The economic benefits to infrastructure are clear, unlike the areas of public and private investment. Alongside job creation and GDP growth, investment in infrastructure also acts as a catalyst in the real-estate sector. Transportation and strong telecommunications are what are considered fundamental to real estate developments. Whether these be residential, industrial or commercial. Affordable energy is also another requirement therein.
CEO of Zaitoon Mian Ayaz Anwar agrees to the fact that the impact is not obviously an entirely positive one. But in fact, the influence that infrastructure has on real estate is an intricate one. Transportation projects tend to decide where the next property hot spot shall be. Road and railways in previous days, it has now been proved that investing in mass public transport presents a higher value. Safe and affordable public transport is not only suitable for congested localities but also contributes to a more sustainable economic growth.
However different types of infrastructure investments have different impacts on different real estate sectors. Their impacts also are reviewed differently in different societies and countries. Upgrading ports or airports have been considered substantial but may also contribute to the noise and air pollution of the neighbouring areas. The biggest challenge faced by a real estate investor is, however, the timing. Any announcement related to infrastructure leads to it becoming a hot spot. But sometimes, a short time market distortion is what destroys all the plans of the infrastructural improvements the investor plans to bring on.