Mumbai’s Underground Metro on the Brink of Inauguration and Real Estate Market Sees 10% Drop During Festival

Mumbai‘s first-ever underground Metro line, known as the Aqua Line, is set to commence operations soon, according to officials. The initial phase of the Metro, stretching from Aarey Colony to the Bandra-Kurla Complex (BKC), awaits final safety clearance. This was confirmed by Ashwini Bhide, the managing director of Mumbai Metro Rail Corporation (MMRC), during a recent press briefing.

Bhide stated that the Metro Line 3 will be operational “very soon,” pending clearance from the Commissioner of Metro Railway Safety (CMRS). Covering a 12.5 km distance, this segment is part of the larger 33.5 km Colaba-Seepz-Aarey Metro project. “We are poised to launch the Aarey to BKC segment subject to the necessary safety approvals,” Bhide affirmed.

Official sources suggest that the route may be inaugurated by Prime Minister Narendra Modi along with other infrastructure projects in the state, within the first week of October. Currently, 93% of the entire Colaba to Aarey line is complete, and it is expected to be fully operational by March or May 2025. The Aarey-BKC stretch will feature ten stations, enhancing connectivity to the Chhatrapati Shivaji Maharaj International Airport and Metro Line 1 at Marol Naka station.

In parallel developments, the Mumbai real estate market has recorded a 10% decline in property registrations during the Ganesh festival of 2024, as per Maharashtra’s Inspector General of Registration (IGR) data collated by Knight Frank India. The real estate consultancy firm reported 3,400 property registrations compared to 3,700 in the previous year’s festival.

Knight Frank India remarked that while it is premature to discern long-term market trends from short-term data, factors such as a high base effect and slow growth in macroeconomic indicators may suggest moderation in economic activities. Vivek Rathi, National Director of Research at Knight Frank India, stated, “The fundamental factors supporting housing demand remain strong. A possible policy repo rate cut and the festive season are expected to sustain the housing sales momentum.”

Real estate absorption, or sales, rose only in Delhi NCR by 22% and Navi Mumbai by 4% on a year-on-year basis for Q3FY24, as per Propequity data. In contrast, cities like Hyderabad and Bengaluru saw significant declines. Despite these trends, industry experts maintain that overall demand remains robust.

Rajendra Sharma, Chairman and MD at Ambit Realtors and Developers, notes that ready-to-move-in projects continue to see better sales. “The demand remains strong in Mumbai, particularly in the western suburbs,” Sharma indicated. His firm plans two new project launches in Kandivali West and Malad West, ranging from ₹2 crores to ₹4 crores.