Editor | May 14, 2018 @ 12:27 PM
Delhi/NCR
The central government’s approval for the ‘$1 billion Greenfield Airport’ at Jewar has come as a big relief to the micromarkets of Noida, Greater Noida, and Yamuna Expressway. — Prabhakar Sinha, Sharmila Bhowmick write.
An international airport at Jewar on Yamuna Expressway will bring a paradigm shift in the real estate markets in the area, consultants and developers of the area said.
Demand for all segments of real estate will go up in this zone and prices will start heading northwards from on.
At present, Noida, Greater Noida, and the Yamuna Expressway industrial development area, despite planned development and adequate availability of water and electricity, are considered poor cousins of Gurgaon, mainly because the Millennium City is near the IGI airport, which makes it attractive for MNCs to open shop in this bustling metropolis.
“Noida always had better infrastructure compared to Gurgaon, but the main difference was the proximity to the airport. The forthcoming airport at Jewar will provide an uptick for all segments of the real estate – residential, office, and industrial – in anticipation,” Pankaj Bajaj, President of Credai-NCR, said.
Take for example the rentals of office space in Gurgaon. Despite the limitation of infrastructure, the current rate is around Rs 120 per sqft per month here, while it is around Rs 45 per sqft per month in Noida.
Proximity to the airport helped Gurgaon command higher rentals as well as capital values for its real estate, which in turn gave developers the leeway to build quality office space. This attracted the MNCs to move to the Millennium City and, today, almost all Fortune 500 companies have offices in the region, Manoj Gaur, President of Credai (NCR), said.
The Jewar airport with the proposed linkages to different parts of the Delhi NCR will be a boon for Noida, Greater Noida, and Yamuna Expressway, which already have high-class physical infrastructure like quality roads, adequate water and electricity supply, and decent sewerage.
Ashutosh Limaye, Head of Research at JLL, says that Noida has better infrastructure than Gurgaon, and greater sustainability, in terms of future requirement of water and power. Jewar airport will enhance the prospects of Noida and Greater Noida, which will now be competitive alternatives for corporates and high-end IT, ITeS companies to set up shop.
Mudassir Zaidi, Executive Director (north) at Knight Frank India, says: “We see the swift movement on Jewar airport pushing the real estate market of these regions, which will translate into job creation. It will be too soon to say, but if executed on time, the airport will trigger the office market in Noida and Greater Noida just like the IGI airport did in Gurgaon. This in turn will translate into demand for residential and other supporting sectors in the region.”
Ankur Dhawan, Chief Investment Officer at PropTiger, says that once Jewar airport is ready, Yamuna Expressway will be the next Gurgaon. This part of the city, including YEIDA, has significant land ownership available at affordable prices for the development of industrial clusters, which will attract corporates to move to Yamuna Expressway.
There is a plan for developing electronics manufacturing hub, commodity hub, and pharma hub in the Yamuna Expressway region, while several mobile phone firms like Samsung, LG, OPPO, and VIVO are opening their manufacturing centres in the area.
This will create demand for commercial space. Thus, once the Jewar airport is ready, developers will construct Grade A office space in these areas, Dhawan said.
Clearly, demand for houses will also go up, as more companies are likely to set up their base here and bring employment, Limaye says. And, as demand rises, its effect on pricing can be seen after a certain period, once the markets here get back to a stable demand-supply.
Santhosh Kumar, VC of Anarock Property Consultants, said: “Transit-related infrastructure projects always tend to have a significant impact on property prices in the surrounding regions. Though the current market scenario does not support short-to-mid-term price growth, the longterm prospects for appreciation in regions benefiting from the new airport are good.”
“The airport will also have an economic multiplier effect, as it will enhance demand for housing and office space, along with strong capital appreciation in and around Greater Noida. The region will become an attractive investment option and we expect to see prices appreciate in the range of 10-15% per annum in the real estate market,” Amit Modi, Director of ABA Corp and Vice-President of Credai Western UP, said.
R K Arora, Chairman of Supertech, said the Jewar airport will benefit Noida region enormously: “In the short-term, we will see the airport triggering infrastructure development including realty, employment generation, and social uplift in the region. In the long-term, it will catapult the area to an altogether different level of development and would become a significant contributor to the economic growth of the country.”
“A new airport will boost real estate development in the region along with civic infrastructure. While several untapped and underdeveloped locations are expected to come up on developers’ and buyers’ radar again, oversupply and subdued demand leaves very little scope of appreciation in property prices,” Sanjay Chatrath, ED (NCR) at Colliers International India, said.
Source: Times Property, The Times of India, Delhi/NCR