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Land value within 500 meters of the metro rail corridors and upcoming corridors are expected to go up 10-15 per cent, said real estate company JLL in its analysis. Cities including Kochi, Chennai, Bengaluru, Nagpur and Nashik have seen significant expansion of new metro lines, it said.
Further, MetroLite and MetroNeo are being planned to provide affordable connectivity options in tier-I and tier-II cities. Currently, the length of metro rail corridor is 760.62 km across India with another 578.34 km under construction.
‘Steady growth’
“The real estate market has seen a steady growth along the metro corridors, owing to increase in developments alongside these routes. On an average, the land value within 500 metres of metro corridors has increased by 15-20 per cent.
It has been observed that the appreciation in land value has been on a rise after the metro rail operation and it increased by 2-5 percent annually over other locations,” said A Shankar, Head – Strategic Consulting and Valuation Advisory, India, JLL.
Cities show a uniformly positive change after the implementation of metros.In the last 5-6 years, residential property in the South Delhi area appreciated by 15-20 per cent. “The land value of the metro on the Nirman Vihar stretch which became operational in 2010, was observed substantial increase from ₹1,50,000 per square yard to current prices in the range of ₹2,00,000-2,50,000 per square yard,” JLL said.
In Hyderabad, the micro-market of Corridor-I and Corridor-III witnessed a price growth of 15-20 per cent during 2018-Q1 2021.
Likewise in Chennai, as soon as the Metro Phase I got completely operational in 2019, the impact on real estate prices could be seen.
“The residential prices almost a decade ago before the start of metro were ₹3,600 per square feet and now have surged to ₹7,000 per square feet,” JLL said..
In Bengaluru, locations like Indiranagar, CMH Road, Jayanagar, Malleswaram, Yeshwanthpur, Rajajinagar, etc. witnessed a price growth of 8-10 per cent as soon as the East-West & North-South metro corridors were opened.
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