4 Reasons Why Metro Could Be A Gamechanger For A City's Real Estate
When looking for a property in India, one of the key parameters of selecting a property is the commuting systems available in vicinity. Only a few enjoy the luxury of living within the walking distance of their workplace or education institution, for others they always need a strong and comfortable mode of transport. Metro has emerged as one of the most-promising commuting systems in India that is being used by the masses in India's metropolitan cities.
Some of the most popular networks include, Delhi's Metro that has also been extended to the national capital region, Mumbai Metro, Bengaluru's Metro. These systems have also connected the city to its periphery areas which are the hot selling markets for residential real estate. Thus, these systems are being mulled to have a strong and lasting impact on the real estate in the areas located near to the Metro stations.
MakaanIQ lists reasons why Metro networks impact the real estate sector, positively:
Drives real estate demand
It has been observed that real estate picks up in areas as soon as the state governments or authorities announces the coming a Metro line in those areas. For instance, a Metro line from Samaypur Badli, which directly links Sector-18 of Rohini to Gurgaon, is likely to have a positive impact on real estate in far-fetched sectors of Rohini where real estate was lukewarm as this network will add to the comfort of the people in living in Rohini and travelling to South Delhi and Gurgaon, everyday.
Drives development of infrastructure
Introduction of Metro leads to massive construction of other infrastructure in the area. For instance, if Metro network reaches an area which is not fully developed, the area will suddenly witness a rise in both commercial and residential construction in the vicinity. This is because the developers know that the property near a Metro station would sell like hot cakes and the businesses that open here. That's why we see a lot of shopping complexes, schools, colleges and even new housing societies being constructed near Metro stations.
Taking the load off the roads
The coming of Metro network in a city is known to reduce the traffic on roads. Metro stations at every key locality makes it comfortable for the dwellers to rather opt for this mode of public transport than take out their own personal vehicles. Thus, for those who still use their personal vehicle will witness less traffic and in turn a comfortable drive. This will also ensure more parking space.
Saving the environment
It is a known fact that Delhi Metro is the first Metro project in the world to be registered for the Gold Standard Foundation for its energy efficiency measures. It is known to reduce annual carbon dioxide emission by 0.57 million tonnes. This helps it earn carbon credits. If one network could achieve this number, different networks across the country could contribute way beyond. Using measures like solar power, rainwater harvesting, among others will help save the resources. And with people getting acquainted and practising energy saving, investment in cities that use the energy efficiently will rise.
Let's take a look what impact Metro networks have had on India's three major cities:
- Advent of Metro brought down the traffic on the roads. Thus, lowering the pollution levels.
- Witnessed a rise in commercial and residential construction and has been a key driver of real estate price appreciation in different areas.
- Traffic congestion was reduced by 15 per cent when the east-west Metro service became operational on April 30.
- This 18-km line has kicked up the property prices in Bengaluru.
- People in Chennai could opt for suburbs to live in as Metro in Chennai connects the city to the peripheries.
- North Chennai, which had a limited number of real estate projects earlier, is now witnessing a rise in the coming of residential projects here.
- The Metro has given prominence to micro markets including Anna Salai, city's former business and entertainment hub.
- Commuting from the western suburbs and the nothern secondary business district (SBD) to the eastern suburbs became easy.
- The demand for properties in Bandra Kurla Complex (BKC), the northern SBD and the central SBD rose.
- The route that carries more than half a million passengers everyday, reduced the traffic in the area.
- Prices of properties near east-west corridor witnessed a slight rise, too.