Ready for Takeoff: How the Jewar Airport is Fueling Noida's Real Estate Growth

Jewar airport spurs Noida real estate growth, enhancing connectivity and investment appeal.

## Introduction

Noida, short for New Okhla Industrial Development Authority, is a planned city in the National Capital Region (NCR) of India. It was established in 1976 and has emerged as a major hub for IT and manufacturing companies. 

The city has also seen major growth in its residential real estate market over the past two decades. Noida has a number of positives going for its real estate market - it is well-connected to Delhi via the DND Flyway and Metro, has abundant open spaces, and boasts of good social and physical infrastructure. Demand for residential properties has grown steadily as mid to high income households and working professionals choose to live in Noida and commute to work in Delhi and Gurugram.

## Jewar Airport Project 

The Jewar Airport, also known as the Noida International Airport, is an upcoming greenfield airport being constructed in the Jewar area of Greater Noida, Uttar Pradesh. It will serve the Delhi National Capital Region and is being touted as India's largest airport upon completion.

The airport is located approximately 72 km from Indira Gandhi International Airport in New Delhi and about 40 km from Noida. It will be built across 5,000 hectares of land and the total project cost is estimated to be around Rs 34,000 crore. 

The Jewar Airport project was approved by the government in 2017. The groundbreaking ceremony took place in November 2021 and the first phase of construction is expected to be completed by September 2024. Once fully operational, the airport will have the capacity to serve 70 million passengers per year.

The airport will have two runways, a four-lane expressway connecting it to Delhi-Mumbai Expressway, a metro link, and space for commercial activities like hotels, retail, MRO services, etc. It is expected to create more than 1 lakh job opportunities.

## Impact on Connectivity

The construction of the new Jewar Airport will significantly improve connectivity between Noida and the rest of the Delhi NCR region. The airport will provide direct connectivity to the Yamuna Expressway, allowing quicker travel to Greater Noida, Noida and other parts of Delhi. This improved connectivity is expected to reduce travel times from Noida to the airport by up to 40%.

In addition to the Yamuna Expressway link, the airport will also be connected to the Delhi Metro's upcoming Silver Line. The Silver Line will directly connect the airport to important NCR hubs like Delhi, Gurgaon and Ghaziabad. Travelling to the airport by Metro will provide a comfortable and reliable option for those living in other parts of the NCR.

The enhanced connectivity provided by road and Metro will make it significantly easier for those living and working in Noida to access the new international airport. The reduced travel times and options for public transport will be a major benefit for residents and will promote increased investment and development across the region.

## Increased Investment

The development of the Noida International Airport at Jewar is expected to attract significant investment from both the government and private sector. The Uttar Pradesh government has allocated Rs 4,000 crore for the first phase of the airport. Additionally, Zurich Airport International AG, which will be developing and operating the airport, will invest over Rs 10,000 crore. 

The airport is also likely to draw investment into associated infrastructure projects like road, rail and metro connectivity to the airport. Private developers are expected to invest heavily in commercial and residential projects in the airport region. Analysts estimate that over Rs 35,000 crore of investment could flow into Noida, Greater Noida and Yamuna Expressway areas over the next few years.

Land prices in areas adjoining the Jewar airport have already seen appreciation as investors and builders look to capitalize on future development. With improved connectivity and increased investment, the local real estate market is poised for strong growth. The airport will act as a catalyst for the entire Delhi NCR property market.

## Higher Demand

The new airport is expected to generate higher demand for real estate in Noida and adjoining regions. With world-class infrastructure and connectivity, more people will be inclined to live in Noida and work in Delhi NCR.  

Improved connectivity between Noida and Delhi will attract homebuyers looking for affordable options compared to Delhi. The metro network integration with the airport will also boost demand along the metro route. Many people may prefer living in Noida and using the metro to commute to work in Delhi.

As more companies set up offices in Noida, the job market will expand. This will drive demand for residential real estate from working professionals employed in Noida. The area along the metro corridor and key expressways will see increased demand.

Overall, real estate experts predict Noida property prices could rise by 20-30% over the next 5 years owing to the upcoming airport. The demand is expected to be strong for residential townships and luxury projects close to the airport. So the airport will prove to be a catalyst for the region's realty growth.

## Property Appreciation

The Jewar Airport is expected to lead to a significant rise in property values, especially for areas surrounding the airport. As connectivity and convenience improve, demand for residential and commercial real estate near the airport will increase. People want to live and work near transport hubs like airports. 

With the new airport, Noida and Greater Noida will become even more attractive destinations for homebuyers and businesses looking to set up offices. The current property rates in these regions are already quite reasonable compared to other parts of Delhi-NCR. But the easy access provided by the airport will lead to an increase in rates. Areas such as Yeida, Greater Noida West, Noida Extension and nearby regions will see the highest appreciation. 

