The recent approval of two significant metro rail projects by the Union Cabinet is poised to have a considerable impact on the real estate markets of Thane and Pune.These developments, with a combined investment exceeding INR 15,000 crore, are expected to bolster the appeal of these cities, driving both residential and commercial real estate growth, according to industry experts.
In Thane, the Cabinet has greenlit a 29-kilometre ring corridor that will circumnavigate the western periphery of the city, featuring 22 stations. This corridor, flanked by the Ulhas River and the Sanjay Gandhi National Park, is strategically designed to connect major business hubs. Once operational, it promises to significantly enhance the daily commute for a large section of the workforce, further solidifying Thane’s status as a preferred residential destination.
The project is expected to be completed by 2029. Real estate experts believe that this new metro corridor will catalyse a surge in property prices across Thane. Historical data supports this projection; for instance, the construction of the earlier metro corridor along Ghodbunder Road resulted in a 10-20% increase in property prices in the vicinity. As the metro network expands towards Bhiwandi and Kalyan from Thane, similar trends in capital appreciation and rental value increases are anticipated. Currently, property prices in Thane range from INR 10,000 to INR 25,000 per square foot, while rental values for a 2 BHK apartment are between INR 20,000 to INR 45,000 per month.
This new ring corridor is expected to create seamless connectivity between Old and New Thane, with particular emphasis on enhancing accessibility to areas around Thane railway station. Such developments are likely to spur redevelopment projects, particularly of older buildings, thereby further driving up property values. The broader real estate market in the Mumbai Metropolitan Region (MMR), which includes Thane, is already on an upward trajectory. According to recent data from CREDAI-MCHI and CRE Matrix, sales in the MMR increased by 5% in FY24 compared to FY23, reaching 1.32 lakh units. Thane, in particular, saw a 9% increase in sales, despite a 36% decline in new launches and a 2% reduction in unsold inventory.
The approval of the Swargate to Katraj underground metro line in Pune marks a critical expansion of the existing Pune Metro Phase-I project. This 5.46-kilometre extension, set to be completed by February 2029, will include three underground stations, linking key areas such as Market Yard, Bibwewadi, Balaji Nagar, and Katraj. The extension is expected to enhance connectivity between North and South Pune, thereby stimulating economic activity in these regions. Property prices in Katraj currently stand at approximately INR 6,000 per square foot, with monthly rental rates for a 2 BHK apartment ranging from INR 20,000 to INR 25,000. Real estate experts predict that the new metro project will further boost these figures, as improved connectivity typically drives capital value appreciation.
A spokesperson from ANAROCK Group highlighted that infrastructure projects like this one often exceed the usual 7% annual capital value appreciation seen in Pune. Additionally, experts from Colliers India noted that the Thane ring metro project would significantly enhance connectivity within Thane, connecting key residential and commercial hubs such as Navpada, Wagle Estate, Hiranandani Estate, and Kolshet. This enhanced connectivity is expected to ease commuting, decongest key areas, and serve as a catalyst for growth in established residential and office markets, leading to appreciation in both capital values and rental rates over time.
