Resurgence of a city post metro rail 10062016
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Transcript of Resurgence of a city post metro rail 10062016
RESURGENCE OF INDIAN CITIES
POST METRO ANNOUNCEMENT
Updated on: June 6, 2016
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.
1 Bengaluru
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
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
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
2 Jaipur
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
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
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
3 Kochi
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
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
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
4 Hyderabad
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
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
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
5 Lucknow
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
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
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
6 Nagpur
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
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
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
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: [email protected]