How small town Jewar became a booming real estate market

Jewar/Bengaluru: When Sandeep Kaushal told his wife Pooja that their application to buy a plot near the Noida International Airport in Jewar did not make it in the lucky draw, she was upset.

The Kaushals, who live in a rental apartment in Greater Noida, Uttar Pradesh, were among the over 100,000 applicants for residential plots along the Yamuna Expressway, a 165-km stretch connecting Greater Noida with Agra. There were only 451 plots available in the scheme launched by the Yamuna Expressway Industrial Development Authority (Yeida).

“We applied for a 200 square metre plot, which would cost around ₹52 lakh. In Greater Noida or Noida, land is sold mainly through online auctions to builders. The Yeida scheme was a good opportunity for people like us to buy a plot. We will apply again when their next scheme opens,” Kaushal said.

Earlier last year, Yeida had launched another scheme with 361 plots. That scheme attracted over 200,000 applications. A third one is expected to be launched soon.

The tremendous response to Yeida’s housing schemes is a testament to the surge in demand for property in the area. That demand has been driven by a single factor: the upcoming airport in Jewar, a small town in western Uttar Pradesh.

Real estate experts believe that once operational, the new airport will be a gamechanger, not only for real estate along the Expressway, but also in Greater Noida and Noida.

Realty gamechanger

Even after the Yamuna Expressway opened over a decade ago, the real estate market around it never took off. Despite the launch of large townships and decent connectivity, the livability quotient in the area was questionable.

That perception changed with the new airport. Suddenly, Jewar became a sought-after market. Last September, the Uttar Pradesh government approved Master Plan-2041, based on which all industrial and urban development around the Noida international airport, and in areas along the Expressway, will happen.

It’s a massive plan involving 5,000 hectares of land and several mega projects. Vast expanses of empty land in the area bear signboards for various industrial parks, such as ‘Medical device park’, ‘Data centre park’, ‘Apparel park’, ‘Semi-conductor park’. There is also a Film City coming up. Manufacturing units of companies such as Priya Gold, Bikano and Avery Dennison are already up and running.

“The airport is expected to have a multiplier impact on the real estate and tourism sectors. We are already witnessing signs of this. The demand for all types of real estate, including residential, commercial, and industrial, is substantially high,” said Nand Gopal Gupta Nandi, minister for industrial development, export promotion, NRI and investment promotion, Uttar Pradesh.

The promise of development has already impacted prices. A recent report by property advisory Colliers India said land prices in the area have shot up 40% over the past five years. On top of that, prices in and around Jewar are projected to rise 50% by 2030 thanks to the airport, metro rail extension and themed city projects. The advisory firm reported average land price at Jewar, in 2024, at ₹7,000 per sq. ft—higher than many hot micro markets in India, including Bengaluru’s Doddaballapura ( ₹3,800).

“Jewar is rapidly transforming into a prominent investment destination and the upcoming airport is the biggest catalyst for urbanisation in Uttar Pradesh,” the Colliers report said.

Key infrastructure projects such as airports have the ability to heat up surrounding property markets. For instance, the new airport in Mopa, Goa, created a land-buying frenzy. It has to be seen if the Jewar and Navi Mumbai real estate markets take off because of their airports. Both airports are scheduled to be inaugurated on 17 April.

The future is here

One wall of the Yeida office compound in Greater Noida features a painting of a giant orange aeroplane against a blue sky, with ‘Noida International Airport’ written on it. The painting also features the airport’s logo, a Sarus crane in flight. The crane, which is the world’s tallest flying bird, has a natural habitat in the wetlands of Uttar Pradesh, where it is the state bird.

Inside the office, the corridors are bustling. There is visible urgency as executives rush from one room to the other carrying stacks of files. New project schemes are being finalized; tenders for plotted and housing projects are being uploaded on the agency’s website; land acquisition proposals are being sent; there are back-to-back meetings held in different rooms over rounds of ginger tea.

Shailendra Bhatia, nodal officer, Noida International Airport, says a new city is being built in Jewar and the surrounding areas. Once the airport is operational, and other developments take shape, it will be like Greater Noida—a planned city with a lot of greenery.

