Corridor of growthCorridor Description and Rating

A N D H E R I - G O R E G A O N

Areas Included: Andheri (West), Goregaon (West), Andheri (East) and Goregaon (East)

Fig 1: Map of the corridor

Historic Development The Andheri-Goregaon corridor is broadly enclosed between the Chhatrapati Shivaji International Airport in the south, the Sanjay Gandhi National Park in the north, the Powai Lake in the east and the Versova Beach and Malad Creek on the west. Much of the development in the corridor is quite old, existing from before 1990s. With the booming of the economy and rising prices of the commercial sector in South Mumbai led to many corporate houses shifting to this particular area. This provided less congestion, proximity to the Airport, better connectivity and less costly real estate for office space as well as employee accommodation.

The presence of Versova Beach on the western side has led to many premium residential developments like the Lokhandwala Complex.Many new projects were started and completed in order to attract home buyers. On the other hand, the eastern side of the corridor witnessed constrain in the development in areas above the Jogeshwari–Vikhroli Link Road due to the special land use nature of the area with forests and cattle ranges.

The Andheri-Goregaon corridor has four major regions namely Andheri-East, Andheri-West, Goregaon-East and Goregaon-West. Of the four regions, Andheri West is the most developed with a number of premium residential developments avaialble at ease while Goregaon East is the least developed due to a significant portion of its landmass falling under the special land use.

Present Infrastructure The corridor has had strong infrastructure linkages with many key infrastructure landmarks present here including the Chhatrapati Shivaji International Airport and the Santacruz Electronics Export Processing Zone (SEEPZ).

While the airport has been a strong driver of commercial real estate development in Andheri East as well as along the Western Express Highway (NH-8), the SEEPZ led to many residential developments in the 90s era.

The area has also been historically blessed with strong transport linkages including the Western Express Highway, Western line of the Mumbai Suburban Railway providing connectivity to both South Mumbai, the northern suburbs and peripheral areas.

The New Link Road and the Swami Vivekanand Road, also running from north to south, have been instrumental in the development of residential areas on the west of the Western line. While the corridor had excellent North-South connectivity but the East-West connectivity was abysmally poor. But this also changed after the construction of the Ghatkopar–Versova line, which has reduced the East-West travel time by more than half. Though due to the presence of the airport, the Western Express Highway witnesses traffic congestion during peak hours.

Upcoming Infrastructure This will be further boosted by the construction of multiple metro lines and the elevated rail corridor. Currently, seven other lines are planned to be constructed in the city of Mumbai of which four lines are passing through the corridor. These lines are the Dahisar-Charkop-Bandra-Mankhurd Metro Line, the JVLR–Kanjurmarg Metro Line, the Dahisar E-Andheri E Metro Line and the Colaba-Bandra-SEEPZ Metro Line. Work on both the Dahisar-Charkop-Bandra-Mankhurd Metro Line and the Dahisar E-Andheri E Metro Line is expected to start soon and will get completed by 2019. Preliminary Work on the Colaba-Bandra-SEEPZ Metro Line has already started and is expected to be finished by 2021.

In addition, the plan to create an elevated rail corridor between Bandra and Virar was also proposed by the Rail Minister during the February rail budget this year. Work might start as soon as August 2016. All these mass transportation systems are going to change with the mobility landscape of the corridor, providing opportunity to its residents.

Current DevelopmentThe corridor is a mix of old and new constructions with the old residential

construction occupying at least 70% of the available residential land in the corridor. The old residential buildings are mostly Ground +2 structures and are poorly maintained while the new residential projects are all in the upper-mid or luxury segments, providing a lot of amenities.

Andheri East, closest to the airport, has witnessed development of a number of offices and hotels on both Sri Mathuradas Vasanji Road and Guru Hargovindji Road and houses corporates like Hindustan Uniliver and Glenpark. Areas along the western railway line are congested due to lack of planning in these areas.

As an area adjacent to the glamorous Juhu area and having premium localities like Lokhandwala Complex, Andheri West has seen significant re-development in recent years with luxury projects like Rustomjee Elements which has apartments starting at Rs 10 crore and is already 70% constructed. Adani Western Heights, with apartments starting at Rs 3 crore, is also in the advanced stages of construction.

