Land value near upcoming metro corridors expected to rise by 10-15%: JLL – ET RealEstate

NEW DELHI: Land value within 500 meters of upcoming metro corridors is expected to increase by 10-15%, according to JLL. According to the company, the deployment of metro corridor directly impacts the real estate sector as it increases the land value, land use change and densification alongside the metro corridor.

In the past five years, land value within 500 meters of a metro corridor has increased by 15-20% in various cities of India. 20-25% growth have also been witnessed in retail and commercial prices owing to reduced commuting costs and job generation opportunities.

“The real estate market has seen a steady growth along the metro corridors, owing to increase in developments alongside the routes. It has been observed that appreciation in land value has been on a rise after the metro operation and increase by 2-5% annually over other locations, compared to the construction and planning phase,” said A Shankar, head-strategic consulting and valuation advisory, India, JLL.

Mass transit systems such as metros and monorails significantly contribute towards solving traffic problems. Thus projects which are planned around the vicinity witness an increased urban real estate value, since consumers are willing to pay more for convenience, according to the company.

In the last 5-6 years, residential property in South Delhi area appreciated by 15-20%. The land value of the metro on the Nirman Vihar stretch which became operational in 2010, was observed substantial increase from Rs 150,000 per sq yard to current prices in the range of Rs 200,000-250,000 per sq yard.

Many pockets of Chennai witnessed an increase in land prices closer to metro stations ranging from 15%-35% after the metro phase-I got operational in 2019. The commercial and retail rental prices along 100 feet road saw about 50-70% increase and few properties even touched an 100% increase.

The residential prices almost a decade ago before start of Chennai metro were Rs 3,600 per sq ft and now have surged to Rs 7,000 per sq ft during year of operation of the metro. Though the increase in property prices are owing to various reasons but the metro connectivity which has eased accessibility is surely one of the primary reasons.

The government usually addresses the specific needs of housing development by granting extra FSI (Floor Space Index) along the Transit Oriented Development (TOD) corridors such as metro corridors. This increased FSI will reflect in increased prices for land, according to the company.



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Centre cites documents to prove ownership of Kanjurmarg land in Mumbai – ET RealEstate

MUMBAI: The Centre on Friday submitted before Bombay high court that the Kanjurmarg salt pan land belongs to it. It further said the Mumbai collector had in a “high-handed action” transferred 102 acres to MMRDA in October which, in turn, gave it to Delhi Metro. The Centre is seeking interim orders to stay the collector’s order of transfer and to restrain “ongoing operations by Delhi Metro Rail Corporation on the site”.

Central government has challenged a November 2018 order of the Maharashtra revenue minister declaring the state as owner of various salt pan lands in Mumbai. Some have also been declared privately held.

Additional solicitor general Anil Singh and counsel Rui Rodrigues for the Centre launched five main submissions before a bench of Chief Justice Dipankar Datta and Justice Girish Kulkarni. Singh also said Mumbai Metropolitan Region Development Authority (MMRDA) had intervened in a suit filed by private lessees who had challenged their termination by the lessor -the salt department- and said the land belongs to the Centre. The ASG cited a 1996 order of an officer on special duty (OSD) to argue the land conclusively belonged to the Centre. “It is held that the entire land of new survey number 275, Village Kanjur (parts of which were transferred for the car shed)…are still in possession of the salt department, Government of India,” the order stated.

It cited a March 2019 letter of RA Rajeev, metropolitan commissioner, MMRDA, stating “MMRDA undertakes to pay market value” of land for Metro project in Kanjur village. It also showed a December 2019 letter by the state to the Centre seeking transfer of 43 hectares of Kanjur land for Metro car depot.

The Centre said the land given for the Metro car shed “forms part of Arthur Salt Works at Bhandup Salt Factory”, leased in 1922 for 99 years. A dispute is pending since 2005 before the city civil court, said its petition.

Hearing will continue next Tuesday. MMRDA counsel Milind Sathe and advocate general Ashutosh Kumbhakoni for the state will argue after the Centre completes its submission.



