Prime Minister Narendra Modi on Thursday laid the foundation stone of the Noida international airport at Jewar in Gautam Buddha Nagar district. The second international airport in the Delhi-National Capital Region (Delhi-NCR) could be a game-changer for the Noida and Greater Noida markets, believed real estate experts. Moreover, the newly-constructed airport could give a much-needed boost to areas such as the Yamuna Expressway, where demand has been muted for years due to lackluster infrastructure facility. Moreover, the real estate sector has been severely affected by the recent Covid-19 outbreak in the last two years. This new airport could be a bane for the first-time homebuyers and real estate market in the western Uttar Pradesh.
“For an area to become end-user-centric and livable, an infrastructure project like the Jewar Airport can help kick-start more real estate developments, including housing, commercial, retail, and hospitality projects," said Santhosh Kumar, vice chairman – ANAROCK Group. However, the benefits of an international airport in Jewar will only be seen if the construction progresses according to the schedule, the experts opined. The first phase of Noida international airport is likely to be operational by the second half of 2024.
“With the Jewar Airport finally set to take off, we can reasonably expect significant activity to commence over the next two to four years," Kumar added.
The new airport, like any mega-infrastructure project will boost the economic activity around the Noida and Greater Noida regions. The western part of Noida, where the Jewar airport is located, has already witnessed a rise in interest in commercial activity — particularly warehousing, according to ANAROCK report. There is an uptick in office leasing in Noida. Various private institutions and companies are looking to invest in and around the airport region, all thanks to attractive incentives by the Greater Noida Authority.
In 2019, Switzerland’s Zurich Airport International AG had won a bid to develop the proposed international airport at Jewar. “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," Kumar mentioned.
The region is all set to emerge as the realty hotspot with all the requisites for affordable housing and better living conditions. Along with that, it will also create job opportunities for thousands of people in Delhi-NCR region. “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," Kumar added.
Jewar International Airport could be a Game-Changer
With increased connectivity and a boost in infrastructure, there will be a significant boost in real estate in Greater Noida & Yamuna Expressway regions. First time buyers will have a viable and affordable alternative in the western UP than in Gurgaon or Delhi, where prices are largely unaffordable for many, experts mentioned. The average land prices around Jewar International Airport at present are Rs 1,000 to Rs 2,500 per sq. ft, depending on proximity to the airport, according to Anarock Property Consultants. The land prices in Greater Noida are between Rs 2,000 and Rs 5,000 per sq. ft depending on location and it can often go up to the Rs 5,000 per sq. ft mark in Noida.
With demand rising in Noida, Greater Noida, and Yamuna Expressway after the pandemic, housing inventory declined by nearly 20 per cent in this period, according to ANAROCK.
The new Jewar international 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, experts said. “The Jewar Airport is strategically located and its development at such rapid pace shall augment the growth of logistics sector. The sector will become an early benefactor given that Yamuna expressway, western periphery expressway and Delhi Mumbai expressway are all proposed to be connected to the airport. This will give UP a big growth stimulus in the near future,” said Shyam Arumugam, managing director, Industrial & Logistics Services (India), Colliers.
The new airport will also significantly boost tourism in Mathura and Agra. 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 Uttar Pradesh’s real estate market, ANAROCK said.