Hyderabad Metro - Impact on property prices

Real Estate values have a positive impact on micro markets through which Metro routes pass. An analysis by Centre for Environment and Technology (CEPT) on the impact of Delhi Metro on real estate in three phases i.e., pre-construction phase, under-construction phase and post-construction phase has found that property prices jumped significantly after the Metro began its operations. The study has established that property prices around stations that are at the peripheries of the city have considerably closed the gap with those at city centre. Further, the prices are highest within 500 metres of Metro routes.

Currently, the impact of Hyderabad Metro on Hyderabad Real Estate market (which is still in the bidding stage) is insignificant. With the new metro developer likely to be identified in the last quarter of FY 2010 i.e., by March 2010, real estate prices along the metro routes may inch up in the next one year or so on account of Hyderabad Metro.

However, the impact of Outer Ring Road (after the implementation of its first phase) has been significant on Hyderabad Real Estate Market (land rates) along the alignment and the route of Outer Ring Route. In certain areas, Land rates have more than doubled and in some cases jumped by more than six times in a time-frame of 2003-2009.