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. RESURGENCE
OF INDIAN CITIES
POST METRO
ANNOUNCEMENT
Updated on:
June 6, 2016

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. 1
Bengaluru

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. 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.  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. 2
Jaipur

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. 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.  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. 3
Kochi

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. 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.  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. 4
Hyderabad

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. 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.  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. 5
Lucknow

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. 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.  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. 6
Nagpur

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. 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.  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.  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