India is currently experiencing a never-before kind of road infrastructure expansion, particularly in the form of expressways, and this is to transform the real estate scenario around the whole country. According to a latest report, India now boasts a total of 30 cities, which show tremendous potential for growth, especially well beyond the already established locations. This is going to take the land price up to 5.2 times by 2035, and Nagpur is going to lead it. It is most likely to make the lands price go up on account of the thrust of the government in developing expressways for improving connectivity and further thrust on economic and urban growth.
Real Estate Growth: Champion of Champions, Nagpur
Nagpur turns out to be the front-runner among these coming cities, specifically with the inducting of 701-km Samruddhi Mahamarg Expressway. The same expressway- connecting key places-straightens it out for putting Nagpur to a prime location to see the serious real estate growth in times to come. The Samruddhi Mahamarg is just one example from how the creation of expressway is changing growth in urban levels and shaping into an investment hub from cities.
Other cities apart from Nagpur are Jaipur and Lucknow, Ahmedabad, Agra, Meerut, Chandigarh, and Bhopal, which are also perceived to be promising for future real estate expansion. Eight such emerging micro-markets are likely to witness an appreciable increase in land price by 2035. The team at Colliers believes that the micro-markets have the potential to grow as high as 5.2 times in their land prices, and this presents an excellent opportunity for an investor.
Role of Expressways in Urban Growth
Development of expressways is taking place at a very fast pace and deepens real estate as well as economic growth all across India. Besides improving connectivity, reducing travel times, and accelerating urban growth, these roads can do much more. Increasing accessibility may trigger investment from businesses and industries into these areas and hence may promote both commercial as well as residential growth.
For example, Samruddhi Mahamarg Expressway has transformed Nagpur into an investment city by enhancing connectivity to other key locations and shot the real estate market through the roof. In a similar way, Yamuna Expressway, Mumbai-Pune Expressway, and Dwarka Expressway have created for this reason and proved how better infrastructure changes the environment and transforms regions into hotspots in the real estate industry. As these expressways are completed or expanded, they continue to drive investments, and local and international players alike keep coming to these regions.
Investment Opportunities in the New Cities
These expressways are likely to act as critical growth enablers. The focus of the government on infrastructure development in schemes like Bharatmala Pariyojana means that expressways should be transformed into centers of transforming rural or semi-urban regions into hotspots. With more and more areas coming under accessibility, new businesses begin discovering reasons to enter these zones, and then, residential and commercial property demand shoots up.
According to Swapnil Anil, Managing Director of Advisory Services at Colliers India, “This is the best time to invest in land within the micro-markets of emerging cities along expressways, with expected returns of up to 5.2X over the next decade.” This statement has drawn fabulous investment prospects in these rapidly expanding areas, primarily for those seeking to reap the windfall from growing land prices.
Key Parameters for Growth in Emerging Cities
In order to understand the growth potential of such emerging cities, Colliers undertook an elaborate study based on five key parameters, as listed below:
Physical Infrastructure: The development of expressways and other transport links play an important role in linking cities.
Social Infrastructure: Schools, hospitals, and other recreational spaces form the foundation that pushes the growth curve of cities.
Demographic Growth: More people and urbanization require housing and space for commercial activities.
Economic Development: Direct increase in employment opportunities and growing disposable incomes.
Real Estate Dynamics: Demand increases in both residential as well as commercial areas with the improvement in infrastructure along with the economic condition.
All these factors together form a conducive environment for the fast growth of real estate markets in emerging cities along expressways.
Conclusion
As India advances the construction of more expressways, it would certainly manifest giant growth for the whole real estate industry in the nation. Its booming cities, like Nagpur and Jaipur, along with Lucknow, are sure to experience a rocket growth in the price of land within ten years. It will further accelerate growth through such initiatives as the investment in infrastructures of Bharatmala Pariyojana and now is a time for the investor to go and invest their lands there in the new emerging cities. When the connectivity becomes good, it will then make land to be worth better real estate and the investments could both be in short and long run.
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For more updates on the latest developments in the Roads and National Highways sector, check out our article on : Uttar Pradesh Approves New Vindhya Expressways for Growth