National Highways and Expressways across India have been points of growth and development over the past few decades. It is because of this that the government is planning to improve these roadside amenities and develop real estate, according to a press release. Jones Lang LaSalle (JLL) 28 June.
These plots of land are intended to be developed as commercial spaces for motorists, warehouse and logistics parks, passenger facilities and wayside facilities along the highways. The kind of facilities to be developed would be on the lines of restaurants, food courts, retail outlets, electric vehicle (EV) charging ports, etc. This development initiative is a project to appreciate the land value along highways and expressways to the extent of about 60 to 80 per cent.
Strategic Consulting and Valuation Advisory A Shankar said in a press release that while the estimated land price for the selected sites was expected to increase by 60 to 80 per cent in micro markets, the price would rise further by 20 to 25 per cent. Percentage when the said sites are fully operational. Returns on these sites and projects will generally range from 15 to 30 per cent, while capex investments per site range from Rs 1 crore to Rs 10 crore, with an average of Rs 2 crore per hectare, the report said.
“We believe that in the coming years, NHAI will drive the modernization of the Indian highway network, which will ultimately result in various beneficial effects for highway users, market players, developers, investors and facility operators,” said Shankar in the report.
National Highways Authority of India (NHAI) has so far identified and selected over 650 properties in 22 different states, covering an area of 3,000 hectares. This land will be developed in the next five years with the participation of the private sector. The division of these lands is divided as follows – 376 properties will be along the upcoming new highways and expressways, 180 of them will be along the existing highways and another 94 sites will be developed along the Delhi-Mumbai expressway.
According to a statement by Shankar, NHAI has appointed JLL as the responsible liaison and international consultant for properties in both the north and south of India. “The engagement includes shortlisting of existing and new land parcels in a phased manner, identifying options for land monetization, detailed feasibility and financial viability of each site. Bids have already been invited for 138 sites out of 650 identified sites and they have got enthusiastic participation from the market players. Most of the said 138 site tenders are still active for receiving bids till June 30, 2021,” said Shankar.
These properties will not only appreciate themselves but also properties around them as more and more private players invest due to the major cities and towns around these locations. This will increase the employment rate of the local population. So far the target is to develop 40 km per year. The project reportedly aims to bring much-needed impetus to India’s fragmented logistics sector as well as develop its infrastructure, according to the press release.
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