The prices of real estate properties have rapidly grown over the years. In fact, people have seen real estate properties as one of the major investment choices for the future. This has become possible because of the rapid infrastructure development that has happened in parallelly. 

Property prices in India’s top 14 micro-markets have risen 24% to 139% since 2021, driven by infrastructure developments like metros, expressways, and airport upgrades.

Real Estate Infrastructure in India is undergoing rapid development to meet modern lifestyle needs. The development of infrastructure roads, railways, metros, airports, and other public amenities improves accessibility and connectivity. This, in turn, directly impacts the value of property. Let's analyse how infrastructure development impacts property value. 

Infrastructure Development Boosts Property Value 

When infrastructure development takes place, it has visibly impacted people's livability, connectivity, accessibility and other utilities. This improves the credibility of an area, resulting in a property value increase alongside infrastructure development. 

Development of Transportation Improves Property Price

The development of transportation plays a major role in shaping real estate choices. Transportation is a part of modern infrastructure. Development of the transportation system implies it will automatically improve roads, metros, airports and other means of transportation. Properties within 500 meters of metro corridors have seen a 15% to 20% average increase in land prices after metro project announcements. 

All of these facilities promote real estate property demand. When transportation improves, people prefer to buy properties in such regions because of the improved accessibility. It serves business to residential needs, which also impacts the prices of properties in those areas. 

Development of Public Utilities Affects Real Estate Choices

The development of public utilities also shows how infrastructure affects property prices. Public utilities like water, electricity, network and internet, etc., are everyday essentials and also basic requirements for every household. 

We always want to live in a better place where these public utilities are well managed and distributed. Places which lack these basic utilities cannot be served as premium real estate properties. On the contrary, other areas where such public utilities have developed properly have become real estate hotspots. The prices of properties in such areas will automatically increase. 

Social Amenities Impact on Real Estate Price

When the social infrastructure of an area improves, it adds value to the locality. For example, when people choose to buy real estate properties, localities having social amenities like schools, colleges, hospitals, parks, etc., are preferred over other places. People pay high prices to buy properties in such areas. 

Not only for residential properties, these areas are well-suited for business expansions too. If an area has proposed social infrastructure developments, then the prices of properties will be on the higher side because of the demand. 

Development of Less Developed Zones Attracts Real Estate Investments

Metro cities and other big cities have so many high-priced real estate projects. Also, because of the limited land resources, the scope of future projects is limited to such areas. Whereas less developed areas have plenty of land for new real estate businesses. 

If infrastructure development happens in such areas, it will attract potential investors. People will invest in properties for future profits. This scenario will influence the price hike. 

In tier-2 Indian cities, rail connectivity has driven residential property growth of ~15% (e.g., Kanpur after Vande Bharat launch).

Improved Connectivity Affects Real Estate Choices

The infrastructure development of an area mainly improves connectivity, which directly affects people's real estate choices. It will be easier for people to commute between places, saving a lot of time and money. 

In Pune, homes located within 500m of a metro station appreciated at 10% to 25% per year, compounding to 25% to 80% over three years.

Regardless of whether you are a homeowner or a tenant, both parties will benefit from this. Infrastructure development enhances connectivity among premium real estate properties in India. Better connectivity implies a higher cost of premium real estate businesses. 

Indirect Economic Growth 

Infrastructure development boosts economic growth indirectly, which then affects real estate prices. When real estate infrastructure development happens, this not only attracts real estate buyers. 

This also influences business investments and jobs, resulting in economic growth. The scenario further boosts small businesses, local markets, commercial hubs, etc. This can also be viewed as a multiplier effect of economic growth. This will boost the demand for residential and commercial property, which will increase the real estate property value. 

Sustainable Infrastructure Development 

Modern infrastructure development is focused on sustainability. Development is now focused on renewable energies, green living, efficient public transport, low emissions and smart home projects, etc. Investors are showing potential interest in such areas where sustainable Infrastructure development is possible. Such places have high social value because of the appreciation of sustainable living standards. 

Get the Best Property with All Modern Infrastructure and Amenities

With all the infrastructural development projects going on, the property values are increasing every day. It is hard to find the correct real estate option within the preferred location and price. But with FullBasket Property by your side, you can rest assured. We offer a congenial platform where you can get the best deals on premium real estate properties at budget-friendly prices. 

Our dedicated team works tirelessly to give you the perfect property option where all modern infrastructure and amenities are available. We operate in all the major cities in India to facilitate the best possible deal for every client. You can contact Full Basket Properties today to check offers and search for residential projects.