The average prices for residential properties currently under construction in Andheri West ranges between Rs 18,000-20,000 per sq ft while projects in Andheri East are priced a notch lower at Rs 16,000-18,000 per sq ft. The new properties that are under construction is also providing modern amenities and facilities for the home buyers here.

In addition, there are also a number of under construction hotels and offices in this area. This shows there is also development taking place in teh commercial space as well. The roads are wider compared to Andheri East and the area scores high on social infrastructure with a large number of hospitals, including the famous Kokilaben Dhirubhai Ambani Hospital, and the 2.5 lakhs Sq ft Infinity Mall. There are schools, parks, restaurants including other facilities that are easily avilable in this corridor.

Development in West Goregaon is much newer than those of Andheri East and West, and these areas are also prime spots for residential and commercial real estate development. Areas on both the New Link Road and the

Corridor of growth (COG)02

About the Corridor

Properties available in the corridor

The corridor offers a significantly wide variety of price ranges, much more than in any other growth corridor across

India and which also has properties costlier than in any other corridor. The starting price

of properties here is Rs 80 lakh, making all the properties fall in the luxury category and making this the only corridor catering exclusively to the luxury segment. The properties are fairly distributed across price

points of upto Rs 2.5 crore, post which the contribution to the total pie starts diminishing for each price segment. The corridor is in a well-developed part of Mumbai and majority of the available listings are ready-to-move-in,

Overall Connectivity Social Infrastructure Security/Water

Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration

Swami Vivekanand Road are mostly residential and high-street.

The key under construction developments in this area include the Ariisto Sommet, Imperial Heights by Radius Developers, Kalpataru Radiance, HDIL The Meadows and Sunteck City Avenue. On an average, the area is Rs 1000-2,000 per sq ft cheaper than Andheri even though it does not lose out on the location. There is not much commercial development taking place in the area, which is mostly in Goregaon East. There is no quality mall in Goregaon West although both the 6 lakh sq ft Inorbit Mall in Malad and the Oberoi Mall in Goregaon East are close by.

Goregaon East has much less development compared to the rest of the corridor with most of it being concentrated on the Western Express Highway and in areas near the Film City. The leading developers such as Oberoi Realty, Omkar, Lodha Group and Paranjape Schemes have luxury residential projects under various stages of construction in the micro market. The home buyers are also showing immense interests in these properties.

The average prices for residential properties in the locality hovers around Rs 13,000-15,000 per sq ft. The commercial development here is mostly witnessed on the Western Express Highway, in areas like the CAMA Industrial Estate. There is plenty of green space in the area, which is an advantage for development of this corridor, although the residential developments near the Film city, on Aarey Road are mostly affordable in nature and but the area is little difficult to commute.

Commercial DevelopmentMumbai is quite desirable for commercial development. People from far away places migrate to the city for setting up their business for growth. In fact, many multinational companies are also having their presense in this city, which is helping to generate potential employment and revenue for the state of Maharashtra. Majority of the commercial development on the corridor has been mushrooming on the narrow stretch of land on both sides of the Western Express Highway, benefiting from the connectivity provided by the expressway and proximity to the airport,

along with cheaper rentals compared to south and central Mumbai. There are number of new projects that are coming up in the commercial space, which is attracting investors.

Outlook The corridor is a prime destination of residential, commercial, retail and hotel developments in the region and will benefit greatly from the number of infrastructure projects active here. New infratsructure projects are already in pipeline such as extension of metro line, railway line, including others.

However, the current state of traffic congestion seen on the Western Express Highway is a situation of concern and has resulted in buyers shifting to Central Suburbs (comprising localities like Mulund and Kanjurmarg) for new home purchases. The corridor does not have any land availability, which is also a concern. But one thing is vital to know about this corridor is that most of the ongoing projects are re-developments, providing limited scope for future development. But, the area is rated high on social infrastructure.

