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Infrastructure developments and large projects, such as industrial corridors or IT hubs, tend to augur well for the real estate market in the area. The Delhi-Mumbai industrial corridor (DMIC) announced by the government of India, is one such project that is likely to boost the realty sector in its impact areas in the coming years and also provide a fillip to the ‘Make in India’ campaign.
“This mega project will have an impact on more than 20 cities,” explains Deepak Kapoor, president of CREDAI – western UP. “In western Uttar Pradesh, there are four cities – Muzaffarnagar, Meerut, Ghaziabad and Noida–Greater Noida. The global manufacturing hub will provide a huge potential for employment, exports and industrial output,” he adds.
Key aspects of the DMIC:
- Government of India-financed industrial development project.
- Vision to make India a global manufacturing and trading hub.
- Aimed at developing industrial zones across six states in India.
- The project will have major effect on infrastructure expansion.
- To include smart cities and industrial clusters, along with rail, road, port and air connectivity.
- Japan likely to be a key partner in this project.
- Around 24 cities to be developed as manufacturing hubs, under the project.
Regions that are likely to benefit from the DMIC
There is no denying that the DMIC and other planned industrial corridors, will have a major impact on real estate in their respective locations, asserts Samantak Das, national director and chief economist, Knight Frank India. “Our studies indicate that the implementation of the DMIC initiatives, will have a rub-off effect on the smaller urban centres in proximity to the planned nodes. Going forward, these cities are expected to grow at a faster rate than the present-day major urban centres,” he maintains.
A crucial part of the DMIC is the Western Dedicated Freight Corridor – a railway freight line that will cover a distance of 1,483 kms. According to experts, the DMIC is expected to create about 3 million jobs. This will be a win-win situation for home buyers, as they will be able to buy homes at affordable prices and also find good jobs in the project’s vicinity. The development of new business clusters along the DMIC, will support planned growth and improve the quality of life.
DMIC as a contributor to growth:
- Promoting the industrial cities as smart cities.
- Generating huge employment opportunities.
- Quick connectivity across six states, including UP, Haryana, MP, Rajasthan, Gujarat and Maharashtra.
- Supporting the mission of ‘Housing For All’.
- To be developed as world-class manufacturing and investment destination.
RK Arora, chairman of Supertech Limited agrees that the corridor will fuel unprecedented infrastructural growth in the region and open new investment opportunities for investors. “The DMIC aims to be a major catalyst to the manufacturing sector and infrastructure sector, within a decade. Development of integrated township and model cities, already underway in anticipation of the DMIC project, will further fuel the need for heavy commercial activity to support the residential as well as office requirements across India,” he concludes.
DMIC’s benefits to end-users