Infrastructure Projects That Are Boosting Property Values
If you’re a homeowner or property investor, you’re likely well aware of the impact infrastructure projects can have on property values. These large-scale developments can bring much-needed upgrades and improvements to an area, making it more desirable and increasing the overall demand for properties. In turn, this can drive up property prices and provide a lucrative opportunity for those in the real estate market. In this article, we’ll take a closer look at some of the most significant infrastructure projects that are currently boosting property values around the world.
Crossrail, London
Crossrail, also known as the Elizabeth line, is a massive infrastructure project in London that is set to transform transport links throughout the capital. With a budget of over £15 billion, Crossrail will see the creation of 42 kilometers of new tunnels and 10 new stations, connecting suburban areas to the city center and reducing travel times for commuters. The project is set to be completed in 2022, but its impact on property values is already being felt.
The Effect on Property Values
The closer a property is to a Crossrail station, the more significant the increase in value. According to Zoopla, properties located within a kilometer of a Crossrail station have seen an average price increase of 66% since 2009, compared to the London average of 50%. Additionally, the areas surrounding the new stations are expected to see significant growth in terms of new developments, which will further boost property values.
High Speed 2 (HS2), UK
High Speed 2 (HS2) is a high-speed railway that is set to connect London with the North of England and Scotland, reducing journey times and increasing capacity. The first phase is due to be completed in 2026, with a second phase set for completion by 2033. The project is expected to bring a host of benefits to the areas it passes through, including increased investment and job opportunities.
The Effect on Property Values
According to a report by KPMG, HS2 is expected to bring an additional £5.9 billion to the property market in the UK. Properties located within a 1 kilometer radius of a HS2 station are predicted to see an average price increase of 6-7% for residential properties, with commercial properties seeing even higher growth. This project is already influencing property prices, with areas like Birmingham and Manchester seeing a surge in demand as a result of their HS2 connections.
Muskrat Falls Hydroelectric Project, Canada
In Canada, the Muskrat Falls Hydroelectric Project is a $12.7 billion development that is set to become the second-largest hydroelectric project in the country. The project aims to increase the province’s energy supply and reduce reliance on fossil fuels. This has not only brought job opportunities to the area but has also had a positive impact on property values.
The Effect on Property Values
The construction of the project has led to increased demand for rental properties, with a rise in rental prices in the area. The completion of the project is also expected to bring further economic benefits, possibly leading to an increase in property prices in the long term. Additionally, the project has brought new infrastructure, such as a road upgrade and a new airport, further improving the desirability of the area for residents and investors.
Delhi-Mumbai Industrial Corridor (DMIC), India
The Delhi-Mumbai Industrial Corridor (DMIC) is a massive infrastructure project in India that aims to develop industrial zones along a 1,483 kilometer long transportation corridor between Delhi and Mumbai. With a budget of $90 billion, the project is expected to transform the industrial landscape of the country, creating jobs and boosting the economy.
The Effect on Property Values
The DMIC has not only provided job opportunities but has also attracted significant investment from both domestic and international companies. This has led to a rise in demand for properties near the industrial zones, leading to an increase in property values. Additionally, the improvement in infrastructure in the area has made it more desirable for residents, further boosting property prices.
In conclusion, infrastructure projects play a significant role in boosting property values, providing lucrative opportunities for homeowners and investors alike. With the right research and knowledge, it’s possible to take advantage of these projects and benefit from the increased demand and growth in property prices. Just remember to keep an eye out for upcoming developments and their potential impact on the property market.
