India Plans to Allocate Over Rs 143 Lakh Crore for Urban Infrastructure by 2030, Leading to Surge in Land Prices
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Mumbai, Dec 9 (NationPress) In response to the increasing requirement for enhanced urban infrastructure in the upcoming years, India is set to invest over Rs 143 lakh crore in infrastructure by 2030, a recent report indicated on Monday, predicting that this will result in a significant rise in land prices.
The rapid advancement of infrastructure, facilitated by key authorities, is propelling the expansion of satellite townships throughout the nation, the Colliers report stated.
A substantial portion of this funding will be allocated to urban clusters, stimulating considerable activities in infrastructure-oriented urban development. Planned projects include second airports, inter-city metro connectivity, aero-cities, highways (including rapid transit freeways), high-speed rail corridors, IT and ITES zones, and extensive data center hubs, among others.
This trend is particularly evident in and around the Mumbai Metropolitan Region (MMR), with initiatives aimed at decongesting Mumbai and its surrounding areas, which could yield returns of up to four times in the next decade.
“The development of the Mumbai Metropolitan Region (MMR) is propelled by various infrastructure projects, such as 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 stated.
The operationalization of Bangalore Kempegowda International Airport has introduced a new phase in the growth of North Bangalore.
The announcement of new projects has led to an approximate 2.5 times increase in land prices, soaring from Rs 1,800 to Rs 4,500 per square foot between 2020 and 2024 — most notably in the northern Bangalore micro-markets such as Devanahalli, Chikkaballapur, Hebbal, and Yelahanka.
The forthcoming Navi Mumbai International Airport will be India’s first airport with integrated multi-modal transport connectivity. This new airport is projected to accommodate 9 crore passengers annually and will stimulate development across 90,000 acres of adjacent land through the NAINA project.
This will subsequently foster growth in the real estate sector, with anticipated land price increases of nearly 3.9 times over the 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 serves as a significant catalyst for urbanization in the state. Government initiatives such as YEIDA, International Film City, and Metro Line Expansion have further propelled the development of Jewar as a township. These efforts have resulted in a land price increase of approximately 1.4 times in the past five years, from Rs 5,000 to Rs 7,000 per sq ft.
The completion of the Chennai Peripheral Ring Road project is expected to enhance the growth of satellite towns such as Sriperumbudur and Singaperumalkoil.
These regions have experienced a land price appreciation of roughly 1.5 times over the last five years, increasing from Rs 2,500 to Rs 3,800 per sq ft.
“We anticipate these neighborhoods will continue to thrive in the forthcoming years, supported by upcoming initiatives like Fintech City and the proposed Chennai Greenfield Airport at Parandur,” the report concluded.
