Impact of Delhi Metro on Real Estate

Real estate values have reached new heights because of Metro Routes in Delhi. It has been studied that a metro station in a locality pushes up prices by at least 22 percent. Impact of Delhi Metro on real estate is divided into three phases that is-

 Pre-Construction phase

 Under-Construction phase (1996-2000)

 Post Construction phase (2000 –2006)

As per the valuation done, in the residential areas, land value within 500 meters of Metro line increased by 11.3 % on average. In commercial areas, it was increased by 18.1 %. But these analyses holds true only for planned and authorized areas and not for unauthorized colonies.

The impact of Delhi Metro on real estate was come to observation when first line from Shahadara to Tis Hazari was commissioned in 2002. When the same metro line started in Rohini, Pitampura and Dilshad Garden, property values increased manifold. Dwarka real estate values have increased 5-10 times compared with 2005 values and it is only due to Metro. Residential capital values in localities within a 1 km radius of the Metro have increased by 15-20 percent and rental values by 20-25 percent.

Construction of a Metro line to South Delhi is in full swing. Real estates values in the South Delhi market have always been very high. The metro construction work is slated to finish within a year and is expected to result in an immediate 10-15 percent rise in values.

End users fro Delhi and Noida are shifting to Ghaziabad, where active real estate development has led to a glut in affordable residential property. They are in demand because of lower values than neighboring areas. Many housing projects are coming up in different parts of the city. Values in prime residential localities like Vaishali, Vasundhara, Kaushambi and Indirapuram high and are expected to rise by 25-30% once Metro has a complete run in the city.

One of the main reasons for high prices in the Delhi NCR reality market may be attributed to the Metro. End users and investors are now putting money in those areas with easy Metro accessibility, with property values that had either dropped or were stable due to the current global recession, expected to rise every time a new Metro line is flagged off from a locality in the Delhi NCR.