It will take 20 years for prices to come down

The city has 2,500 acres of free land, and reclamation could up that figure. But the impact on prices will not be felt immediately, says Arvind Nandan

Reclamation is a very good option for Mumbai and it will definitely help the city, like it  has certain other economies across the world. But before we look at the option of reclamation, we need to look at unlocking land.

In my estimate Mumbai still has about 2,000 to 2,500 acres of land on offer. There are also redevelopment possibilities for existing buildings and slums. There is also a possibility, with due consideration to the environment, to develop portions of salt pan land.

The important thing would be to develop the right infrastructure. It is necessary to reclaim waste land to create infrastructure in the island city and beyond. This will decongest the city, reduce the load on dense pockets and impact the real estate market.

But the impact on realty prices will not be immediate. It will take at least two decades for the improved land supply situation to start impact ing prices. Reclamation should be considered when the city’s locked land is freed.

Moreover, if land is to be reclaimed, planning is very important and so is the quantum of reclamation envisaged. Today, in Mumbai real estate prices have multiplied over the last few years and the trend is actually going to remain the same for a while. To impact the prices we need something quicker.

If we were able to reclaim land very quickly in the next decade or so and then develop it along with the right infrastructure, then it can impact real estate prices.

Land can be reclaimed in South Mumbai, Nariman Point, and Bandra and in the suburbs of Malad and Kandivili. But the question to ask is whether you want to go about reclaiming land in these areas, or should we look at areas like Chembur, Sewri and the Thane-Belapur stretch to free up land. If you were to start developing land that is already available to you before you reclaim land, then developing the 2,000 to 2,500 acres of freed land is going to take a decade. So, the reclamation will start only after that, which means the impact on real estate will be felt in about two decades time.

Arvind Nandan is national head, consultancy services, Cushman & Wakefield Global Real Estate Consultants. He spoke to Ameya Bhise