India plans to invest over INR 143 lakh crores in infrastructure by 2030, with the bulk of this expenditure focused on urban clusters. Key infrastructure projects include second airports, high-speed rail corridors, metro connectivity, and new IT and datacenter zones. These projects are driving urban development and transforming peripheral regions into thriving new hubs.

Key Infrastructure Projects Fueling Urban Growth

Several major infrastructure projects are already shaping the future of satellite townships:

Mumbai Trans-Harbour Link (MTHL):
Operational since 2024, MTHL is India’s longest sea bridge, connecting Mumbai and Navi Mumbai. The bridge has reduced travel time from two hours to just 30 minutes, enhancing access to key highways and boosting growth in areas like Uran, Talegaon, Panvel, and Kharghar. As a result, land prices in these regions have appreciated nearly 2.3 times between 2020 and 2024, from INR 1,200 to INR 2,250 per sq. ft.

Bangalore Kempegowda International Airport:
This airport, already India’s third busiest, is set to expand with the upcoming Terminal 2 in 2024. The airport’s development has spurred the growth of North Bangalore, with land prices in areas like Devanahalli, Chikkaballapur, and Hebbal increasing nearly 2.5 times from INR 1,800 to INR 4,500 per sq. ft. The creation of integrated townships such as BIAL, STRR, and Aerotropolis is further accelerating this trend.

Navi Mumbai Airport & NAINA:
Under construction and slated for completion in 2025, Navi Mumbai International Airport will feature multi-modal transport connectivity, enhancing access to the city and surrounding regions. The airport will be surrounded by the NAINA (Navi Mumbai Airport Influence Notified Area), which is expected to drive a nearly 3.9 times increase in land prices from INR 4,200 to INR 16,200 per sq. ft. by 2030. This development is poised to make the area a significant new urban hub, often referred to as the “Third Mumbai.”

Jewar Airport (NCR):
The upcoming Jewar airport, set to open in 2025, is a major catalyst for urbanization in Uttar Pradesh. Located along the Yamuna Expressway, it connects Delhi, Noida, and Agra, and has already contributed to a land price increase of 1.4 times in the past five years, from INR 5,000 to INR 7,000 per sq. ft.

Chennai Peripheral Ring Road:
Expected to complete by 2025, this 132-km highway will ease congestion around Chennai and fuel the growth of satellite towns like Sriperumbudur and Singaperumalkoil. Land prices in these areas have risen by 1.5 times from INR 2,500 to INR 3,800 per sq. ft. in the last five years, with further growth anticipated due to upcoming developments like the Fintech City and proposed Greenfield Airport at Parandur.

Emerging Investment Opportunities

According to Colliers India, investors should focus on rapidly expanding micro-markets with high land price appreciation. Areas such as Khopoli in Maharashtra, located just 45 minutes from Navi Mumbai, are expected to see land prices increase 3.9 times, from INR 4,200 to INR 16,200 per sq. ft., over the next five years. Other regions, like Sanad in Gujarat and Sonipat in Haryana, are also expected to see substantial price increases of up to 3.3 times and 3.0 times, respectively.

These developments are not only creating significant investment opportunities but are also fostering new residential and commercial growth. As infrastructure continues to improve, locations like Khopoli are becoming highly attractive due to their proximity to Mumbai, affordable land prices, and enhanced connectivity via projects like the upcoming Navi Mumbai International Airport.

Swapnil Anil, Managing Director of Advisory Services at Colliers India, advises investors to consider these growing satellite townships as high-return opportunities. “The combination of strategic infrastructure investments, proximity to key urban nodes, and affordable land prices makes these emerging markets prime for both residential and commercial real estate investment,” he said.

Conclusion

With India’s urbanization at a tipping point and infrastructure development accelerating, satellite townships are becoming the focal point of growth. Areas near major infrastructure projects are seeing dramatic increases in land prices, making them attractive prospects for real estate investors. As these regions continue to develop, they are set to emerge as critical urban hubs in the coming decade, offering investors high returns and numerous growth opportunities.

Also Read: Mumbai Coastal Road to be a catalyst for real estate growth in Western Suburbs

The post Rapid Infrastructure Development Drives Growth of Satellite Townships Across India appeared first on Square Feat India.

By Santosh Kumar

The foundation-laying ceremony of the Jewar International Airport by the Prime Minister heralds significant future economic activity in and around the airport. With an estimated cost of INR 34,000 Cr, the airport, once completed, will ease traffic at the IGI Airport, create a massive number of jobs for the local population, and give a major impetus to the property market in Noida, Greater Noida, and Yamuna Expressway.

These regions were previously speculator havens and needed significant impetus to attract end-user demand. For an area to become end-user-centric and liveable, an infrastructure project like the Jewar Airport can help kick-start more real estate developments, including housing, commercial, retail, and hospitality projects.

