The country is ready to leap toward transformative change in its urban infrastructure development with an investment plan surpassing Rs 143 lakh crore by 2030. That investment will change the face of urbanization, fuel growth, and push up the value of land in India. This infrastructure development strategy of India will improve the quality of life in cities and also increase land values across the country, especially near major metropolitan regions, as recently pointed out by Colliers.
Urban Infrastructure Investment Increase
The need of the hour for fast urbanizing India is to innovate solutions with world-class infrastructure. The planned investment of more than Rs 143 lakh crore in urban infrastructure would encompass a very wide range of projects that will contribute to improved connectivity, transportation, and livability. Most funds will be invested in the urban clusters and would catalyze an infrastructure-led urban growth.
Pipelined projects:
Second airports, inter-city metro networks, aero-cities, highways, high-speed rail corridors, IT zones, and data center hubs will help bring an improvement in connectivity, relief congestion, and lead to making the urban space more sustainable. With new infrastructure coming up for development in the previously less served areas, land prices may escalate significantly.
Mumbai Metropolitan Region (MMR): Growth Hub
The developments in this line are being spearheaded by the Mumbai Metropolitan Region (MMR), where most infrastructure projects are already lined up. The decongestion plan of the city, which would spread the development into ancillary locations, is likely to offer enormous returns. Land values around MMR are said to see returns of as much as four times in the next decade because of the major infrastructure projects.
The MMR main projects consist of the Mumbai Trans-Harbour Link (MTHL), Navi Mumbai Airport Influence Notified Area (NAINA), Virar-Alibaug Multimodal Corridor, and the Mumbai-Pune Missing Link Project. All of these have the objectives of decongesting traffic, improving accessibility, and energizing the overall economic development in the area and making it one of the hot spots for real estate growth.
Bangalore: Infrastructure driving real estate growth
Not the least, Bangalore is gaining pace through infrastructure-driven growth majorly in the northern part of Bangalore. The completion of Kempegowda International Airport in Bangalore was leading this expansion of North Bangalore so heavily that land prices went booming. Land prices have approximately gone up 2.5 times in Devanahalli, Chikkaballapur, Hebbal and Yelahanka from the year 2020 and have been continuing till 2024.
This boom is mainly due to the new infrastructure projects announced, which have made these places more accessible and connected. As these projects begin to materialize, the prices will continue to rise, to the advantage of investors as well as homeowners.
Navi Mumbai International Airport: Growth Driver
The next big project in the remodeling of the real estate map of India is the new Navi Mumbai International Airport. It shall be India’s first multi-modal transport connectivity airport; hence, it shall be a game-changer for the region. The airport shall take in 9 crore passengers yearly and spur development around its surroundings of 90,000 acres of land.
Consequently, land prices in places like Khopoli and Pen, near the airport, would go up nearly 3.9 times by the end of 2030. The rate, currently at Rs 4,200 per square foot in 2024, would reach Rs 16,200 per square foot at the end of the decade. This is a huge opportunity for the development of real estate and economic activity in those micro-markets.
Uttar Pradesh’s Jewar Airport: Transforming Urbanisation
An important project is the Jewar airport that fuels the urbanization process in the state of Uttar Pradesh. Under government initiatives, through YEIDA, International Film City, and Metro Line Expansion, Jewar has emerged as an important destination for investments in real estate. In five years, the land prices here have appreciated by 1.4 times, from Rs 5,000 to Rs 7,000 per square foot-a direct indicator of the demand for real estate in this new township.
These projects are likely to remain the growth drivers since more and more infrastructure projects keep improving connectivity in the region and enhance economic activities.
Chennai: Peripheral Ring Road Project and Land Price Movement
The Peripheral Ring Road project is likely to spur further growth in satellite towns such as Sriperumbudur and Singaperumalkoil in Chennai. These regions have already witnessed an appreciation of land price by 1.5 times over the last five years with the prices increasing from Rs 2,500 to Rs 3,800 per square foot. The completion of Fintech City and the proposed Chennai Greenfield Airport at Parandur will continue to push the land prices upwards.
Conclusion: Future of India’s Urban Infrastructure and Real Estate
India’s vision of developing its urban infrastructure by 2030 promises to remake the face of this nation as a more vibrant, interconnected, and booming urbanization hub. With key projects already initiated in the country’s metros, including Mumbai, Bangalore, Navi Mumbai, and Chennai, the land price will sharply appreciate over the coming years. Investors, developers, and owners should closely watch these high growth areas that will unfold gigantic opportunities over the coming ten years.
Refer :
Economic Times, Link to article
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