A seven-year old suburban Mumbai township is pining for a promised freeway

So far, according to data from property aggregators,

the average rate per square foot at Lodha Palava City has been stagnant over the past 5 years.

However, Prashant Bindal, Chief Sales Officer at Lodha (the listed company goes by the name Macrotech Developers on the stock exchanges) told CNBC-TV18 the prices in Palava have increased in the last two years and are expected to rise further as the freeway becomes operational.

Lodha still has 4,000 acres of undeveloped land that can be sold at a much higher price as a series of infrastructure projects are expected to be on stream in the nearby areas within the next few years.

“The improved connectivity will help narrow the pricing gap between Palava (₹6,599 per square foot) and the rest of Mumbai (₹12,500 per square foot) and help Lodha capitalise on 46 million square feet of launches in addition to another 4,000 acres of future developments,” Kotak Institutional Equities, a Mumbai-based broking firm, said in a note dated November 22.

However, while the incoming infrastructure is bringing hope for the current residents, it is also bringing in new projects, which would increase both the supply of new apartments as well as the residents and commuters on the road.

As another resident (name withheld) of Palava pointed out, there are a lot of unsold homes as well as a lot of new projects coming up in the vicinity from developers like Runwal, Regency, and Marathon. So, the high inventory and the increased supply may cap the rise in home prices.

Whether the prices rise or not, the wait for the all-important freeway continues.