India to invest over Rs 143 lakh crore in urban infra by 2030, land prices to surge
Mumbai, Dec 9: 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 expenditure is to be directed towards 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 of the Mumbai Metropolitan Region (MMR) is driven by various infrastructure projects, including the Mumbai Trans Harbour Link (MTHL), Navi Mumbai Airport Influence Notified Area (NAINA), Virar-Alibaug Multimodal Corridor, Mumbai-Pune Missing Link Project, and the JNPT extension,” the report mentioned.
The operationalisation of Bangalore Kempegowda International Airport added a new dimension to the expansion 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 capacity to serve 9 crore passengers annually and will boost growth around the 90,000 acres of surrounding land, via the NAINA project. This, in turn, would drive the growth of real estate in the region, with land prices appreciating nearly 3.9 times in next five years from Rs 4,200 to Rs 16,200 per sq ft (2024-2030) in micro markets like Khopoli and Pen.
The upcoming Jewar airport in Uttar Pradesh is the biggest catalyst for urbanisation in Uttar Pradesh. Government initiatives like YEIDA, International Film City and Metro Line Expansion have provided further impetus to the growth of Jewar as a township. These initiatives have contributed to a land price appreciation of nearly 1.4 times in the last 5 years from Rs 5,000 to Rs 7,000 per sq ft.
The Chennai Peripheral Ring Road project, once completed, is expected to drive the growth of satellite towns like Sriperumbudur, Singaperumalkoil, and others. These areas have witnessed a land price appreciation of nearly 1.5 times in the last five years, from Rs 2,500 to Rs 3,800 per sq.ft “We expect the neighbourhoods to continue flourishing in the coming years, backed by upcoming projects like Fintech City and the proposed Chennai Greenfield Airport at Parandur,” said the Colliers report.
