Mumbai, Oct. 28 -- Mumbai's infrastructure expansion is reshaping residential property values across the metropolitan region, with improved connectivity increasing demand in previously less-accessible neighbourhoods. Prices rose 10 to 12 per cent year-on-year across several suburban markets during the first quarter of 2026, according to Cushman & Wakefield.

Quoted mid-segment prices in the western suburbs increased 11 per cent to Rs. 17,500-34,500 per sq ft, while eastern suburban prices rose 10 per cent to Rs. 16,000-33,500 per sq ft. Thane and Navi Mumbai recorded 12 per cent increases, with prices ranging from Rs. 11,500 to Rs. 22,100 per sq ft and Rs. 9,000 to Rs. 23,500 per sq ft, respectively.

Metro Lines 2A and 7, the Western Express Highway, the Coastal Road and other transport projects have strengthened demand in areas including Goregaon, Malad, Mulund, Thane, Kharghar and Panvel. Redevelopment, limited land availability, construction costs and new housing supply are also influencing prices, meaning infrastructure alone does not explain the market's performance.

The Goregaon-Mulund Link Road is expected to improve east-west travel through flyovers and twin tunnels beneath Sanjay Gandhi National Park. However, delays and cost escalation have affected the project, with the estimated cost of its fourth phase increasing from Rs. 12.93 bn to Rs. 21.13 bn and completion now expected in 2029. The eastern suburbs recorded 3,861 new residential launches in the first quarter, while the western suburbs contributed 4,734 units.

Thane is attracting buyers seeking larger homes at prices below those in Mumbai's established premium locations. In Navi Mumbai, the international airport and Mumbai Trans Harbour Link are supporting interest in surrounding areas, while Kalyan-Dombivli and Panvel are drawing buyers seeking lower entry prices. Analysts cautioned that advertised and quoted prices may not reflect final transaction values, and delays in promised infrastructure could leave buyers paying a premium before connectivity and employment benefits fully materialise.

Published by HT Digital Content Services with permission from Construction World.