Metro Routes in Tier-II cities Increased Land Prices by 8 to 10 Percent, According to JLL

Any effective deployment of a metro corridor has a direct effect on real estate, since it results in a rise in land value, a shift in land use, and an increase in corridor density. Metros and monorails, for instance, contribute significantly to the decrease of traffic congestion. Thus, planned developments in the surrounding region improve the value of urban real estate, since customers are ready to pay a premium for convenience. With the introduction of a metro corridor, property prices are anticipated to increase by 10 to 15 percent, depending on location, land use, and the micro market's total usage.

In addition to metropolitan cities, the metro rail transit plays an important role in intracity mobility.

Metro rail transit plays a significant role in intracity transportation outside of metropolitan cities, which prompted the Central Government to propose Metro Lite, Neo-Metro, and Water Metro in Tier-II cities such as Lucknow, Patna, Jaipur, Ahmedabad, Pune, Kochi, and Coimbatore, which will provide an efficient mass public transportation system. It will offer folks with the mobility they need to travel throughout the city with little discomfort.

JLL's Chief Operating Officer and Head of Strategic Consulting and Valuation Advisory for India, A Shankar, said, "Both the residential and commercial markets have seen sustained growth along the metro corridors in Tier-II cities as a result of an increase in construction along the routes. On average, landowners owning property near under-construction metro corridors may expect a premium of 5 to 7 percent, while well-connected metro areas can attract a premium of 8 to 10 percent. In addition, it has been found that land values have increased by an average of 5 percent yearly since the completion of the metro, compared to other sites throughout the building and planning phases.

According to JLL, residential property prices in South Delhi have increased by 15 to 20 percent over the previous five to six years, while the micro-markets of Corridor-I and Corridor-III in Hyderabad have seen price increases of 15 to 20 percent from 2018 to the first quarter of 2022. Anna Nagar second avenue and Thirumangalam are Chennai neighbourhoods where land values increased by 15 to 35 percent near metro stations. As soon as the east-west and north-south corridors were made available to the public, the micro-market in Bengaluru's Central Business District (CBD) and a select SBD locales, such as Indiranagar, CMH Road, Jayanagar, Malleswaram, Yeshwanthpur, and Rajajinagar, saw prices increase by 8-10%.

In 2020, Patna Metro Phase 1 began construction on a 32.92 kilometre metro route. In addition, Nagpur Metro has authorised a DPR for the extension of a 48-kilometer Metro line. The Coimbatore metro is likewise at the DPR planning stage.

By 2025, metro services would be available in Agra, Meerut, Kanpur, Ahmedabad, Kochi, and Pune, according to the Union Budget for 2022. Both Kochi Metro Railway Phase 2 (118.9 km) and Chennai Metro Railway Phase II (118.9 km) will get funds from the federal government. Phase 2A and 2B of the Bengaluru Metro Project will get Rs 14,788 crore in investment. While Phase II of the Nagpur Metro Project and the Nashik Metro Project will get Rs 5,976 crore and Rs 2,092 crore, respectively.