The price and value of real estate properties are directly proportional to the infrastructure development of a region and its surroundings. The availability of proper roads, rail and air connectivity, hospitals, educational institutes, markets, and others determine how far a specific place is developed. More importantly, the quality of infrastructure such as top schools/colleges, hospitals with better medical facilities result in the rise of property values in and around.
Any buyer searching for a home not only considers the quality of property and amenities offered by the builder in a residential project but also expects some location benefits. Homes that are close to markets and other significant social hubs and the resident can easily travel to other parts of the city tend to sell faster than the rest. Similarly, commercial projects where one can set up a business space in proximity to residential colonies and the visitors can reach conveniently are preferred the most.
Moreover, the well-developed infrastructure plays a pivotal role in accelerating a country's economy and ranks the country on a higher position in the global index. In India, various initiatives taken by the government have made national headlines and boosted the real estate sector. The most important initiatives are discussed below that have impacted real estate the most:
Major road projects in North India
1. The two road projects were constructed by the government and are operational at present. Kundli–Ghaziabad–Palwal (KGP) Expressway, also known as Eastern Peripheral Expressway, passes through the areas like Sonipat, Baghpat, Ghaziabad, Noida
, and Faridabad. Kundli–Manesar–Palwal (KMP) Expressway, also known as Western Peripheral Expressway, has led to the upcoming five adjoining greenfield cities on either side of the expressway. Delhi metro's new Phase 5 route will also be constructed along KMP. The third one is the proposed Dwarka Expressway, connecting Gurgaon and Delhi, which will reduce the travel time for commuters. As a result, sectors nearby Dwarka Expressway have witnessed a rise in the demand of properties.
Pan-India Smart Cities Mission
2. Smart Cities Mission, an initiative to develop smaller cities in India, aims at improving the city infrastructure and lives of the people. Depending on the condition of cities during the time of selection under this mission, each city has been going through different levels of development. It was launched in 2015 and since then Aurangabad, Bhopal, Guwahati, Ajmer, Ludhiana, Bhagalpur, and Dehradun are some of the names, undergoing development. Providing proper water/electricity supply, sanitation, urban mobility, affordable housing, digitalisation, and good governance are the core concerns. With this mission, the government empowered real estate developers to invest in smaller cities. On the customers' end, demand for properties increased, and the developers are now constructing properties equal to the level of projects delivered in Indian metro cities.
National Infrastructure Pipeline
3. The government's aim of making India a $5 trillion economy is already expressed by Prime Minister Narendra Modi, and the National Infrastructure Pipeline (NIP) is an initiative to make this happen. During December 2019, Finance minister Nirmala Sitharaman announced ₹ 102 lakh crore of infrastructure projects under NIP. The initiative will enable the growth of businesses, create jobs, and improve the income of all. On the other hand, the supply of real estate projects will increase, reduce the failure of delivery, and boost the confidence of investors and banks/financial institutions.