Highways are obviously important for the growth of real estate as well as for transportation. Because highways provide connectivity to other areas, the prices of real estate are generally higher around them.
Highway infrastructure is also crucial to the development of growth of areas; there are many examples of underdeveloped areas due to poor connectivity and infrastructure.
Throughout this article, we have discussed the impact of highway infrastructure on the real estate industry, how it affects it, and the related statistics.
Road construction in India is moving in the fast lane. As per the data released by the Ministry of Road Transport & Highways, 10,000 km of highways were constructed in 2017-18, ending March 2018. Which means there is an average daily road construction of about 28 km per day.
In addition, data released by the National Highways Authority of India (NHAI awarded about 7,400 km of construction projects in FY18 as against 4,300 km projects awarded in FY17. Only recently, Union transport minister Nitin Gadkari announced doubling of the length of national highways from 1.15 lakh km to 2 lakh km by the end of 2019.
Going by the current pace of expansion, it is natural for us to expect major economic benefits from it. Another factor associated with highways expansion, or in other words, related to infrastructure development is its impact on real estate.
On the positive, it does drive population migration leading to an increase in demand for housing. Take, for example, the Delhi-Meerut Expressway bringing down the distance from Delhi to Meerut to only 40-45 mins. It is an important change to be noted by people looking for residential occupancy in Delhi, which is already congested.
The capital city has witnessed an increase in migration population in the recent times. With this crucial development of highways, people working in Delhi/NCR especially in areas like Patparganj, Mayur Vihar, Ghaziabad, Noida and Vaishali will have an additional choice of place of residing.
This may not necessarily impact the property prices in Delhi or Meerut but it will surely lead to a demand in housing in Meerut and the adjoining areas.
Similarly, the Eastern and the Western Express Highways has led to Mumbai witnessing a growth in mainstream localities along its stretches. The shift has been significant; from suburban areas to mainstream localities. As a matter of fact, many real estate arenas are expected to come along these highway stretches, leading to a shift and change in real estate landscape.
Highways and expressways have the potential to boost the real estate market, stretching along its route. For, it redefines the urban dynamics through distance and connectivity, running along its route. Road sector is always crucial to the economic and social development of the nation.
It not only makes smaller regions of India economically inclusive but also creates a social-friendly image of the location. As the news of development especially eases of connectivity spreads, it is natural for people to go and look for real estate opportunities, keeping in mind the other important factors.
India’s main highways carry a traffic load of 40%, even though it comprises 2% of Indian road outlay.
The government is committed to built smart highways based on principles of green layouts. Which means, we will soon have highways and expressways which are pollution-free with a public-friendly image. These highways will have no space constraints with vertical gardens adoring its length and breadth.
The power needs on national highways will be met with abundant supply and environmental efficacy of solar panels. In addition, these highways will boost commercial real estate sector by creating space for shopping complexes, restaurants, and local markets, boosting employment in the sector as a result.
Having said that, the positive growth in the real estate industry will happen depending on the pace of road infrastructure development. Only then, the sector will reap the mass benefits from highways development in India.