Lprices near national highways may rise 60-80% in short-term: report

As per a report published by JLL, the price of lin micro markets near the national highways may appreciate by 60-80% in the short term while in the long run, after the facilities become operational, they may go up by 20 to 25%.

In the short term, the price appreciation will be driven by the infrastructure development connectivity created. Another spurt in price happens when the facilities/wayside amenities become operational along the highways.

The National Highway Authority of India (NHAI) has identified more than 650 properties across 22 states with a combined area of over 3,000 hectares to be developed with private sector participation in the next five years. It includes 94 sites on the Delhi Mumbai Expressway, 376 sites in under-construction new Highways/ Expressways, close to 180 sites along an existing network of highways in India.

A Shankar, head, strategic consulting valuation advisory, JLL said, “We envisage that NHAI will give an impetus to modernization of the Indian highway network in the coming years, ultimately culminating in various advantageous effects for highways users, market players, developers, investors, facility operators. Further, we estimate lprice appreciation in said micro-market sites by 60% to 80% in short term 20% to 25% as the facilities become operational.”

Capex investment per site ranges from 1 to 10 crore on an average or 2 crore per hectare of site area which all together translates into private investment to the tune of 4,800 crore in the next five years for this mission. The lessee returns for a typical site project are estimated to be in the range of 15% to 30%. Clear ltitle, encumbrance free pre-approved sites, with no change in luse required, in addition to attractive lease tenure option of up to 30 years with flexible project development options will open more doors of growth for developers potential investors.

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