While a second international airport in the NCR would significantly influence the real estate market in and around the area and in Uttar Pradesh, the actual impact will not be evident for another 8-10 years.
On November 25, Prime Minister Narendra Modi laid the foundation stone for the Noida International Airport near Jewar in the Gautam Buddha Nagar district, paving its development.
According to real estate analysts, once operational, the airport would be a game-changer not only for the Noida and Greater Noida markets but also for locations such as the Yamuna Expressway, where demand has been low in part to the COVID-19 epidemic.
However, analysts say substantial advantages in price appreciation and more excellent infrastructure activity will not be seen until building begins and fundamental infrastructure such as the metro is in place. The Delhi airport will realise the real impact of the second international airport in the National Capital Region in 8-10 years.
An extensive infrastructure project like Jewar international airport may make a tremendous difference in creating an end-user-oriented and liveable place. Such initiatives are almost always followed by other real estate developments such as housing, commercial, and hotel.
Like any mega-infrastructure project, the new airport will increase economic activity in the Noida and Greater Noida areas. When finished, Noida International Airport would relieve congestion at New Delhi’s Indira Gandhi International Airport (IGIA) and create jobs in Noida, Greater Noida, and along the Yamuna Expressway.
These markets have been under significant pressure over the last three to four years, and they require a fresh injection of opportunity and desire to recover. Construction work at the airport must begin before it can develop the region. Until that occurs, the possibility for additional real estate projects such as the residential, commercial, or retail property will be on hold.
To be sure, developers who intended to profit from this mega-project revealed some years ago purchased enormous property tracts nearby. It will be a long-term growth driver. Currently, surrounding locations such as Noida, Greater Noida, and the Yamuna Expressway have more than adequate existing inventory.
Noida International Airport is being built through public-private collaboration. The UP government promises that the Jewar airport will be the largest in India when finished. According to authorities, it would be built in four phases and will cost Rs 30,000 crore ($4 billion) in total.
The airport is scheduled to open in September 2024. It will initially have two runways spread across 1,330 acres. According to sources, the first phase will require an expenditure of Rs 8,914 crore, with an initial annual passenger handling capacity of 12 million. The figure does not include the cost of land acquisition, rehabilitation, and resettlement.
While some experts believe the airport will boost the fortunes of the neighbouring communities, others think it will realise the true advantage in 8-10 years.
Jewar airport will play an essential role in the overall expansion of the Noida and Greater Noida areas in the future years.” “The airport will provide much-needed connectivity to these areas, boosting real estate sentiment across asset classes. Despite the second COVID-19 wave’s setback, we notice that residential demand in the micro-markets surrounding the planned airport has renewed steam, with September 2021 exceeding 2020 levels.
Real advantages in terms of price appreciation and increased real estate activity in residential, commercial, and retail will be evident only once the project has obvious construction indicators or is nearing completion.
Both Greater Noida and Yamuna Expressway have experienced a lot of speculative activity in the previous several years. While these places appeared promising for users, liveability was an issue.
According to analysts, the new airport will attract more end-users and result in consistent, genuine capital appreciation rather than just speculation.
However, investors may be hesitant to begin investing in the Yamuna Expressway region right away since they are unsure when the real estate narrative will play out from an exit viewpoint.
According to experts, office space would ultimately catch up and multiply in the region since rents will be lower than in Gurgaon and New Delhi.