Impact of metro on Chennai real estate

With more and more cities coming up with their metro rails, Chennai is one among them!

Cities like Bangalore, Kolkata, Delhi and Hyderabad have witnessed greater changes with the initiation of the metro. Viewing from the real estate point of view, each city with metro routes has been experiencing a property price boost. Apart from just the main areas, the peripheral areas in Chennai have also been witnessing drastic property price increase due to the passing of metro.

The Chennai metro is expected to create a successful revolution in the public transport scenario. The first phase of the Chennai metro has two expansive corridors which measure a total of 45.10 kilometres. Although the arrival of metro has created a spur in the city, but the rising prices which are spewing at the backdrop are more significant. One of the major areas to be affected with the initiation of metro is the North Chennai which is the hub of industrial and corporate amalgam. This area will witness an increase in the property prices.

Talking about the second corridor of Chennai metro, it will run through the prominent parts of North Chennai like Washermanpet, Mannady, High Court and Chennai Central followed by parts of Chennai Airport. The stations in the North Chennai areas will be underground, which makes it easier for a hike in the land prices.

The initiation of Chennai metro not only benefits the transport sector but will also create an impact by rising other issues like infrastructure development, urbanisation in the area and increased land rates. All these factors will be impacted simultaneously. This will perhaps result in the government ordering to enhance the development of the housing sector by granting extra FSI (Floor Space Index).

This will apparently result in the urbanisation of the area. Apart from this, the Chennai Corporation along with the assistance of the Chennai City Connect (CCC) will create a state-of-the-art transport system which will make transport system easier.

The Chennai metro promises to install a convenient transport system in areas which cover all the major localities near a metro station resulting in an increased land price. The property investment in North Chennai is increasingly dependent based on the accessibility and the transport facilities in that area. Since metro is focusing on the North Chennai area, this part of the city will be one of the active investment options as most of them will be benefited with these facilities.

The property prices are not yet predicted in Chennai. Apart from just increasing the land rates, the metro project will also impact the affordable housing market. Also the metro project will affect the Low Income Groups (LIG) and the Economically Weaker Sections (EWS) of the society in an opposite manner.

Although there will be greater development of infrastructure, there will still be a slump amongst the rural belt wherein the drainage, the slums and other parts should be repaired which can eventually result in attracting more people.

For more information on the Chennai metro rail project you can follow the below link;

http://www.chennaimetrorail.gov.in/