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Jewar Airport: Construction Work Set To Start In February 2020
Proptiger.com  |  December 11, 2019

Sunita Mishra

The gloomy stories that investors hear with regard to Noida real estate may be confusing, especially to those who had their eyes on this affordable property market to build a home. However, the developments surrounding the Jewar Airport project give them enough hope not to lose heart and hold on a little longer before things change for the better.

 

Work on the project is set to start in February 2020, after the Zurich Airport International AG on November 29, 2019, outbid contenders like Adani and DIAL (Delhi International Airport Limited) to develop the Jewar Airport, the third such project in the National Capital Region. Also in the fray to develop the project, billed to be the biggest airport in India upon completion, was Anchorage Infrastructure Investments Holdings Limited. A global tender was floated to hire a developer for the proposed airport on May 30, 2019.

 

The foundation stone for the airport project, that was first conceived in 2001 and received approval only over a decade-and-half later, will entail the development of 2,200 acres of land and would be operational by 2023. With that, the national capital region will get the distinction of hosting two airports within a 100-kilometre radius.

 

That is not all. The arrival of the airport would bless this property market with several other infrastructural developments. The Jewar Airport will have an Aerocity on the lines of the one at the IGI airport. Plans are also in the works to link the $-3.1 billion Jewar airport with the Delhi’s Metro’s Aqua Line by 2025. The government is also considering the possibility of linking the airport with Sarai Kale Khan, a major bus transit station in the national capital, through a dedicated Rapid Rail Transit System (RRTS). At a later stage, the Jewar airport could be connected with the Eastern Peripheral Expressway that joins Haryana's Palwal with Kundli, bypassing the national capital.

 

How Will The Jewar Airport Impact Noida Housing Market?

 

If we analyse the current state of affairs, property markets around Noida are reeling under immense pressure ─ according to the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA), there are over 100 stuck projects in the region private estimates peg this number at 1.5 lakh units.

 

That is just part of a much bigger problem Noida realty is currently dealing with. Some of the biggest developers of the region are close to insolvency &ndash cases are pending against Amrapali, Jaypee and Unitech. The uncertainty involving these cases ─ After over two years of these cases popping up, no solution is in sight despite the fact that the Supreme Court has sworn to resolve these issues in a timely manner ─ is hindering concerted efforts made by sector stakeholder in achieving their desired target.

 

In an atmosphere such as this, the Jewar airport is the very thing NCR realty is in the need of. The project would touch lives and get back the positivism Noida currently needs more than anything.  

 

According to PwC, the agency that has prepared the techno-economic feasibility report for the project, the Jewar Airport is expected to handle over 10 crore passengers by 2050, serving 37 domestic and 31 international destinations.

 

Currently, people living in many cities of western UP and some cities of Rajasthan have to travel to Delhi — a journey of at least two hours — if they plan air travel. An airport in Jewar will be a great help for these people. This airport will not only address the aviation needs of Delhi but also of cities such as Agra, Mathura, Bulandshahr and Meerut. The Union civil aviation ministry expects this airport to give bolster tourism and economic potential of the region.

 

As it takes shape physically, the project, which is expected to generate millions of job opportunities, would improve investor sentiment and usher in that positive vibe Noida needs, all in due course.

 

How So?

 

Well, Jewar has already seen a status update, from being a part of the Bulandshahr district to being a nagar panchayat under the Gautam Buddh Nagar district now. Due to the ongoing developments, rates of the property along the area have grown substantially, too.

 

Landowners can already see the difference. While a bigha of land was sold for Rs 4-5 lakh in the past, rates have now touched Rs 20-25 lakh a bigha. A bigha of land measures 843 square metre. Farmers whose land is being acquired for the project are being offered three times the circle rate. While the prevalent land rate in the area is Rs 900 per square metre (psm), the government is offering villagers Rs 2,300 psm.

 

What To Expect In The Future?

 

Investments in this property market should be done strictly keeping in mind certain facts. First, not many developers would be launching a new project here since they are already under tremendous pressure to sell off their existing housing stock and completing their stuck projects. Those looking to invest in property along Jewar will have to primarily in the land.

 

Absolute dexterity must be shown in checking the legality of the land in case one is interested in buying since thriving property markets also become a breeding ground of property-related frauds. Also, the investment must be made keeping in mind the fact that profits could be made only in the long term.

 

Issues involving land acquisition for the projects are still being resolved.

 

Year

Event

2016

Apr: Govt requests UP to develop a detailed project report for the proposed airport

2017

June: Civil aviation ministry clears plan for Jewar airport

2018

Aug: Govt forms Noida International Airport Company Limited (NIAL) to handle project management

Nov: UP govt approves the allocation of Rs 1,260 crore for land acquisition

Dec: District administration submits rehabilitation and resettlement document on land acquisition

2019

Feb: Up govt allocates Rs 800 crore for land acquisition in its annual Budget

April: Allahabad High Court dismisses petitions by farmers seeking higher compensation for their land, paving way for the land acquisition process

May: UP Cabinet approves bid document for the airport sanctions
Rs 894 crore for resettlement 

September: Noida administration acquires 923 hectare of the 1,235 hectare required for Phase-I 

Noida administration inks MoU with pvt partners to develop a 92-acre forest in Jewar

November: Zurich Airport International outbids Adani, DIAL and Anchorage Infrastructure Investments gets contract to build the airport

UP Cabinet approves Zurich Airport AG's ion construction work set to start in February 2020