Bharatmala vs Sagarmala: Transforming Tier-3 Cities into Real Estate Hotspots

The flagship infrastructure projects in India, the Bharatmala Pariyojana and Sagarmala Programme, are national efforts aimed at reducing logistics costs and boosting economic growth. These initiatives have significantly improved the country's export figures, driving up investment prospects in upgraded highway networks, modernized port infrastructure, and new coastal economic zones.

The Bharatmala Pariyojana focuses on developing 34,800 km of highways, economic corridors, and expressways, while the Sagarmala Programme modernizes ports, develops Coastal Economic Zones (CEZs), and improves coastal and inland waterways. Both projects are unified under the PM Gati Shakti National Master Plan, ensuring an integrated supply chain from manufacturing clusters to global markets.

Overall Comparison: Bharatmala Pariyojana and Sagarmala Programme

| Aspect | Bharatmala Pariyojana | Sagarmala Programme | |--------|-----------------------|---------------------| | Focus | 34,800 km highways, economic corridors, expressways | Port modernization, CEZs, coastal/inland waterways | | Ministry | Road Transport & Highways | Ports, Shipping & Waterways | | Investment | ₹6.92L Cr total; ₹4.72L Cr spent (68%) | ₹5.79L Cr outlay; ₹1.4L Cr (262 projects) + ₹2.4L Cr PPPs | | Progress | 26K km awarded, 19.8K km built (Feb 2025) | 839 projects; Sagarmala 2.0 eyes ₹12L Cr by 2035 | | Export Role | Hinterland-to-port roads (30-40% faster trucks) | 118% coastal shipping growth (35% cheaper EXIM) | | Investor Play | Corridor warehouses, MMLPs, roadside retail | Port-adjacent industry, cold chains, shipyards |

A Factory-to-Port Ecosystem

Bharatmala serves as an arterial network, linking major manufacturing zones such as electronics assembly units in Uttar Pradesh, mineral mines in Rajasthan, and agricultural processing facilities in Madhya Pradesh to coastal ports through 18 specific port connectivity projects. Currently, 189 km of these projects have been commissioned.

Sagarmala enhances the efficiency of waterfront operations by expanding rail-road port connections, deep-sea drafts, and the strategic location of CEZs. This ensures that exporters can set up production facilities, customs clearance, and direct loading into ships in high-efficiency precincts.

The PM Gati Shakti geospatial platform eradicates past departmental silos, ensuring highway alignments coincide with port accessways, inland depots, and Multi-Modal Logistics Parks (MMLPs). This integration achieves 30-50% total logistics cost savings, as proven by EY infrastructure optimization studies. It also allows landlocked manufacturers to reach strategic ports like Mundra, JNPT, and Chennai 1-2 days earlier, promotes the use of coastal shipping and inland waterways, and saves more than ₹35,000-40,000 crore in the Indian trade ecosystem.

Export Performance Acceleration

Current trade statistics confirm the infrastructure-export correlation. The value of merchandise exports in April-August 2025 amounted to $349 billion, indicating a 6.18% annual growth rate. The cumulative amount in October was estimated at $492 billion, despite ongoing tariff pressures. The convergence of Bharatmala and Sagarmala has contributed to this resilience.

The main beneficiaries of these projects include: - Electronics (15-20% export growth) : Noida-Gurugram clusters benefit from Bharatmala corridors, moving goods quickly to Ennore-Chennai port facilities. - Petroleum Products : Sagarmala-supported oil terminals, combined with Bharatmala pipeline corridors, reduce logistics costs by approximately 25%. - Cars and Parts : The Delhi-Mumbai Expressway enables just-in-time delivery to Mundra Port for exports to North American and European markets. - Agri-Processing and Food Products : Sagarmala inland waterways and corridor-based MMLPs facilitate faster transportation of perishable goods between central India and Vizag-Paradip. - Textiles and Engineering Goods : Eastern Special Economic Zones combine spinning and cloth production hubs in Odisha-Uttar Pradesh with coastal distribution points.

New Opportunities in Tier-3 Cities

Stakeholders in construction frontrunners such as Rajasthan, Maharashtra, and Uttar Pradesh are seeing significant progress and investment opportunities. Rajasthan has 2,241 km of highways built (95% execution), Maharashtra has 1,837 km, and Uttar Pradesh has 1,854 km. These developments support the freight superhighway and JNPT-dominated logistics, making these states attractive for warehousing REITs, logistics, and electronics parks.

Other states catching up include Kerala with 396 km and Bihar with 641 km of port links completed.

Undervalued Tier-3 Micro-Markets Growth Potential

In addition to saturated metros, some Tier-3 sites on the confluence of corridors and ports have 20-40% potential land value growth by 2028: - Pithampur, Madhya Pradesh (1,112 km built) : Known as the Detroit of India, this automotive hub benefits from the expansion of Indore airport, Bharatmala MMLPs, and the Western Dedicated Freight Corridor. - Hosur, Tamil Nadu (near 826 km network) : An electronic fabrication center in the Bengaluru-Chennai corridor-Ennore port crossroad, offering underestimated industrial land for multinational capacity. - Bhadrachalam, Telangana (319 km progress) : A node for agri-processing acceleration in rice, spices, and plantation exports, combining inland waterways and emergent highway connectivity. - Dhamra, Odisha (537 km built) : New deep-draft port complexes and mineral freight corridors from steel and coal logistics parks trade at 40% valuation discounts of Vizag standards. - Kutch Hinterland, Gujarat : Bharatmala road extensions to Mundra CEZ expansions can accommodate solar manufacturing and bulk export infrastructure. - Moradabad, Uttar Pradesh : Clusters of brassware and handicraft exports gain prime western port access through the completion of the Agra-Lucknow Expressway.

The entry yields on these micro-markets are better (22-25%) than on metro saturation (15-18%), with capital appreciation of 30% as e-commerce, FMCG, and export-based units grow after infrastructure has matured.

Formative Investment Recommendations - Corridor-Centric Logistics Infrastructure : Build or purchase Grade-A warehousing and MMLPs near interchanges in Uttar Pradesh-Rajasthan, where there is a 100 basis points difference in institutional yields for renting to e-commerce and FMCG absorption. - CEZ-Related Industrial Developments : Develop electronics and automotive parks in strategic locations to capitalize on the integrated logistics network and export opportunities.

These recommendations highlight the potential for significant returns in undervalued Tier-3 micro-markets, driven by the transformative impact of Bharatmala and Sagarmala on India's infrastructure and real estate landscape.