Metro takes along realty rates in Delhi: study

“We researched the pre-construction phase (1990-1996),the under-construction phase (1996-2000) and the post-construction phase (2001-06) in Delhi. We found that property rates jumped significantly after the Metro began operations. There was only a slight increase in value in the two previous phases,” the CEPT’s associate director said.

The Metro has also ‘flattened the curve’ Swamy said,as his study has established that property prices around stations that are at the peripheries of the city have considerably closed the gap with those at city centres. “While this gap is still 35 per cent,prices along Dwarka and Rithala routes have risen significantly,” Swamy said.

The study points out that prices are highest within 500 metres of Metro routes. As one moves away,the impact on price rise decreases,he said.

Proximity to the Metro has proved more beneficial for commercial properties,the study states.

“In residential areas,land value within 500 metres of the Metro line increased by 11.3 per cent on average. In commercial areas,the land value within 500 metres increased by 18.1 per cent. The threshold value for residential properties is approximately up to 500 metres from the Metro line,whereas the limit increases to approximately 800 metres for commercial properties,” the study states.

Swamy said: “The impact on land value,however,is greatly dependent on the income of the people occupying the areas. In areas like East Delhi,where unauthorised colonies run along the Metro line,the increase in property is not significant.

“The analysis holds true only for planned and authorised areas.”