SCLR: Long-term impact on real estate
As companies become increasingly employee-friendly in the long term, they will value shorter commuting hours for their workforces. BKC stands to gain the maximum because of this trend, as residential absorption is bound to increase in the Eastern Suburbs.
SCLR: IMPACT ON MICRO-MARKETS
CBD - In absolute terms, there will be no sizeable impact; however, the relative attractiveness of other markets due to the completion of SCLR will further enhance the trend of shifting from CBD to the other more viable business districts. However, the fact that the Eastern Freeway provides a positive impetus for the CBD may help in delaying the trend.
SBD Central – We expect a slight price correction to match the relative attractiveness of suburbs as alternative business destinations. While supply and absorption rates will remain flat.
SBD BKC - A positive impact will be seen in this micro-market, as the SCLR is expected to boost BKC's connectivity and decrease travel time significantly. Also, as SCLR emerges as the preferred east-west corridor, Kalanagar Junction will become less congested, which is another positive factor for BKC.
SBD North - Supply and absorption will both rise as a result of the improved linkage with the Eastern Suburbs and even Navi Mumbai. Besides BKC and Eastern Suburbs, this micro-market will see the maximum positive impact.
Western Suburbs - With most of the infrastructure projects happening in the Eastern Suburbs, new commercial space tenants may give the Western Suburbs a miss as the difference between the two suburbs has become more pronounced. One positive will be the decongestion of JVLR, which is usually clogged during peak hours due to the east-west traffic.
Eastern Suburbs - Metro, monorail, Eastern Freeway and now SCLR are all the marquee projects of Mumbai that have a connection with the Eastern Suburbs. Supply, absorption and rental/capital values are expected to move up.
Thane-Navi Mumbai - Thane might remain unaffected, but the Navi Mumbai market will show a positive movement as Chembur acts as a conduit between Navi Mumbai and the other markets in the adjoining areas of SCLR.
Tired of traffic congestion, many Mumbaiites are looking to trade in their current lifestyle for one that gives them more choices and flexibility. Mumbaiites traveling extensively overseas and with large amounts of disposable income are demanding far more from their living and working environments that what has been available to them so far. Another pertinent fact is that the challenge for talent in the next decade will prompt office tenants to increasingly locate in suburban business districts that offer their employees advantages such as access to a larger variety of utilities and services. Given all of the above, the SCLR will definitely be a game changer for real estate in the city.
Ramesh Nair, COO – Business, JLL India
