Metropolitan Mumbai covers an area of 6,328 square kilometres, larger than at least 40 countries including Singapore and Bahrain. However, this size has not kept pace with the city's rapid growth in recent decades. Transforming seven islands into land capable of supporting Mumbai's exploding population of 23.6 million according to the 2011 census has never been easy. Some estimates indicate Mumbai needs at least INR 3 lakh crore to become a truly developed city.

That large sum may be out of reach currently, but the Mumbai Metropolitan Region Development Authority (MMRDA) may finally have some funds to work with. In March, the Maharashtra government allowed MMRDA to raise loans up to INR 60,000 crore from public institutions. MMRDA also received a proposal to raise an additional INR 30,000 crore.

This money will be used to make Mumbai future-ready through developing metro lines, road tunnels, solid waste management projects, and enhanced rail systems among other infrastructure. MMRDA and the central think tank NITI Aayog are jointly working to increase Mumbai's GDP from USD 140 billion to USD 300 billion by 2030.

In March, MMRDA presented a INR 39,453.04 crore budget for 2024-25, with estimated expenditure of INR 46,921.29 crore. At this time, the state government decided to facilitate MMRDA raising large loans. MMRDA has already completed metro rail lines worth INR 20,000 crore.

Of the INR 60,000 crore in loans, the state has guaranteed INR 24,000 crore in two tranches for regional projects. The Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) are loaning INR 12,000 crore each under this guarantee. These state-run entities will offer MMRDA up to INR 30,593 crore and INR 50,301 crore in long-term agreements.

The funds will largely go toward six ongoing and proposed metro lines covering major corridors including Dahisar-Bhayandar-Uttan, Mumbai airport-Navi Mumbai airport, Gundavali-Mumbai Airport, Swami Samarth Nagar-JVLR-Vikhroli, Thane-Bhiwandi-Kalyan and Wadala-Kasarvadavali. A total of 14 metro lines will span 337 km.

Money will also go toward projects such as the Thane-Borivali twin tube tunnel road, an underground tunnel road from Orange Gate to Marine Drive, the Mumbai Coastal Road, and the Thane Coastal Road.

The Maharashtra cabinet had in March also cleared a INR 850 crore loan and a INR 19 crore grant for MMRDA from Germany-based KfW Development Bank, which would be used to provide urban infrastructure amenities for solid waste management projects and division of solid and liquid waste in Ambarnath, Kulgaon-Badlapur, and Ulhasnagar.

Experts anticipate that property prices in the Mumbai Metropolitan Region will rise 5-10% annually over the coming years as demand grows for residential and commercial real estate. This projected increase is being driven by improved infrastructure development across the region.

The upcoming Navi Mumbai International Airport has led to a considerable rise in residential and commercial property development in Vashi and Panvel. The Eastern Express Highway and the presence of IT parks on the Thane-Belapur Road have made Thane a desirable location for real estate investments.

The Maharashtra government also has plans to develop a new satellite city called "third Mumbai", a new city on either side of the Mumbai Trans Harbour Link or Atal Setu. This would encompass parts of Ulwe, Pen, Panvel, Uran, Karjat and their surrounding areas. The proposed city envisions residential neighbourhoods, commercial complexes, data centres, offices for multinational companies and banks, as well as large knowledge/technology parks, all supported by robust public transportation.

There are also proposals to build a 150-hectare central business district akin to Mumbai's Bandra Kurla Complex in the node of Kharghar. Additional infrastructure projects under consideration by MMRDA include a Kalyan ring road, beautification of the Masunda Lake in Thane, and construction of new creek bridges from Kolshet to Kalher in Bhiwandi and from Kasarvadavali to Kharbav.

This substantial investment in Mumbai's infrastructure has created momentum for the real estate sector across the region. With enhanced transportation networks and new employment hubs being developed, demand for residential and commercial real estate is projected to rise steadily. The projects will transform Mumbai into a truly world-class metropolis and support continued economic growth well into the future.