Covering a total of 760.62 km across India with another 578.34 km under construction, the past two decades has seen a tremendous growth of the metro rail. Cities including Kochi, Chennai, Bengaluru, Nagpur and Nashik have seen significant expansion of new metro lines, which was highlighted by the finance minister in the Union Budget hearing in January 2021.
Further, two new technologies including MetroLite and MetroNeo are being planned to provide affordable connectivity options in tier II cities and peripheral parts of tier I cities.
“The real estate market has seen a steady growth along the metro corridors, owing to increase in developments alongside the routes. Furthermore, on an average, the land value within 500 meter of metro corridors has increased by 15-20%, especially in residential and commercial areas. Additionally, it has been observed that appreciation in land value has been on a rise after the metro operation and increased by 2-5% annually over other locations, compared to the construction and planning phase,” said A Shankar, Head – Strategic Consulting and Valuation Advisory, India, JLL.
The deployment of the metro corridor directly impacts the real estate sector as it increases the land value, land use change and densification alongside the metro corridor. Mass transit systems such as metros and monorails significantly contribute towards solving traffic problems. Thus projects which are planned around the vicinity witness an increased urban real estate value, since consumers are willing to pay more for convenience.
Cities show a uniformly positive change after the implementation of metros along their metro corridors in Delhi, Hyderabad, Chennai, Bangalore.
The Transit Oriented Development (TOD) corridors such as metro corridors will have an influence zone of 500 m on either side which will get full benefit. The government usually addresses the specific needs of by granting extra FSI (Floor Space Index) along the corridor. This increased FSI will reflect in increased prices for land along the Metro corridor, and automatically lead to increased population density near the metro station.
Reduction in premium FSI charges along the metro corroder will further encourage many existing or proposed developments to avail these benefits and thereby enhance the growth of the city along the corridors and offer a better quality of living due to the emerging developments.
Currently, Metro rail network of 702 km is already operational across the country, and another 1,600 km of metro rail network is under construction in 27 cities.