How Delhi Metro Influenced Property Prices In NCR
Delhi has been home to the ever-growing city rail network, Delhi Metro, for more than 15 years now. The longest network and one of the biggest on-going infrastructure projects in India, the network has over the years changed the face of the real estate in the National Capital Region.
MakaaniQ takes you through the impact that Delhi Metro has had on the property prices over the past few years and the Delhi-NCR real estate market at large:
Does Metro impact real estate?
The construction of any transit infrastructure gives an instant rise to the property prices in the vicinity and Metro is a classic example of this. Not just commercial and retail, the residential areas, close to a Metro station, see a powerful impact on prices due to improved connectivity. The connectivity also increases employment opportunities and thus, increases the demand for homes.
Since the population density in nearby residential locality increases once the Metro becomes operational, the demand for retail and office space increases, too. The development of vacant land and open spaces takes places as faster pace as the profit implication is higher due to additional floor space index (FSI) which is provided to the developer who owns the space along the transit corridor. A constant rise is seen in all phases of construction.
In case of Delhi Metro, which connected Delhi to the parts of NCR, the prices have seen a skewed growth.
Take for instance Dwarka, one of the farthest points in Delhi, the average property price here in 2009 was Rs 5,000 per square foot (sqft). This number rose to Rs 9,000 per sqft in 2017. One of the costliest localities being the ones close the Metro stations.
In case of Noida, the rental values witnessed a visible growth. The rents in areas lying close to Noida Sector 15, 16, 18, Botanical Garden, Golf Course and Noida City Centre see 30 per cent higher rental values than the areas which are more than 800 meters away from these Metro stations. A 2BHK apartment in Sector 19 can be rented for an average rent of Rs 25,000 per month, whereas, Sector 20 offers the same unit for a monthly rent of Rs 15,000-18,000.
Locations that have benefitted from the different routes of the Delhi Metro:
Red Line (Dilshad Garden-Rithala)
Dilshad Garden: It is one of the oldest Delhi Development Authority (DDA) colonies in east Delhi, sharing border with Uttar Pradesh. Ghaziabad, Sahibabad Industrial Area and Noida lie in close proximity and have direct Metro connectivity to Rohini, Kashmere Gate and Tees Hazari. The developed infrastructure here makes the property in this locality expensive. One can buy a resale property in Dilshad Garden for an average cost of Rs 7,000 per sqft.
Rohini, Rithala: The extended areas of Rohini are seeing rampant real estate construction due to the availability of land and proposed Metro. The DDA has also come up with housing schemes to offer flats in Rohini Sector 18 and Sector 24. The property prices here range from Rs 5,000-7,000 per sqft, depending upon the location and distance from the proposed Metro station. In fact, Rohini Sector 18 Metro station is already connected to the Yellow line.
Yellow Line (Samaypur Badli- Huda City Centre)
This Metro route passes through some of the affluent pockets of south Delhi and Gurgaon. The most prominent real estate markets include Jor Bagh, INA Colony, Green Park, Hauz Khas, Malviya Nagar, Saket, DLF Phase I, II & IV and Sushant Lok-I. The most common property type on this stretch are independent houses. Parking space is one of the main concerns in these areas which makes it an uninteresting location for homebuyers. For DLF phases and Sushant Lok, the property prices are higher due to its proximity to employment hubs in Gurgaon, availability of better amenities and promising future prospects.
Blue Line (Noida City Centre- Dwarka)
Greater Noida, Greater Noida West, Dwarka sectors 8, 9,10, 11, 12 and 21 are some of the areas which have a large stock of new properties available at affordable prices. With Metro connectivity, the future prospects are bright as these have a direct link to nearby employment hubs, entertainment zones, retail and commercial arcades, too. The properties here fall in the bracket of Rs 4,000-8,000 per sqft, depending upon the location, the amenities, the unit sizes and the distance from Metro.
Magenta Line (Botanical Garden-Janakpuri West)
The Metro would link Noida with Gurgaon and would cut the travel time by 45 minutes. This has made Noida more attractive for those who cannot afford buying a property in Gurgaon or south Delhi for investment purpose. Other areas that are attractive for investing in real estate include Jasola Vihar, Shaheed Bagh, Kalkaji, Munirka etc. In a way, the Magenta line would impact Noida real estate market more than Delhi.