REALTY CHECK Developers take freeway route to sell their projects

Mumbai: Developers launching projects are using the Eastern Freeway as a marketing tool by highlighting the reduced commuting time to South Mumbai. 

    With property prices in areas like Chembur increasing by 25% over the last two years, a report says areas closest to the freeway's entry and exit ramps will emerge as stronger locations. 
    These are the Anik, Chembur-Mankhurd Link Road and Panjrapol Link Road areas, said global property consultant Jones Lang LaSalle India (JLLI) in its report 'Eastern Freeway – The Latest Game-Changer For Mumbai Real Estate'. 
    With the development potential of Mumbai's western suburbs almost fully exploited, the eastern suburbs are witnessing increased momentum in new development where land parcels are still available and prices more affordable. The 16.8-km freeway that connects P D'Mello Road in South Mumbai to the Eastern Express Highway at Ghatkopar has sprung into sharp focus with developers. 
    "The implications in terms of demand, supply and price are considerable. We have seen a steady increase in inquiries for residential and commercial spaces close to the freeway's entry and exit ramps, and developers have begun marketing projects with an emphasis on their proximity to this key arterial route,'' said Ramesh Nair, COO-operations (JLLI). 
    Chembur's property prices have risen by 25% over the past two years primarily because of its proximity to the freeway. Siddarth Kapoor, who resides near Diamond Garden, Chembur, said his daily commute to Chhatrapati Shivaji Terminus in South Mumbai is a dream. "It takes me under 25 minutes to reach in the morning,'' he said. 
    Kanjurmarg, Kurla, Powai and Ghatkopar saw residential property prices increase by 32%, 29%, 27% and 23% respectively in 2012. The report said this year-on-year increase in prices is also attributable to increase in superior projects with innovative concepts in these areas. LBS Marg has seen the arrival of luxury hotels. 
    The completion of the Santa Cruz-Chembur Link Road is also expected to lead to 
more traffic coming in from the north of the secondary business district of the Bandra-Kurla Complex. "This will trigger a fresh spate of development in catchment areas surrounding the alternate route to the central business district,'' it said. 
    The report said there will be further eastward movement of real estate development into locations like Sewri. "But areas closest to the freeway's entry and exit ramps—specifically Orange Gate, Anik Junction, Chembur-Mankhurd Link Road and Panjarpol Link Road—will emerge as stronger locations. Thanks to the new impetus, real estate markets in these areas, which see high residential property absorption, will also see greater demand and consequently upward pricing momentum,'' it added. 
    "In the long-term, certain land parcels held by the Mumbai Port Trust could be released for development. If and when this happens, the freeway's presence will ensure these parcels will attract considerable premium. Many industrial units in catchment areas of the freeway may move out, augmenting supply of prime property for commercial and residential development along the freeway,'' said Nair. 
THE EAST-WEST DIVIDE 
    South Mumbai may witness a small jump in absorption, considering improved accessibility 
    Nearly 35,000 vehicles use the Eastern Freeway each day 
    Central Mumbai will witness acceleration in supply and absorption, and a moderate jump in rental/ capital values 
    BKC will see a moderate impact, which could improve once the Santa Cruz-Chembur Link Road comes up 
    Andheri will show, if at all, a mild negative impact as the eastern suburbs will now compete with it as an option for real estate 
    The western suburbs will largely remain unaffected by the freeway, but the contrast between the eastern suburbs--where many infrastructure projects are being undertaken--and the crowded western suburbs may become more pronounced, resulting in price pressure in the western suburbs 
    The eastern suburbs will see maximum impact, with a sizeable increase in supply, absorption and rental/capital values across segments