Navin Dhanuka, Director, ArisUnitern RE Solutions Pvt Ltd.
India’s infrastructure boom is not only fuelling real estate momentum but is also reshaping the residential property market, accelerating urbanization significantly. Ambitious recent government initiatives to build new highways, construct airports and metro lines as part of major infrastructure projects are driving property values upward, boosting housing demand, and creating new investment hot spots.
Well-developed infrastructure makes locations more accessible and liveable, thereby attracting both domestic and global investors. Cities benefiting from marquee projects such as the Mumbai Trans Harbour Link (MTHL), the Delhi-Mumbai Industrial Corridor (DMIC), the upcoming Jewar Airport in Noida, and Bengaluru’s expanding metro network and satellite town ring road are witnessing sharp spikes in real estate demand and property prices.
At the same time, the rise of a new middle class and the pace of urban migration are fuelling demand for both residential and commercial spaces. Complementing this, government initiatives such as PMAY (Pradhan Mantri Awas Yojana), RERA (Real Estate Regulatory Authority), and GST (Goods and Services Tax) are ensuring that this demand is met with greater transparency, accountability, and efficiency across the real estate sector.
Connectivity – key behind realty value
According to CBRE, demand for luxury residential units priced above ₹4 crore surged by 53% in 2024 across seven major Indian cities. The underlying driver is clear—improved connectivity through new expressways, metro lines, and airport projects. JLL’s research further reinforces this trend, highlighting that well-connected zones typically witness a 15–20% price appreciation once infrastructure projects are fully implemented.
The impact is already visible on the ground. The completion of the Dwarka Expressway has propelled Gurugram into a new growth orbit, with property prices in some pockets registering a sharp 58% year-on-year increase. In North India, Panchkula, Mohali, and Zirakpur are emerging as attractive residential destinations, powered by the PR-7 Airport Road and the upcoming Chandigarh metro extensions. Similarly, Noida’s Sector-150 has witnessed an extraordinary 139% jump in property values, driven by township projects and robust greenfield planning.
Down south, Bengaluru has seen remarkable gains as infrastructure meets IT corridor expansion. Sarjapur Road and Thanisandra Main Road, supported by the metro network and their proximity to technology hubs, have recorded price growth of 79–81%. Hyderabad’s Gachibowli has also surged ahead, with capital values jumping 87%, supported by strong rental demand in its vibrant commercial ecosystem.
These examples underscore the domino effect of infrastructure: enhanced connectivity sparks residential demand, which in turn fuels commercial, retail, and social infrastructure development—creating a sustainable cycle of long-term growth.
According to the Information and Credit Rating Agency (ICRA), the coming fiscal year looks promising, with new project launches expected to rise by 6–9%. Home prices, which went up by a significant 13–15% in FY2025, are expected to rise another 3–5% in the coming year pointing to strong demand and developers’ confidence to raise prices.
Infrastructure & Investment potential go hand-in-hand
The ongoing infrastructure expansion is drastically cutting down travel times between cities and linking Tier-2 and Tier-3 towns to major metropolitan hubs. Aside from just transportation, these routes are unlocking new real estate prospects in the peripheral and suburban areas. Shining examples are the Yamuna, Mumbai-Pune, and Dwarka Expressways that have substantially enhanced connectivity leading to significant land price appreciation and urbanization.
Samruddhi Mahamarg is a 701-km long 6-lane access-controlled expressway by Maharashtra State Road Development Corporation (MSRDC), which aims to significantly reduce travel time between the two major cities. A recent study by Colliers strikingly notes that after Samruddhi Mahamarg became operational Nagpur was elevated to a top-tier investment destination. With a projected return of 5.2x by 2035, this expressway has positioned the city at the forefront of India’s most sought-after emerging real estate markets.
With improved road networks the regions once considered too remote, are now becoming viable for residential development, offering more affordable entry points for investors and end-users.
Metro rail projects in cities such as Delhi-NCR, Bengaluru, Mumbai, and Chennai are redefining urban living. The often heard “metro effect,” where properties within a 1-2 km radius of a metro station experience significant capital value appreciation and higher rental yields, become quite evident. The convenience of a reliable public transport network reduces dependence on private vehicles, making well-connected locations highly attractive to a generation of home buyers prioritizing a work-life balance.
The ongoing enhancement of India’s aviation and shipping hubs, coupled with the expansion of road and rail networks, is poised to dramatically improve connectivity and elevate real estate values nationwide.