From Industrial Town to Commercial Powerhouse: Thane’s Journey of Development!
The growth and urbanization of Thane over the past decade have brought significant changes to the area, transforming it from a small industrial town into a thriving residential and commercial hub. The availability of land, ongoing improvements in municipal and transportation infrastructure, and relatively reasonable real estate prices have attracted investors and businesses to Thane.
Several infrastructural projects have played a crucial role in the development of Thane. The Cluster Development Scheme, Mumbai Metro Line 4, Mumbai Metro Line 5, Borivali-Thane underground tunnel, and Thane Coastal Road have improved connectivity between Thane and Mumbai, making it more accessible for both businesses and residents.
The impact of commercial real estate development in Thane has been substantial. The city now offers a range of high-end retail, IT and ITES sectors, commercial workspaces, hospitality and F&B establishments, healthcare facilities, data centers, and logistics parks. With over 12 million square feet of existing commercial space and an additional 3.5 million square feet of upcoming area, Thane has become a commercial hub. It is projected that at least 89% of the upcoming area will be added by the end of 2023. Notably, more than half of the office space sold in 2022 was greater than 10,000 square feet, attracting numerous corporates and multinational companies to establish their headquarters in Thane.
This growth in commercial real estate has also led to an increase in commercial rentals in Thane. From CY 2017 to CY 2022, commercial rentals rose by 26%, resulting in a rental yield increase from 5.4% to 6.3%. The rise in rental yield has subsequently increased the sales velocity of commercial spaces, with a 47% rise from 291,000 to 429,000 square feet.
Thane’s development as a commercial hub has contributed to its emergence as an all-encompassing city where everything is accessible within a 15-minute radius. Its connectivity is advantageous, with a 30-minute commute to Mumbai, Navi Mumbai, Kalyan-Bhiwandi, and Mira Road-Borivali. Additionally, Thane is the first city in India to offer a genuine walk-to-work culture, with convenient access to education, healthcare, and shopping due to its high-quality commercial, healthcare, educational, and retail infrastructure.
The urbanization and commercial expansion of Thane have also attracted homebuyers to key micro markets within the city, such as Thane City, Ghodbunder Road, Wagle Estate, and Thane Central. These micro markets have seen impressive Compound Annual Growth Rates (CAGR) in real estate prices, with Thane City, Ghodbunder Road, and Thane Central experiencing CAGRs of 5.9% and 6.6% respectively, outperforming the CAGR of Andheri West at 3.9%.
Overall, Thane’s growth and transformation into a buzzing real estate and commercial hub can be attributed to its connectivity, infrastructural developments, and attractive real estate opportunities, making it an appealing location for both businesses and residents.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
