OAK – Proximity to Metro & Transport

HISTORY

Over the last 15 years (2009-2024), Goregaon East has undergone a remarkable transformation, evolving from a largely mid-segment residential area to a premium micro-market with significant appreciation. In the period immediately following the 2008 global financial crisis (2009-2012), property values in Goregaon East saw a steady recovery and moderate appreciation, driven by its proximity to the Western Express Highway (WEH) and established connectivity via the Goregaon railway station. The initial push came from the spillover demand from saturated markets like Andheri and Bandra, as well as the burgeoning commercial hubs in Malad and Powai.

The real acceleration in appreciation occurred between 2013-2017. This phase was characterized by robust infrastructure development announcements and initial work, including the proposed Metro Line 2A, which significantly boosted investor confidence. The establishment and expansion of commercial IT/ITeS parks like NESCO IT Park and Bombay Exhibition Centre in the vicinity made Goregaon East a highly desirable residential choice for professionals, leading to a demand-supply imbalance and healthy price hikes. Average capital values saw a CAGR of approximately 8-12% during this period, with specific projects near commercial hubs witnessing even higher gains.

From 2018 to early 2020, the market experienced a period of stabilization, partly due to policy changes like RERA implementation and demonetization's lingering effects, which brought more transparency but also temporary liquidity concerns. While price growth moderated, it remained positive, driven by end-user demand. The COVID-19 pandemic (2020-2021) initially caused a dip in sales and minor price corrections, but the subsequent low-interest rate regime, stamp duty reductions, and a renewed focus on larger homes led to a sharp rebound. The operationalization of parts of Metro Line 2A further cemented Goregaon East's connectivity advantage.

In the last two years (2022-2024), Goregaon East has seen strong appreciation, especially for well-located, quality projects. The average price appreciation across residential segments in Goregaon East over the entire 15-year period is estimated to be in the range of 200-250%, translating to an average annual CAGR of 7.5% to 9.5%. This growth is a testament to its strategic location, improving infrastructure, and robust commercial ecosystem.

FUTURE PROSPECTS

The future prospects for property appreciation in Goregaon East over the next 5 years (2025-2030) are exceptionally strong, driven by several high-impact growth factors and a resilient demand profile.

Growth Factors:

1. Goregaon Mulund Link Road (GMLR): This upcoming infrastructure project is a game-changer. Once fully operational, it will drastically improve east-west connectivity, reducing travel time to Thane and Navi Mumbai, and opening up new development corridors. Properties along this link and within its influence zone are poised for significant value appreciation.

2. Metro Connectivity Enhancement: While Metro Line 2A is largely operational, its full integration and the future expansion of the metro network will continue to enhance last-mile connectivity and reduce commute times, making Goregaon East even more attractive for residents and investors.

3. Continued Commercial Hub Expansion: The existing NESCO IT Park, Mindspace, and other commercial establishments in Goregaon and Malad are expected to expand further, along with new commercial developments planned. This will ensure a steady influx of working professionals seeking residences nearby, sustaining rental yields and capital values.

4. Social Infrastructure Maturation: Goregaon East already boasts excellent social infrastructure (schools, hospitals, retail), which will continue to mature, making it a self-sufficient locality. New premium lifestyle amenities are also expected to come up, adding to its liveability quotient.

5. Limited Land Supply: Being a relatively developed micro-market, the availability of large land parcels for new developments is decreasing. This scarcity, coupled with high demand, will naturally push up property values for existing and upcoming projects like 'OAK'.
   Risk Factors:

6. Interest Rate Volatility: Any significant increase in home loan interest rates could impact affordability and temper demand, though Mumbai's market has shown resilience to such fluctuations in the past.

7. Environmental Concerns: Proximity to Aarey Colony means any future development proposals or environmental policy changes could face scrutiny or opposition, potentially affecting new project launches.

8. Market Saturation in Specific Pockets: While the overall outlook is positive, some micro-pockets within Goregaon East might experience temporary oversupply if too many projects are completed simultaneously, leading to short-term price stagnation.
   Considering these factors, 'OAK' in Goregaon East is projected to witness a sustained appreciation. A conservative estimate for capital value appreciation in Goregaon East during 2025-2030 would be a CAGR of 6-9%, with premium projects in prime locations potentially exceeding this, possibly reaching 10-12% CAGR, especially post the GMLR completion and full metro integration. The project 'OAK' is well-positioned to benefit from these macro and micro-economic tailwinds, offering a robust appreciation potential.