India’s infrastructure push has been both sustained and scaled. The Economic Survey 2025-26 notes that the national highway network has expanded by nearly 60% since 2014, while high-speed corridors have grown from under 100 km to over 5,000 km. The 2026-27 Budget has raised capital expenditure from the previous year by 11.5% to Rs.12.2 lakh crore. Airports have multiplied, and metro networks are reshaping urban mobility.
Real estate typically moves in three cycles around infrastructure. Prices rise at announcement on intent, cool off as timelines stretch, and see a final upswing when the project is completed and fully operational. The pattern is consistent: as connectivity improves, the investors bow out, and end-users step in to make the apartments their homes.
Connectivity changing demand
Nowhere has this been more visible than the nation’s two megalopolises: Mumbai Metropolitan Region (MMR) and Delhi-NCR.
Let’s start with the financial capital, where infrastructure has fundamentally altered how distance is perceived. Navi Mumbai, once seen as peripheral, has gained serious traction after the Mumbai Trans Harbour Link improved connectivity between Sewri and Nhava Sheva. Along with the Navi Mumbai International Airport, the metro expansion has given a crucial lifeline to Mumbaikars, supporting sustained housing demand. Inventory overhang fell to 17 months in calendar year 2025, the lowest since 2020, according to analytics platform PropEquity.
At the same time, the Mumbai Coastal Road has restored South Mumbai’s accessibility. As connectivity between Bandra Kurla Complex and Marine Drive improves, demand at the top end is returning. Ultraluxury transactions in Worli, Nariman Point and Malabar Hills have picked up, with marquee deals such as Leena Gandhi Tewari’s purchase in Worli underscoring depth at the very top.
Developers like Lodha, Oberoi Realty, Raheja Group and Sunteck Realty are doubling down on high-end projects across these micro-markets. Redevelopment is moving intelligently into the hands of credible developers like Rustomjee and Mahindra Lifestyle.
In NCR, infrastructure has done something more fundamental—it has rebuilt trust. The Noida International Airport has become a credibility anchor. PropEquity data shows that Noida saw 36% year-on-year price growth in 2025, led by luxury demand and infrastructure momentum, while Greater Noida recorded 14% growth. The Yamuna Expressway is being re-rated as the airport nears completion, with land prices revised for 2025-26.
What stands out is not just the scale of activity, but its nature. A micro-market that once struggled to attract grade-A developers is now seeing luxury launches by Godrej Realty, Max Estates and L&T Realty. Who would have thought, just a few years ago, that a branded project like M3M Jacob & Co would be sold in a market like Noida and at eye-popping prices like `40,000 per square feet?
Gurugram reflects the shift differently. After years of being in a limbo, the completion of the Dwarka Expressway saw sales value jump from Rs.383 crore to Rs.8,347 crore in a single year (2025), according to the India Sotheby’s International Realty-CRE Matrix report. This was not gradual growth—it was pent-up demand unlocking as connectivity became real. Developers including Max Estates, Sobha, Whiteland and Smartworld have rapidly repositioned the corridor.
Sohna, a key part of the Gurugram district, is seeing a similar shift. The 21.65-km Sohna Elevated Corridor has cut travel time significantly, bringing it within the city’s daily commute. As a result, end-user interest has risen and developers have followed. Gurugram, as a whole, recorded Rs.24,120 crore in the Rs.10 crore+ priced home sales in 2025, making it India’s fastest-growing luxury market.
Bengaluru is following a familiar script. North Bengaluru—from Hebbal and Yelahanka to the airport belt and Nandi Hills—may not match NCR’s frenzy, given the city’s more measured market. However, since 2021, both prices and launches have grown in double digits. Metro expansion is steadily improving connectivity, and developers are already introducing larger, lifestyle-led formats in anticipation of future demand. Among southern cities, Bengaluru stands out as the market with a steady rise in top-end luxury launches and sales.
Rise of yield-led second homes
Infrastructure-led demand shifts are also visible beyond metros. In Goa, the operationalisation of Manohar International Airport has pushed real estate activity northward. Improved connectivity has boosted tourism, with nearly 28.5 lakh visitors recorded in Q1 of financial year 2025-26. This has translated into stronger rental demand, with North Goa micro-markets delivering yields in the 4–6% range, particularly in locations like Assagao and Siolim.
In North India, the Delhi-Dehradun Expressway has reduced travel time to roughly 2.5 hours, making weekend homes in Rishikesh and Mussoorie hills more wanted. Prices of Eldeco’s Terra Grand villa project in the upper hills of Rishikesh, have climbed threefold in five years.
Announcement vs reality
Infrastructure creates value—but not always immediately or evenly. There is often a gap between announcement, execution, and usability. Delays due to land acquisition, approvals, and construction are common.
To maximise gains from an anticipated infrastructure development, the most crucial point to keep in mind while investing early is that pricing often runs ahead of liveability. Unlike the ecosystem of social infrastructure like schools and hospitals, retail catches up and end-user demand remains cautious.
At the same time, supply often moves faster than demand. As soon as a corridor is identified as high-potential, developers launch larger formats, premium positioning, ambitious pricing. In some cases, demand keeps pace; in others, inventory builds up and pricing power weakens and patience becomes the key.
The Author is Managing Director, India Sotheby’s International Realty