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If you were to ask any seasoned investor which factor influences real estate pricing the most, then connectivity is sure to take the lead. The introduction of a new subway line, expressway or an improved road in an airport vicinity can transform an out-of-the-way place into one of the most desirable locations in the entire city in just a few years. Understanding how infrastructure projects affect property prices is important because this knowledge will prove beneficial for buyers and sellers alike.
Read more: How Infrastructure Projects Affect Property PricesThis guide helps you no matter if you want to invest early in an upcoming corridor or want to price an existing property that now sits closer to a major development.
In the case of a new road, flyover or metro route which reduces commuting time, people tend to bid a higher price due to the time saving. Reduced and faster access to work places, schools and hospitals adds to the desirability of the area, and hence the price.
An area that is easily accessible will be more diverse in terms of its buyer profile and includes people who work in that area as well as investors, NRIs, and end users who were earlier deterred by poor connectivity in the area become potential buyers.
Every infrastructure development comes with commercial activity to residential areas. This includes shops, offices, restaurants and service establishments. It means more traffic and employment opportunities for nearby residential developments.
Land on the periphery of urban areas, which was not considered very attractive from the point of view of real estate earlier, begins to be feasible for development as townships, gated communities and mixed development projects once connectivity infrastructure becomes publicised and constructed.
The pattern repeats itself from Mumbai and Bengaluru to smaller and high growth Tier 2 markets like the Chandigarh Tricity region.
The Chandigarh Tricity region is a strong example of property appreciation that is infrastructure and is happening in real time. The PR-7 Airport Road in Zirakpur connects directly to Chandigarh International Airport. It has meaningfully improved access for residents as well as commuters and also contributes well to sustained year on year price growth in the area. The widened Chandigarh-Zirakpur-Panchkula corridor also similarly has cut travel time to central Chandigarh. This makes the previously peripheral sectors far more attractive to homebuyers who work in the city but want more space and better pricing outside it.
So pay attention if you’re a buyer or seller in Mohali, Zirakpur and Panchkula. This means that all location decisions of yours should not just factor in the current connectivity but more. Also focus on the upcoming road widening, airport linked infrastructure and highway capex that is planned for the region. It’s important because these tend to shape price movement over the next 3 to 5 years.
Look beyond the current price tag and check what’s really planned for the locality over the next few years. There should be an actual upcoming corridor with confirmed infrastructure work. Do not just make decision based off of announcements. This offers you a stronger long term appreciation instead of an already saturated and fully developed area.
If your property is now positioned in relation to an infrastructure project more favourably than it was at the time of purchase, then this can be considered as one of the factors that will help determine the value of your property. A proper property valuation should account for improved connectivity, reduced commute times and any new commercial development nearby. It shouldn’t just be a square footage and construction age.
Monitor construction progress which is verified and not simply news. Many construction projects in India have seen their timelines delayed, and usually, the price impact on such projects happens only after they reach a certain level of construction or are completed.
Infrastructure is still one of the most reliable and long term drivers of real estate value in India. Understanding how infrastructure projects affect property prices is important for making the right decision. This goes from any highway capex and metro corridors to airport linked roads in Tricity markets like Zirakpur, Mohali and Panchkula. Both buyers and sellers get a real edge in timing their decisions as well as pricing their property accurately.
The team at People’s Property Point can help you if you’re evaluating a purchase or planning to sell in the Chandigarh Tricity region. We explain how local connectivity projects really are shaping prices in your specific sector. Contact us for a location specific assessment or explore current residential and commercial listings across the region.
Q – How infrastructure projects affect property prices in India?
A – Infrastructure projects like metros, expressways and airport roads reduce commute times and also improve accessibility. This widens the buyer pool and also typically drives up both residential and commercial property prices in the surrounding area.
Q – Which infrastructure projects have the biggest impact on real estate value?
A – Metro lines, expressways and major highway connectivity projects have the strongest impact. This is because they very directly reduce travel time. It also open up any previously peripheral areas to serious residential and commercial demand.
Q – Is it a good idea to buy property near an upcoming metro or highway project in India?
A – It can be, provided that the project has moved beyond the announcement stage into active construction. Prices can appreciate more reliably once the infrastructure work is verifiably underway rather instead of being merely planned.
Q – How does connectivity affect property prices in Zirakpur, Mohali and Panchkula?
A – Improved road infrastructure like the PR-7 Airport Road and widening of the Chandigarh-Zirakpur-Panchkula road corridor have helped boost property prices in these Tricity areas by reducing commute time to Chandigarh.
Q – Should I factor infrastructure development into my property’s asking price when selling?
A – Yes, if your property today has more connectivity or there is any commercial growth happening around it as opposed to when you purchased the property. Reflect it in a realistic and updated property valuation before you list it for sale.
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