Corridor of growth (COG)03

Corridor of growth (COG)04

The top 4 localities for rental demand are the four key regions located on the corridor with Andheri East and Andheri

West constituting near about 60% of the

total demand while Goregaon East and West account for almost 30%. Of the next six localities, Versova, Jogeshwari West, Juhu-Versova Link Road and Shastri Nagar all lie on

the west of the western rail line, while only Marol and JVLR lie on the east of the same. The property prices available for renting in this corridor are between Rs 41,300-61,100.

providing immediate possession. Given the expensive nature of the residential sector in this region, more than 40% of the supply is in the 2BHK category, followed by the 3BHK format with one third of the supply, leaving just 10% for 4BHK units and above.

The corridor provides a wide range of choices for each bedroom configuration with prices

varying along the length of the corridor, falling as one moves north and away from southern Mumbai. While the range of apartment sizes is large, the majority of configurations of 1, 2, 3 and 4BHK units are around 630, 1100, 1600 and 2600 sq ft respectively. These sizes are slightly more than the average sizes available in cities across India.

Sales Price Covered Area ( Lacs) (Sq.ft)

1 BHK 75-160 540-710

2 BHK 120-280 860-1270

3 BHK 220-470 1,280-1,910

4 BHK & above 285-865 1,890-3,340

Best sectors to invest in a home Based on rental demand in sectors

Table 1: Sizes and prices of flats available for various room configurations

Based on home buying demand in sectors

Fig 5: Top 10 localities by consumer for renting a house

Fig 6: Top 10 localities by consumer for buying a house

Best bedroom configurations to buy Preferred buying and renting options

Buying Renting Total (BHKs) Total (BHKs)

1 BHK 26% 43%

2 BHK 43% 35%

3 BHK 23% 20%

4 and Above 7% 2%

Table 2: Demand distribution for buying and renting

The home buying tendency follows closely with the rent seeking tendency on the corridor. All the localities which

have high rental demand will give better

returns to owners and hence, more people will be looking to buy in these localities. Consequently, eight of the top ten localities by consumer searches for buying a house, are in

the top ten localities by consumer searches for renting a house.

The corridor is being preferred for buying and renting purpose as there is a potential options available for the home

buyers . The 2BHK format is the predominant apartment type in the Andheri-Goregaon Corridor, occupying 43% of consumer demand for buying a house and 35% demand for renting. While the buying demand is almost

equal for 1 and 3BHK formats, but there is a potential renting options available in 1BHK format in this particular corridor. The rental demand for the 1BHK format far outstrips the 3BHK and even the 2BHK units in this corridor. This is in line with the supply, as 1BHK units have a much higher availability for renting as compared to the supply for sale.

Price changes and future prospects Historic Price movement Table 3: Historical Price changes

Mumbai market has been very stable compared to the rest of India, and the price changes have been largely

constrained in this market. The Andheri-Goregaon corridor has witnessed sale transactions as well as inventory additions, keeping pricing stable for the corridor.

The price changes for the last 5 quarters had a narrow range of -2% to 4.3%. Going forward, in the long term, not only the upcoming supply is going to be restricted in the corridor, but the infrastructure of the corridor will also improve with the upcoming 4 metro lines, putting upward pressure on the prices.

Fig 7: Historical Price changes of corridor

Corridor of growth (COG)05

6 monthly change Yearly change

-1% -1%

Corridor Average Price Rs/sqft

Price movement for top localities by Consumer Preference

The last quarter has witnessed the fall in prices for three of the top four key localities in the corridor. However the decline in price did not hold a pattern and has been because

of seasonal changes.

The only locality, which witnessed a price increase in the last quarter was Goregaon East. However, the price increase is less than 1%. The price movement is happening according to the demand of the consumer preference in the corridor.

Fig 8: Price changes in top localities by consumer demand

Master Plan

As a result of space crunch, the city, on the basis of available support infrastructure, provides developable

area on a plot of land to be between 200% and 800%, in its new development plan 2014-34. This trend is rarely witnessed in other cities of India, where the ratio is usually between 150% and 300%. This has led to a

lot of vertical development in the city. As the city’s population gets richer, the demand for bigger homes will rise. As a result, the city has devised a unique system of increasing the developable space in projects.

