The report of a property consultancy firm about sizeable appreciation of properties and record demand for plots around upcoming Jewar Airport at Yamuna Expressway has yet again brought the spotlight back on properties closer to airports. Such reports tempts an average Indian looking for a property as an investment. Someone having option of only one property often fails prey to FOMO (Fear of Missing Out) by such reports.
Track2Realty examines whether properties around the airports are really that attractive or it is just a game of operators to spike the prices. An average Indian with limited understanding of property investment more often than not fails to understand the pros & cons of such claims of once-in-a-lifetime investment for attractive appreciation.
Ok! It is true that the property rates around Jewar Airport at Yamuna Expressway have been witness to spectacular appreciation. As per the report, land prices in the Jewar area along the Yamuna Expressway have increased by 40% over the past five years and are expected to further increase by 50% by 2030. For some 450 plots, Yamuna Expressway received more than 1 lakh applications. Statistics clearly suggest that property on Yamuna Expressway in general and Jewar Airport in particular are red hot stuff in terms of the demand dynamics.
But then statistics are just statistics and conceal more than what seem to reveal. Just to say that the property prices have touched INR 15,000 per sq feet in Noida and the same is at INR 7,500 per sq feet, doesn’t make Yamuna Expressway properties a sought-after choice.
A few pertinent questions that the need to be looked at:
Whether areas around upcoming Jewar airport are worth living as of now?
Isn’t residential zones around Jewar Airport futuristic in terms of livability?
Are there enough job catchment areas now for an average middle class to move?
Beyond physical infrastructure of Yamuna Expressway, whether last mile connectivity is there for an average middle class to live?
Are there needed social infrastructure like schools, colleges, hospitals etc for average Indians to live?
Needless to say, most of these questions have a clear NO as answer. Why is then proprty prices appreciating so fast over there? More importantly, who is fuelling this price appreciation in the name of proximity to airport. The fact of the matter is that any given location rewards the first-movers and properties around the Aiports are no different. When the base level is low, the prices are bound to go up with the projected developments and future potential.
It’s also time to remember NAINA (Navi Mumbai Airport Influence Notified Area). In the last 20 years the property prices have skyrocketed no less than 20 times over there. And still, there is neither operational airport nor the livability condition by and large. Those who have travelled to the region are witness to places like Ulwe which stands as a ghost town. And investors are stuck with prospects of property resale limited after the prices have reached to a plateau point.
Is there anything different with properties around Jewar Airport? The question is when there is no livability condition in and around the Jewar Airport area who is fuelling the prices? Isn’t the answer quite obvious? It is the deep pocket investors and property sharks who are smelling the blood in the area.
So, the choice of properties in and around Jewar Airpot is quite obvious. And it is not about the property but it is about you:
Who are you as a buyer?
What is your financial standing and investment outlook?
If you are an investor (even if a retail investor with surplus money to invest in 2-3 properties) then Yamuna Expressway areas are for you to bet on.
Sadly, that is not the reality of a vast majority of Indians. These are the Indians who barely manage to save the margin money of 20% and borrow the rest to buy their first, and often only, house. This is definitely not the area for you. You neitehr have livable condition over there nor have the jobs available closer to your dream home. And travelling everyday from Jewar to your place of work would be a nightmare.
Recently, someone known to me was scouting for a land parcel closer to Jewar Airport. He took me along for an objective assessment of the area. My view was pretty simple: It’s not a livable project for you in the foreseeable future; if you are looking to buy for your children then it is too early; but if you want your grandchildren to feel that our grandfather was a visionary then you should go for it.
I have thus far only discussed about the logistics part of living closer to the Jewar Airport. But the broader discussion is not limited with timing of investment. Beyond the issue of overpriced properties around the Airports, lies the day-to-day hassle of noise pollution, poor air quality, traffic congestion, security protocols and safety issues in case of emergencies.
The issue has not been debated in India, but in many developed countries there have been studies that living closer to Airports have adverse effects on the health, including mental health due to disrupt sleep patterns. The amount of pollutants produced by an aircraft can easily be embedded on the lungs and the bloodstream which can contribute to the development of heart disease.
In one report, researchers found the risk was greatest in the population exposed to the highest levels of noise. In another study, animals exposed to aircraft noise experienced increased blood pressure, endothelial dysfunction, and other cardiovascular outcomes that weren’t observed in a control group exposed to noise. Research has shown that heavy airplane traffic can pollute the air up to 10 miles (16 kms) away.
A 2019 University of Washington study of the Seattle-Tacoma International Airport shows that homes within 10 miles of the airport are exposed to “ultra-ultrafine” pollution particles that are specific to airline emissions. Previous studies have shown that smaller pollution particles are more likely to be inhaled or absorbed by the body.
It is hence no surprise that in the US, a majority of people consider living next to an airport undesirable due to the noise from airplanes, and to a lesser extent, the traffic generated by the airport. So all things being equal, housing prices around airports are are usually less. This allows more value for those who don’t mind the drawbacks. But it may be harder to sell the home.
Last, but not the least, don’t get duped by the sweeping promises of big-ticket projects like Formula 1, Film City or Night Safari. How many of you are going to avail those amenities. Even if you are a holiday freak and can afford, such amenities lose their charm pretty soon. In this column I have touched upon the issues from the standpoint of an average home buyer in the country. But then at the end of the day it is your choice with your money. I rest my case.
Ravi Sinha
#RaviTrack2Media
Ravi Sinha is a journalist with over two decades of cross-discipline media exposure. He is the CEO of real estate thinktank group Track2Realty. He has been writing extensively on the real estate sector for more than a decade now. Evaluation of real estate brand performance is his core domain expertise and he has immense insight into consumers’ psychograph. He has conceptualised Track2Realty BrandXReport as India’s 1st & only objective & non-paid brand rating journal that is industry-accepted benchmark of brand equity & ranking of the Indian real estate companies.
Track2Realty is an independent media group managed by a consortium of journalists. Starting as the first e-newspaper in the Indian real estate sector in 2011, the group has today evolved as a think-tank on the sector with specialized research reports and rating & ranking. We are editorially independent and free from commercial bias and/or influenced by investors or shareholders. Our editorial team has no clash of interest in practicing high quality journalism that is free, frank & fearless.
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