Building Blocks: Wadala Truck Terminus, Mumbai, India

Vivek Rathi, Director – Research at Knight Frank India states why Wadala's proximity to the centre of the Mumbai Metropolitan Region and its major arterial roads are key to its growing popularity
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Categories: Investment

Why is it up and coming?  

The 288-acre truck terminus is being shifted out of Wadala and the land is being developed into a prime real estate location similar to the Bandra Kurla Complex in Mumbai’s CBD. If the Mumbai Metropolitan Regional Development Authority (MMRDA) can work the same magic at Wadala then at least 50 million sq ft of real estate supply, connected to various parts of the MMR via three mass rapid transport systems, currently under construction, can be expected in this region.  

My favourite bits  

The prospect of development opportunities similar to those we have seen at Bandra Kurla.  

Who’s buying?  

The truck terminus is in the process of shifting out. Once this process is complete, MMRDA will auction the land to developers and institutions.  

What are prime yields (cap rates) in the area?  

Bandra Kurla is one of India’s most sought-after business districts and cap rates hover around 8%. If MMRDA is able to do the same at Wadala, similar rates can be expected.