NEW DELHI: Metro corridors led to a 15-20% rise in land prices, within 500 metres of such facilities, as per a report from JLL. A fall in cost of commute and improved job opportunities led to a 20-25% increase in commercial property prices, the report added.
Over the past two decades, metro rail transport has seen tremendous growth covering a total of 760.62 km across the country, with another 578.34 km under construction. Cities including Kochi, Chennai, Bengaluru, Nagpur and Nashik have seen significant expansion of new metro lines.
Also Read | Ripple effects of the warehousing boom
As per the report, prices of residential properties in south Delhi rose 15-20% in the past five to six years., while the micro-market of corridor-I and corridor-III in Hyderabad saw rates rise 15-20% from 2018 to first quarter of 2021.
Many pockets of Chennai witnessed an increase in land prices closer to metro stations by 15-35%. The micro-market in Bengaluru of CBD along with few SBD locations like Indiranagar, CMH Road, Jayanagar, Malleswaram, Yeshwanthpur, Rajajinagar, etc. saw rates rise 8-10% as soon as the east-west and north-south corridors opened for public use.
Depending upon the location, land use, and micro market’s overall use, the value of properties are expected to go up 10-15% from current values with the launch of a metro corridor.
The deployment of the metro corridor directly impacts real estate sector as it increases land value, land use change and densification alongside the metro corridor. Also, mass transit systems such as metros and monorails significantly contribute towards solving traffic problems. Thus, projects which are planned around the vicinity witness an increased urban real estate value, since consumers are willing to pay more for convenience.
A Shankar, head, strategic consulting and valuation advisory, India, JLL, said, “The real estate market has seen a steady growth along the metro corridors, owing to increase in developments alongside the routes. Furthermore, on an average, the land value within 500 m of metro corridors has increased by 15-20%, especially in residential and commercial areas. Additionally, it has been observed that appreciation in land value has been on a rise after the metro operation and increase by 2-5% annually over other locations, compared to the construction and planning phase.”