Dadar: Real Estate Metamorphosis in Mumbai’s Heart
Even as Lower Parel and BKC vie with each other for pre-eminence as Mumbai’s commercial real estate hotspots, Dadar – Mumbai’s oldest and most established locations – stands in a class uniquely its own by virtue of its extremely favourable geographical placement and connectivity. For this reason – and for all practical purposes – Dadar is the heart of Mumbai.
For this reason, Dadar has historically proved to be so popular that the market itself is near saturation point in terms of its residential property market. There are currently only two new residential projects scheduled within Dadar – Ekta’s Invictus on Dr. Ambedkar Road, which will take around three years to complete, and Omkar’s Woodside on Gokhale Road, scheduled for completion by January 2012. In Dadar’s immediate vicinity, Rustomjee has completed and sold out La Sonrisa, while Bombay Dyeing’s Spring Mills in Wadala is now ready for fit-outs.
Apart from these, there is next to no scope for further greenfield residential developments owing to a lack of plots, there is a significant level of redevelopment going on within Dadar and its surrounding areas. While entities such as Richa Realtors and Matoshree Developers have active redevelopment projects right within Dadar, a number of other developers are also active in Mahim and Matunga, right up to Elphinstone Road.
What Drives Dadar Real Estate
Workplace location is the single-most important factor for Mumbai’s professionals. By that coin, Dadar scores a perfect 10 in terms of its legendary accessibility. Dadar station has the exceptional distinction of being the only one in the city that is common to both the Central and Western lines, with neighbouring Wadala serving as a convenient access point from the Harbour line.
A primary public transport hub, Dadar is also easily accessible by road. In practical terms, this means that professionals living almost anywhere in Mumbai (and in fact even Pune) and working in Dadar can reach their workplaces with a single journey and commute back with equal ease. The inconvenience of changing buses and trains – the bane of most Mumbai’s working professionals – is effectively eliminated. Importantly, Dadar is also a mere 8.5 kilometres from the domestic airport at Santa Cruz.
Lower Parel has now firmly established itself as a business district with a distinct multinational presence. However, with its rapid development as a corporate office hub, every available plot in Lower Parel suitable for office space development along the strategic Tulsi Pipe Road is now spoken for.
BKC continues to hold considerable tactical value for corporate office space occupiers. However, Lower Parel has set an astounding pace in Grade A office space development, and the forward momentum set by some recent key projects has now found a natural growth extension in Dadar. With the completion of a couple of new landmark Grade A office projects, Dadar has now joined the fray for Grade A business spaces in Mumbai.
The Immediate Future
With these developments raising the commercial space equation in Mumbai’s most advantageously connected location, it can be anticipated that redevelopment of many of the existing buildings in and around Dadar will follow as a natural consequence. In any case, Dadar’s real estate profile is about to undergo a well-deserved and long overdue metamorphosis as it finally makes its debut in the Grade A office segment.
The up-tick in commercial real estate activity in Dadar will lead also to increased demand for residential properties there as well as the surrounding areas. In Dadar, the current residential rates are between Rs. 20000-27000/sq.ft. In Mahim and Matunga, they range from 18000-22000/sq.ft. One can expect these figures to change as Dadar begins to evolve as a Grade A office destination.
By Ramesh Nair, Managing Director – West India, Jones Lang LaSalle India