SECTOR WELCOMES THE IDEA OF JEWAR AIRPORT
This New Year is all set to create new hopes and aspirations for the developers and public as the region of Greater Noida might get its own airport and the second in Delhi/NCR. Back in 2001, when the then CM of UP, Rajnath Singh had proposed the idea of developing a second airport in Jewar. This idea was well accepted and approved by his successor, Mayawati government but was later denied by the current UP government. The talks have begun again and this time the centre and state governments are looking deeply into the matter. This government has already acquired 2000 acres of land for the proposed airport and more can be acquired, as this is not an issue in the area. The civil aviation ministry is now just waiting for the nod and written consent form the UP government.
Although, the planned second airport at Jewar is against the existing policy for construction within the stipulated radius. The distance between the proposed location and IGI is less than 150 km and according to the current norms; no greenfield airport will normally be allowed within an aerial distance of 150 kms of an existing airport. Where it is allowed as a second airport in the same city or close vicinity, the parameters for distribution of traffic between the two airports will be clearly spelt out. The government can, however, approve a greenfield airport at places where an existing airport is unable to meet the projected requirements of traffic. It can be allowed both as a replacement for an existing airport or for simultaneous operation. IGI currently has a capacity to handle 62 million passengers annually and given that in 2013-14, traffic at Delhi airport increased to 36.9 million from 16.2 million in 2005-06, there is ample room for growth as well as additional capacity expansion at IGI itself. A fourth terminal and a runway are planned and this might take the capacity to 100 million.
This development of the Jewar airport in Greater Noida is sure to benefit the real estate sector which has been taking a massive toil due to the economic slowdown over the years. There hasn’t been much activity happening in the sector which has dampened the sales, especially in the last 2-3 years. With the inventory getting piled up, developer’s primary focus has drifted towards clearing the excess rather than launching new projects. This sight is pretty visible across all the major real estate regions in India. It is been said that an ideal market maintains an inventory of 6-8 months; whereas NCR had an inventory of over 40 months at the end of June 2014, while Mumbai stood at an inventory of over 50 months. Hyderabad had an inventory of over 45 months, Pune 20 months approx. and Chennai over 25 months. Bangalore had the minimum backlog among the major cities being around 20 months. Keeping this situation in mind, the creation of infrastructure in the form of a new airport will greatly help in correcting the realty prices in these key regions. Mr. Rajesh Goyal, MD, RG Group says “It’s been over a decade that this project has been kept pending and now it’s a matter of state approvals only. The entire belt across Greater Noida and Yamuna Expressway is currently witnessing a dampened demand as there are more investors than end users. The area is yet to become end user centric and this can happen only when sound infrastructure is in place. The presence of an airport will provide the right thrust for the demand as this will be a major gain for the infrastructure of the region. The sector will observe better market acceptance in the regions which will result in greater demand and better price appreciation in near future”.
While the Jewar airport is still in the planning and approval phase; the developers across NCR are eagerly hopeful for its acceptance as this will not only provide a large scale boost to the infrastructure of the region; but in turn will help create a boom in the real estate sector. Mr. Prithvi Raj Kasana, MD, Morpheus Group believes that “If the airport gets the green signal, there will be an unbelievable change in the shape of NCR real estate sector. Primary boost will be received by the markets of Greater Noida, Yamuna Expressway, Noida and even Agra. At present, these markets are receiving moderate views from the public and due to the distance from the capital it is hard to pull the customers. If the airport here gets going, Greater Noida will have the right fuel to ignite growth in demand for these regions”.
Mr. Ashok Gupta, CMD, Ajnara India Ltd. says “Development of infrastructure is directly related to the growth of real estate in the given region. Also, there are levels of infrastructural developments which affect the sector differently. Availability of an airport, metro rail, railway station and other such civic amenities provide better boosts to the region than provision of public conveyance and other such smaller amenities as these developments cater to a macro level of public. Hence, if the airport gets the nod from the state government there will be a significant increase in demand for these regions along with capital appreciation”.
Mr. Kushagr Ansal, Director, Ansal Housing states “A development of this scale will bring about a massive price appreciation in the markets of Greater Noida and Yamuna Expressway specially. This is extremely important for the overall development of these regions as Greater Noida is moving very slowly and Yamuna Expressway is yet to make its way in to people’s minds. On the flipside, creating a second airport in Delhi/NCR before IGI gets exhausted may render both airports impractical. The user charges at both airports will surely rise since the operating cost and capital expenditure at both airports would be spread over the same flyer base”.
Mr. Deepak Kapoor, Director, Gulshan Homz says “Speaking off the location, strategically the regions of Noida and Greater Noida have a great industrial/commercial potential and consequently, infrastructure would be required. This will also lead to employment opportunities along with economic up gradation. For the sector, a lot of demand for housing and office spaces will erupt along with strong capital appreciation in and around Greater Noida”. Adding to the view, Mr. Rupesh Gupta, Director, JM Housing says “Greater Noida is being greatly recognised as one of the future smart cities of India. The master plan for the region is perfectly laid down with ample of work and scope carried in the region. Airport will be the perfect icing on cake which will give a much needed push to the demand in the regions. This will also increase the cost of land and property prices will appreciate at rate of knots”.