The foundation-laying ceremony of the Jewar International Airport by the Prime Minister Narendra Modi heralds significant future economic activity in and around the airport, according to real estate experts. With an estimated cost of Rs 34,000 crore, the airport, once completed, will ease traffic at the IGI Airport, create a massive number of jobs for the local population, and give a major impetus to the property market in Noida, Greater Noida, and Yamuna Expressway.

“These regions were previously speculator havens and needed significant impetus to attract end-user demand. For an area to become end-user-centric and liveable, an infrastructure project like the Jewar Airport can help kick-start more real estate developments, including housing, commercial, retail, and hospitality projects,” said Santhosh Kumar, Vice Chairman – ANAROCK Group.

Interestingly, after the pandemic, the relatively affordable markets of Noida and Greater Noida had begun to see some demand uptick. Focus on Noida and Greater Noida increased manifold in the residential and commercial real estate segments. The airport will help push this demand even further.

“The airport is phenomenal news for the upliftment of the region. The region has already seen immense investment which would result in economic growth, not only of the YEIDA region but also of the entire state. The increasing business activity will also ensure employment opportunities that should result in increased demand for residential as well as commercial properties,” said Manoj Gaur, CMD Gaurs Group and Vice President NORTH CREDAI.

The height restrictions for developments near airports and the newly-evolved homebuyer preferences post COVID-19 may combine to push up the viability of plotted developments around the Jewar Airport. In recent times, plots and independent homes have gained a lot of popularity in Delhi-NCR.

To illustrate – residential plots around the airport selling at INR 22,000 per sq. yard a year have seen prices increase to INR 30,000-32,000 per sq. yard by now, depending on the exact juxtaposition of the plot vis-à-vis the upcoming airport.

The airport will play a critical role in assisting the region in attracting large investments, boosting rapid industrial expansion, and enabling local products to reach national and worldwide markets by facilitating seamless transit of industrial products. This will open up new prospects for a variety of businesses and provide a large number of job opportunities.

According to Housing.com research, share of residential sales in Noida Expressway and Yamuna Expressway from the overall residential sales in Noida & Greater Noida has increased from 17% in 2019 to 31% in Jan-September 2021.

Ankita Sood, Head of Research, Housing.com, Makaan.com & PropTiger.com, said, “Jewar airport will act as a pivotal factor in the overall growth of Noida and Greater Noida regions in the coming times. The airport will provide the much-needed connectivity to these areas, which will bolster real estate sentiments across asset classes. We already see that residential demand in the micro-markets around the upcoming airport have gained momentum with September 2021, surpassing the 2020 levels, despite the setback of the COVID-19 second wave.”

If the construction progresses as per the schedule and Phase 1 completes by the second half of 2024, there will be significant ‘real’ benefits. Already, over the last year, commercial activity – particularly warehousing – saw increased momentum in and around the airport – also factoring in other mega projects in the vicinity, including the Film City.

Already, there is an uptick in office leasing in Noida. Various private institutions are now scouting for land in and around the airport. The Greater Noida Authority has boosted investments into the region by attracting big companies with various incentives.

“Jewar Airport will position Noida on a global map. It will bring a lot of investment from multiple industries, a new section of corporate class including HNIS, UHNIs will be evaluating the city for long-term income opportunities due to the seamless connectivity and high-end infrastructural developments like Film City, amid this real estate will emerge as definitely one of the brighter options. We are excited to see the fast-paced development and support from the government, and look forward to the airport becoming fully operational,” said Deepak Kapoor, Director, Gulshan Group.

While the future for real estate around Jewar Airport certainly looks bright, investors, end-users, and developers must continue to tread with caution. The arrival of a second international airport in NCR will have a positive impact on the real estate market in and around the region and the state of UP. However, investment gains expectations must be more realistic than speculative.

Over the short-to-mid-term, the area in and around the airport will undoubtedly witness significant development activity by players who hold suitable land banks there. Many players have been hoping to cash in on this mega project since it was announced several years ago and bought up large land parcels in the vicinity.

The Noida airport will also be connected to the proposed Delhi-Varanasi High-Speed Rail, allowing passengers to travel from Delhi to the airport in just 21 minutes.

“The nearby region will continue to attract the attention of investors and end-users, increasing the number of new launches and sales activities in ongoing and upcoming projects. It will bode well for the pricing aspect also, as this region will become a hub of properties catering to different segments. Even RTMI units of developers in Noida will be an attractive proposition for people seeking a home in proximity to the airport,” said Sanjay Sharma, Director, SKA Group.

For these far-sighted developers, the time to come forward and weigh the best options is finally at hand. However, they will need to consider that the nearby areas, including Noida, Greater Noida, and Yamuna Expressway already have a lot of residential projects available.

As per ANAROCK data, the total available housing stock in Noida, Greater Noida, and Yamuna Expressway collectively stands at nearly 54,450 units (as on Q3 2021). This is 33% of the total stock in the entire NCR. Interestingly, back in 2019, the total available stock in the three areas was approx. 67,830 units. With demand rising in these cities after the pandemic, housing inventory declined by nearly 20% in this period.

“The inauguration of Jewar Airport is going to be a gamechanger for the region of Noida. It will be establishing the city on a global logistics map. The state government has always been very supportive and proactive in terms of development opportunities, ease of doing business etc. Now with this airport, the region will reap economic multiplier benefits, it will also open sources of employment in the construction business. It will also be giving a boost to the corporate travel and leisure opportunities, and bring Noida and Greater Noida at par with the millennium city of Gurugram,” said Amit Modi, Director, ABA Corp & President-elect CREDAI Western UP.

The Noida International Airport is perfectly positioned to serve residents of Delhi, Noida, Ghaziabad, Aligarh, Agra, Faridabad, and the surrounding districts. The airport will serve as Northern India’s logistics hub, and its size and capacity will be a game-changer for Uttar Pradesh.

“Real estate will be one of the most crucial sectors that will be pivoting towards consistent growth, and we look forward towards changing skyline of the city with the airport and Film City becoming operational. The demand for residential and commercial real estate will be undergoing a sea of change as a new class of corporate buyers and investors will be entering the market. An electronics and mobile accessories hub near region could become a reality in the Yamuna Expressway area, with several companies showing interest in the region for investment in the electronics sector also due to the upcoming international airport,” said Yash Miglani, MD, Migsun Group.

The Uttar Pradesh government has devised several strategies to attract MNCs, including encouraging a policy of expanding employment chances to professionals and loosening labour rules, among other things. Although these strategies will benefit the entire state, the Noida, Greater Noida, and Yamuna Expressways will profit the most due to their widespread base. PM Narendra Modi laid the foundation stone for Noida International Airport near Jewar, bolstering the chances even more.

“The surroundings provide excellent living options. Any increase in economic activity will boost demand for residential and commercial property throughout the region. Because it is the hub of reasonably priced real estate inventory, the NCR market’s prospects remain bright. Certain neighbourhoods along the expressway’s edge and nearby regions offer tremendous potential. Any rise will benefit sectors with good Metro and Expressway links; the Noida International Airport near Jewar adds to the region’s possibilities, which are projected to see a surge in demand for residential and commercial assets,” said Ashok Gupta, CMD, Ajnara India Ltd.