The proposed Oshiwara District Centre (ODC) is likely to become the next Bandra Kurla Complex (BKC) in the suburbs with its real estate prices expected to rise by 25-30 per cent over the next 3-4 years, on the back of infrastructure and commercial development in the region, an HDFC Realty report said.
"ODC will be developed by Mumbai Metropolitan Region Development Authority (MMRDA) as a better and refined version of BKC. Better connectivity to start with and balanced development plan to tie up the linear real estate chain into a self-sufficient cycle shall provide a sustainable long-term growth to the region," it said.
It noted that sufficient percentage of land use is dedicated to civic infra and open spaces from the commencement of the project itself, while in case of BKC, schools and hospitals have a relatively disproportionate share of total development plan in BKC and the MMRDA is inviting social and civic infra developments into the project now.
"Given the proposed commercial development and upcoming metro rail project, Oshiwara real estate is expected to appreciate by another 25 to 30 per cent over the next 3-4 years," the report said.
The Dahisar-Charkop-Bandra-Mankhurd Metro-2 is expected to pass through the ODC.
"Appreciation in the existing residential projects has been in the range of 25 to 30 per cent compared to 2013 prices. A few projects have witnessed appreciation of 100 per cent from the date of launch of project in 2010-11. ODC is expected to witness positive movement in rates in the next 2-3 years," it said.
Also, land rates witnessed steady appreciation of 12-15 per cent year-on-year between the year 2008 to 2012 in BKC.
In 2015, MMRDA auctioned land parcels at the reserve prices of Rs 1.54 million per square metre. In addition to commercial spaces, residential developments have also come up in BKC, it said.
The average prevailing rate in ODC is between Rs 14,000 to 17,000 per square feet on super-built-up-area.
The residential developments have been positioned as ultra luxury products and witnessed appreciation of 50 to 60 per cent from the launch date. Current residential rate in BKC is Rs 45,000 per square feet, which is comparable to Bandra West rates, it said.
"BKC brought exponential growth to the region by providing quality grade A office spaces to tenants and attracting all key corporate to the location. It provided the much-needed respite from the saturated South Mumbai," the report said.
"Larger floor plates, new age amenities and proximity to residential catchments transformed the location into the most sought after office address in Mumbai. The region witnessed exponential growth in real estate values," it added.