The metro will improve connectivity and lead to opportunities to redevelop property in old Gurugram, experts said.
The metro corridor to be built in Gurugram, connecting the new and old sections of the city, is likely to trigger an increase in property prices as demand for housing and commercial space surges, experts said.
Rates of residential property are likely to go up by 15-20 percent while commercial property prices may rise by 30 to 50 percent as demand revives, especially in old Gurugram, experts said.
“The alignment (of the proposed metro) traverses through the established catchments of Sectors 22 and 23 (old Gurugram), which may see a fillip because developers will see many redevelopment opportunities,” said Ashim Chowdhury, vice president of research at the ANAROCK Group.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Rs 5,452 crore Gurugram metro project on June 7. The proposed 28.5 km metro corridor will start at HUDA City Centre, a terminal of the Delhi Metro Rail Corporation, and culminate at Cyber City. It will have an extension to the Dwarka Expressway near Sectors 101-104, where projects being developed by Godrej, BPTP, and the Shapoorji Pallonji Group are coming up.
According to Shauzab Kazmi, assistant director at Investors Clinic, a real estate consultancy company, the section between Sector 1 and Sector 23A (Palam Vihar) in old Gurugram has connectivity issues due to which people tend to move to newly developed areas along the Dwarka Expressway and Sohna Road.
“Currently, there is no metro line in old Gurugram and connectivity is the major issue here, but the proposed corridor will address this problem,” Kazmi said. “With connectivity improving in old Gurugram, the region is set to witness revival and in future more redevelopment projects… to cater to increasing demand for housing.”
Pradeep Mishra, founder of real estate consultancy Homents, said the announcement of the metro corridor will trigger a 15 to 20 percent hike in prices of residential property located along the stretch, especially the Dwarka Expressway sectors and old Gurugram. He expects an increase of about 30 percent in prices of commercial property.
“This metro expansion will boost commercial space in the region. Corporate offices will now also spread across other areas of Gurugram, giving a positive push to real estate,” he said.
According to experts, property around Dwarka Expressway currently costs about Rs 12,000 per square foot, while plot rates in Palam Vihar and nearby areas range from Rs 1.25 lakh to Rs 1.75 lakh per square yard. Commercial property prices range from Rs 25,000 to Rs 30,000 per sq. ft.
Mohit Jain, managing director of Krisumi Corporation, a builder joint venture between Sumitomo Corporation of Japan and the Krishna Group, approval for the metro holds great promise for areas along the Dwarka Expressway as they are poised to get an enhancement of infrastructure.
“Over the past few years, the Central Peripheral Road along Dwarka Expressway has witnessed remarkable growth. With the completion of the Dwarka Expressway nearing its final stages and the announcement of metro connectivity, the demand for residential properties is expected to witness a further surge from both end-users and investors,” he said.
Pradeep Aggarwal, founder of Signature Global (India), said metro connectivity will create many investment opportunities and generate employment, thereby fostering growth of the real estate sector in Gurugram.
The proposed elevated metro line will start at Huda City Centre and pass through Sector 45, Cyber Park and Hero Honda Chowk before crossing the Delhi-Jaipur expressway to Udyog Vihar Phase 6, Basai, the railway station near Sector 5, Palam Vihar Extension, and Sector 23 A. It will then cross the expressway again to end at Cyber City.
The project deadline is four years from the date of sanction and it will be implemented by the Haryana Mass Rapid Transport Corporation.
Source : Money Control