The Coastal Road from Marine Drive to Bandra East is expected to have a significant impact on real estate prices in Mumbai, both positive and negative.
Positive impacts:
- Increased demand: The improved connectivity and reduced travel time are expected to make areas along the Coastal Road more desirable places to live. This increased demand is likely to drive up real estate prices in these areas purely due to ease of commuting.
- Increased investment: The Coastal Road project is expected to attract new businesses and investments to Mumbai. This will lead to increased demand for office space and other commercial properties, which could further boost real estate prices.
- Premium waterfront properties: Properties located directly on the Coastal Road or with views of the sea are likely to be in high demand and command a premium price.
- Improved infrastructure: The Coastal Road project includes the development of new infrastructure, such as parks, beaches, and public spaces. This will make areas along the road more attractive to live and work, further boosting real estate prices.
- Early signs of appreciation: Many areas that will be impacted by the Coastal Road have already seen a price appreciation of 5-15% since the project's inception. This suggests that the project is already having a positive impact on real estate prices.
- As distances will shrink to suburbs there is a possibility of higher demand of larger size properties in Suburbs as the growing families of South Mumbai will sell and buy larger size flats in Suburbs.
Negative impacts:
- Gentrification: The increased demand for real estate along the Coastal Road could lead to gentrification, as wealthy buyers displace existing residents. This could lead to higher rents and property taxes, making it difficult for low-income residents to afford to live in these areas.
- Disruption during construction: The construction of the Coastal Road is likely to cause disruption to residents and businesses in the area. This could lead to stagnancy for some time.
- Limited availability: The amount of land available for development along the Coastal Road is limited so one has to see the exact impact only after the total coastal road which is proposed till Andheri West to see the long term impact.
Overall, the impact of the Coastal Road on real estate prices is likely to be complex and varied. The markets will calibrate in certain pockets. However, the project is expected to have a positive impact on prices in the long term.
Here are some specific examples of how the Coastal Road is expected to impact real estate prices in different areas:
- South Mumbai: Properties in South Mumbai are already some of the most expensive in the city. The Coastal Road is expected to further increase demand for these properties, however, the general feel is this that the older properties may get traction due to potential redevelopment.
- Worli: Worli is a rapidly developing area that is already home to many high-end businesses and residences. The Coastal Road is expected to make Worli even more attractive to investors, leading to a further boom in real estate prices. Prime properties in Worli are quoted upwards of 60000 PSF.
- Bandra: Bandra is a popular residential and commercial area that is well-connected to other parts of Mumbai. The Coastal Road is expected to make Bandra even more desirable, leading to a demand however, entry into Bandra from Reclamation Side or the S V road side is very slow.
- Western Suburbs: The Western Suburbs are home to a large and growing population. The Coastal Road is expected to improve access to these areas, making them more attractive to buyers and renters. This is likely to lead to a rise in real estate prices in the Western Suburbs and far suburbs.
It is important to note that these are just predictions, and the actual impact of the Coastal Road on real estate prices will depend on a number of factors, including the overall state of the Mumbai economy, the availability of financing, and government policies and how the traffic movement eases the commute.