New route to price rise - CREDAI-NCR

New route to price rise - CREDAI-NCR

New route to price rise 16th April, 2011 Source:The Hindustan Times Spanning 108 km, one line will run parallel to the Ring Road and connect east Delhi with south and west Delhi, and the other will run alongside the Outer Ring Road connecting Noida with south and west Delhi. The first corridor will run from Mukundpur to Yamuna Vihar, the second from Jankapuri West to Noida's Botanical Garden and the third from Central Secretariat to Kashmere Gate. The network includes the extension of the Gurgaon-Jahangirpuri line up to Badli and of the Noida-Dwarka line up to Najafgarh. New route to price rise Vandana Ramnani The Hindustan Times How will Metro Phase-III impact prices in the areas it links to? Have you envied those living close o Metro stations? Did you bemoan your lot when friends got excited about the spiralling prices of their properties in areas getting linked to the Metro? Well, despair not, for Phase III of the Metro project could bring a station close to your home if you are a resident of Vasant Vihar, South Extension, Punjabi Bagh (West), Shalimar Bagh, Jasola and even IP Extension. Spanning 108 km, one line will run parallel to the Ring Road and connect east Delhi with south and west Delhi, and the other will run alongside the Outer Ring Road connecting Noida with south and west Delhi. The first corridor will run from Mukundpur to Yamuna Vihar, the second from Jankapuri West to Noida's Botanical Garden and the third from Central Secretariat to Kashmere Gate. The network includes the extension of the Gurgaon-Jahangirpuri line up to Badli and of the Noida-Dwarka line up to Najafgarh. Analysing the market, one can foresee maximum appreciation in an area after the announcement of a corridor, with smaller price movements during construction and operation stages. The Metro has continued to push up prices in areas it has reached. In established locations such as Vasant Vihar, Lajpat Nagar and Patparganj, where realty prices have already peaked, a conservative 5% to 15% increase seems likely. When it comes to posh areas, Anil G Makhijani of Mak Realtors Pvt Ltd says, though residents of Vasant Vihar might not use public transport, there will always be indirect benefits for their staff and workers who travel to the area. The area will see an increase of 5% in capital values over and above the year-on-year increase of 10%. Rentals, too, would appreciate by 25%. Vasant Enclave and DDA houses in Munirka area will also benefit, with rentals likely to appreciate by 50% and capital values by 25%. Prices are also likely to go up in areas that were earlier located three to five kilometers away from the Metro route but are now getting new stations. Shalimar Bagh, (expected to be an interchange station in the third phase) is likely to see prices rise by 5% to 10% by May end, says Sunil K Arora of Meher Estates. Its nearest Metro link at present is the Netaji Subash Place station. The third phase is also going to be a very important link as it will practically cover 75% of the Ring Road and go a long way in taking the traffic load off the stretch. However, areas that are relatively new and are still witnessing growth and development will see maximum appreciation. The Noida Authority has plans to extend the Metro to Greater Noida Metro construction will prompt several developers to put their projects on the fast track in the area. This will lead to at least 30% improvement in prices in the long term, says Arvind Singh, director, Lord Krishna Real Infra P Ltd Virgin areas are expected to benefit more than other areas. The mere announcement of an international airport near Mumbai led to a 15% price rise in one week in areas close by, adds Abhishek Kiran Gupta of Jones Lang LaSalle Meghraj.