Land prices near national highways to rise 60-80% in near term: JLL report

Property prices near India’s national highways are expected to increase by 60-80 percent in the short term. Further, the price of real estate around micro markets will increase by 20-25 percent after the facilities become operational, according to a report published by JLL.

The government’s focus on providing world-class infrastructure in its highway networks is going to lead to a short-term squeeze of prices by anywhere between 60 and 80 percent. The short-term rise in prices will be on the back of increased connectivity and improvements in infrastructure. The report by JLL also predicts that the price of land around micro markets will further increase by nearly a quarter after wayside amenities open up.

The National Highway Authority of India (NHAI) is all set to take advantage of these market dynamics and has already identified several locations to be developed. The NHAI has selected 650 properties in 22 states across India, with a consolidated area of over 3,000 hectares that will be developed with private sector participation in the next five years. Of these, 94 sites are located on the Delhi Mumbai Expressway, nearly 180 sites are along existing highways and 376 sites will be located on new or under-construction highways.