Mumbai and ancillary locations- with potential returns reaching 4X over the next decade
MUMBAI, India, Dec. 9, 2024 /PRNewswire/ -- India's urbanization is at a turning point, marked by a surge in rural-to-urban migration. This drives the expansion of existing urban nodes, towards areas along their peripheries. 40% of India's population, equivalent to 60 crore people, is expected to reside in urban areas by 2030. Anticipating the growing need for quality urban infrastructure, India is expected to invest over INR 143 lakh crores in infrastructure by 2030. Most of this expenditure is to be directed towards urban clusters, driving significant activity in infrastructure-led urban development. Projects under consideration include second airports, inter-city metro connectivity, aero-cities, highways (including quick transit freeways), high-speed rail corridors, IT + ITES zones, large datacenter concentration zones, among others.
Top 8 upcoming micro markets for the next 5 years, based on the infrastructure & mega project announcements across India
Colliers conducted detailed assessment across Top 8 micro markets upon key parameters which impacts real estate growth such as:
• Intersection of multiple new infrastructure initiatives within the same area
• Access to social infrastructure, such as schools, hospitals, universities, etc. Along with the creation of multi-modal social infrastructure.
• Availability of land at affordable rates
• Proximity to key urban nodes
Key Existing & Upcoming Infrastructure projects Impacting Urbanization in India:
Mumbai Trans-Harbour Link:
(Operational since 2024)
• It is a groundbreaking infrastructure project, being the longest sea bridge in India. Aimed at enhancing connectivity between Mumbai and Navi Mumbai, it has reduced travel time from 2 hours to 30 mins. Further, it provides quick access to the Mumbai-Pune highway, the Mumbai-Nagpur Highway and the Mumbai Goa Highway.
• The MTHL has positively impacted areas like Uran, Talegaon, Panvel, and Kharghar, with land prices appreciating nearly 2.3X from INR 1200 to INR 2250 per sq.ft. (2020 to 2024)
Bangalore Kempegowda International Airport:
(Terminal 1 Operational since 2008, Terminal 2 - 2024)
• It is among the 3rd busiest airports in India, currently serving 3.7 crore passengers annually, operating over 300 flights daily and connecting over 100+ destinations worldwide.
• Operationalization of this airport has added a new dimension to the expansion of North Bangalore. Projects such as BIAL, STRR, Tech Parks, Aerotropolis etc. are designed to be integrated townships, with significant contribution towards the city's future economy. These announcements have contributed to a nearly 2.5X land price appreciation, from INR 1800 to INR 4500 per sq.ft. in the period 2020 to 2024, most pronounced around the north Bangalore micro-markets like Devanahalli, Chikkaballapur, Hebbal and Yelahanka.
Navi Mumbai Airport & NAINA (Mumbai)
(Under construction- Estimated completion by 2025)
The upcoming Navi Mumbai International Airport is going to be India's first airport with multi-modal transport connectivity. The airport is a remedy for the rising air traffic and resulting congestion at the existing CMI Airport. This new airport will have the capacity to serve ~9 crore passengers annually and will boost growth around the 90,000 acres of surrounding land, via the NAINA (Navi Mumbai Airport Influence Notified Area). This, in turn, would drive the growth of real estate in the region, with land prices appreciating nearly 3.9 x in next 5 years from INR 4,200 to INR 16,200 per sq. ft. (2024-2030) in micro markets like Khopoli, Pen. This is backed by the expected sprouting of improved infrastructure, better connectivity, along with opportunities for new residential and commercial developments. These developments are expected to culminate in effectively establishing "Third Mumbai," as a new urban hub in proximity to the airport.
Jewar Airport (NCR)
(Under construction- Estimated completion by 2025)
• The upcoming Jewar airport is the biggest catalyst for urbanization in Uttar Pradesh. Its strategic location along the newly built Yamuna Expressway, connecting the urban centers of Delhi, Noida and Agra serves as a distinct advantage. Government initiatives like YEIDA, International Film City and Metro Line Expansion have provided further impetus to the growth of Jewar as a township. These initiatives have contributed to a land price appreciation of nearly 1.4X in the last 5 years from INR 5,000 to INR 7,000 per sq. ft. (2020-2024).
Chennai Peripheral Ring Road
(Under construction- Estimated completion by 2025)
• This is a 132- km long highway under construction around Chennai. Once completed, it is expected to drive the growth of satellite towns like Sriperumbudur, Singaperumalkoil, and others. This would help to ease the congestion in and around the city. These areas have witnessed a land price appreciation of nearly 1.5X in the last 5 years, from INR 2500 to INR 3800 per sq.ft. (2020-2024). We expect the neighbourhoods to continue flourishing in the coming years, backed by upcoming projects like Fintech City and the proposed Chennai Greenfield Airport at Parandur.
"Thus, it is the right time for investors to invest in a location which is expanding rapidly and experiencing high land price appreciation, driven by existing & upcoming infrastructure initiatives. Investors can enjoy high returns and explore various rental yield options including second homes, holiday homes etc. and expand their real estate portfolio by investing in one of the top growth markets in India,"says Swapnil Anil, Managing Director, Advisory Services, Colliers India.
Land Price Analysis Across Top 8 Growing micro markets of India
Khopoli, being only 45 mins from Navi Mumbai, ranks as the most attractive as Navi Mumbai International Airport will be operational by April-June 2025. The area is expected to witness a land price appreciation of nearly 3.9X from INR 4,200 to 16,200 per sq.ft. in next 5 years. This is followed by Sanad in Gujarat and Sonipat in Haryana would witness a growth of nearly 3.0-3.3x respectively from 2024-2030.
Micro Markets
2020
(INR/sqft)
2024
(INR/sqft)
2030
(INR/sq.ft.)
Land Price
Appreciation Growth in
next 5 years 2024-2030
Khopoli
2700
4200
16254
3.9x
Sanad
700
1900
6297
3.3x
Sonipat
2800
9829
29349
3.0x
GIFT City
4300
7500
20247
2.7x
Oragadam
2500
3800
6281
1.7x
Jewar
5000
7000
10482
1.5x
Doddaballapur
2700
3800
5726
1.5x
Mucherla
1100
1550
2400
1.5x
Source: Colliers
Investment Outlook
• Infrastructure Initiatives: The growth of the MMR region is driven by various infrastructure projects, including the Mumbai Trans-Harbor Link (MTHL), Navi Mumbai Airport Influence Notified Area (NAINA), Virar-Alibaug Multimodal Corridor, Mumbai-Pune Missing Link Project, and the JNPT extension.
• Easy Accessibility: Khopoli's strategic location, offering easy access to the Mumbai-Pune Expressway, Central Railway, the upcoming Navi Mumbai International Airport, and JNPT Port makes it a preferred destination for investors.
• Proximity to Urban Centers: Khopoli, an emerging area in Maharashtra, is strategically positioned just 73 km (a 90-minute drive) from South Mumbai and about 45-50 minutes from Panvel, Navi Mumbai. Despite its proximity to these urban hubs, Khopoli offers relatively affordable land prices with strong investment potential.
• Social and Environmental Benefits: It offers a sustainable lifestyle in a clean environment, while providing access to all essential amenities.
• Affordability: The development of new urban areas with lower land prices provides opportunities for homeowners/ investors to purchase assets, which in turn stimulates growth in real estate and return on investment.
For further information, please contact:
Sukanya Dasgupta
National Director & Head, Marketing & Communications | India
Sukanya.dasgupta@colliers.com
+91-9811867682
About Colliers
Colliers (NASDAQ: CIGI) (TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 65 countries, our 19,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 29 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.3 billion and $98 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people.
Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.
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