The Union Cabinet recently approved two major metro rail projects in Maharashtra's Thane and Pune, worth over ₹15,000 crore. Real estate experts predict that these developments will provide a significant boost to the real estate markets in both cities, enhancing connectivity and driving property price appreciation.
In Thane, a 29-km long ring metro corridor has been approved, which will run along the periphery of the western side of the city, featuring 22 stations. This strategic metro network will be flanked by the Ulhas River on one side and Sanjay Gandhi National Park (SGNP) on the other, offering enhanced transport options for thousands of daily commuters. The project is expected to be completed by 2029.
The ring metro corridor will connect key business hubs, improve connectivity between Old and New Thane, and increase accessibility around the Thane railway station. Real estate consultant Mihir Doshi noted that similar infrastructure developments, such as the metro corridor along Ghodbunder Road, previously led to a 10-20% increase in property prices. With the metro now expanding towards Bhiwandi and Kalyan, residential and commercial prices are likely to witness further appreciation.
According to CREDAI-MCHI and CRE Matrix data, the Thane real estate market saw a 9% increase in sales in FY24, while unsold inventory dipped by 2%. This metro project is expected to further catalyze market growth, particularly as old buildings in Thane go under redevelopment following the metro's operational launch.
In Pune, the Union Cabinet approved the Swargate to Katraj underground metro line, an extension of the existing Pune Metro Phase-I project. Known as the Line-1B extension, this 5.46-km metro line will include three underground stations and connect key areas such as Market Yard, Bibwewadi, Balaji Nagar, and the Katraj suburbs. This project, set to be completed by February 2029, will enhance connectivity between North and South Pune.
Experts believe that the metro extension will lead to a surge in economic activity in and around South Pune, driving real estate growth. Current property prices in Katraj stand at around ₹6,000 per sq ft, with rental values for a 2 BHK apartment ranging from ₹20,000 to ₹25,000 per month. According to Aditi Watve, City Lead, Capital Markets, Pune at ANAROCK Group, infrastructure projects like the metro typically result in significant capital value appreciation, potentially surpassing the current 7% annual growth rate.
The new metro corridors in Thane and Pune are expected to serve as catalysts for growth in established residential and commercial markets. Vimal Nadar, Senior Director and Head of Research at Colliers India, highlighted that the Thane ring metro will significantly improve internal connectivity and ease congestion in key areas like Navpada, Wagle Estate, Hiranandani Estate, and Kolshet. This improved transport infrastructure will likely lead to higher capital values and rental rates over time.
As both metro projects progress towards completion, the real estate markets in Thane and Pune are set to experience substantial growth, further cementing their status as key residential and commercial hubs in Maharashtra.
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