New Delhi: Dedicated freight corridors and redevelopment of 400 railway stations would foster transit-oriented development and boost the real estate market, according to property consultants.
However, they said successful funding mechanism and timely implementation of these projects would be the key.
“Railway minister Suresh Prabhu’s announcement today (Thursday) on redevelopment of 400 stations through the private-public partnership (PPP) model is a very progressive and welcome move. This project will foster a plethora of large transit-oriented developments across the country,” said Anuj Puri, chairman and country head of JLL India, a property consultant.
Indian Railways could efficiently monetize their land parcels, particularly in cities with higher densities, by commercially exploiting existing railway stations through sale of space rights over them, he added.
Commenting on the rail budget for financial year 2016-17, CBRE South Asia CMD Anshuman Magazine said, “From a real estate and infrastructure perspective the budget had some key announcements focusing on infrastructure such as dedicated freight corridors including three new freight corridors and transit development.”
These initiatives, if implemented successfully, would benefit the industrial and logistics real estate segment, he added.
“However, successful funding mechanisms coupled with timely implementation of all these announcements are necessary to strengthen India’s urban infrastructure,” Mr Magazine said.
Mr Prabhu on Thursday announced India’s first rail auto hub in Chennai and creation of dedicated north-south, east-west and east coast freight corridors by 2019.