Golden Line Metro Effect: There will be a boom in real estate of South Delhi, will property become expensive?
The Golden Line, which is being built under Delhi Metro Phase-4, is being considered not just a new metro project but also a project that will bring a big change for the real estate market of South Delhi. After the commencement of this corridor, many areas which have lagged behind in the race of development due to weak connectivity for years can get new momentum. The direct impact of better metro connectivity will be seen on the surrounding residential and commercial areas. With ease of transportation for people, the demand for buying houses and investing in these areas may increase. Its effect is also likely to be visible in the form of increase in property prices and rents.
Aerocity-Tughlaqabad Golden Line will replace South Delhi
The Golden Line being prepared under Delhi Metro Phase-4 is included in the projects that are giving a new dimension to the connectivity of the capital. This new metro corridor is being developed from Aerocity to Tughlakabad, which will provide better and faster metro connectivity to many major residential and commercial areas of South Delhi for the first time. This corridor will directly connect important areas like Mahipalpur, Vasant Kunj, Kishangarh, Chhatarpur, Ignou, Saket, Khanpur and Ambedkar Nagar to the metro network. After its launch, travel between these areas is expected to be easier, faster and convenient than before. This will provide relief to lakhs of commuters daily from traffic jams and will also reduce travel time.
The biggest feature of the Golden Line will be its strategic interchange stations. Passengers at Aerocity, Chhatarpur, Saket G-Block and Tughlakabad stations will get seamless connectivity to the existing network of Delhi Metro. Through this, it will be easier than before to reach the airport, central Delhi and major business districts of the capital. Besides, reducing dependence on road transport is also expected to reduce traffic pressure and promote the use of public transport.
‘Connectivity Discount’ may end with Golden Line
Delhi Metro’s Golden Line will bring out the true market potential of many areas of South Delhi which have not been able to realize their full value due to weak metro connectivity over the years. According to experts, after the launch of this project, there may be a significant improvement in the demand and valuation of property in these areas. Chetan Chichra, partner, Grant Thornton India, says the Golden Line could prove to be a game changer for areas that have so far faced “connectivity discount”. According to him, areas like Chhatarpur, Neb Sarai, Saket, Ambedkar Nagar and Sangam Vihar already have good social and civic infrastructure. Reputable schools, hospitals and other essential amenities are available here, while these localities are also relatively close to major employment hubs.
Big difference in property rates on the route of Golden Line
With the construction of the Golden Line of Delhi Metro Phase-4, expectations regarding the real estate market in its surrounding areas have started increasing. The areas that will benefit most from better metro connectivity will be those areas where property valuations have been affected till now due to limited public transport facilities. According to Nilesh Garg, co-founder of SouthDelhi1, a firm that monitors the property market of South Delhi, there is a huge difference in property prices in different areas of the Golden Line corridor. According to him, the price of flats in Vasant Kunj currently ranges between Rs 21,000 to Rs 23,500 per square foot.
Saket remains the most expensive area of this corridor. Here the prices reach Rs 27,500 to Rs 31,500 per square foot depending on the different block and property. Talking about rent, the monthly rent of a 2BHK flat in Saket is around Rs 35,000, while the rent of a 3BHK flat is around Rs 1 lakh per month. In contrast, Chhatarpur is currently considered a relatively affordable market, with property prices ranging between Rs 12,400 to Rs 18,000 per square foot. Experts believe that this is the reason why there are maximum investment opportunities here after getting better metro connectivity.
Higher returns expected in low cost areas
The biggest benefit of the Golden Line of Delhi Metro Phase-4 can be given to those areas where property prices are relatively low. Real estate experts believe that although the initial impact may be slow in areas like Tughlakabad and Sangam Vihar, it is likely to register the highest percentage growth in the long run due to low base prices. According to Chetan Chichra, partner, Grant Thornton India, the real impact of a new metro line is usually clearly visible 12 to 18 months after it becomes operational. He estimates that overall property prices in select micro markets connected to the Golden Line could increase by 20 to 25 percent or more.
Properties near metro station will get premium
After the commencement of the Golden Line of Delhi Metro Phase-4, a big change can be seen not only in the real estate market of South Delhi but also in the surrounding areas. Experts believe that better metro connectivity will significantly increase the demand and prices of residential and commercial properties located around metro stations. According to Ashok Nehlia, Founder and CEO of Nehlia Developers, properties located near metro stations in Delhi already command a premium of 15 to 20%. He says that after the operationalization of the Golden Line, property prices in areas like Chhatarpur, Vasant Kunj, Mehrauli, Sangam Vihar and Tughlakabad may increase by 15 to 20 percent, while rents are likely to increase by 10 to 15 percent.
Faridabad market will also benefit
The Golden Line will not go directly to Faridabad, but it is expected to have a positive impact on this major city of Haryana through Tughlakabad Interchange. According to Aman Gupta, Director of RPS Group and Keshav Mangla of Fortesia Realty, after getting better metro connectivity, people working in Delhi and looking for a big house in a low budget can move to Faridabad. Experts believe that areas like Surajkund, Green Fields and Charmwood Village can benefit the most, where demand for residential properties is likely to increase. Better connectivity can make these areas more attractive to Delhi’s working class and investors.
Real estate of South Delhi will get new momentum
Real estate sector experts say the biggest impact of the Golden Line will be visible in areas where schools, hospitals and other basic facilities already exist, but lack of public transport was hindering development. An improved metro network will make these areas easier to access, which is likely to increase property demand, prices and rents.
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