Impact of Metro Lines 2a and 7 on Real Estate in Mumbai

The year 2023 brought great relief for the Mumbaikars with the much-awaited inauguration of metro lines 2A and 7 by PM Shri Narendra Modi, serving as a boon to the Populous City. In its first 2 days of opening, the rapid rail transit witnessed a staggering ridership of an estimated 1.25 lakhs. The commercial capital now hosts three metros, including Line 1 Versova-Andheri-Ghatkoper. 

Recently flagged off, both the lines cover a distance of a little above 35km, with 2A covering 17 stations and 7 doing 13 stations. While the former stretches from Dahisar to DN Nagar (Andheri-West), the latter will run between Ovaripada and Gundavali. The ambitious project has cost the Maximum City, both lines combined, an exorbitant cost of ₹12,600+ crores. Making lives simpler for the common man, the metro’s ability to transport an average of 3,00,000 lakh people a day in a reduced time is highly beneficial for the economy of Mumbai.

While 2A has a travel time of 40 minutes, line 7 will take 35 minutes to cover its distance of 16.5km.

One of the sectors to benefit the most from this is real estate, with premium developers having a lot of exciting projects in the pipeline. As Mumbai witnessed an impressive registration of over 8,800 properties in the first month of 2023, the realty industry is in a comfortable position as time passes, with the recent metro lines 2A and 7 only making things better.

Understanding the impact of metro lines 2A and 7 on Mumbai’s real estate market

• Appreciation of land: In most cases, the metros usually positively impact the real estate market. Aiding the economy, especially in employment, you can expect the prices of properties to go up soon. 
• Demand for housing to go up in the western suburbs: With the metro currently covering most of the western suburbs, the request for residential properties is likely to see an uptick, with developers like Rustomjee, Runwal, and Lodha already gearing up.
• Reducing the disparity in prices: It’s no secret that a house in Andheri-West will be costlier than that in Dahisar. However, with the metro coming up, several localities in the city are expected to see a spurt in top-class infrastructure, be it residential, commercial, or social, reducing this massive disparity between the different neighbourhoods of Mumbai.
• Increase in inflow from other cities: Mumbai’s over two crore population continues to pose a massive threat to its development. Nonetheless, with the metro helping build more offices, employment will increase, leading to further migration and fueling demand in the real estate sector.
• Competitive pricing due to an increase in demand: As demand grows, realtors will pull out all the stocks to outdo each other, be it pricing or providing the best of amenities, ultimately benefitting the customer.
• Commercial and social infrastructure: With the demand for residential properties increasing, there will be a need for additional schools, colleges, and hospitals, along with recreation centres such as malls, restaurants, and theatres. 
• Increase in standard of living: Metro’s ability to boost the economy will help improve Mumbaikar’s quality of life and increase its purchasing power, leading to more demand, which will also benefit the real estate industry.

Though Mumbaikars have always been known for their high resilience, the recent years were their toughest test as the city continues to undergo several under-construction projects, given the long hours of travelling, congestion, space constraints, and increased cost of living. Thus, metro lines 2A and 7 come as a breather.

The upcoming underground metro and the highly anticipated coastal road will only improve things for India’s highest contributor to GDP.