1. Superior Logistics and Transportation Access
Land near highways offers direct and efficient transportation routes for movement of goods, raw materials, and finished products. This proximity:
- Reduces travel time and fuel costs.
- Enables faster delivery cycles for supply chains.
- Enhances last-mile connectivity for distribution.
Industries, logistics companies, and warehousing firms prefer such locations due to lower operating costs, which drives up land demand and, consequently, land cost.
2. Higher Industrial and Commercial Demand
Highways attract industrial clusters, logistics hubs, transport depots, and service-based businesses due to high visibility and accessibility. The concentrated presence of:
- Manufacturing units
- Freight terminals
- Retail warehouses
- Infrastructure projects
increases competition for land in these corridors, leading to greater demand and higher prices.
3. Faster Appreciation and Investment Potential
Land near highways typically exhibits higher appreciation potential because of:
- Ongoing infrastructure expansion.
- Government-backed industrial corridor development.
- Increased footfall and business activity.
Investors perceive highway-adjacent land as more liquid and profitable in the long term, pushing up current valuations.
4. Attractive for Mixed-Use Development
Highway frontage land often qualifies for multiple zoning uses, including:
- Industrial
- Commercial
- Warehousing
- Hospitality
The potential for diverse development adds to the land’s usability and revenue-generating capacity, thereby inflating its market value.
5. Access to Broader Labor and Consumer Markets
Good connectivity to highways enables industries to:
- Draw labor from nearby towns and villages.
- Reach broader customer bases.
- Link satellite facilities with head offices or central processing units.
This operational flexibility makes highway-side land more desirable for both small enterprises and large corporations, reflecting in higher pricing.
6. Eligibility for Infrastructure-Linked Incentives
Governments often promote industrial and economic activity near highways by offering:
- Tax incentives
- Power and water subsidies
- Simplified approval processes
Land within such designated zones or influence areas of national corridors becomes more attractive to investors and buyers, increasing its value due to policy-driven demand.
7. Reduced Dependency on Interior Access Roads
Highway-adjacent land eliminates the need for:
- Internal road development or upgrades.
- Complex transport routing for heavy vehicles.
- Time-consuming navigation through congested or residential zones.
This ease of access supports uninterrupted industrial operations, contributing to a premium in land pricing.
