Metro rail stands in symbolism of infrastructural development. It epitomizes the might of a city’s infrastructure progress. It symbolizes city’s growth march in future. Moreover, it influences development of real estate of the city, the state and the entire country. A region reinforced by infrastructure development is a financially viable destination for corporate bigwigs. Infrastructure boost is considered a catalyst for continual progress of the region. Metro rail affords immense contributions in this context.
Year 2015 witnessed an era of metro advent. Chennai and Jaipur witnessed inauguration of metro rails. Delhi and Bangalore followed the suit with expansion of metro lines. India owns biggest railway network in the world. At present, the country owns seven metro systems currently operational. Firstly, Kolkata witnessed metro advent in 1984, then Delhi and thence all the major cities. On 2009, expansion of metro lines entered in Noida (Noida City Centre).
Cities with metros along their metro corridors witnessed modern transition from their conventional forms. This, as a result, has proved to be a quantum leap in fcilitating development of the cities witnessing presence of metro expansion. The transition in real estate is quite noticeable upon the advent of metro as surge in the value of nearby land is one of the ripple effects of metro expansion. Aside from resolving traffic woes at satisfaction level, the arrival of transit systems like metros and monorails is deemed to be catalyst behind shooting up real estate values, given how the convenience is perceived to be the most privileged option for consumers who can willingly pay for more to avail easy commuting facility.
The metro rail expansion in any area signals as prescience of its development, given how tactfully it facilitates connectivity woes. It gives people an improved means of approachability. Quite understandably, the commercial and residential areas gradually become the witness of an incentivized surge in their values from the perspective of investment or dwelling. The metro is the creator of various jobs that consequently boost housing demand, apart from limiting on travelling costs and convenience for people, a decisive factor for any prospective homebuyer. Staying close to metro bears advantages that are unmistakably sumptuous.
Impact of metro rail on real estate:
Job creations: an expansion of metro railway or inception of the new metro corridor directly or indirectly signals creation of various job opportunities. Jobs being one of the critical sources of income pose to be a potent factor that can influence real estate market to a significant level. The contribution of metro expansion in the job creations will benefit realty market positively, as surge in income of potential homebuyers invariably accelerate growth of sales in properties. This, as a result, induces demand surge of housing projects, which consequently gives boost to real market in due course of time. This is one of the benefits of metro rail for real estate.
Transit convenience: this one comes off as one of the potent factors for inducing exponential growth of realty, believing transit facilities of an area beget an increased influx of job holders; they usually give proximity preference to the accommodations situated close to bus stands or metro stations. Data collected from various online real estate portals reveals many buyers give preferential treatment to a residential project having presence of comfortable transit facilities. This is one of the crucial considerations most homebuyers or almost all the home buyers take into account. It said a large fraction of queries from potential buyers emphasized on the location facilitated with the transit facilities. And metro connectivity, in this context, is certainly a catalyst in improving the sales value of a project, as it transpires transit ease.
The significance of metro rail for real estate sector is such that it creates immediate visual impact on the values of properties in commercial segments, increasing the price of these properties to a several fold higher. Moreover, prospective businessmen search for office spaces in the place where connectivity means such as bus, or proximity of a metro station to the location of a commercial project is preferred. It’s been observed many a time that the commercial value of a property decreases followed by its distance from the fundamental necessities, including the metro connectivity.
Land value surge: the proximity of metro station to a commercial or residential real estate is one crucial yardstick for appreciating its values. It also unfolds core competence of the land in terms of investment viability. Any project situated at the walking distance of a metro station has its substantial property value for the prospective consumers/buyers, and they take good consideration over this matter before booking a flat or an office space. From commercial angle, any startup firm prefers office space abound with transit facilities in the vicinity, considering such facilities are the catalyst for rapid expansion or reach of their business, especially if this is to be thought from the point of employee’s convenience, for employee satisfaction is one of the factors behind increasing success of a business entity. Metro rail, in this context, is surely a major player.
Study reveals that the commercial value of an office building shoots up largely if the metro is located within the radius of 500 meters to 1 km. Furthermore, the land value of an area goes up substantially; say by 50% from the existing market price post launch of a new metro falling close to the area, aside from affecting overall potentiality of adjacent micro-market. There is infinite viability of a land situated closeby a proposed metro station. It is also catalyst for population surge of the residential areas sited in the vicinity of metro corridor, aside from surging values of retail and office spaces of adjacent areas.
Such is the magnitude of metro that real estate can’t afford its absence. This is therefore the reason, that proposed metro expansion or new metro linkup plan is always held in high enthusiasm by real estate players, considering the estimated values of nearby lands, commercial and residential values of a project will go up.
Conclusively, metro casts significant impact on prospective growth of real estate in a region. It influences development of real estate of the city, the state and the entire country.