“In fact, we have tried to better it compared to Greater Noida,” said Bhatia, who has been associated with the Jewar development project since 2017, the year Prime Minister Modi laid the foundation stone for the airport.

Bhatia pointed at the Yamuna Expressway masterplan behind him to show the scale of what is being planned. Yeida’s motto ‘Future is here’ is printed in bold. The entire area along the Yamuna Expressway up until Jewar has been demarcated sector-wise.

“The airport will be a major driver for industries. Everyone wants a piece of land; whatever land we have auctioned or allotted through lottery has been taken up. More land needs to be acquired for many other projects we are planning,” said Bhatia.

Yeida’s plans are ambitious. Besides the many projects sanctioned, there are more in the pipeline. A detailed project report is being prepared for a fintech city, on the lines of GIFT City in Gujarat. Land has been earmarked—and needs to be acquired—for Japanese and Korean clusters. A proposal for a 2,000-acre logistics and industrial park at Tappal, 20 km from the airport, has been made. The list is endless. However, the entire plan depends on one key component: land, and its acquisition.

Land acquisition

Vikrant Kumar is giving the signboard of his car repair shop, less than a kilometre from the new airport terminal site, a fresh coat of paint. ‘Near Jewar airport gate’ has been added to ‘Kishorepur, Gautam Buddha Nagar, Jewar’ on the signage.

Vehicles taking a left turn from Yamuna Expressway towards the airport pass by a number of small repair shops and tea stalls. Kumar has had his repair shop for four years now, but business has only picked up in the last year or so.

“The number of cars and trucks in this area has gone up a lot, and many stop by for some service or the other. My income has more than doubled. Once the airport opens, it will get even better. I have heard that many apartment complexes and hotels will come up nearby. But right now, we can only see land everywhere,” he said.

The Jewar-Yamuna Expressway masterplan fits well into what a well-planned real estate market should look like. But much of the plan is still on paper and seems a little futuristic because most projects are still at the land stage, either to acquire it or begin construction.

Dhirendra Singh, member of the Uttar Pradesh Legislative Assembly from Jewar, has played an important role in the mediation between farmers and the UP government on land acquisition.

“Chief minister Yogi Adityanath has increased the rates for agricultural land to ₹4,300 per square metre (including the rehabilitation package) for the third and fourth phases, from ₹3,100 per sq. metre in the second phase. We have got 40% approval from farmers, and the process is on,” said Singh. “It is important that the land acquisition happens smoothly because Jewar will hugely benefit from the development plans,” he added.

Santhosh Kumar, vice chairman at Anarock Property Consultants, said that while plots have found favour with investors, group housing schemes are aimed at end-users, and will gain steam once the airport is functional.

Residential buildup

It is tough to miss ‘Gaur Yamuna City’, a township sprawled over 250 acres, opposite the Buddh International Circuit motor racing trackalong the Yamuna Expressway. Back in 2013, developer Gaurs Group had bought the land, which was part of Jaypee Sports City, for ₹1,500 crore from Jaypee Group.

It was a bit of a futuristic bet. Despite the opening of the Expressway, connectivity and good roads, the area beyond Greater Noida and Noida Extension never really took off as a property market.

Now, with the upcoming Jewar airport, and Yeida’s ambitious development plans, developers are again looking at the Yamuna Expressway micro-market. After many years, Gaurs Group bid for a plot in Yeida’s recent e-auction of group housing plots, and was shortlisted. Fifteen bidders bid for five plots, underscoring the rising demand.

“Just like the impact on Gurugram after Maruti set up its plant there, the area around Yamuna Expressway and the Noida airport has huge potential. Given the far better infrastructure, metro connectivity, and Yeida’s large notified land bank, it has huge potential as a real estate market,” said Manoj Gaur, chairman and managing director, Gaurs Group. The company wants to initially get into housing and will explore malls and educational projects later.

