Mumbai Metro Line 3 Extension Boosts Rental Rates in Key Areas
The ongoing extension of Mumbai’s Metro Line 3 Phase 2 is driving a steady rise in rental rates, particularly in areas like Mahim, Sion, Dadar, Worli, and Prabhadevi. According to data from Magicbricks, these localities are seeing significant increases in rental prices due to improved connectivity.
Mumbai MetroRental RatesReal EstateConnectivityRedevelopmentReal Estate MumbaiJun 24, 2025
Between April and May 2025, Mahim registered a 2.37% rise in rental prices, while Sion—near the upcoming Dharavi metro station—saw a 1.78% increase. Other localities also showed upward trends:
- Dadar: 1.47%
- Worli: 1.32%
- Prabhadevi: 1.06%
Experts link these increases directly to the improved metro connectivity, which is making these areas more accessible and attractive to renters.
The already-operational BKC–SEEPZ stretch of Metro Line 3 is also reflecting similar patterns. From March to May 2025, rental rates rose in:
- Santacruz: From ₹138.4 psf to ₹141.4 psf (2.15%)
- BKC: From ₹128.9 psf to ₹131.2 psf (1.78%)
- Marol: From ₹70 psf to ₹71.2 psf (1.67%)
These increases demonstrate how ongoing infrastructure projects are re-shaping residential demand in Mumbai.
Anand Gupta, Chairperson of the Housing and RERA Committee of the Builders Association of India, confirmed that metro-driven redevelopment is taking off.
“With metros coming up, several cooperative housing societies are undergoing redevelopment. Developers are showing interest in these projects, leading to residents temporarily shifting to rental homes,” he said.
The trend is also being driven by the younger generation, who increasingly prefer renting homes near workplaces and metro hubs rather than committing to property ownership.
As Mumbai’s metro network expands, localities with improved connectivity are seeing rising rental value and heightened developer interest. The Metro Line 3 extension isn’t just transforming travel—it’s reshaping how and where Mumbaikars live.
Frequently Asked Questions
Which areas in Mumbai are seeing the highest increase in rental rates due to the Metro Line 3 extension?
Mahim and Sion are leading the surge with a 2.37% and 1.78% increase in rental rates, respectively. Other areas like Dadar, Worli, and Prabhadevi are also showing significant increases.
How much has the rental rate increased in Santacruz from March to May 2025?
The rental rate in Santacruz increased from ₹138.4 psf to ₹141.4 psf, a rise of 2.15%.
What is the role of the younger generation in driving rental demand in these areas?
Younger renters are increasingly preferring to rent homes near workplaces and metro hubs, contributing to the rise in rental demand in these areas.
How are developers responding to the metro-driven redevelopment opportunities?
Developers are showing significant interest in redevelopment projects in areas with new metro connectivity, leading to temporary shifts in rental demand as residents move to nearby rental homes.
What is the impact of the Metro Line 3 extension on the overall real estate market in Mumbai?
The Metro Line 3 extension is not only improving travel but also reshaping residential demand, leading to higher rental values and increased developer interest in areas with improved connectivity.
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