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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DDA fast tracks Sanjay Lake View Complex project – ET RealEstate

NEW DELHI: Delhi Development Authority has put its ambitious Sanjay Lake View Complex project, which was on the backburner for the past few years, on the fast track. The project will have highrise apartments with uninterrupted view of the huge waterbody in east Delhi, apart from commercial units like hotels and lakefront plazas, promenades and skywalks.

The complex near Trilokpuri is one of the Transit Oriented Development (TOD) projects planned by DDA along with NBCC. It will come up adjacent to Trilokpuri-Sanjay Lake Metro Station of Pink Line on land measuring 10.3 hectares (25.3 acres).

The change in land use from commercial to residential was approved in a recent meeting of DDA chaired by LG Anil Baijal. “The project shall be developed for mixed use based on TOD norms. It envisions a transformatory role for the area and will enhance the local economy. It will help catalyse change and, eventually, restore a sense of safety and social pride in adjoining Trilokpuri and Kalyanpuri,” a DDA spokesperson said.

The project planned in 2015 included twin corporate towers, green area, studio apartments, old-age homes and hotels. However, the residential area was found to be more viable in the long run. The mixed commercial and residential development will ensure that the area remains active throughout the day, making it safer for women, all thanks to “eyes on the lake”.

This would be the second TOD project to be undertaken by DDA with NBCC after the Karkardooma project, which is bigger in scale and preliminary work on which has started.
DDA fast tracks Sanjay Lake View Complex projectThe TOD policy for Delhi was notified by Centre on December 24, 2019 as part of Master Plan of Delhi 2021. After consultation with various stakeholders, certain modifications were suggested in the policy. These included enabling developers to prepare Influence Zone Plans and integration and development of multi-modal transit hubs. Additional development control norms in terms of ground coverage, active frontage, parking and other building controls were also added.

“The policy envisages sustainability features for development of hubs such as zero waste discharge, 100% treatment and maximum reuse of wastewater, segregation and reuse of 100% green waste, at least 10% of the energy demand should be met through renewable sources like solar, etc,” said the DDA spokesperson.

DDA said people would be able to enjoy the view and amenities at the lake, such as boating, jogging, playing, etc. It believes the attractions would increase footfall, making the area more active round the clock. It added the project would not affect the Sanjay Lake catchment area in any way as no permanent constructions would be undertaken in the green area and only fully permeable and organic materials would be used.

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