Ravet-Punawale has high potential to drive growth over the next 5-7 years
Vision 2030
Residential sales in the top seven cities of India is expected to exceed INR 6 lac crore in value terms
  • In the last 18 months, developers have acquired a total of ~350 acres of land in Mumbai and Pune, for the purpose of residential development. The monetization of these land banks in itself, results in a sales potential of close to INR 50,000 crore.

  • Residential prices are expected to increase at a CAGR of 6%-7% over the next 5-7 years. Sales of residential units will also continue an upward trajectory

  • In residential sales value terms, the size of the Mumbai market is estimated to double and cross the INR 2 lac crore mark. With the Pune residential market growing at a rapid pace, Pune’s contribution to the total value of residential sales is expected to increase over the next 5-7 years to ~INR 1 lac crore

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