However, vertical development puts direct pressure on the resources and areas with lots

of residential/commercial development are expected to witness water shortage in future. Overall, while there is a severe dearth of land in the corridor for residential use, leading to re-development of industrial areas, which forms around 10% of the city’s total developable area.

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Infrastructure UpdatesVersova–Andheri–Ghatkopar Metro LineThis line is already operational, connecting Andheri East with Andheri West and runs very close to the airport. This line actually connects the eastern and western suburbs of the city.

Dahisar-Charkop-Bandra-Mankhurd Metro LineWork on the line is expected to start soon and to be completed by 2019. The line connects the north of the Western Suburbs with Central and East Mumbai regions and it is fully underground network.

JVLR–Kanjurmarg Metro LineThis is the connecting line between the Andheri-Dahisar Line in the west, Colaba-Bandra-SEEPZ Line in the centre and Wadala-Ghatkopar-Thane-Kasarvadavali Metro Line in the east. This line runs parallel to the JVLR road. It will also help to improve the connectivity to other parts of the city.

Dahisar E - Andheri E Metro LineWork on the line is expected to start soon and be completed by 2019. The line runs parallel to the Western Express Highway and provides connectivity to the eastern portions of the Western Suburbs.

Colaba-Bandra-SEEPZ Metro LinePreliminary Work on the Colaba-Bandra-SEEPZ Metro Line has already started and is expected to be finished by 2021. This line connects the corridor with South Mumbai while passing through the airport.

Bandra-Virar Elevated Rail LineAlthough this project has been in the backburner for some time due to it running parallel to the Dahisar E - Andheri E Metro Line and the Dahisar-Charkop-Bandra-Mankhurd Metro Line, e Rail minister in the February budget this year, said that work might start as soon as August 2016.

Goregaon offers attractive housing options

Goregaon offers attractive housing options to consumers. Majorly, the residential complexes in this locality provide luxury and comfort in terms of amenities such as swimming pools, clubs, restaurants, sports platforms and courts, kids’ club, etc. At the moment, there are a number of new residential projects coming up in both, Goregaon East and West. Prominent realtors have invested in the area, as they are quite confident about the return on investment. The fundamental reason behind Goregaon’s growth is that other areas such as Bandra, Andheri and Powai belts are unaffordable for many. This spills the demand to areas such as Goregaon, as property prices are comparatively affordable.

n Source: Magicbricks Bureau

Andheri West offers new residential supply

If you are looking for buying properties in Mumbai then Andheri has something to offer. Andheri West is located at a distance of 6 km from the Western Express Highway ensuring connectivity across the city. The nearest railway station is Andheri Railway Station at a distance of 4 km and Mumbai International Airport at 7 km. The locality offers a well-fabricated social infrastructure with schools, hospitals, commercial complexes and banks. If you are looking to buying a property and wish to live in a locality offering a good lifestyle, developed infrastructure, good connectively and affordable capital values, Andheri West can be worth considering.

n Source: Magicbricks Bureau

Goregaon: Most preferred residential locality in Mumbai

Today, Goregaon is considered to be the most sought after location for real estate development and growth. Goregaon has well developed social and physical infrastructure and this has made the locality one of the most preferred residential localities in Mumbai. The area has witnessed unprecedented growth in the last few years. It has emerged as a sought-after location for potential buyers and investors alike. Located in the northern part of Mumbai, this suburb is easily accessible. This suburb is close to commercial areas such as Andheri and Bandra. The Western Express Highway is in proximity making it easy for the residents to reach other parts of the city conveniently.

n Source:The Times of India

Property investors are exploring new avenues

The property investors are showing interests in the Andheri real estate market immensely. Actually, a number of start-up firms have set up their offices in the locations (Andheri), which has fuelled growth for housing demand in the surrounding locations. The developers are also providing modern facilities that will attract home buyers. Areas located in the western suburbs have good investment options for a home-buyer to consider. Some of the other factors to consider when investing in a property are connectivity and social infrastructure development in and around the area. Andheri and Goregaon have the future demand, connectivity, infrastructure development and growth, which will attract buyers to the location.

n Source: The Times of India

IN NEWSCorridor of growth (COG)07

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