Source: https://www.realtynmore.com/railway-corridors-and-metro-expansions-to-boost-real-estate-in-emerging-cities/
Publisher: Realty & More
Finance Minister Nirmala Sitharaman, in the Interim Budget 2024, announced the establishment of three major corridors: the port connectivity corridor, the energy, mineral, and cement corridor, and the high traffic density corridor. Additionally, 40,000 normal rail bogies will be converted to Vande Bharat trains to enhance passenger safety, convenience, and comfort. Key rail infrastructure projects, including Metro Rail and Namo Bharat, will also be expanded to more cities. These initiatives, part of the PM GatiShakti scheme and the National Logistics Policy, with a massive budget allocation of Rs 100 lakh crore, aim to decongest railway infrastructure by 51% by 2024-25.
These infrastructural developments are expected to provide a substantial boost to the real estate sector, particularly in Tier 2 and Tier 3 cities. By reducing travel times and enhancing connectivity, these projects are making these regions more viable for real estate development and investment.
Major Infrastructure Projects as Catalysts
Significant infrastructure projects in these cities are further driving this growth. The Lucknow-Kanpur Expressway, spanning over 62 kilometers with six lanes, will reduce travel time from two hours to just 50 minutes. The Lucknow Metro Rail Project will cater to more than 200,000 people per day, easing commutes to previously hard-to-reach sections. Similarly, Jaipur Metro Phase II will connect various residential and industrial areas, providing seamless connectivity to Jaipur Airport.
Economic Benefits and Future Prospects
These major developmental projects are creating an ecosystem for businesses and retail outlets that will flourish over time. Several multinational companies are setting up operations in these corridors to benefit from lower operational costs compared to Tier 1 cities. Improved employment opportunities and infrastructure growth are fueling demand for office spaces, warehouses, and retail locations. Developers are already investing in prime locations to meet the growing demand for both housing and commercial segments.