As infrastructure improves and new economic activities emerge around the airport, property rates could double over the next 5-10 years. Investors have already started flocking to these regions in anticipation of the airport development. With limited land available near the site, the property values are expected to rise steadily. The airport will bring jobs and prosperity to the region, which will create a virtuous cycle of higher demand and greater capital appreciation of real estate.

## Development of New Areas 

The development of Jewar Airport is set to open up several new areas for real estate growth in Noida and Greater Noida. Many locations that were previously ignored or lacking infrastructure are now seeing an influx of new projects.

Areas like Yeida, Greater Noida West, Yamuna Expressway, and parts of Dadri are poised to benefit immensely from the airport. These were considered too far from Delhi earlier. But with the new airport, they will be within 30-40 mins of air connectivity. This has led developers to launch new affordable and mid-segment housing projects here.

Townships and integrated developments are coming up along the Yamuna Expressway near Jewar. These will provide homes along with social infrastructure like schools, hospitals, retail outlets etc. Making them attractive destinations for homebuyers working in Delhi-NCR.

The airport will also boost infrastructure development in these areas. Connectivity via roads, metros and highways will improve. As will basic amenities like power, water and sewage systems. This will further encourage real estate growth.

Overall, regions around Jewar will transition from rural/semi-urban locations into full-fledged real estate markets. While prices will rise, buyers can still benefit from the current low rates and upcoming developments here. The right investment choice now can offer substantial returns in the future.

## Office Spaces

The development of the Jewar Airport will lead to increased demand for office spaces in Noida and Greater Noida. As more companies set up offices near the airport to capitalize on the improved connectivity, the requirement for quality commercial real estate will grow exponentially. 

The airport is expected to generate employment for over 1 lakh people. Many of these jobs will be in the corporate sector, especially in aviation, logistics, hospitality, retail, and IT/ITeS. This will necessitate office spaces in and around the airport to accommodate the workforce.

Moreover, Noida and Greater Noida will become even more attractive destinations for companies compared to Delhi and Gurugram. The significantly lower rentals and abundance of land for commercial development gives Noida an edge. With the new airport in close proximity, companies will be eager to establish offices in Noida and Greater Noida.

The Uttar Pradesh government is also promoting Noida and Greater Noida as prime corporate hubs in the Delhi NCR region. Several policies and incentives have been announced to attract IT/ITeS companies, electronic manufacturing units, and other industries. The government is developing specialized parks and clusters dedicated to these sectors. 

Overall, the massive growth in employment and commercial activity stemming from the Jewar Airport will necessitate the development of substantial new office inventory across Noida, Greater Noida, and Yamuna Expressway. This bodes very well for the commercial real estate market in the region.

## Challenges

The development of the new Jewar Airport will bring many opportunities for Noida's real estate market, however it also presents some challenges that need to be addressed. 

- **Pollution** - With increased economic activity comes increased pollution. More flights, traffic, and construction can lead to reduced air quality if not properly regulated and planned for. The government will need to implement measures to monitor and control pollution levels. Reforestation efforts around the airport area could help mitigate some of the pollution impact.

- **Traffic** - The influx of people and business to the region will put pressure on Noida's roads and transportation infrastructure. Heavy traffic congestion is likely to occur around the new airport zone. Upgrades to existing roads along with planning new metro and rail links to the airport will be critical to managing the traffic flow. The government should conduct transportation studies to identity congestion points and solutions.

- **Infrastructure Pressure** - The airport will drive rapid urbanization of previously undeveloped areas. This puts pressure on electricity, water supply, sewage systems and other civic infrastructure. Most of Noida's infrastructure is already strained and needs upgrades. The government needs to adequately plan and invest in infrastructure development around the airport to meet the increased demand. New capacity should be built ahead of time to avoid shortages.

## Conclusion

The international airport at Jewar is set to transform and unlock Noida's real estate potential. With world-class connectivity, reduced travel times, and increased national and foreign investment, the region is poised for robust growth. 

As analyzed throughout this piece, the airport will catalyze development of new sectors, improve infrastructure, and enhance property values across Noida and Greater Noida. Demand for residential and commercial spaces near the airport is expected to skyrocket. Rental yields and capital appreciation will also see an upward trend in the coming years.

Overall, the state-of-the-art Jewar Airport marks the beginning of a new era of urban expansion for Noida. It promises to elevate the city into a leading business and aviation hub. The future looks bright for both real estate developers and investors in the region. Noida is on track to become a highly sought-after destination for living, working, investing, and travel.