Land prices jump in Jewar as Noida International Airport nears completion

With the Noida International Airport nearing its date of completion and the government authorities jumping into action to boost industrial and residential development around the mega project, Jewar region in the western Uttar Pradesh is soon turning into a hotbed of activities. Once a sleepy hamlet, off the Yamuna Expressway - connecting Noida in the National Capital Region (NCR) and Agra - has since witnessed rapid surge in road construction, conversion of agricultural land for industrial and residential purposes and massive land parcels being exchanged between various government and private entities - resulting into significant surge in land prices in and around Jewar.

While the market in Delhi-NCR has lagged other key real estate markets in the country - like the markets in Hyderabad, Bengaluru or Pune - over the last several years. Jewar has emerged a bright spot that has given high returns to investors. Since 2018, when work on the Noida International Airport project gained momentum, land prices have jumped manifold. As per industry estimates, price of 1 hectare of land in the region that used to cost Rs 25-28 lakh in 2018 has since increased to Rs 1.25-1.5 crore in mid-2024 - a jump of more than 400% in 6 years.

It is not just land parcels that are in demand around the upcoming airport, interests among investors and homebuyers have brought realtors into the game as well. Some key residential projects are already near completion and bunch of new launches are in the pipeline - leading to further price escalation in the region. Projects like Nimbus Realty, or Gulshan Group - in partnership with Jaypee Group is building a luxury residential project along the expressway measuring 1.5 million sq. ft.

Data from housing.com shows shows, average per square-foot home prices in the region has surged steadily since 2019. From Rs 4,700-4,900 per sq.ft five years ago, it grew to Rs 5,200-5,400 per sq.ft. in 2021. Currently, in mid-segment and premium projects in the region, the average price has jumped to Rs 7,500 to Rs 10,000 per sq.ft.

According to industry veterans like Niranjan Hiranandani, Co-founder & MD, Hiranandani Group, feels activities that are already underway — through authorities in Noida and Yamuna Expressway— “will have a domino effect on the development of the region by attracting investments, creating new jobs, and boosting businesses and other activities”.

“Housing, commercial, retail and hotel development projects are underway as a result of the airport expansion. Higher economic activity will ensure employment opportunities, which should lead to increased demand for residential and commercial properties,” says Sanjay Sethi, CEO of ATS Infrastructure, which has launched projects in the Jewar region, feels the airport could prove to be a game-changer for the real estate industry.

As the Yamuna Expressway Industrial Development Authority (Yeida) prepares to acquire more land around the upcoming airport for industrial and residential projects, experts now expect further surge in land prices over the next few years. The Yeida has recently got Rs 3,000 crore from the Uttar Pradesh government and will be raising another Rs 3,000 crore to acquire 5,000 hectares of land.