New airport brings a $1 bn plot twist for Noida

Jewar’s realty market is flying high as the much-awaited Noida International Airport (NIA) was inaugurated by Prime Minister Narendra Modi on Saturday. An investment of nearly Rs 11,200 crore ($1.2 billion) has been made in the first phase of the project, which will handle 12 million passengers annually. Once fully developed, the airport will have a total capacity of 70 million passengers.Billed as India’s largest upon completion, the six-runway airport is planned across 7,200 acres and counts Zurich Airport International AG as its sole investor.ALSO READ: PM Modi inaugurates Noida International Airport, Delhi-NCR’s second international airport at JewarIt is one of the biggest projects in India’s infrastructure overhaul that has seen billions being poured into building bridges, highways, ports and airports. The success of large-scale projects with foreign investment, such as the Jewar airport, is crucial for India’s economy to continue attracting overseas capital.The Jewar facility is banking on its strategic location in Uttar Pradesh and proximity to Agra, home to the Taj Mahal. About 174 acres of cargo and warehousing belt is also being planned around the airport. Several private firms, including the Adani Group, are bidding for the construction of a logistics hub.Ambitious industrial plans in the area are expected to bring more footfalls to the new airport. These include a Foxconn semiconductor facility, a solar manufacturing hub, and new factories by wire and cables maker Havells India Ltd. as well as agri-machinery maker Escorts Kubota Ltd.ALSO READ: Noida International Airport: Here’s everything you need to know about India’s newest international airport“The Noida International Airport is set to emerge as a powerful gateway for the state, significantly enhancing global connectivity and attracting investments across sectors. We anticipate a strong ripple effect on the real estate market, with property values witnessing a steady upward trajectory in the coming years,” said Manoj Gaur, CMD, Gaurs Group.Gurugram playbook or a new script?Comparisons between the new airport corridor and Gurugram’s growth story are rising, with a key question: Can it replicate that trajectory?For decades, development was concentrated in a few dominant nodes, primarily Gurugram and parts of Noida, said Mohit Batra, Regional Director, Realistic Realtors. The emergence of the Yamuna Expressway belt signals a shift toward a more distributed model, he added.“What we are seeing now is the emergence of multiple growth nodes. Jewar has the potential to become an independent economic centre rather than just an extension of Noida.”The corridor is already seeing strong traction, with growth patterns evolving. It is expected to draw multinational and domestic companies to the NCR’s satellite city, boosting demand for Grade-A office space and luxury housing, experts said.They project Grade-A office leasing in Noida at 2–3 million sq ft annually—about a quarter of Delhi-NCR activity—from this year, supported by upcoming infrastructure projects that will improve connectivity with Gurugram and Delhi.Noida has delivered nearly fivefold returns over the past six years in some micro-markets, driven by infrastructure expansion, policy support and rising demand.According to InvestoXpert Advisors, the Yamuna Expressway has emerged as NCR’s strongest real estate corridor, with apartment prices rising 158% (Rs 3,950 to Rs 10,200 per sq ft) between 2020 and 2025, while plot prices surged 536% (Rs 1,650 to Rs 10,500 per sq ft).Prices take offAccording to Square Yards, property prices near the upcoming Noida International Airport are expected to rise sharply, with plot values likely to increase by 28% and apartment prices by 22% over the next two years.Over the past five years, apartment prices have nearly tripled, while plot values have grown about 1.5 times, with some micro-markets seeing up to fivefold gains. This reflects strong investor interest driven by infrastructure development.The government is pushing an aerotropolis model, similar to global hubs like Amsterdam’s Schiphol Airport, integrating aviation with commercial, industrial, logistics and residential ecosystems to create self-sustaining urban centres.“Before construction accelerated on the Jewar airport project, Noida’s real estate market lagged behind other NCR markets due to delays and developer challenges,” said Sunita Mishra, Vice-President – Research & Insights, Square Yards.With the airport nearing operations, the region is expected to drive the next phase of NCR’s real estate growth, turning the Yamuna Expressway into a key investment destination.Airline test aheadUltimately, an airport’s success hinges on airline participation, a challenge in India’s aviation market where IndiGo and Air India together control nearly 90% market share.The Jewar airport will also compete directly with the existing Indira Gandhi International Airport to attract carriers. This contrasts with the Adani Group, which operates both Mumbai’s existing and upcoming Navi Mumbai airports, giving it greater leverage in securing airline partnerships.India’s major carriers—including IndiGo, Akasa Air and Air India Express—have shown interest in operating from Jewar, according to Yamuna Expressway Industrial Development Authority official Shailendra Bhatia. To attract airlines, authorities have lowered airport charges and cut VAT on jet fuel to 1%, compared with around 25% at Delhi airport.IndiGo had earlier signed an agreement to be the airport’s launch carrier in November 2023.For now, locals are watching closely to see how the new airport shapes economic opportunities and daily life in the region.

from Economic Times https://ift.tt/RpSVTJC