The Maharashtra government’s proposed “Mumbai 4.0” vision is triggering strong investor interest in the Vasai-Virar-Palghar region, with land prices in several locations doubling or even tripling over the past two years amid expectations of large-scale infrastructure-led development.
While work on the Mumbai 3.0 region around the upcoming Navi Mumbai International Airport is still in progress, investors have already begun shifting their focus towards the state’s next planned urban expansion corridor.
According to local land aggregators, non-agricultural land prices in select parts of Virar (East), particularly along National Highway-48, have risen to nearly Rs 10 crore per acre. Prices in neighbouring Palghar have also witnessed sharp appreciation, while coastal land parcels are attracting an even higher premium.
The surge in land values has been driven by a series of proposed infrastructure projects, including the Rs 76,000-crore Vadhavan Port, Mumbai’s proposed third airport, the Mumbai-Ahmedabad Bullet Train, the Delhi-Mumbai Expressway, the Virar-Alibaug Multi-Modal Corridor and the proposed Uttan-Virar Sea Link.
Despite rising investor interest, the region continues to face challenges related to civic infrastructure. Recent heavy rains highlighted deficiencies in drainage, water supply, electricity and road connectivity, while most commuters continue to depend on the crowded Western Railway suburban network.
Market experts believe the area’s long-term growth prospects remain strong, provided infrastructure projects are executed as planned.
“For investors with a long-term horizon of seven to ten years, the region presents an interesting opportunity. However, this is not a market for short-term speculation. Buyers should focus on legally clear land in locations that are likely to benefit directly from upcoming infrastructure,” said Kamlesh Thakur, President, NAREDCO Maharashtra.
Although developers such as Birla Estates and Sunteck Realty have announced projects in the region, large-scale land acquisitions by major Mumbai-based developers have yet to gather pace. According to brokers, much of the current activity is being driven by investors positioning themselves ahead of future development.
Chintan Vasani, Managing Partner at Wisebiz Realty, said, “Developers in Mumbai have not aggressively pursued land parcels recently, either within the city or in emerging areas such as Mumbai 3.0. Instead, firms from Gujarat, Pune, Bengaluru and other regions are making strategic bets on these future neighbourhoods and may similarly acquire substantial land parcels in Mumbai 4.0.”
However, industry experts caution that infrastructure alone will not determine the region’s success.
“History shows that infrastructure changes geography, but economic activity changes destiny. The real success of the Vasai-Virar-Palghar corridor will ultimately be measured not by how much land prices rise today, but by how many people choose to live, work and invest there over the next decade,” Thakur said.
Source: Money Control
