Several metro cities are witnessing the growth and development of the residential real estate market due to the development of new business districts. The Maharashtra Government, for instance, is planning to make Wadala a new business district through the tapping of 64 hectares for commercial and residential ventures. The West Bengal Government has officially announced the building of a new Silicon Valley-like commercial district at New Town which is located on the fringes of Kolkata. This is where mega projects will be developed by the likes of Infosys and Reliance Jio.
In the National Capital Region (NCR), Golf Course Extension is another upcoming commercial hub while business hubs are also coming up at the Outer Ring Road in Bangalore and Khadadi at Pune. These new commercial hubs will lead to rapid development of residential real estate markets in each of these areas and cities according to experts.
Every metro city naturally witnesses a shifting of key business districts over a sustained period of time due to several aspects like expansion requirements, infrastructural needs and overall market saturation. Multiple secondary business hubs are being set up throughout the country and these have the potential to spur major residential real estate growth. Whenever there is sustained progress made by a new business zone, experts feel that residential realty demand also increases hugely throughout the area which sparks major development in turn.
For example, the Bandra-Kurla Complex (BKC) has been a game changer, spurring residential realty development in areas like Bandra East while the same effect has been witnessed in Thane which is also coming up as a key business district. With commercial and residential real estate development, allied sectors like entertainment, F&B and retail also benefit. However, it usually requires around 15-20 years for any business district to achieve widespread success.
As per experts, north Bangalore should be off to a faster start in terms of residential and commercial real estate development with companies such as Brigade and The Phoenix Mills having started work already post land acquisition. The Mumbai Metropolitan Region (MMR) will see residential real estate demand growing on account of better connectivity, commercial growth and higher affordability.
In fact, Lodha Group has set the ball rolling with mega projects like Lodha Palava in the Kalyan-Dombivali zone and New Cuffe Parade at Wadala. These will be commercial cum residential projects with retail projects integrated into the mix. These projects will boost connectivity in the MMR and are located strategically as per reports.