Need & Importance of Infrastructure Development in Real Estate Investment

Real estate sector in India has evolved over the years and will continue to elevate to new heights in the future. This has tremendously boosted the national economy, all thanks to the collective efforts of big real estate investors and developers.

Being one of the major contributors to the Indian economy, the infrastructure around the country’s real estate plays a crucial role in its success. Basic infrastructure availability, such as better connectivity, round-the-clock transport systems, congestion-free roads, efficient security, ample parking spaces, 24*7 power and water supply, and other amenities, play an important part in ensuring the success of the real estate sector in a particular area.

Poor infrastructure can hinder the progress of real estate values or even decline them, while a well-developed infrastructure boosts the real estate sector and spurs economic growth. This is why many real estate investors and developers place a premium on properties near high-quality infrastructure. For instance, the rise of various real estate projects in Yamuna Expressway assured the best infrastructure in the region, and plenty of investors made a huge fortune, given the quality of services available on the expressway.

But how infrastructure development has propelled the real estate sector, and what’s the need to develop it further? We’ll see it all here!

Infrastructure Growth and Its Impact on Real Estate

Quality infrastructure is an inseparable organ of a successful real estate industry as it is extraordinarily impacted by infrastructure growth. Recent improvement in India’s infrastructure has paved the way for many real estate developments across the country. These improvements strengthen regional connectivity, create new opportunities, develop ecosystems, and elevate the quality of life there, making it a more desirable place to work and live. Availability of basic efficient amenities may increase demand for real estate in a given area.

Union Budget 2023-24 has already complemented various efforts to support infrastructure development while also focusing on essential elements such as real estate, the industrial revolution, and greater public spending. With national capital spending of more than four per cent of its GDP in infrastructure improvement, India’s real estate industry has seen an impressive appreciation. As evident, infrastructure improvements have raised regional accessibility, connectivity, and overall standard of living.

One of India’s marvellous infrastructure initiatives, the 6-lane, 166 Km long Yamuna Expressway or Greater Noida-Agra Expressway, has connected two major locations and cut travel time impressively. This initiated a quicker movement of goods and services, enhanced accessibility and communication between the two cities, while also encouraged trade and business. Even purchasing a flat in Yamuna Expressway has proved extremely beneficial to the occupants.

In addition, these giant infrastructure projects positively influence real estate development, apart from providing economic benefits to the region and the nation as a whole. This opened up new chances for many businesses and industries to flourish near these large-scale projects. The Yamuna Expressway has introduced many significant infrastructure changes that will likely boom Indian real estate, trade, and transportation.

Benefits of Infrastructure Investment on Real Estate Development

As discussed above, infrastructure investment brings fruitful results to a country’s real estate industry. Infrastructure elevations increase property appreciation and overall living standards in the region.

As per some statistics, infrastructure represents about 50% of the construction cost for real estate developers. This reflects that good infrastructure is a key operator in deciding where the real estate investment cash will go.

Below are some benefits of infrastructures in real estate:

• Property Value: High-quality infrastructure is essential in elevating the property value. This means greater infrastructure will prosper effortless business activities as communication, transportation, and energy costs decrease.
• Stable Cash Flow: Infrastructure advances long-term cash flow, which is favourable for investors. It adds value to a real estate investment, thereby generating more funds and bringing steady cash flow for investors.
• Reliable infrastructure supports real estate investment: Infrastructure projects like good roads, recreational centres, security, smooth transportation, and water attract people to a particular location and improve the worth of the properties in that region. Infrastructure development of an area contributes to a large percentage of the property value in that entity. A real estate investment cannot appreciate in value or provide high returns on investment if no new development exists in that location.
• Regional Growth: Infrastructure development such as public spaces like parks and community centres enhance overall liveability in an area. Thereby increasing a locality’s appeal to potential buyers and tenants to find investment opportunities in that area. A shining example, many infrastructure projects in Yamuna Expressway of Noida encouraged real estate investment, which played a major part in the growth and potential of the real estate industry along the expressway.
• Creation of Metropolitan Centres: Infrastructure development will help in the creation of new urban areas and population centres in the region. These metropolitan centres will bring a demand for residential real estate as well as for commercials like stores, malls, restaurants, and educational institutions. The ease of doing business will positively impact the national infrastructure advances. The better the infrastructure of a region, the more the encouragement of local development.

While India is making impressive strides in technological advancement, the real estate industry is also flourishing under Make In India. Union Government has directed Indian real estate developers to come forward with new infrastructure development projects all over India. And that’s evident as various big real estate industrialists and developers are behind the foundation of many massive construction projects all over the country.

How may Infrastructural Factors Influence the Real Estate Industry?

Currently, India is passing through intense infrastructural development. There is a growing trend of big cities and states strengthening infrastructure in order to attract new businesses and encourage economic growth.

This trend has positively impacted the real estate industry, as many businesses and property seekers have propelled their search for properties in areas with well-developed infrastructure.

There are a number of reasons that explain why infrastructure can boost the real estate industry, such as

• Good infrastructure attracts job seekers, businesses, and potential property investors. This leads to increased demand for commercial and residential real estate.
• The development of infrastructure adds value to the existing properties and makes them more attractive to potential buyers.
• Well-developed infrastructure enhances the quality of living in an area, which leads to an increased demand for property.

Infrastructure development brings positive social impacts on the real estate industry. Cities and states that prioritise infrastructure will likely see increased demands for properties, as well as higher values for the existing ones. So, real estate investments in Jewar plots for sale on Yamuna Expressway can bring assured returns for the long term.

Summing Up!

We have discussed the factors deciding the fate of the real estate industry in a given area, where infrastructure development plays a major part in determining the value of that industry. Whether it is about property investments for long-term returns or about purchasing a dream home, infrastructure development is the way that decides whether it will be a safe idea or not!