How Jewar Airport Will Benefit Noida’s Under-Performing Realty
The gloomy stories that investors hear with regard to Noida real estate may be confusing, especially to those who had their eyes of this affordable property market to build a home, but the developments surrounding the Jewar airport give them enough hope not to lose heart and hold on only a little longer before things change for better.
The foundation stone for the airport project, that was first conceived in 2001 and received approval only over a decade-and-half later, might be laid after the Lok Sabha elections as all hurdles in its way ─ well, almost* ─ have been cleared. Chances are high that the largest airport in India that will entail the development of 2,200 acre of land would be operational by 2023. With that, the national capital region will get the distinction of hosting two airports with 100 kilometre.
That is not all. The arrival of the airport would bless this property markets with several other infrastructural developments.
The Jewar Airport will have an Aerocity on the lines of the one at the IGI airport. Plans are also in the works to link the $-3.1 billion Jewar airport with the Delhi’s Metro’s Aqua Line by 2025. The government is also considering the possibility of linking the airport with Sarai Kale Khan, a major bus transit station in the national capital, through a dedicated Rapid Rail Transit System (RRTS). At a later stage, the Jewar airport could be connected with the Eastern Peripheral Expressway that joins Haryana's Palwal with Kundli, bypassing the national capital.
How will the Jewar airport impact Noida housing market?
If we analyse the current state of affairs, property markets around Noida are reeling under immense pressure ─ according to the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA), there are over 100 stuck projects in the region; private estimates peg this number at 1.5 lakh units.
That is just part of a much bigger problem Noida realty is currently dealing with. Some of the biggest developers of the region are close to insolvency – cases are pending against Amrapali, Jaypee and Unitech. The uncertainty involving these cases ─ After over two years of these cases popping up, no solution is in sight despite the fact that the Supreme Court has sworn to resolve these issues in a timely manner ─ is hindering concerted efforts made by sector stakeholder in achieving their desired target.
In an atmosphere such as this, the Jewar airport is the very thing NCR realty is in the need of. The project would touch lives and get back the positivity Noida currently needs more than anything.
According to PwC, the agency that has prepared the techno-economic feasibility report for the project, the Jewar Airport is expected to handle over 10 crore passengers by 2050, serving 37 domestic and 31 international destinations.
Currently, people living in many cities of western UP and some cities of Rajasthan have to travel to Delhi — a journey of at least two hours — if they plan air travel. An airport in Jewar will be a great help for these people. This airport will not only address the aviation needs of Delhi but also of cities such as Agra, Mathura, Bulandshahr and Meerut. The Union civil aviation ministry expects this airport to give bolster tourism and economic potential of the region.
As it takes shape physically, the project, which is expected to generate millions of job opportunities, would improve investor sentiment and usher in that positive vibe Noida needs, all in due course.
Well, Jewar has already seen a status update, from being a part of the Bulandshahr district to being a nagar panchayat under the Gautam Budh Nagar district now. Due to the ongoing developments, rates of the property along the area have grown substantially, too.
Landowners can already see the difference.
While a bigha of land was sold for Rs 4-5 lakh in the past, rates have now touched Rs 20-25 lakh a bigha. A bigha of land measures 843 square metre.
Farmers whose land is being acquired for the project are being offered three times the circle rate. While the prevalent land rate in the area is Rs 900 per square metre (psm), the government is offering villagers Rs 2,300 psm.
The nodal authority Noida International Airport Limited (NAIL) for the upcoming international airport in Greater Noida’s Jewar, plans to hold a pre-bid conference for the interested bidders on July 15, 2019. The conference, to be held at the India Exposition Mart in Greater Noida, will be aimed at resolving and responding to all the queries of the bidders. "The pre-bid conference would be held on July 15, 2019 wherein, their queries related to the bid document, terms and conditions would be clarified," said Shailendra Bhatia, officer on special duty of the Yamuna Expressway Industrial Development Authority (YEIDA).
It was earlier in May 2019 that a global tender was floated by the NIAL, an agency formed by the Uttar Pradesh government for managing the mega project in Gautam Buddh Nagar district, to hire a developer for the proposed airport. According to the NAIL,14 developers, Indian and international, have shown interest in developing the project.
The bidding process for the Jewar airport began on May 30, 2019 and the last date for receiving queries was July 1, 2019. The bid would be finalised on November 29 this year, and work on the airport is expected to begin by early 2020, according to officials.
What to expect in the future?
Investments in this property market should be done strictly keeping in mind certain facts.
First, not many developers would be launching a new project here since they are already under tremendous pressure to sell off their existing housing stock and completing their stuck projects. Those looking to invest in property along Jewar will have to primarily in the land.
Absolute dexterity must be shown in checking the legality of the land in case one is interested in buying since thriving property markets also become a breeding ground of property-related frauds.
Also, the investment must be made keeping in mind the fact that profits could be made only in the long term.
*Issues involving land acquisition for the projects are still being resolved.
|2016||Apr: Govt requests UP to develop a detailed project report for the proposed airport|
June: Civil aviation ministry clears plan for Jewar airport
Aug: Govt forms Noida International Airport Company Limited (NIAL) to handle project management
Nov: UP govt approves the allocation of Rs 1,260 crore for land acquisition
Dec: District administration submits rehabilitation and resettlement document on land acquisition
Feb: Up govt allocates Rs 800 crore for land acquisition in its annual Budget
April: Allahabad High Court dismisses petitions by farmers seeking higher compensation for their land, paving way for the land acquisition process
May: UP Cabinet approves bid document for the airport; sanctions Rs 894 crore for resettlement