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

Next Story
Infrastructure Energy

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Next Story
Infrastructure Urban

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Next Story
Infrastructure Energy

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?