by THO
Prime Minister Narendra Modi laid the foundation stone of the Gurugram Metro Rail project today which will be developed at a cost of about ₹5,450 crore. The 28.5 km project seeks to connect Old Gurgaon with New Gurgaon, thereby improving connectivity to the central business districts, reducing traffic congestion and providing ease of commute to the people who reside in the old sectors.
The project, with a total length of 28.5 km, will connect Millennium City Centre to Udyog Vihar Phase-5 and merge in the existing metro network of Rapid Metro Rail Gurugram at Moulsari Avenue station near Cyber City.
Real estate experts say that while real estate prices in Old Gurgaon may not witness a major impact as these are primarily saturated markets, a few sectors are likely to see redevelopment activity similar to some areas connected by Metro in Delhi. Having said that, construction of the new metro corridor is expected to have an impact on projects located along the Dwarka Expressway as both the residential and commercial stock in this area is relatively new.
Also Read: Delhi-NCR’s real estate market: Here’s why rich Indians are lapping up luxury properties
All about the Old-New Gurgaon Metro connector
The Union Cabinet, in a meeting chaired by the Prime Minister on June 7 last year, had approved metro connectivity from HUDA City Centre (which has been renamed as Millennium City Centre) to Cyber City in Gurugram with a spur to Dwarka Expressway. It is expected to have 27 stations along the route.
The project is expected to be completed in four years from the date of sanction of the project and is to be implemented by Haryana Mass Rapid Transport Corporation Limited (HMRTC) which will be set up as a 50:50 Special Purpose Vehicle (SPV) of the Government of India and Government of Haryana.
The metro route is expected to include stations such as Sector 45, Cyber Park, Sector 46, Sector 47, Sector 48, Technology Park, Udyog Vihar Phase 6, Sector 10, Sector 37, Basai, Sector 9, Sector 7, Sector 4, Sector 5, Ashok Vihar, Sector 3, Krishna Chowk, Palam Vihar Extension, Palam Vihar, Sector 23 A, Sector 22, Udyog Vihar Phase 4, and CyberHub.
Impact of the Old-New Gurgaon Metro connector on the real estate market
While some real estate experts say that prices in Old Gurgaon sectors may not be impacted as most of them are saturated markets with high density, some residential sectors in Old Gurgaon may witness redevelopment activity similar to established areas in Delhi. It should be noted here that the transit-oriented development options that the connector will throw up may lead to more commercial options opening up in the area leading to commercial rates in the area increasing by around 15% to 20%.
Also, stock of new builders’ floors may come up in these areas thereby throwing open affordable stock for buyers who usually find projects in new sectors in Gurgaon beyond their budget.
According to Ashim Chowdhury, Vice President – Research, ANAROCK Group, the new metro line alignment is intended to decongest the existing areas of old Gurgaon where widening of roads and flyovers have limited scope. Though the areas are matured, the addition of the metro infrastructure is expected to add colour and enhance the attractiveness of the locations. Most of the areas are residential and have independent living assets. However, addition of infrastructure and improved connectivity through the metro will positively impact pricing of real estate assets in the areas of influence.
Real estate experts say that the impact of a new metro connector is generally high in new/upcoming areas compared to old locations. In this case, prices in Dwarka Expressway have already gone up by around 15% on account of the new metro connector as well as in anticipation of the Expressway being thrown open to the public soon.
Pradeep Mishra, founder, Homents, and a real estate expert, told HT Digital that prices in most areas in Gurgaon have increased by 15% to 20% ever since the cabinet announcement last year.
A few projects in Palam Vihar have also witnessed a price increase of 15% both in the primary and secondary markets.
“Prices are expected to go up once construction begins. Citing the example of Dwarka Expressway, the average price for a residential project that was anything between ₹14,000 and 15,000 per sq ft in the primary market last year has now shot up to ₹18,000 per 20,000 per sq ft in Dwarka Expressway on account of both the announcement of the new metro connector and the fact that the Expressway is expected to be thrown open to the public soon,” he said.
In case of commercial projects as well, new projects, especially retail space is expected to be launched at approximately ₹35,000 to 40,000 per sq ft, he said.
As far as plotted colonies are concerned, the current price in most of these projects is around ₹2 lakh to 2.25 lakh per sq yard which was around ₹1.70 to 1.80 lakh per sq yard until last year.
New Metro connector expected to revitalize commercial and retail sectors
Pradeep Aggarwal, Founder and Chairman, Signature Global (India) Ltd said that the extension of the metro from Millennium City Center to Cyber City signifies a transformative leap for Gurugram. The Metro connector is expected to pass close to Dwarka Expressway and connect New Gurugram. “This is expected to enhance connectivity and also augurs well for property values. It will open new investment opportunities and act as the linchpin to stimulate employment growth in Gurugram,” he said.
“The Metro extension in Gurugram is poised to redefine urban travel, promote inclusivity and spark demand for residential properties, and revitalize the commercial and retail sectors, especially in the previously underserved sectors in Dwarka Expressway,” said Vivek Singhal, CEO, Smartworld Developers.
A report by JLL, released in 2022, had said that land prices in tier-II cities such as Lucknow, Patna, Jaipur, Ahmedabad, Pune, Kochi, and Coimbatore have gone up by almost 8-10 percent following the introduction of a metro corridor in these cities.
The successful implementation of any metro corridor always has a direct impact on real estate as it leads to an increase in land value besides a change in land use and increasing densification along the corridor. Metros and monorails, for example, make significant contributions to traffic congestion reduction. Thus, projects planned in the surrounding area see an increase in urban real estate value, as consumers are willing to pay more for convenience, it said.
