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With and without airport
We know how infrastructure impacts real estate. Airports, just like other major infrastructure projects, provide major stimuli for overall developments of the micro markets. Their existence and scrapping can have far reaching impact on the real estate of the area.
Take the case of Navi Mumbai and Greater Noida. “Not only have land prices witnessed an increase post announcement of the proposed airport, but the overall infrastructure of Navi Mumbai is likely to witness a paradigm shift,” says Aniruddh Wahal, Director, Occupier Services – West, DTZ. “Likewise the cancellation of Greater Noida airport will not only slow down the pace of real estate development but also result in some correction in land values.”
The Navi Mumbai international Airport, planned in the vicinity of Panvel, should significantly improve the demand equity of this region. This airport initiative, along with planned Mumbai trans-harbour link (through a highway), and the proposed Metro Rail project should together facilitate robust investment inflow into the city. Many prominent developers have already initiated development of their residential and commercial projects near the vicinity of the proposed airport.
While Navi Mumbai has already attracted IT and ITES and companies such as Wipro, Capgemini, WNS, CTS, iGate (Patni) , hospitality giants are already planning to set up hotels in the vicinity of the new airport. It is expected that the airport should create many more job opportunities and this in turn will spur demand for residential property over the next 5-6 years. “Developers believe that Navi Mumbai will replicate the growth witnessed by Bandra Kurla Complex, an established commercial hub in the proximity of the existing airport,” says Aniruddh Wahal.
While an upcoming airport at Greater Noida would have created a parallel economic hub to Gurgaon, the cancellation of the same will significantly reduce the investment attractiveness from the industry. Also, with anticipated slowdown in economic growth of the region, end user residential demand in Greater Noida is also likely to take a backfoot, thereby impacting real estate growth on both commercial and residential fronts.
Namrata Kohli, MagicBricks.com Bureau