The impact of Metro expansion on Kolkata’s real estate market

With rapid urbanization and all-round infrastructure development, Metro projects are playing a critical part in shaping the trajectory of the real estate industry around the country. Kolkata, which boasts India’s first underground rail transit system, has also seen a spurt in housing growth around new subway train lines of late.

Prime Minister Narendra Modi ceremonially inaugurated three sections of the Kolkata Metro system in March – the Howrah Maidan-Esplanade section, the New Garia-Ruby crossing section that will eventually connect with the airport and the Taratala-Majherhat segment, part of the Joka-Esplanade line. This spate of new Metro route openings has been hailed by the realty fraternity of the city as a key energizer. Thanks to fast and improved connectivity, locations which were unfancied before, are suddenly in demand now, as realtors rush to create new residential projects in these now-fashionable areas. The spread-out Metro footprint is thus triggering overall economic growth as allied infrastructure including commercial centres also spring up to cater to rising demand, going forward.

So, what are the impact points on real estate?

# Elevated property value: The expansion of the Metro system across various flanks of Kolkata has not only made travel within the city quicker and easier, but also provided easy access to job hubs, commercial districts and educational institutions. These multiple spinoff benefits have almost overnight raised property values along such Metro corridors like Joka, EM Bypass, New Town, Baranagar, Howrah and the Southern Bypass, among others. Real estate developers and investors also find these zones attractive options, particularly properties within a 500-metre radius of Metro stations.

# Overall economic development: Access to Metro services has enhanced the overall outlook of these corridors, with better accessibility and easier movement for both people and businesses, triggering more and more commercial investments. This in turn is creating jobs, buoying the economy of those regions, thus further fueling housing demand in these new expansion areas.

# Soaring demand for properties: With the flagging off of new Metro lines, everyone wants a piece of the Metro pie. In other words, reap the rewards of living close to a Metro station. This has infused a fresh energy in the real estate market and developers are making a beeline to build more and build fast along the subway corridors, resulting in a plethora of new stocks to cater to various income segments. So, the new routes of Metro have been a real gamechanger for the realty business.

# Elevating stature of fringe areas: A lot of peripheral areas which were underserved by public transportation systems, have been transformed in terms of value-add and stature-upgrade, with the Metro now reaching those fringes. Consequently, Kolkata has started growing further and more robustly along the fringes, with people now feeling confident of making these areas their home thanks to the fast, seamless connectivity with work, education, healthcare and shopping hubs. Now, reaching destinations like BBD Bag, Sector V, EM Bypass or Sealdah has become much easier from places like Howrah or Narendrapur.

# Boost to sustainable development: With the current worldwide focus on sustainable development, there is an effort on the part of city developers to plan and execute “green” structures by adopting environmentally conscious building techniques and design and responsible business practices. With the new Metro routes encouraging more and more people to use this environment-friendly and energy-efficient mode of public transportation, there is a perfect sync with the emerging philosophy of the developers’ fraternity, while aligning seamlessly with the city’s urban expansion vision.

# Improved life quality: Using the Metro for daily commutes has an immediate positive impact on your quality of life. You save on your travel time and effort and that added time can be spent with family and friends and for recreational activities. Metro travel also reduces stress on your body and mind and minimizes your exposure to pollution, thus infusing an overall sense of positivity which shows at home and at work.

We at Pioneer Property have lined up an eclectic basket of projects along existing and upcoming Metro corridors to answer all your needs in terms of preferred location and budget allocation.