There is a well-established relationship between infrastructure development and real estate prices. Infrastructure improvements can positively impact real estate prices in several ways:

• Improved accessibility: Infrastructure like roads, highways, public transit, etc. improve the accessibility and connectivity of a location. This makes it easier for people to travel to and from that area, which increases its desirability and attractiveness. This can lead to higher demand for real estate and upward pressure on property prices.


• Reduced travel time: Better infrastructure reduces travel time and cost for people to access amenities and locations of interest. This makes a place more attractive to live in or buy property, thereby increasing demand and prices.


• Economic growth: New or improved infrastructure spurs overall economic activity and growth in an area. This includes growth of business opportunities, employment, wages, etc. Strong economic fundamentals support higher real estate valuations and pricing.


• Amenity value: Infrastructure like parks, schools, hospitals, recreational facilities, etc. improve the amenity value and livability of a neighborhood. This amenity effect translates into higher desirability and real estate premiums that people are willing to pay to access these amenities.


• Speculation: Infrastructure announcements and developments often spur property speculation by investors looking to capitalize on future price appreciation. This speculation can drive up real estate prices, especially in the period leading up to the completion of the infrastructure project.

However, the effect on prices depends on several other factors also like the location, property type, demand-supply dynamics of the local real estate market, overall economic conditions, etc. The impact may also vary in the short term versus long term. But in general, most studies have found a positive link between infrastructure and real estate values.

If you want to learn in depth about how you can time the investment to capitalize on infrasturcrure development, read this article.