Hyderabad metro: A boon for real estate
Hyderabad- The Hyderabad metro rail project has got a final approval for viability gap funding (VGF) of Rs 1,458 crore from the empowered committee of the finance ministry.
This amount is 12.35 percent of the estimated total project cost. It has been provided by the state under VGF scheme for the development of the metro project on Design, Build, Finance, Operate and Transfer (DBFOT) toll basis.
Overview
Hyderabad metro rail project is one of the largest urban infrastructure projects in India which is under public-private partnership. It is being developed by India’s largest engineering and construction company, Larsen and Toubro Ltd (L&T).The estimated cost of the project was Rs 11,814 crore which has been increased to Rs 16,375 crore. The project is funded maximum by L & T metro on its own.
This rail project will run along 71.16 km distance with three corridors having 66 stations in first phase.
- Corridor I : Miyapur to LB Nagar (29.87 km)
- Corridor II : JBS to Falaknuma (14.78 km)
- Corridor III : Nagole to Shilparamam (26.51 km)
Contracts
Recently, OTIS Elevator Company (India) bagged Rs 400 contract of installing installing elevators and escalators. UK-based engineering firm, Mott MacDonald Group Limited has won a contract to design six stations for metro project. Korea’s Hyundai Rotem has been awarded the Rs 1700 contract to supply rolling stock of railway coaches.
Also orders of Rs 700 crore have been placed with France-based Thales SA to set up signalling, train control and communication systems. Samsung Data Systems India Private Limited has signed a Rs 200 contract for the Automatic Fare Collection (AFC) system for the metro.
Construction status
The construction of the metro project is progressing at a brisk pace. The entire constrcution work is splitted in six stages. The constrcution work between Nagole and Mettuguda (Stage 1) and between Miyapur and S. R. Nagar (Stage 2) is scheduled to be completed by 2014 and the entire project by July 2017. The trail process is expected to start by end of 2014 and by mid of 2015 the services can be used.
Affect on property prices
The upcoming metro has pushed up prices of properties in Hyderabad with more demand in the areas coming in metro route. Such is the case with Nagole where the residential demand has increased. It is seen that lot of working people living in L B Nagar and Dilsukhnagar and nearby residential localities are migrating to Nagole. This shifting will help them to get direct metro connectivity. The area is witnessing growth in both rented and sale residential units.
In last one year, Nagole has reported price appreciation of nearly 25-50 per cent in the capital values of multi-storey apartments. Currently, the prices for multi-storey units vary between Rs 3000-6000 per sq ft. This value also depends upon the builder and facilities of the residential project. While the prices of residential plots ranges between Rs 18,000-20,000 per sq yd.
The Hyderabad metro project is expected to generate 50,000 jobs and many ancillary industries in the city and surrounding areas. With completion of metro project, Hyderabad will transform into one of the most preferred cities in the India. To ensure seamless commuting in the country,the metro project will be linked with suburban railway network (MMTS), bus stations and existing railway stations.
Related Real Estate News:
L&T Hyderabad Metro’s revenue plan
Hyderabad Metro hopefully to run in mid 2015
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