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Resurgence of a city post metro rail 10062016

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The success of Delhi Metro paved way for development of Metro Rail in many other cities as well. Availability of Metro makes commuting easy and convenient from one place to other. It now symbolizes the overall infrastructural development of an urban cluster. Infrastructural development has direct impact on rise of real estate market of a location.

The objective of this report is to understand the impact of development of Metro Rail on the property market. Does it impact demand of property in a particular location and how direct is the impact?

Appropriately, we focused on online trends in various markets where Metro Rail has either become operational or is about to be. We analyzed online search trends in these markets and compared with various phases of Metro Rail development.

Published in: Real Estate
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Resurgence of a city post metro rail 10062016

  1. 1. RESURGENCE OF INDIAN CITIES POST METRO ANNOUNCEMENT Updated on: June 6, 2016
  2. 2. The success of Delhi Metro paved way for development of Metro Rail in many other cities as well. Availability of Metro makes commuting easy and convenient from one place to other. It now symbolizes the overall infrastructural development of an urban cluster. Infrastructural development has direct impact on rise of real estate market of a location. The objective of this report is to understand the impact of development of Metro Rail on the property market. Does it impact demand of property in a particular location and how direct is the impact? Appropriately, we focused on online trends in various markets where Metro Rail has either become operational or is about to be. We analyzed online search trends in these markets and compared with various phases of Metro Rail development.
  3. 3. 1 Bengaluru
  4. 4. The DMRC submitted the DPR for Phase I of the Namma Metro project to the BMRCL in May Phase1 approval in April with a 33 km elevated & underground network with 32 stations Purple line started on 20th October Green line started on 1st March Target to extend Purple & Green line and additional Red & Yellow Lines 2003 2006 2011 2014 2020 Bengaluru Metro Timeline
  5. 5. Property Search Trends Property Search increased between 2004 to 2005 with a positive growth till the end of 2006 The trend slipped a little in 2007 and stabilized afterwards The next boom in the property searches came between 2012 to 2014 with a slight dip after that Currently there is a slump compared to the previous high in 2012 to 2014
  6. 6.  The Bengaluru property market witnessed a high demand as soon as the construction of the metro route got announced  It was on the peak till the final announcement of construction of the metro route  The final Metro run did not effect the demand much as the searches in that specific phase were quite consistent
  7. 7. 2 Jaipur
  8. 8. The Jaipur Metro Rail Corporation Ltd. was created on 1st January Physical construction work started on 24th February Trial run of the Metro took place on 18th September Current route – Pink Line runs over 9.63 KM and covers 9 stations Phase 2: Orange Line – 23.099 KM is targeted to be operational by 2018 2010 2011 2013 2016 2018 Jaipur Metro Timeline
  9. 9. Property Search Trends The property demand in Jaipur was stagnant till 2009 It started picking up from 2009 onwards and grew till late 2012 Post 2012 market maintained the demand but also witnessed little stagnancy There is no specific spikes visible after the launch of the Metro
  10. 10.  It appears that Metro played some role in guiding the property demand and influenced investors who helped it grow at a consistent pace  Yet to analyse the effect of the phase 2 progress report as the market is still growing and is not volatile at the moment
  11. 11. 3 Kochi
  12. 12. The Public Investment Board (PIB) cleared the project on 22nd March On 28th March KMRL entrusted the Kochi Metro project work to DMRC Foundation date of the project – 13th September Construction started on 7th June Final trial of Metro is slated for 7th June 2012 2013 2016 Kochi Metro Timeline
  13. 13. Property Search Trends The demand was quite consistent between 2006 to 2008 after that it dipped to half Market largely remained stagnated for some years, though it saw some spikes in between There are little spikes in the property demand In 2014 Currently there is a positive growth which can be attributed to the political shift
  14. 14.  Metro could not guide the property demand in the region  We still have to wait to see the effect of the final trial of metro and its effect on the property demand
  15. 15. 4 Hyderabad
  16. 16. Rapid transit started in 2003 itself but it was not largely successful due to dependence on the same rail track Union Ministry for Urban Development gave its nod for the Hyderabad Metro Rail Project The first phase of the project should be completed by August 2003 2016 Hyderabad Metro Timeline 2012 2015 Bhoomi Pujan and erection of pillars for Stage-I and Stage-II started in April and June 90% construction on Line 3 completed by June
  17. 17. Property Search Trends The property demand in Hyderabad grew with a consistent pace till 2013 Post 2013 the demand is still high but have seen a little stagnancy Between 2010 and 2012 we can see some extra growth in the overall demand curve
  18. 18.  After the metro announcement the property prices in the nearby locations have seen a massive growth  It indicates that the metro line have eventually boosted the overall property demand in the region but can’ be the only reason for this growth
  19. 19. 5 Lucknow
  20. 20. Metro project is cleared by Lucknow Development Authority (LDA) in October An agreement is signed between DMRC and LDA in February The state cabinet gave clearance to the metro rail network in June Foundation of Lucknow Metro project in March In December, Union Cabinet approved the construction of Phase I 2008 2009 2013 2014 2015 Lucknow Metro Timeline 2017 The first phase will be completed by February
  21. 21. Property Search Trends The property demand in Lucknow was stagnant till late 2008 It started picking up after 2009 and witnessed the major peeks in 2010 and 2012 Post 2012 the property searches got stagnant but still continues a good demand Year 2015 saw a little slump but is again registering a growth in the year 2016
  22. 22.  It seems that the property demand in Lucknow has a direct correlation with the overall infrastructural development in the city and Metro has played an important role to it  The price indicator suggests that the outer peripheral market in Lucknow has got a price boost post the Metro announcement
  23. 23. 6 Nagpur
  24. 24. The planning of Nagpur Metro started Nagpur Improvement Trust (NIT) signed DMRC to prepare the Detailed Project Report DMRC submitted the project report The project is scheduled to be completed by March Two routes to be constructed – East-west corridor and North – South Corridor 2011 2012 2013 2018 Nagpur Metro Timeline
  25. 25. Property Search Trends The property market in Nagpur was quite stagnant till 2011 It got picked up with some major boost in 2012 and then again attained a stagnancy Till 2015, the market has seen a positive growth Post 2015, it started dipping and have gone to the same level as in 2012–13
  26. 26.  It seems like the Metro announcement has boosted the property demand in the market but it was marginal in nature  Overall price sensitivity vis-à-vis Metro route has not affected the market much but it has provided the boost to the market at large
  27. 27.  Directly or indirectly, Metro has surely contributed to the overall property market either by the growth in demand or by increased property prices  Large cities (by area) get major boost in the property market compared to the smaller cities  Fast paced approvals and construction creates buzz and positive sentiments as compared to markets where it is taking more time to progress in the metro projects For in-depth report, please contact: info@realtymyths.com

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