The real estate business is one of the most important sectors of the economy, and the infrastructure that supports it is critical to its success. The infrastructure of a place can have a considerable impact on the real estate market, from liquid transportation systems that connect buyers and sellers to utilities that power homes and businesses.
Poor infrastructure can cause property values to stagnate or decline, whereas well-developed infrastructure can increase the value of real estate and drive economic growth. This is why many developers and investors value properties near high-quality infrastructure.
The term infrastructure is derived from two words: infrastructure (below) and structure (any supporting installations). Hence, infrastructure can be described as the underlying structure or installations that allow other systems to work.
Infrastructure is the set of systems and facilities that operates as the basis for a country's economic growth. It encompasses the services and facilities needed for economic development, industrialization, better living conditions, and thriving businesses.
Large-scale public and private sector infrastructure projects that promote a society's economy include the construction of roads, railroads, bridges, tunnels, water supply, sewerage, electrical grids, and telecommunications (including Internet connectivity and broadband access). These infrastructure facilities are made up of connected systems that enable, aid or enhance society and the environment. Infrastructure development ensures the survival of other systems, structures, and services, while infrastructure enhancements ensure their long-term viability.
According to research, infrastructure is one of the most significant generators of capital growth in real estate. Planned infrastructure development, such as transport links, medical or educational infrastructure, or zoning changes, might help investors identify suburbs with future growth potential. Infrastructure improvements will make properties more appealing to tenants by improving transportation or amenities, and they will frequently attract a larger or diverse population demographic to the area.
Major developments, such as technology parks, will, for example, bring in qualified staff and management. According to research, city suburbs with rail services have higher capital growth than those without, therefore when looking for future growth places, it makes sense to look at areas with additional rail lines planned.
How can you identify regions that may benefit from new infrastructure and changes that may have a negative influence on your property's appeal? Following the infrastructure trail, particularly transport infrastructure, will help you locate places with the largest capital growth potential, according to experts. Just like the areas around phase 1 and the planned phase 2 of the metro line are booming now.
It is also vital to assess if new or existing infrastructure may have a negative impact on potential property investment's rental appeal or capital growth prospects. When conveyancers conduct searches on a property, it is not normally within their mandate to investigate potential impact factors outside the property's limits, therefore they may miss the fact that a proposed motorway will run through the end of the street. Check which standard searches will be performed by the conveyancer and then either do your own additional research around an area or give your solicitor or conveyancer detailed instructions on what you want them to look for to increase your chances of discovering these types of potential negative impacts. This will be determined by what you intend to do with the property and how you anticipate it will affect its capital and rental worth.
Recent developments in India's infrastructural network have benefited the real estate business greatly. These kinds of enhancements can improve accessibility, generate new opportunities, and raise the quality of life in a region, making it more desirable as a place to live and work.
The 332 km East Coast Road between Nagapattinam and Thoothukudi is set to be extended to four lanes at a cost of Rs 7000 crores. The Highway is expected to benefit six coastal districts while also providing Chennai with an alternative route along the east Coast corridor.
The Chennai Metro Railway's 118.9-km-long Phase II project is expected to add another 93 km in the following years, with the goal of extending it all the way to Parandur, where a fresh new greenfield airport has been planned. The 61,843 crore Phase II project would have three routes.
To serve the population of Chennai, a greenfield airport project called the New Chennai Greenfield International Airport is being proposed. It would be built in Parandur in the Kanchipuram district of Tamil Nadu, India. It will run alongside Chennai International Airport. The proposed airport will occupy approximately 5,000 acres. Trade between Chennai and adjacent regions will increase as a result of the airport's own specialized cargo terminal, increasing the state's overall economic development.
133.38 km TNRDC's Chennai Peripheral Ring Road (CPRR) project is now under development in Tamil Nadu, connecting the Ennore Port and Mahabalipuram. At a cost of Rs. 12,301 crores, this brand-new, five-section greenfield motorway will function as Chennai's fourth ring road.
Chennai, like the Bandra-Worli Sea Link, may soon have its own marine connection. To reduce congestion at the Chennai Port, an 8-kilometer bridge feasibility study is being produced. To maintain smooth traffic flow, the project includes an elevated 7.60 km four-lane road from the port entrance to the next intersection at Ernavur.
The Tamil Nadu government plans to establish Chennai's Fintech City in two stages, in Nandambakkam and Kavanur. The first phase in Nandambakkam is expected to cost Rs. 165 crore.
The Chennai-Bangalore Industrial Corridor is a huge infrastructural project planned by the Indian government. Which will run through Chennai, Sriperumbudur, Ponnapanthangal, Ranipet, and the suburbs of Vellore, Chittoor, Bangarupalem, Palamaner, Bangarpet, Hoskote, and Bangalore.
A 500-acre, Rs. 700-crore mega sports city is planned on the outskirts of Chennai, featuring premier amenities such as the best athletic tracks, an indoor cycling velodrome, a hockey stadium, and an all-purpose indoor arena for basketball, volleyball, and boxing. The project is being built on East Coast Road in Thiruvidanthai, around 30 km south of Chennai.