Anticipating the growing need for quality urban infrastructure in years to come, India is expected to invest over Rs 143 lakh crore in infrastructure by 2030, a report said on Monday, adding that this will led to further land price appreciation.
Rapid infrastructure development driven by nodal authorities is fuelling the growth of satellite townships across the country, said the Colliers report. Most of this spend would be focused on urban clusters, driving significant activity in infrastructure-led urban development.
Projects under consideration include second airports, inter-city metro connectivity, aero-cities, highways (including quick transit freeways), high-speed rail corridors, IT+ITES zones, large datacenter concentration zones, among others. The trend is magnified in and around the Mumbai Metropolitan Region (MMR), with the planned decongestion of Mumbai and ancillary locations, with potential returns reaching four times over the next decade.
The growth drivers for the Mumbai Metropolitan Region (MMR) have been the various infrastructure projects, such as MTHL-the Mumbai Trans-Harbour Link, Navi Mumbai Airport Influence Notified Area, Virar-Alibaug Multimodal Corridor, Mumbai-Pune Missing Link Project, and the extension of the JNPT," said the report. The operations of the Kempegowda International Airport in Bangalore gave a new dimension to the growth aspect of North Bangalore.
The announcements of new projects have contributed to a nearly 2.5 times land price appreciation, from Rs 1,800 to Rs 4,500 per square feet in the period 2020 to 2024 —most pronounced around the north Bangalore micro-markets like Devanahalli, Chikkaballapur, Hebbal and Yelahanka.
The upcoming Navi Mumbai International Airport is going to be India's first airport with multi-modal transport connectivity. This new airport will have the ability to accommodate 9 crore passengers annually and boost growth around the 90,000 acres of surrounding land through the NAINA project.
This would propel the growth of real estate in the region with the appreciation of land prices almost 3.9 times from Rs 4,200 to Rs 16,200 per sq ft (2024-2030) in micro-markets like Khopoli and Pen. The largest single driver of urbanization in Uttar Pradesh is the new Jewar airport that will come up in Uttar Pradesh. Government initiatives like YEIDA, International Film City and Metro Line Expansion have provided further momentum to the growth of Jewar as a township.
These initiatives have resulted in a whopping appreciation of land prices to the tune of nearly 1.4 times in the last 5 years from Rs 5,000 to Rs 7,000 per sq ft. Satellite towns like Sriperumbudur, Singaperumalkoil, etc, would be driven once the Chennai Peripheral Ring Road project is completed.
These micro-markets have seen appreciation of the land value nearly 1.5 times in the last five years from Rs 2,500 to Rs 3,800 per sq. ft "We expect these neighbourhoods to continue their journey to glory in the coming years with the upcoming projects such as Fintech City and proposed Chennai Greenfield Airport at Parandur," added the Colliers report.
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