Metro Rail’s Effect on Property Values in India

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Metro rails Effect on Property Prices
Connectivity through road or rail is perhaps
one of the strongest determinants of development
in any city. For a long time, this has also been
a factor in rising real estate prices. A major
beneficiary of metro rail projects are the
suburban areas as they would be connected with
the citys business centers. When the Metro
project was announced in Bangalore, there was
considerable jump in property prices (10-15 )
for both commercial and residential projects
within 1-2km radius from the stations, this is
expected to go up by almost 40 once Metro
connectivity is more well-established.
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According to many realtors, the property rentals
along Old Madras Road (OMR), CMH Road and 100
Feet Road Indiranagar will further go up in the
coming years. A number of real estate developers
are concentrating on the areas adjacent to Old
Madras Road for key residential projects and
retail malls. Demand for real estate is predicted
to increase in rentals too. In the next 5 to 10
years, OMR and surrounding areas are projected to
turn into a major commercial and residential
hub. The Bangalore Metro rail network project,
expected to cover 100 km, is seen as a
game-changer in terms of connectivity. It is
bound to reduce both traffic congestion and
commuting time especially for the office-going
crowd. As cities come closer, areas like K R
Puram in the east and Hebbal in the North would
see a good jump in property prices. OMR, being
one of the roads linking the central business
district to east Bangalore and Byappanahalli
stretch, will see a rate hike per sft from Rs
2,500-3,000 to Rs 6,000-7,000 per sq ft. Read
more about at http//www.fortiusinfra.com/blog/r
ail-realty-link-metro-rails-effect-property-prices
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