UP Grants Rs 2,000 Cr To Jewar Airport In Budget

UP Grants Rs 2,000 Cr To Jewar Airport In Budget

UP Grants Rs 2,000 Cr To Jewar Airport In Budget

Plans to build the National Capital Region's third airport at Jewar are firming up, with the Uttar Pradesh Budget allocating Rs 2,000 crore for the mega project on February 18. 

In the meantime, Zurich Airport International AG is set to apply to the Ministry of Home Affairs for a security clearance. Top officials of the Swiss company met officials of the Noida International Airport Ltd (NIAL) on January 15, 2020, to discuss the master plan while also visiting the project site. The state government, on December 16, 2019, handed over the conditional letter of award to the Swiss company's CEO, Daniel Bircher. Construction work on the project is set to start from February 2020, say officials.

Zurich Airport AG was selected from among four bidders, including Adani Enterprises, Delhi International Airport Limited, and Anchorage Infrastructure Investments Holdings Limited, to work on the airport project. 

The Gautam Buddh District Administration has also transferred the 1,334 hectares of land required for Phase-I of the project to the Yamuna Expressway Industrial Development Authority (YEIDA). 

Should You Invest In Property Near Jewar?

The government expects the Jewar International Airport to become operational by 2023 – the land acquisition process is on; the Uttar Pradesh government has started setting aside money for the project. Industry experts expect things to slowly start looking up for Noida’s real estate market that has been under tremendous stress for about five years now because of an ongoing slowdown locally after the ground-breaking ceremony for the national capital region’s second airport, which would also be the country’s biggest airport by size, takes place, likely after the Lok Sabha elections. How could homebuyers/investors use this opportunity to the best of their advantage?

If you are an investor

Those who have already invested in property markets around the area — the proposed site runs along the 165-km Yamuna Expressway — have little reason to be cheerful if we speak of the present. Instances of project delays and developers going insolvent have severely damaged buyer sentiment which has resulted in record low home sales. Declining sales have further resulted in the downfall of the Noida property market, which includes Greater Noida and Yamuna Expressway, gathering the highest inventory stock in the whole of NCR, data available with Makaan.com show.

In a housing market where developers are struggling to sell the existing stock, does it make any monetary sense to make a fresh investment? If you are there to make a quick buck, it may not. If you are in the property market to earn handsome returns in the long run, it certainly does!

How so? The fact that rates have slowly begun to move upwards in Jewar on hopes of the village getting an airport notwithstanding — as against Rs 4-5 lakh a bigha in 2015, rates have gone up to Rs 25 lakh a bigha now — property here is still quite affordable here if you compared it with similar properties in Haryana or Rajasthan.  For a plot measuring the same, investors will have to keep over a crore in Manesar and Bhiwadi.

This is indicative of the growth potential land in this region has — the arrival of the airport would start pushing the rates upwards. The affordable land here may cease to be that after 2023.  A little diligence, planning and patience would mean an investor can make a windfall on their investment here, even if they plan to flip.

Those ready for a longer commitment can expect to make impressive rental income. The airport would create millions of jobs. Those working here would need to live close by. Those looking for smaller investments would purchase from the existing housing stock that realtors are willing to sell cheaper. These would also have high chances of becoming rent-generating machines in the future. While investing in land and building independent homes makes sense, planning an entire project may not be viable, considering the region already has a huge unsold inventory.

If you are a buyer

This is possibly the only area in the NCR where a homebuyer can purchase land at affordable rates and build a spacious independent home. Those aspiring for community living would also get the same benefit.

Data available with Makaan.com show property in Greater Noida is among the most affordable in the NCR—a square foot of space here is available for Rs 3,000. Between 2013 and now, prices have also remained almost unchanged at the Yamuna Expressway, at Rs 3,800 psf.

The image of Noida realty might have taken a beating owing to a multitude of issues, but rough days have certainly turned it into a buyer’s market. Developers are open to cutting you a better deal now than they were before.

However, infrastructure in the region is still in developing stage — construction activity would run high in the times to come since building work is likely to simultaneously start on various projects, including Jewar Metro — it may take a while before the hustle bustle around your homes stop.

In developing areas, land-related frauds become common. Check out the paperwork diligently in case you are buying land in Jewar.

The developing story

The timeline: The proposal for an airport in Jewar was made in 2001 when Rajnath Singh was the chief minister of Uttar Pradesh. His successor Mayawati also backed the plan, and her government acquired more than 2,000 acre for the project.

It was in December 2018, however, that the UP Cabinet, headed by Chief Minister Yogi Adityanath, gave its approval for the development of the airport.  The Union government had also given site clearance approval for the project in July last year.

Estimated cost: Nearly 5,000 hectare of land would be needed for the development of this international airport that would be developed in four phases. The estimated cost of the project, which will be carried out by the Yamuna Expressway Industrial Development Authority, is pegged at Rs 20,000 crore. This cost does not include connectivity plans.

Capacity: According to PwC, the agency that has prepared the techno-economic feasibility report for the project, the Jewar Airport is expected to handle 60 lakh passengers by 2022-23, when the first phase of the project is slated to be ready. It would cater to handle over 10 crore passengers by 2050, the agency says.

Connectivity: Passengers could take flights from the Jewar Airport to international destinations such as London, Abu Dhabi, Doha, Dubai, Kathmandu and Bangkok, apart from flying to key domestic destinations.

The impact: The civil aviation ministry expects this airport to give a boost to connectivity in the whole of western Uttar Pradesh, which will, in turn, bolster tourism and economic potential of the region. This airport will not only address the aviation needs of the Delhi airport but also cities such as Agra, Mathura, Bulandshahr and Meerut. The arrival of the new airport would significantly improve the prospects of property in the region.  A high-speed network would only further the momentum.

The green touch: The Noida administration has also signed a pact with private entities to develop a 92-acre land parcel for its afforestation programme. This would mean buyers would remain close a vast green area.

With inputs from Housing.com News

Last Updated: Wed Feb 19 2020

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