Metro routes in Tier II cities raised land values by 8-10%
RAILWAYS & METRO RAIL

Metro routes in Tier II cities raised land values by 8-10%

Real estate is always directly impacted by the effective deployment of any metro corridor since it raises land value, changes in land use, and increases densification along the corridor. Examples of transportation systems that significantly reduce traffic congestion include metros and monorails. Due to consumers' increased willingness to pay more for convenience, urban real estate values are increasing for projects planned in the neighborhood. Empirically, it is anticipated that the value of properties will increase by 10-15% from existing prices with the opening of a metro corridor, depending on the location, land use, and overall use of the micro market.

The Central Government proposed Metro Lite, Neo-Metro, and Water Metro in Tier-II cities like Lucknow, Patna, Jaipur, Ahmedabad, Pune, Kochi, and Coimbatore to provide an effective mass public transportation system. Outside of metropolitan areas, metro rail transit plays a significant role in intracity transportation. It will give people easy access to mobility, so they can travel to inner-city places with the least amount of discomfort.

A Shankar, COO, and head, strategic consulting and valuation advisory, India, JLL, said, “The residential, as well as commercial market, has seen a steady growth along the metro corridors in Tier-II cities, owing to increase in developments alongside the routes. On average, the landowners with land near metro corridors under construction can command a premium of 5-7% and localities already well connected with metros can command a premium of 8-10%. Additionally, it has been observed that appreciation in land value has been on a rise after the metro operation and increase on an average by 5% annually over other locations, compared to the construction and planning phase.”

According to a JLL assessment, residential property prices in South Delhi have increased by 15-20% over the last five to six years, while rates in Hyderabad's micromarket of Corridor-I and Corridor-III have increased by 15-20% from 2018 to the first quarter of 2022. Land prices in Chennai's Anna Nagar second avenue and Thirumangalam neighbourhoods increased by 15 to 35% closer to metro stations. Rates increased 8–10% in Bengaluru's CBD micromarket as well as a select SBD areas like Indiranagar, CMH Road, Jayanagar, Malleswaram, Yeshwanthpur, and Rajajinagar as soon as the east-west and north-south corridors were made accessible to the general public.

A 32.92 kilometre metro line in Patna, India, is being built as of 2020. A DPR for the expansion of a 48km metro line has also received approval from Nagpur Metro. The Coimbatore metro is also preparing its DPR.

By 2025, metro services will be available in Agra, Meerut, Kanpur, Ahmedabad, Kochi, Pune, and other cities, according to the Union Budget 2022. Both the 118.9 km Kochi Metro Railway Phase 2 and the 118.9 km Chennai Metro Railway Phase II would receive finance from the government.

See also:
Metro projects to produce Rs 800 bn opportunities over next 5 years
Coimbatore Metro phase I to be completed by 2027


Real estate is always directly impacted by the effective deployment of any metro corridor since it raises land value, changes in land use, and increases densification along the corridor. Examples of transportation systems that significantly reduce traffic congestion include metros and monorails. Due to consumers' increased willingness to pay more for convenience, urban real estate values are increasing for projects planned in the neighborhood. Empirically, it is anticipated that the value of properties will increase by 10-15% from existing prices with the opening of a metro corridor, depending on the location, land use, and overall use of the micro market. The Central Government proposed Metro Lite, Neo-Metro, and Water Metro in Tier-II cities like Lucknow, Patna, Jaipur, Ahmedabad, Pune, Kochi, and Coimbatore to provide an effective mass public transportation system. Outside of metropolitan areas, metro rail transit plays a significant role in intracity transportation. It will give people easy access to mobility, so they can travel to inner-city places with the least amount of discomfort. A Shankar, COO, and head, strategic consulting and valuation advisory, India, JLL, said, “The residential, as well as commercial market, has seen a steady growth along the metro corridors in Tier-II cities, owing to increase in developments alongside the routes. On average, the landowners with land near metro corridors under construction can command a premium of 5-7% and localities already well connected with metros can command a premium of 8-10%. Additionally, it has been observed that appreciation in land value has been on a rise after the metro operation and increase on an average by 5% annually over other locations, compared to the construction and planning phase.” According to a JLL assessment, residential property prices in South Delhi have increased by 15-20% over the last five to six years, while rates in Hyderabad's micromarket of Corridor-I and Corridor-III have increased by 15-20% from 2018 to the first quarter of 2022. Land prices in Chennai's Anna Nagar second avenue and Thirumangalam neighbourhoods increased by 15 to 35% closer to metro stations. Rates increased 8–10% in Bengaluru's CBD micromarket as well as a select SBD areas like Indiranagar, CMH Road, Jayanagar, Malleswaram, Yeshwanthpur, and Rajajinagar as soon as the east-west and north-south corridors were made accessible to the general public. A 32.92 kilometre metro line in Patna, India, is being built as of 2020. A DPR for the expansion of a 48km metro line has also received approval from Nagpur Metro. The Coimbatore metro is also preparing its DPR. By 2025, metro services will be available in Agra, Meerut, Kanpur, Ahmedabad, Kochi, Pune, and other cities, according to the Union Budget 2022. Both the 118.9 km Kochi Metro Railway Phase 2 and the 118.9 km Chennai Metro Railway Phase II would receive finance from the government. See also: Metro projects to produce Rs 800 bn opportunities over next 5 years Coimbatore Metro phase I to be completed by 2027

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code