The metro rail has become a lifeline for cities like Delhi
and Mumbai, and due to its huge success the implementation of metros has been
carried out in cities like Jaipur and Chennai now. All the cities with metro rails have shown a
positive impact in terms of real estate along the metro corridors.
While retail and commercial areas along the metros
corridors benefit directly through ease of access, the impact on residential
areas is dual wherein the jobs generated by Metro cause an increase in demand
for homes and the reduced commuting costs draw more buyers.
In areas bordering the stations, the noticeable impact is
higher on commercial property values than on residential values, and the effect
reduces as the distance from the station increases
Land prices will
generally be higher if a land parcel is located within walking distance of the
metro, but not directly next to the station. The increase in the land values is
reflected in the area served, especially around the stations. There is a substantial
increase in demand of retail and office spaces around existing metro stations. Most
commercial properties near Metros are result of conversion of individual
residential units to apartments, mixed use properties to commercial use and new
development on vacant land.
Metro exerts influence in value up to a KM; with maximum
influence around 500 meters. In fact the population density of residential areas
nearby will tend to increase after the launch of metros due to preference for
proximity. Alongside the launch of new projects and developments will also
witness a steep rise, a steady price rise is also an accompanying feature.
The relevance and importance of metros can be gauged from
the fact that most residential and commercial projects advertise their
proximity and the ones which are within walking distance site this as their
biggest USP.
