Metro connectivity and property rates in the Capital run on parallel tracks. According to property experts, right from the announcement of Metro projects to their completion, property rates follow an upward trajectory.
With Delhi Metro Rail Corporation is all set to go ahead with Phase III construction that will cover areas such as Dhaula Kuan, Munirka, Kalkaji, Lajpat Nagar, Botanical Garden (Noida) and Vasant Vihar, real estate prices are expected to see a substantial jump.
“Metro certainly affects real estate. Connectivity is a major factor since it provides a safe and comfortable mode of transport. People prefer homes situated near the metro stations. However, since prices have already risen so much over past few years, it will be difficult to say how much impact the new lines will have now,” said Anshuman Magazine, chairman and managing director of CB Richard Ellis, one of the world's largest real estate consultancy firm. Consultants further point out that properties which are located near Metro stations see the maximum hike in real estate rates.
“The entire scenario can be explained in terms of a U curve wherein right from the announcement of the projects we see an increase in prices. Then, it declines when construction is underway and again rises when the project is complete. On an average, a property may see 20-30% increase in price over three years. Proximity to the station may also result in an increase of 35-40%,” said Anckur Srivasttava, chairman of GenReal Property Advisers, a real estate services firm.
As rates of properties situated near Metro stations rose, the Municipal Valuation Committee constituted by Delhi government (to review property tax in the city) has also suggested that residential colonies within half-a-kilometre radius of a Metro line would be upgraded by one level since they have witnessed the maximum amount of infrastructure development.