Infrastructure and Connectivity as a Catalyst to Boom Real Estate
Akash Kohli, founder & CEO, Elante Group, shares some points
Infrastructure is a key driver of a country’s economy and it is known to play a key role in deciding the value of the property in a given area. The lack of road, rail or air access to any region contributes to lower housing rates in relation to good physical infrastructure areas. And infrastructure is not limited to connectivity alone, the presence of which is a prerequisite for improving other kinds of public services. Demand and therefore price of immovable properties is directly proportional to the distance from areas which provide employment, industry and city facilities.
Following the establishment of Delhi-Mumbai Expressway via Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra will help Sohna emerge as another new business hub in Gurugram, as the project will help raise investment with better road connectivity.
There are many sectors around the Dwarka Expressway under construction and on the Delhi-Alwar Expressway (NH-248A) where affordable housing has taken a spurt. In the Sohna area, affordable and plotted colonies are also being established. Sohna will also be able to compete with the Cyber centre, Golf Course Road and Golf Road Extension Road with this expansion.
Sectors-28A and 36 of Sohna have grown into affordable and mid-segment hubs. Group housing, building floors, and villas in the area are being developed.
In addition to group housing projects from many major developers as well as Plotted Construction Affordable Housing Projects, sectors around the Dwarka Expressway have begun to gain momentum.
Further, as evaluated by real estate experts and critics sanctioned Delhi-Meerut Expressway would give birth to a new dimension of real estate ventures in the linked area. In the peripheries of the capital city, developers are facing a difficult stage in selling their properties. Owing to the inconvenience in the traffic and transportation system, the new positions on the city border faced an outcry from the homebuyers. For professionals, commuting every day from Meerut to Delhi is a really big hassle. The time it takes to reach Delhi will be considerably reduced with the advent of new roads on the city map. Also, the price of open land here is poor. This suggests that affordable housing developments will begin to emerge here soon.
For commuters and home seekers in these areas, the arrival of the expressway along with a connector is very big news. The traffic would become smoother and more accessible for real estate properties.
In the Delhi-NCR real estate segment, the Dwarka Expressway has developed a great deal of hullabaloo. Top real estate developers have assured and re-assured this eight-lane expressway of putting your money.
It includes areas such as Bijwasan, New Palam Vihar, Kherki Daula and finally meets the NH-8, also known as the Northern Peripheral Expressway.
Not only are these connectivity projects expected to increase existing property prices, but they will also open up previously unexplored real estate markets in various parts of the world. The construction of civic facilities is a time-consuming operation, and connectivity enhancement provides good access during the gestation period to the existing facilities. In the national capital of Delhi, for instance, good road connectivity from Gurgaon or Noida allows people to access world-class medical facilities provided by the government.
In addition, the Smart City Mission must be carried out as an urban renewal initiative in which developed cities will be equipped with state-of-the-art physical infrastructure, including road networks, water supply systems, wastewater treatment plants and energy supply systems. Furthermore, with the aid of IT-enabled solutions, basic governance services will be offered to residents. In each city for infrastructure development under the mission, Greenfield areas will also be established. For the construction of the 100 smart cities, a cumulative sum of Rs 2 lakh crore has been projected, which will eventually result in spiralling real estate development in Tier 2 and Tier 3 cities.
Moreover, the growth of commercial and retail hubs is an important prerequisite for the appreciation of residential property prices, and vice versa. On the basis of the availability of amenities and convenience, including shopping malls, supermarkets, banks, food and entertainment areas, leisure facilities and so on, homebuyers are drawn to housing hubs. The converse theory of the attraction of commercial players and retailers to populated housing hubs is also valid.
source : Construction Week Online