Thursday, June 01, 2017

Navi Mumbai International Airport to be a game changer for MMR region real estate

Government agencies announcing fast-tracking of permissions and clearances for the Navi Mumbai International Airport (NMIA) has created a ‘positive push’ for a totally new real estate development for the Mumbai Metropolitan Region (MMR), the Aerotropolis.
Recently, Civil Aviation Minister P Ashok Gajapathi Raju stated that the Maharashtra State Government agencies and the Airport Authority of India were working towards NMIA’s completion ‘at the earliest’. Among the fastest growing within the MMR, the Navi Mumbai – Panvel real estate market has been awaiting the ‘Aerotropolis’ which will literally, ensure the region ‘takes-off’ as regards further growth and development. With permissions and clearances coming through, the nodal agency, CIDCO expects to commission the first phase of the Rs 16,000-crore Navi Mumbai International Airport (NMIA) project, which has an estimated area of 2,320 hectares (9.0 sq mts) by December 2019.
The fast-tracking of the NMIA project is having a positive impact on real estate development in Navi Mumbai and locations in the airport’s vicinity, especially the Panvel region. The Rs 16,000 cr project is being executed by Mumbai International Airport Limited (MIAL), which won the contract in February 2017. MIAL is a Joint Venture between the Airports Authority of India (AAI) and the GVK Industries Ltd-led consortium.
The new airport will cater to 35 mn passengers by 2020, 55 mn by 2025, and 90 mn by 2030, according to CIDCO. CIDCO’s RFQ states that the estimated total project cost for the development of phase 1 and 2 of NMIA will be Rs 9,500 cr .The cost of pre-development work is estimated at Rs 2,358 cr (US$370 mn), which includes Rs 1,538 cr ($240 mn) of land development for airport and Rs 800 cr (US$120 mn) for other works.
01/06/17 Niranjan Hiranandani/Financial Express