Some are revisiting projects that were launched much earlier. Jaypee Group, whose real estate arm Jaypee Infratech Ltd (JIL) was declared insolvent, owned huge land parcels along the Yamuna Expressway and built large townships. JIL, which was taken over by Suraksha Group last year via insolvency proceedings, is now completing two plotted developments with unsold inventory along the Expressway. The projects will be launched after they get RERA revalidation.

Though a Godrej Properties, DLF or Prestige Group is yet to enter the area, regional developers are already making a beeline for the Yeida e-auctions. Residential projects on these lands will be launched in the coming months.

After acquiring a plot through a Yeida e-auction last year, Eldeco Group has been shortlisted in the recent group housing e-auction as well. Manish Jaiswal, Eldeco’s group chief operating officer, said land prices in the Expressway area are under control.

“This is still an affordable market, with investor and end-user interest in plots and apartments respectively. Not many big developers want to go there yet. But it’s an affordable market, where first-home buyers can buy at a price lower than other markets,” said Jaiswal. “New launches can be priced at ₹7,500 per sq. ft, compared to other nearby micro markets where it’s tough to sell below ₹10,000 sq. ft, because land prices are higher.”

Demand is picking up, attracting investors, and it will only increase in the next one-two years. Prices of housing, commercial and industrial plots have risen between 30-50% in the last four years.

“The Jewar Airport project has significantly impacted real estate in the surrounding regions. Areas adjacent to the airport site have experienced rapid development, with land acquisition for both airport-related and private projects,” said Manish Aggarwal,senior managing director, North and East, India at property advisory JLL.

The good thing is Yeida ensures timely development of the allotted plots, Aggarwal added. This means an occupancy certificate must be obtained within three years, and if the building is not constructed, a fee will be levied annually on the premium of the plot, which varies from 3% to 6%.

More infrastructure needed

The entire market along the Yamuna Expressway has largely been investor-driven so far, leading to housing that is not occupied. The new airport is a driver for real estate, but for end-users to come in, it needs more.

“The demand is good and prices of plots will rise further, but what developers need to do is bring habitation and create livability, by creating social infrastructure to make it a desirable market,” said Jash Panchamia, executive director, JIL.

Gulam Zia, executive director, Knight Frank India, said that if commercial offices are not built, job creation, which is critical for a real estate market to perform, does not happen. He cited the case of Navi Mumbai, which has abundant land and is more affordable than Mumbai, but isn’t a thriving office market.

“A commercial business district, like a Bandra Kurla Complex, needs to be set up. Otherwise, people will live in Navi Mumbai or Jewar because it’s affordable, but they have to travel far for work,” Zia said.

Conceived in the 1970s as a satellite city near Mumbai, Navi Mumbai has grown into a sizeable property market with planned infrastructure. It offers affordable living options compared to the financial capital Mumbai, which remains the most expensive real estate market in the country.

Despite the proximity, Navi Mumbai never gained the pricing or premium status that Mumbai’s real estate enjoys. The 2024 opening of the Mumbai Trans Harbor Link (also called Atal Setu), a 22 km expressway connecting Navi Mumbai and Mumbai, and now, the Navi Mumbai International Airport, could give the satellite city a much-needed boost.

Niranjan Hiranandani, chairman, Hiranandani Group, believes that the centre of gravity will shift there with the new airport and a slew of new projects being planned. “The Noida airport may have a slower impact, but the Navi Mumbai airport will be impactful the day it starts,” opined Hiranandani, who is developing a 500-acre township in Panvel.

For Jewar, the commercial potential is huge. But like Navi Mumbai, its success will depend on the development of other infrastructure.

“Jewar’s real estate market is closely tied to the timely completion of the airport and associated infrastructure, including Regional Rapid Transit System and Mass Rapid Transit System connectivity. Its success depends heavily on job creation within the region, which Yeida is working towards,” said JLL’s Aggarwal.

The good news is that this year, the new Faridabad-Jewar Expressway, which will connect the NCR city in Haryana to the Noida airport in just 15-20 minutes, will get ready. Once all of the infrastructure in the area is ready and functioning, Jewar may well come into its own.