Realty services giant JLL India has recently released a report which noted that the real estate development along the national highways could generate substantial profit. According to the property consultant group, developing India’s highways could bring in more than 15 per cent to all stakeholders.
Reiterating the need for the development of India’s commercial spaces, warehouses and logistic facilities along with amenities for the weary traveler on the road, JLL revealed the Centre’s intention to build up world-class infrastructure for the highway network. Amenities like restaurants, food courts, retail outlets and charging stations for electric vehicles are being considered for installation along India’s vast road network.
The national highways have always been India’s lifeline and it makes sense for the government to upgrade existing facilities and install new infrastructure. The National Highway Authority of India (NHAI) has already identified over 650 properties across 22 states that will be developed within the next five years in cooperation with the private sector. The proposed plan covers 94 sites on the Delhi-Mumbai Expressway, 376 sites in under-construction highways or expressways and 180 sites on existing highways.
As the infrastructure development takes place, we are looking at a real estate appreciation of 60 to 80 per cent in the vicinity. While this may be short-term, one can expect prices to climb steadily in the long run as these roadside amenities and infrastructures become operational and start servicing highway travelers.
JLL India has been appointed by the NHAI as an international consultant to oversee its operations in North and South India. JLL will be responsible for shortlisting new and existing land parcels, identifying land monetization options and working out the financial feasibility and viability of all the sites.
JLL’s Head of Strategic Consulting and Valuation Advisory, A. Shankar said, “We envisage that NHAI will give an impetus to the modernization of the Indian Highway network in the coming years, ultimately culminating in various advantageous effects for highways users, market players, developers, investors, and facility operators.” He also added that 650 sites had been identified, out of which 138 sites are currently entertaining bids from market players.