Eastern Express Highway Realty Sees Highest Appreciation
Most of the areas in Mumbai city and MMR (Mumbai Metropolitan Region) are seeing a stagnant or downward slope in capital values in the last two years. However, among all the areas in Mumbai where capital value has appreciated, localities along the Eastern Express Highway (EEH) have seen the highest appreciation.
Capital values in areas such as Mulund east, Vikhroli west, Vikhroli east, Kanjurmarg east, Bhandup east and Pokhran Road which lie along the Eastern Express Highway appreciated by about 50-65% since 2011. There are two major reasons for the spike in capital values in these localities.
1) The Eastern Expressway is a major highway and is a part of National Highway (NH 3). This connects the eastern suburbs to the main city of Mumbai and Thane. It is also one of the busiest highways in MMR with a heavy traffic density.
2) These localities are also close to expensive suburbs such as Powai, Vikhroli, Kanjurmarg and areas such as Thane. Despite their proximity to upscale areas, these localities have lower capital values. For example, the capital value in Kanjurmarg is between Rs. 11,500 – 14,500 per sq.ft while it is approximately Rs. 18,000 per sq.ft in Powai.
Prices range in localities along EEH
The following is a look at how capital values of localities alongside the Eastern Express Highway have appreciated in the last two years. The average capital value in Mulund east saw a value of Rs. 13,500 per sq.ft during the third quarter this year compared to Rs. 9,600 per sq.ft during the third quarter of 2011. Similarly, Bhandup east saw an increase from Rs. 8,200 per sq.ft in 2011 to Rs. 11,350 per sq.ft in 2013. Vikhroli west saw a price appreciation from Rs. 9,400 per sq.ft in 2011 to Rs. 14,100 per sq.ft in 2013 and Vikhroli east saw a price jump from Rs. 10,200 per sq.ft in 2011 to Rs. 12,300 per sq.ft in 2013.
While the overall economic and real estate industry in Mumbai looks uninviting to an investor, areas along the eastern express highway still offer a decent scope for investment.
