Realty Projects along National Highways Offers Better Returns
Real estate development along national highways can generate a return of more than 15 per cent for builders and potential investors, according to property consultant JLL India. The government is focusing on providing world-class infrastructure and related services for the highway network, it said. The consultant said there is a need for development of commercial spaces, warehouses and logistic parks, traveller facilities including wayside amenities along the highway. These wayside amenities include restaurants, food courts, retail outlets and electric vehicle charging stations. “National highways offer real estate development opportunities across India with 15 per cent upward returns,” JLL India said in a statement. NHAI (National Highway Authority of India) has identified more than 650 properties across 22 states with a combined area of over 3,000 hectares to be developed with private sector participation in the next five years, the consultant said. It includes 94 sites on the Delhi-Mumbai Expressway, 376 sites in under-construction new highways/expressways, and close to 180 sites along an existing network of highways in India. “We envisage that NHAI will give an impetus to modernisation of the Indian Highway network in coming years, ultimately culminating in various advantageous effects for highways users, market players, developers, investors, and facility operators,” A Shankar, Head – Strategic Consulting & Valuation Advisory, JLL said. He estimated a land price appreciation in said sites and micro-markets by 60-80 per cent in the short term, and 20-25 per cent as the facilities become operational. “JLL has been appointed as an international consultant by NHAI for properties located in the North and South region of India. The engagement comprises shortlisting of existing and new land parcels in a phased manner, identifying options for land monetization, detailed feasibility, and financial viability of each site,” Shankar said. Out of the 650 identified sites, bids were already invited for 138 sites and had received enthusiastic participation from market players, he said. “Clear land title, encumbrance free and pre-approved sites, with no change in land use required, in addition to attractive lease tenure option of up to 30 years with flexible project development options will open more doors of growth for developers and potential investors,” JLL said.
Tags : News/Views NHAI Infrastructure Highways JLL India Investors India National Land Delhi-Mumbai Expressway price Realty Projects Offers Returns