Navi Mumbai: Shaping up as next big commercial hub due to infrastructure boost
Navi Mumbai has established itself as a modern and well-planned extension of India’s commercial capital. Backed by the creation of infrastructure and the advantage of being positioned as a strategic location makes it a robust hotspot. In the commercial real estate space, the land of Navi Mumbai has emerged as a major corporate hub within a short time adding to the strength of the already established business districts in Mumbai. The mega infrastructure projects planned for Navi Mumbai have drawn in attention from major corporates and developers alike.
Be it the Mumbai Trans Harbour Link (MTHL), along with planned metro lines or the upcoming Navi Mumbai International Airport, major infrastructure developments have given heft to Navi Mumbai’s connectivity and appeal. The addition of these much-needed infrastructure projects combined with a well-planned urban framework, have catapulted Navi Mumbai into becoming the preferred destination for commercial investments.
The upcoming international airport in Navi Mumbai set to become operational next year will be a transformative force acting as a catalyst for growth in the region's hospitality sector. With the anticipated surge in office spaces and the establishment of Global Capability Centers (GCCs), in the Navi Mumbai Airport Influence Area will create a robust demand for convention centres to host corporate meetings and event venues. This will also position Navi Mumbai as a strategic business hub, offering immense potential for the expansion of luxury and mid-range hotels to meet the needs of business travellers and global professionals.
What gives Navi Mumbai the unique advantages making it stand out is proximity. The proximity that it offers to Mumbai and Pune, along with relatively affordable office rentals and ample availability of land, have ensured it is a viable alternative to costlier central business districts. The skilled workforce that Navi Mumbai offers, combined with its focus on creating industrial and IT parks, led to the creation of a sustainable commercial ecosystem along the Sion-Panvel highway, the Palm Beach Road, Belapur-Thane Road or the upcoming Upper Kharghar node.
The office leasing market in India is on track for a record-breaking year, according to a JLL report* which indicates that gross leasing volumes will reach 53.43 million sq ft in the first nine months of 2024. JLL has projected that the total leasing activity could touch 70 million sq ft by year-end as India’s position as a global office hub remains strong, driven by the continued expansion of international occupiers, who accounted for 56.8% of gross leasing volumes in the third quarter this financial year. On a year-to-date basis, Global Capability Centers (GCCs) led the market with a 55.5% share, while domestic occupiers contributed the remaining 44.5%. As a result, many large companies are now setting up back-end offices in Navi Mumbai, leveraging its lower operational costs and modern infrastructure.
As it rises in stature as a commercial hub, Navi Mumbai is also contributing to the local residential real estate market. Developers are creating a blend of luxury and affordable housing to cater to Navi Mumbai’s current and expected workforce. Navi Mumbai has been witnessing continuous development over the past decades and this has led to individuals seeking better employment opportunities with comfortable living options. This transformation-led influx has further spurred industrial and commercial growth, creating a virtuous cycle of development. Commercial properties in Navi Mumbai are also increasingly seen as a lucrative investment option given that they offer higher returns and reliability in terms of tenants and rental income.
The excellent public transportation system, featuring local trains, planned metro lines, and new rail link to Navi Mumbai airport, have ensured seamless connectivity across the entire region. Efforts to reduce traffic congestion and enhance civic infrastructure works like the Turbhe-Kharghar tunnel and lane expansion of the Vashi bridge are further going to strengthen its appeal to investors. Navi Mumbai’s land prices have crucially remained relatively reasonable compared to other major IT hubs in India, making it a highly attractive market for corporate expansions. With land deals averaging around $1 million per acre, the region is witnessing a surge in demand for commercial developments.
As Navi Mumbai’s commercial real estate sector blooms, its benefits are bound to extend to residential markets as well. The interplay between the two segments is set to drive the city’s potential to emerge as a holistic urban center of the future. With well-planned infrastructure, affordability, and strategic connectivity to Mumbai and ‘Third Mumbai,’ Navi Mumbai is positioning itself as the next big commercial hub, poised to compete with established corridors like Gurgaon, Pune, and Bangalore.
