Impact of Metro Railways in Chennai’s Realty Sector
Every infrastructural development in the city has the potential to transform various other sectors that grow with it. On that note, here is a brief analysis on how the Chennai Metro railways project’s advancement has positively impacted the real estate sector. Integrated with other modes of transportation inside the city like suburban railways and city bus services, Chennai Metro railways has drastically reduced the time of commute across the city. This progress comes as a boon to the realty sector, with a potential market in the locations along the routes of the metro rail.
1. Phases of the metro railways network:
The first phase of Chennai Metro railways covers a distance of 50 km with 2 corridors of service. Total estimated cost for this phase comes to around 18,000 crore INR, which is a huge investment for development in the city. The first corridor from Chennai Central to St. Thomas Mount was the first one to be opened for public utilization. Second corridor starts from Chennai Airport to Wimco Nagar, in which the stretch is completed till Washermanpet, and the remaining stretch from Washermanpet to Wimco Nagar is expected to start operation by the year 2020.
The second phase of the network has 3 corridors and the total cost of the project is estimated to be around 85,000 crore INR. 3 corridors cover Madhavaram to Siruseri, Light house to Poonamalle and Perumbakkam to Wimco Nagar.
2. Impact of the project on real estate:
After the announcement of the routes, developers have been crowding to invest in the prospective market boom in locations along the routes. This transformation is already seen along the stretches where the metro railways is in operation. Real estate industry experts predict almost a 50% price appreciation along the stretch of Guindy to Alandur by the year 2020. Even flats for sale in Pallavaram, new flats for sale in Chrompet and flats in Tambaram– which are locations near Guindy might see a huge rise in appreciation value because of the same.
3. Rise in property value due to decrease in traffic congestion:
With the completion of the stretch between Thirumangalam and Nehru Park, property values have rocketed up with the decline in traffic congestion in South Chennai and parts of area near the airport. Places near the airport, have seen rapid improvement in appreciation value because of the MIT flyover that brought down the traffic congestion over a decade ago. The same trend could be witnessed in the future in every other location that is along the stretches of the metro railways routes. Experts also suggest that extension of the line from Light House to Poonamallee, via Vadapalani and Porur would bring down the congestion levels in the localities closer to Arcot Road.
4. Advancement in the rental market:
When appreciation value for properties rises, rental markets also witness the same kind of growth in parallel. Tenants also seek similar convenience for their commute with access to important hubs in the city. To explain this practically, Anna Nagar West and parts of Vadapalani recorded 12% increase in rentals in the 2nd quarter of the year 2017 when compared with the same quarter during 2016.
5. Localities in the radar:
With this rate of growth in real estate sector, experts predict that locations like KMC, Sholinganallur, Madhavaram, CMBT, Vadapalani, Alandur and St. Thoman Mount would observe significant rise in demand for primary and resale markets in the future. Anna Salai, one of the important roads in the city is already an excellent location for residential and commercial progress with scope for further improvement.