Here’s how the Mumbai-Ahmedabad corridor project will lift sluggish real estate
The real estate all over India being in a nose-diving mode, the proposal to develop a high-speed railway corridor between Mumbai and Ahmedabad comes as a boon to people living in the outskirts. This will give a fillip to the sluggish real estate prices on the outskirts of the city, with property prices expected to rise.
The proposed network is estimated to do well in terms of housing demand and investment potential. With time, a lot of real estate activities across the proposed corridor would take place. With infrastructure and connectivity receiving a boost with this development, the neighbouring destinations are expected to be developed and become more livable subsequently creating impact on property prices.
With proposed 12 stations, the project will usher in a new age of growth in outlying suburbs of Mumbai such as Boisar. It is expected to spur the local economy and boost job creation via domestic industries. In turn, affecting the demand for housing and allied services. In addition, there will be increased development of social and lifestyle enhancing infrastructure and amenities.
Eight out of 12 stations are located in Gujarat, including Vadodara and Surat. Already, these destinations are touted to emerge as the next hotspots for investments. Once the construction of the corridor is complete, builders and financers will look at the potential of the stretch for realty expansion.
“Countries such as China have seen a spurt in property rates along the bullet train corridors and we expect this to mirror in Mumbai too. The real estate prices on the Mumbai-Ahmedabad corridor, on the route of the high-speed train, are also expected to rise,” says Anubhav Aggarwal, Managing Director, RNA Corp (Mumbai).
The Mumbai-Ahmedabad High Speed Railway Project (MAHSR) is estimated to cost about Rs 1.10-lakh crore, of which Rs 88,000 crore will be funded through a soft loan by Japan. The completion deadline earlier estimated as December 2023, is also likely to be advanced to August 2022. The Mumbai-Ahmedabad Bullet train is an ambitious project proposed to connect the two cities. The boost to realty market will follow the development of infrastructure along the corridor.