Plotted developments gain traction; land prices witness almost 38% increase along Yamuna Expressway

Yamuna Expressway saw the highest rise of 38% in average plot prices – from Rs 1,600 per sq ft in 2019 to Rs 2,200 per sq ft by H1 2022-end (Representative image)

Land prices rose the most among real estate asset classes, with prices of plots along the Yamuna Expressway climbing 38 percent, primarily on account of the upcoming Jewar International Airport nearby, according to a new report.

The pandemic strengthened demand for land as a long-term investment and plotted developments also gained traction in Bengaluru, Hyderabad, Chennai, Pune, the Mumbai Metropolitan Region and Kolkata.

Data from ANAROCK Property Consultants showed that the top seven cities (Bengaluru, Chennai, Hyderabad, Pune, Kolkata, MMR and the National Capital Region) witnessed new plotted developments supply since 2020 and saw decent appreciation over the past 2.5 years.

The highest rise of 38 percent in average plot prices was along the Yamuna Expressway, the 165 km road along the eastern bank of the Yamuna river that connects Noida and Agra. Average plot prices here rose to Rs 2,200 per square foot by the end of the first half of 2022 from Rs 1,600 per sq. ft. in 2019.

In Greater Noida (West), plot prices climbed 36 percent to Rs 4,500 per sq. ft. from Rs 3,300 per sq. ft.

In Neharpar in Faridabad, plot prices rose 29 percent to Rs 4,500 per sq. ft. in the same period, ANAROCK said.

Airport project

Since the construction of Jewar International Airport started last year, development activity in and around the area has spurted, leading to higher land prices.

Land prices in YEIDA (Yamuna Expressway Industrial Development Authority) have gone up by 30-40 percent, said Santhosh Kumar, vice chairman of ANAROCK Group.

The rise in prices is largely due to the airport project and the other developments in the area. More so, after the pandemic, there has been an incessant rise in demand for plots. which has led to a price rise.

Several plotted development projects have been launched along the Yamuna Expressway over the past two to three years.

This is the highest land price rise in a micro market in the top seven cities. Apart from growing demand, land prices are rising because of limited availability in key areas. Noida, in particular, has no land available.

Meanwhile, the Noida Authority has increased circle rates in the area, which has also spurred land prices. As a result, developers have curtailed new launches in the NCR and remain in a wait-and-watch mode.

“Plots have become a hot ticket for property investors in the post-pandemic marketplace. Undoubtedly, well-chosen land offers higher returns on investment when compared to apartments. Average plot prices across India's major cities, and especially in the NCR, rose considerably over the last two-and-a-half years,” Kumar said.

In Bengaluru, the top three micro markets to see land price growth since 2019 are Devanahalli (18 percent), Attibele (24 percent) and Doddaballapur Road (18 percent.

In Chennai, Poonamallee saw 22 percent growth in average plot prices, Tambaram 25 percent and Navallur 20 percent.

In Hyderabad, average plot prices in Medchal, Adibatla and Ghatkesar grew 21 percent, 24 percent and 26 percent, respectively.

In Kolkata, Howrah saw a 20 percent rise in plot prices, Barasat-Madhyamgram saw an 18 percent increase, and Garia 24 percent.

In Pune, the top three micro markets to see plot price appreciation are Hinjawadi with 24 percent, and Chakan and Manjri with 18 percent.

In MMR, prices increased 22 percent in Shahapur, 18 percent in Boisar, and 17 percent in Neral, it said.