Price appreciation is driven by the development of infrastructure
Real estate development requires investment in the transport infrastructure network. This investment can be undertaken to resolve traffic congestion and improve accessibility through reduced travel time, resulting in lower travel costs, increasing travel demand. There is no doubt that road development is also responsible for increasing air pollution, noise, vibration, and other environmental effects; all of these positive and negative impacts can change land values in the affected area. Therefore, it is necessary to calculate the impact of road connectivity on the price of a property in the actual area.
It has been argued that the land cannot be developed without providing access to transport infrastructure. On the other hand, the demand for territorial development also generates a demand for access to transport services. Thus, transportation infrastructure contributes to converting or improving land use in addition to its role as an accessibility service. There is, therefore, an interaction between the evolution of land value and the availability of roads. In the short term, price appreciation can be driven by the development of infrastructure and the connectivity created. Another price increase occurs when roadside facilities/amenities become operational along highways.
According to reports, land prices near national highways may increase by 60-80% in the short term. The National Highway Authority of India (NHAI) has identified over 650 properties in 22 states with a combined area of over 3,000 acres to be developed with private sector participation over the next five years.
Buying a property near the highway has its pros and cons. Investment in such properties depends on the preferences of individuals. However, investors should pay attention to important details before planning to invest hard-earned money in buying such properties.
However, buying a home next to or near a major highway can have its pros and cons. Both should be considered before investing in a property. In metropolises, intercity connectivity is a lifeline that fuels the economy.
Metro cities are highly dependent on each other for a variety of reasons, including services, trade, and labour. Therefore, being able to travel quickly, in both directions, is important for an endless number of people living in metro cities.
One of the potential drawbacks of investing in such a property can be the higher rates that most developers will quote. The required reward may vary depending on factors such as the overall benefits offered through the project. In a small stand-alone project, which offers little or no additional facilities and services, the price difference may not be so great whereas it would certainly be higher in a fully-fledged integrated township. The township’s advantages are having a high position, lifestyle, and investment value.
Integrated townships offer a far superior investment and lifestyle proposition. Due to their huge land needs, integrated municipalities are invariably be developed on the outskirts of the city. The developers compare their township project to one of the major highways in those locations, as this will attract much more interest from end-users and investors. However, the very nature of an integrated municipality is that it offers several key benefits to its residents.
Due to the size factor, housing projects like BSNL Housing society in such a township tend to be far enough away from the freeway or highway to ensure the absence of noise and air pollution. At the same time, the access roads allow you to always reach the motorway in a short time. Integrated municipalities also have their water and electricity supplies, as well as shopping complexes, hospitals, schools, and entertainment facilities. They also have open green spaces, jogging parks, and playgrounds.
Devanahalli is a northern suburb of Bangalore, located on National Highway 7 from Hebbal to Devanahalli (Bellary Road). The area is located 35 km from the city of Bangalore. Devanahalli is well connected to Bangalore International Airport. The proposed large-scale and social infrastructure development projects in this area will increase investors’ attraction as a destination. These projects include an aerospace SEZ park, an IT and hardware park, and a financial district.
In Devanahalli, most people invest in affordable land and apartments for better returns in the future. In North Bangalore, Devanahalli, the price of the property is cheaper than in other locations such as Hebbal, Jalahalli, etc. Devanahalli is accessible by a ring transport network consisting of wide three-lane roads, perimeter lanes dedicated to buses with strategically placed bus stops with pedestrian bridge/underpass connections. There will be space to park more than 40,000 cars. The airport city would be connected to the proposed high-speed rail link and highway from the central business district, MG Road.
As the new airport is located 40 km (25 miles) from the city, a new high-speed rail link is planned to connect the city to the airport. The different means of road and rail connectivity are as follows:
NH-7 at BIA is a 6-lane divided carriageway. NHAI is expanding the NH-7 from its current 6 lanes to 8 lanes, which can handle increased traffic due to the airport’s expansion and planned construction developments on both sides of the NH-7.
The Bangalore Metro, which covers a length of approximately 33 km spread over the north-south and east-west corridors, was built by the government of Karnataka with an estimated project cost of INR 64 billion (the US $ 1.5 billion). To ensure quick and easy connectivity from the city center Bangalore to the international airport, the Airport High-Speed Rail Link approximately 34km from the center to the airport is being developed which will allow passengers to reach the airport in approximately 25 minutes.
The development of the monorail is also planned to serve as a power line for the metro. The commuter rail system connected Devanahalli to Yeshvantpur via Yelahanka. Bangalore-Mysore Infrastructure Corridor (BMIC) project comprising the construction of a 6-lane toll highway between Bangalore and Mysore, the development of 5 integrated townships, a power plant, ring roads around Bangalore to ensure fast and easy connectivity between the 2 cities, and the development of commercial activities along the corridor is implemented on a PPP basis. The government of Karnataka has been developing the Ring Road (PRR) as an 8-lane highway along the outskirts of Bangalore for some time.
Finally, only well-capitalized and reputable promoters can venture into the development of the city, and these players always ensure that all the legality and overall quality of the project are beyond reproach.
Of course, the premium attached to properties located in an integrated township near a national highway is higher. However, the extra investment is worth it. In addition to the ease and quality of life, they also enjoy a much higher resale value in the real estate market.