Interestingly, after the pandemic, the relatively affordable markets of Noida and Greater Noida had begun to see some demand uptick. Focus on Noida and Greater Noida increased manifold in the residential and commercial real estate segments. The airport will help push this demand even further.

Plotted Developments To Gain Momentum

The height restrictions for developments near airports and the newly-evolved homebuyer preferences post COVID-19 may combine to push up the viability of plotted developments around the Jewar Airport. In recent times, plots and independent homes have gained a lot of popularity in Delhi-NCR.

To illustrate – residential plots around the airport selling at INR 22,000 per sq. yard a year have seen prices increase to INR 30,000-32,000 per sq. yard by now, depending on the exact juxtaposition of the plot vis-à-vis the upcoming airport.

A Major Boost for the Region

If the construction progresses as per the schedule and Phase 1 completes by the second half of 2024, there will be significant ‘real’ benefits. Already, over the last year, commercial activity – particularly warehousing – saw increased momentum in and around the airport – also factoring in other mega projects in the vicinity, including the Film City.

Already, there is an uptick in office leasing in Noida. Various private institutions are now scouting for land in and around the airport. The Greater Noida Authority has boosted investments into the region by attracting big companies with various incentives.

While the future for real estate around Jewar Airport certainly looks bright, investors, end-users, and developers must continue to tread with caution. The arrival of a second international airport in NCR will have a positive impact on the real estate market in and around the region and the state of UP. However, investment gains expectations must be more realistic than speculative.

Over the short-to-mid-term, the area in and around the airport will undoubtedly witness significant development activity by players who hold suitable land banks there. Many players have been hoping to cash in on this mega project since it was announced several years ago and bought up large land parcels in the vicinity.

For these far-sighted developers, the time to come forward and weigh the best options is finally at hand. However, they will need to consider that the nearby areas, including Noida, Greater Noida, and Yamuna Expressway already have a lot of residential projects available.

As per ANAROCK data, the total available housing stock in Noida, Greater Noida, and Yamuna Expressway collectively stands at nearly 54,450 units (as on Q3 2021). This is 33% of the total stock in the entire NCR. Interestingly, back in 2019, the total available stock in the three areas was approx. 67,830 units. With demand rising in these cities after the pandemic, housing inventory declined by nearly 20% in this period.

Notable Future Trends

Once operational, the Jewar Airport will be a major game-changer for Noida and Greater Noida, and also the hitherto obscure property markets in the nearby hinterlands. Some of the most significant trends to watch for in the long-term include:

End-user Demand: Despite being more affordable than markets like Gurgaon and Delhi, Greater Noida and areas along Yamuna Expressway had been unable to position themselves as solid end-user markets due to lacklustre infrastructure facilities. The new airport will induce a massive infrastructure boost and make these areas more liveable and active. This will attract increasing interest from end-users in this region.

Greater Noida & Yamuna Expressway – New Affordable Options for First-time Homebuyers: With increased connectivity and several infrastructure upgrades on the anvil, these two regions will see significant real estate development in the times to come. These regions are more affordable than Gurgaon or Delhi, where prices are largely unaffordable for many. First-time budget-conscious homebuyers will have viable alternatives in these areas.

Commercial RE Uptick: The new airport will increase demand for housing, as well as commercial real estate like office and retail spaces. More and more office spaces will come up in this region as rentals there will be relatively lower than in Gurugram.

Moreover, COVID-19 came as a boon for the Noida office market, as demand for Grade A office space in the city was much higher than in Gurugram. To rein in costs during the pandemic, several corporates, start-ups, and other businesses saw Noida as a better alternative in 2020. Now, the upcoming Jewar international airport gives Noida an additional advantage.

As per ANAROCK research, the avg. monthly rentals for Grade A office spaces in Noida are anywhere between INR 50 – 80 per sq. ft. In Gurugram’s prime areas, they range between INR 85 –125 per sq. ft.  

Steady Future Capital Appreciation: Both Greater Noida and Yamuna Expressway historically aw high investor activity. While the areas always looked promising for end-users, their liveability quotient was a challenge. Many housing projects along the Expressway thus remained unoccupied and were tagged as ‘ghost towns.’ With the new airport drawing more end-users, the region will finally see steady capital appreciation based on actual demand, not speculation.

Tourism Boost in Mathura and Agra: The new airport will significantly boost tourism in Mathura and Agra. These cities are already well-connected with the national capital via the Yamuna Expressway, and the airport will massively increase tourist footfalls. This, in turn, will help these cities’ overall real estate markets in the times to come. The airport will also act as a catalyst for Western UP’s real estate market.

With the Jewar Airport finally set to take off, we can reasonably expect significant activity to commence over the next 2-4 years.

Santhosh Kumar, is the Vice Chairman – ANAROCK Group, opinions expressed in the above article are that of the author.

Also Read: Listed Developers Are Selling more Homes

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