"The Navi Mumbai International Airport, which has been on the go for quite a long time, has just received a much-required push from the state government, stirring up the hopes of revival in the realty market."
Of all the above infrastructure projects. developers are pinning their maximum hopes on the International Airport only as they believe that once it comes, other projects will follow gradually
The proposed Navi Mumbai airport is to be developed as a second airport for Mumbai, as the existing Chhatrapati Shivaji International Airport by 2014 would reach its optimum level of handling four crore passengers a year.
The new airport project will make land available to the entire industry that is currently facing a severe space crunch in order to expand major development projects. This includes both commercial and residential. Moreover, experts claim that it will also help builders construct projects in accordance with their capacity, which they are not able to do today due to lack of space in Mumbai. The city is already saturated so the only way to construct here is through redevelopment in such circumstances construction of Navi Mumbai airport will order an alternative to builders where they don't have to deal with redevelopment or project affected people (PAP) issues. Besides, the builder who has a capacity of 10 lakh houses is able to construct only three lakh houses in Mumbai due to several limitations. Such builders will get a better and newer platform.
Let us comprehend of how infrastructure projects influences real estate values. Experts explain that scheduled infrastructure projects tend to increase the value of properties in adjoining areas. This occurs because the infrastructure project become a part of the unique selling point (USP) for developers or property owners. There have been instances where property prices have increased 50-70% from the announcement of an infrastructure initiative until the operational phase.
"Property values increased almost overnight in and around Panvel, Kharghar, Ulwe and most southern parts of Navi Mumbai as well as Mumbai's eastern corridors which are well linked to the announced International Airport. Besides, infrastructure projects like airports result in increased employment opportunities in logistics, hospitality and commercial sectors. Naturally, average income residential property demand increases because more people employed in these sectors will need to live in the immediate neighbourhood. Other than providing better connectivity and decongesting the existing International Airport, this new airport will add enormous value to realty projects in the Mumbai Metropolitan Region (MMR) which consists of eight municipal corporations and 15 small municipal councils.
Construction of a new airport is very important from the builder's perspective as it will give a required push to residential and commercial property value. Besides, it will contribute to overall development of the region as other infrastructure namely schools, hotels, employment opportunities, colleges and hospitals of global standard will follow this mega project. Moreover, builders with their projects in eastern suburbs find connectivity to Navi Mumbai airport better than the existing Chhatrapati Shivaji International Airport in Andheri. Flourishing commercial and marketing zones like Ghatkopar, Mulund, Chembur and Vikhroli have better connectivity with Navi Mumbai as compared to the Mumbai project. Thereby, people would prefer to fly from Navi mumbai airport once it comes up as they will not get stuck in Mumbai's traffic snarls.
Also with local builders, Mumbai developers too are looking forward to expanding their wings in the twin city, which is proposed to see major infrastructure projects like Mumbai Trans-Harbour Link (MTHL), metros and elevated CST-Panvel air-conditioned rails corridor in the near future.
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