Ring-a-ring o’ Metro
The Ring Road Metro is likely to impact property prices only in areas where commercial opportunities existrealestate Updated: Feb 14, 2013 15:30 IST
This Metro line that is part of phase III forms a ring over the Ring Road and covers north, west and east Delhi – all through a 58.4 km corridor. So, one will be able to reach almost about anywhere to anywhere in Delhi via the Metro. Of this, 14.3 km runs underground and the elevated portion covers 44 km. There will be 12 underground stations and 24 at an elevated level.
This will be the first corridor of the Delhi Metro that would reach out to various parts of Delhi and make it a more dependable mode of public transport. It will also interconnect existing Metro lines such as line II (Jahangirpuri-HUDA City Centre), line 1 (Dilshad Garden-Rithala), with line III (Dwarka Sector 21-Noida City Centre), with Line II (Jahangirpuri-HUDA City Centre), Line 6 (Central Secretariat-Badarpur station) among others.
Depending on the location, the price rise in residential properties along the proposed Metro is expected to be in the range of 5% to 35%. The real estate markets of Delhi that will benefit the most from this connectivity will be the far-flung areas. Places that already have a Metro such as Shalimar Bagh, South Extension may witness limited or no appreciation as these markets are already saturated.
Amandeep Singh of U-like Properties who deals in properties in Shalimar Bagh says that though the area is perhaps the most expensive belt in the area, Metro connectivity already exists in Pitampura. After completion there may be a 15% to 20% increase but nothing as of now. A 42 to 84 sq yard plots costs R3 lakh per sq yard and a 100 sq yard to 150 sq yard plot cost R4 lakh to R5 lakh per sq yard onwards.
South Extension too according to K S Saini of Kamdhenu Properties, will not have any appreciation as the market is slow and saturated at the moment.
Samarjit Singh, managing director, IndiaHomes, says that during phase II the impact of Metro connectivity in Lajpat Nagar and East of Kailash was negative due to perception of noise and vibration. The impact on prices depends on the profile of the market. Where the dependence on public transport is less, connectivity is seen as a hindrance. However, in Noida and Gurgaon, the Metro had a positive impact and prices surged by 25%. Also, areas such as in Gurgaon and Noida, where opportunities for commercial development exist, will definitely benefit from the new connection.
Kunwar Singh of Krishna Associates who operates out of Patparganj says that even when the Metro and the proposed monorail becomes operational in the area, the increase in property prices in the area will not be more than R5 lakh to R10 lakh as the age of apartments is over 25 years. “Whatever appreciation had to happen has already taken place. Units that were priced at R25 lakh five years ago are now valued at R1 crore. Increase in prices will not be more than R5 lakh,” he adds.