Infrastructure Development and its impact on Realty MarketUpdated on: June 28, 2016

CASE STUDY SERIES

Prosperity in any real estate market is directly proportional to its infrastructural development

Roads and highways are the most important infrastructure which lay foundation to the entire development process

The Delhi/ NCR market, post economic slowdown of year 2008, witnessed announcement of many such expressways

Through this case study, we aim to analyse the impact in the market with a focus on the online search trends

Major Expressways Announced in Delhi NCR

1998: Faridabad-Noida-Ghaziabad Corridor (FNG)

2003: Kundli-Manesar-Palwal Expressway (KMP)

2003: Yamuna Expressway

2007: Dwarka Expressway

Faridabad-Noida-Ghaziabad Corridor (FNG)4-lane 56 km long connecting Faridabad and Ghaziabad via Noida and Greater Noida

1998: Announced

but stuck due to political

unwillingness

2014:Construction finally started on 19.9 km stretch in Noida-Greater Noida

2015:In July, construction

on Noida section almost complete

2015:In November, tender

for two bridges on Yamuna initiated;

process is expected to complete by mid-2016

2016:In June, NHAI passed proposal to convert

non-operational 43 km stretch of FNG corridor into NH. Work to start

by January 2017

Property Search Trends factoring FNG Corridor

Silence till year 2008 Surged in year 2009 Constant surges from

year 2010 onwards Spikes on a regular

intervals indicate a diversion of buyers and investors towards FNG

The trends clearly show that any development on the corridor has reflected in surge in searches

Kundli – Manesar – Palwal Expressway (KMP)135.6 km long divided into three sections of 45 km each connecting Kundli and Palwal via Manesar

2003: 1st

proposal

2009:Layout, DPR & land acquisition

procedures completed. The contract awarded to KMP

Expressway Ltd. Deadline – June 2012

2012:1st deadline missed. New

deadline set to May 2013

2015:Multiple deadlines missed. Contract scrapped. Fresh

bids invited

2015:January-July, the project converted

into 6-lane. Contract awarded to Essel Infra projects for 83.32 km

between Kundli-Manesar. Deadline-August 2018

2016:In April, 53 km stretch

between Manesar-Palwal opened for public

Property Search Trends factoring KMP

Searches in Kundli & Manesar surged in 2010-11

Stabilised post 2012 Manesar saw surge in 2016 Searches in Palwal started

rising from year 2012 and still showing upper trends

Impact of delayed construction suppressed property searches. Whereas, opening of Manesar – Palwal created positive impact for Palwal

Kundali

Manesar

Palwal

Yamuna ExpresswayIndia’s longest 165 km long, 6-lane controlled-access expressway connects Greater Noida with Agra

2003: Yamuna

Expressway proposed

2007:Stuck due to Government

change & financial infeasibility

2007:In December, development

started. Deadline - 2014

2012:In August, project completed ahead

of schedule. Inaugurated by CM

Akhilesh Yadav

Property Search Trends factoring Yamuna Expressway

Property search surged with spike in year 2009.

Remained constant till year 2013 with periodic surges

Searches rose again in 2013-14 It then slowed down afterwards

and remains so till date

Significant surge immediately after commencement of construction and completion thereby, indicating direct impact

Dwarka Expressway (NPR)18 km long and 150 m wide, a high-speed link runs in a smooth parabola from Kherki Daula on NH8 to Dwarka

2007: Project

Announced

2010:Only 80% of land

acquired to develop

2011:In April,

development started for 14 km

2012:Deadline missed to

complete 14 km phase. Litigations over land

acquisitions

2016:Till January litigations continued. In March,

the project got National Highway status, renamed NH-8A

Deadline - June, 2017

Property Search Trends factoring Dwarka Expressway

Demand for the property around Dwarka Expressway started picking from year 2011

Continued till year 2013 Dipped in 2013 and

continues so till date

It is evident that commencement of construction impacted in surge of property searches. However, litigations killed the momentum

Though the Real estate as a sector depends upon many internal and external factors, but infrastructure is one such which determines the future of a particular location and the basics of any infrastructural development start with roads and connectivity. It is thus, said that roads bring life to a location

Unfortunately, roads and highways in our country are themselves struggling to stay alive. As of April 2015, out of all the highway projects around 40% totalling 14,000 km and costing around Rs 94,000 crore were delayed; 70% of these were managed by NHAI and the total cost was close to Rs 80,500 crore

This research report clearly indicates that property markets in and around these highways got instant attention of investors and buyers

However, litigation, roadblock and construction hurdles acted as speed-breakers. Nonetheless, with NHAI's intervention in these highways, things appear to be on right track

As per Mr. Nitin Gadkari, Road Transport & Highway Minister, Government of India, “Road construction in India has accelerated to an all-time high pace of 20 km per day & should reach to 30 km per day in next 5-6 month”. It shows some acceleration in the times to follow

For in-depth report, please contact:

info@realtymyths.com