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DMRC to assist Noida Metro in expansion of corridor – ET RealEstate

NOIDA: The Delhi Metro Rail Corporation (DMRC) will provide consultation to the Noida Metro Rail Corporation (NMRC) for the expansion of Noida-Greater Noida metro corridor, according to an agreement signed between the two agencies on Friday.

The NMRC already operates the Aqua Line over a 29.07-km distance between Noida and Greater Noida in Gautam Buddh Nagar in western Uttar Pradesh and is planning a new 9-km corridor between the twin cities, according to officials.

The NMRC and the DMRC today signed an agreement under which the NMRC will be engaging the DMRC for the services as General Consultants (GC)/Project Management Consultants (PMC) for its Phase-II project from Noida Sector-51 to Greater Noida Sector-2, the NMRC said in a statement.

The pact was signed by NMRC’s Executive Director Praveen Mishra and DMRC’s Director (Business Development) P K Garg. NMRC’s Managing Director Ritu Maheshwari and her DMRC counterpart Mangu Singh joined the occasion through video-conference along with other officers of the two metro organisations.

The Phase-II project of NMRC will be an extension of the Aqua Line from Sector-51 to Greater Noida Sector-2. This corridor is 9.605-km long consisting of five elevated stations namely — Noida Sector-122, Noida Sector-123, Greater Noida Sector-4, Ecotech-12 and Greater Noida Sector-2, it stated.

According to the statement, the agreement will be for a period of five years during which the DMRC will assist and guide the NMRC in preparation of complete bid documents for various system packages, contract award process, management of system contracts and proper integration of all new line systems with the existing Aqua Line Metro systems.

The DMRC will also give suggestions to the NMRC in “value engineering and cost optimisationâ€? for all work contracts along with “proof checking and approval of designs submitted by NMRC’s appointed DDC for Civil and E&M contracts worksâ€?.

As per the terms in the contract, the DMRC will also be responsible for construction supervision and Independent Quality and Safety Monitoring (IQSM) of all contract packages (Civil, E&M, and System Contracts), besides testing and commissioning of the entire systems works and equipment and guiding for regulatory clearances for systems contracts.

“The DMRC will help the NMRC in preparation of Construction, Operation and Maintenance Manuals for the proposed Phase-II corridor, it added.

The DMRC will also be responsible for planning and arranging training to the personnel of the NMRC in operation, maintenance and repair of various equipment and the system as whole, according to the statement.

“The role of the NMRC will be to provide all reasonable assistance to the DMRC to ensure effective discharge of its responsibilities under this agreement. The NMRC will be responsible for arranging funds for the project and payment to system contractors or consultants upon certification by GC,it stated.

“The NMRC will also provide a suitable office space in the Noida area for the GC team, it added.



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South Delhi civic body to allot land to DMRC for phase-IV at no profit no loss – ET RealEstate

NEW DELHI: South Delhi Municipal Corporation plans to allocate 13,347 sq metres of land in Chhatarpur and Khanpur to Delhi Metro Rail Corporation for construction of Mass Rapid Transit System Phase-IV project from IGI terminal to Saket. The land has been granted at no-profit, no-loss rate of Rs 14,165 per sq metre.

The sites were finalised after joint inspection by officials from SDMC and DMRC early this year. The proposal will be placed before the next house for the final nod.

In Chhatarpur, DMRC will have to pay Rs 1.06 crores for 750 sqm of land allotted on a permanent basis, and around Rs 2.80 crore for 9,917 sqm of land allotted on a temporary basis for 4 years. Similarly in Khanpur, 1,266 sqm of land will cost the DMRC more than Rs 1.79 crore on a permanent allotment, and another 1,414 sqm will be allotted on a temporary basis for 3 years at Rs 30 lakh.

SDMC has also passed a proposal for allocating 18,360 sqm of land at Sarai Kale Khan to the National Capital Region Transport Corporation for the construction of an RRTS station and viaduct.



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