Nifty Realty At 15-Year High As Mumbai Real Estate Stocks Surge Over Atal Bridge
The 21.8-kilometre bridge has been built at a cost of Rs 21,200 crore.
Nifty Realty jumped over 2% to hit a 15-year high on Friday, led by gains in real-estate firms operating in Mumbai amid the inauguration of a key bridge that connects the financial hub to Navi Mumbai.
The new bridge, which will lead to improved connectivity, is expected to ignite heightened commercial and residential activities in crucial micro markets, including central Mumbai and the satellite city, according to analysts.
"Property prices are already on the rise and are expected to increase in the next coming months," Sunil Dewali of Andromeda Sales & Distribution Pvt. said. "Developers from across the country are vying with each other to establish their presence here."
The 21.8-kilometre bridge, officially called the Atal Bihari Vajpayee Sewri-Nhava Sheva Atal Setu, has been built at a cost of Rs 21,200 crore. The six-lane link, with a 16.50-km stretch on the sea, is expected to cut travel time from Navi Mumbai to south Mumbai from just under two hours to about 20–25 minutes.
The Nifty Realty rose as much as 2.29% during the day to hit a 15-year high. Macrotech Developers Ltd. jumped over 8% to a record high on the NSE.
Mumbai-based realty firms, such as Godrej Properties Ltd. and Oberoi Realty Ltd., also witnessed a significant uptick in response to the recent developments.
Here's What Analysts Say
Shobhit Agarwal, CEO At Anarock Capital
The inauguration of the much-awaited trans-harbour link is a significant positive for the development of real estate towards the mainland, according to Agarwal.
"We expect a boost to demand, which is likely to be met with increased launches in the micro-market, indicating an increased level of activity for developers active in the region," Agarwal said.
Rajashree Murkute, Senior Director At CareEdge Ratings
"MTHL will lead to phase two of de-localisation and de-concentration. The first phase was the movement from South Mumbai to the Bandra Kurla Complex, with the majority of the offices shifting base. The expected consequential boom in real estate—both commercial and residential—is thus logical," Murkute said.
Mumbai’s infrastructure development, especially in terms of connectivity, is catching up rapidly across the city. Be it coastal roads, a new airport, metro lines, MTHL or underground connectivity, a lot of activity is still left, according to Murkute.
"What may emerge ahead will be more utility-focused projects offering better intercity roads, water supply, gas pipeline connections and superior drainage systems, all needed to cater to real estate development. Cement and steel sector companies are already giving huge impetus to the Mumbai market," Murkute said.
Vimal Nadar, Senior Director, Research, Colliers India
The upgrade has the potential to reimagine the real estate landscape of the city, somewhat liberating it from the growth limitations that comes from the virtue of being a linear city.
Key micro markets like central Mumbai and Navi Mumbai are poised to witness heightened commercial and residential activity led by improved connectivity.
Sunil Dewali Of Andromeda Sales & Distribution
Property prices are already on the rise and are expected to increase in the next coming months. Developers from across the country are vying with each other to establish their presence here, Dewali said.
Looking at the future growth potential, homebuyers and investors are rushing to invest in properties in Panvel and Navi Mumbai region, he said.
