With Switzerland's Zurich Airport International AG getting the nod of the UP government’s Project Monitoring and Implementation Committee (PMIC) for its selection as the concessionaire for developing the greenfield Jewar International Airport in the NCR region, the airport is in the news again. If everything goes as expected, then work on the project will start soon, which will definitely give a boost to the property market in and around the region, although not immediately.
Industry experts believe that similar to any mega infrastructure project, Jewar International Airport too will help revive the property market in nearby areas such as Noida, Greater Noida and Yamuna Expressway. However, the 'real' benefits – in terms of price appreciation and heightened real estate activity in residential, commercial and retail – will be seen only once the project nears completion or sees visible signs of construction activity.
"Phase 1 of the project is targeted to be operational by 2023 and if all goes as per plan, then we can expect real estate activity to pick momentum henceforth or near this time period. This is also because many developers had already cashed on the benefits when it was officially announced several years ago and purchased large tracts of land. But its delay coupled with sluggish residential sales faltered their growth plans. More so, developers with land banks will further wait-and-watch its progress and only then launch new residential projects because there is ample unsold residential supply in and around the region," says Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants.
As per ANAROCK research, the total unsold stock in Noida and Greater Noida collectively stands at 67,830 units as on Q3 2019 end, which is nearly 38% of the entire total unsold stock in NCR. Also, major land bank holders including Jaypee Group — said to be have over 2,000-3,000 acres land — are already cash-starved with no visible signs of recovery. In the future, however, end-users will drive residential growth and there will be steady capital growth rather than speculative.
Property developers are of the view that with the Jewar Airport being developed, the areas falling in its vicinity will witness a huge boost. In fact, reeling under tremendous pressure over the last few years, property markets in Noida, Greater Noida and Yamuna Expressway need a fresh injection of opportunity to overcome the current slump. And a massive infrastructure project like Jewar Airport can definitely help make these areas become end-user centric and liveable, which will attract buyers also.
Ahosk Gupta, MD, Ajnara India Ltd, says, "With the Jewar Airport being developed, the areas falling in its vicinity will witness a huge boost. It is good news for investors in the residential and commercial segment. Yamuna Expressway was already a success because of the connectivity it provides to nearby areas and now with an airport on the anvil, connectivity to other parts of the country will also improve."
"Jewar Airport is good news for Noida as it is for other nearby areas. People will now hunt for properties that are not very far from the airport as in today's corporate world, a lot people fly frequently for work. Noida with its good road network will provide faster connectivity to the airport and hence the property market in all the sectors of Noida falling within 20 kms of Yamuna Expressway will witness a renewed interest by buyers and investors alike. Price appreciation in many such properties would be around 10-15 per cent, depending on the location and the demand of that particular area," says Dhiraj Jain, Director, Mahagun Group.
Some developers, however, believe that although many property markets around the airport will get a boost with this development, it is Greater Noida which will get the maximum mileage.
Deepak Kapoor, Director, Gulshan Homz, says, "Greater Noida, which is very close to Jewar due to the direct road connectivity to Yamuna Expressway, will get the maximum mileage. In fact, the area is already being preferred by the people working in the corporate sector and with the laying down of the foundation of the Jewar Airport, more investors will pitch in to get their share of the property here."