Gurugram Metro will link Old Gurugram to New Gurugram, leading to an increase in real estate in certain sectors.
The Prime Minister Narendra Modi laid today the foundation stone for the Gurugram Metro Rail Project, which is estimated to cost Rs5,450 crore. The project aims to connect Old Gurgaon to New Gurgaon. This will improve connectivity to central business districts and reduce traffic congestion.(Picture for representational purposes only) (HT Archive)(HT Archive). The 28.5 km Metro Project in Gurugram, which will be developed at an estimated cost of Rs5,450 crore, is designed to improve connectivity between Old Gurgaon and New Gurgaon. This will reduce traffic congestion while improving the connection to central business districts. (Picture is for illustration purposes only) (HT Archive).
The project will have a total length 28.5 km and connect Millennium City Centre with Udyog Vihar Phase-5. It will also merge into the existing Rapid Metro Rail Gurugram network at Moulsari Avenue Station near Cyber City.
Experts in real estate say that although Old Gurgaon’s real estate prices may not see much of an impact, as they are saturated markets, some sectors will likely experience redevelopment similar to areas in Delhi connected by Metro. The construction of the new Metro corridor will have an effect on projects along the Dwarka Expressway, as the area has a relatively young residential and commercial stock.
The Old-New Gurgaon Metro Connector
In a meeting on June 7, last year, the Union Cabinet approved the metro connection from HUDA City Centre, (now called Millennium City Centre), to Cyber City, Gurugram, with a spur leading to Dwarka Expressway. The route is expected to include 27 stations.
The project will be completed within four years of its sanction. It will be implemented by the Haryana Mass Rapid Transport Corporation Limited, which is a 50/50 Special Purpose Vehicle (SPV) of the Government of India and the Government of Haryana.
The route will include stations like Sector 45, Cyber Park (Sector 46), Sector 47, Technology Park (Sector 48), Udyog Vihar Phase 6, Sector 10, Basai, sector 9, Sector 7, Sector 4, Sector 5, Ashok Vihar and Sector 3.
Real Estate Impact of the Old-New Gurugaon Metro Connector
Some real estate experts claim that Old Gurgaon’s sectors will not be affected by the connector as they are already saturated and have high densities. However, certain residential areas in Old Gurgaon could see redevelopment similar to existing areas in Delhi. The transit-oriented developments that will be offered by the connector may result in more commercial opportunities in the region, leading to a rise in commercial rates of around 15 to 20 percent.
These areas may also have a stock of newly constructed floors, which will make them more affordable for buyers who find new projects in Gurgaon out of their price range.
Ashim Chowdhury, Vice President, Research at ANAROCK Group, said that the new metro line alignment was designed to relieve congestion in the old Gurgaon areas where the widening and construction of flyovers are limited. The metro infrastructure will add color and improve the location’s attractiveness, even though the areas have matured. The majority of these areas are residential, with independent living assets. The addition of infrastructure, and better connectivity through the metro, will positively affect the pricing of real estate in the influence areas.
Real estate experts claim that a new metro connection is more likely to have a positive impact on new/upcoming locations than older ones. Prices in Dwarka Expressway are up around 15% due to the new metro connector and the anticipation that the Expressway will be opened soon.
Pradeep Mishra is the founder of Homents and a real-estate expert. He told HT Digital prices have increased in Gurgaon in most areas by 15 to 20 percent since last year’s cabinet announcement.
Some projects in Palam Vihar also saw a 15% price increase on the primary market and secondary market.
Prices are expected to rise once construction starts. “As an example, Dwarka Expressway has seen the price of a residential project go up from Rs 14,000 to 15,000 per square foot in the primary market to Rs 18,000. This is due to both the announcement of a new metro connector as well as the fact that Dwarka Expressway will be opened to the public in upcoming months,” he explained.
He said that new commercial projects, including retail space, will be launched at a price of Rs 35,000 to Rs 40,000 per square foot.
The current price of plotted colonies is between Rs 2 lakh and Rs 2.25 lakh for a square yard. This was Rs 1.70 to Rs 1.80 lakh until last year.
Commercial and retail sectors to be revitalized by new Metro connector
Pradeep Aggarwal – Founder and Chairman of Signature Global (India) Ltd – said that the extension from Millennium City Center into Cyber City represents a transformational leap for Gurugram. The Metro connector will pass near the Dwarka Expressway, connecting New Gurugram. This will improve connectivity, and should also boost property values. He said that it would create new investment opportunities in Gurugram and be the key to stimulating employment growth.
Smartworld Developers CEO Vivek Singhal said, “The Metro Extension in Gurugram will redefine urban travel and promote inclusivity, as well as spark demand for residential property and revitalize commercial and retail sectors. This is especially true in previously underserved areas along the Dwarka Expressway.”
JLL released a report in 2022 that stated land prices had increased by 8-10% in cities of Tier-II such as Lucknow Patna Jaipur Ahmedabad Pune Kochi and Coimbatore following the introduction a metro line in these cities.
Successful implementation of any metro line has a direct effect on the real estate market, as it increases land values and changes land use along the line. For example, metros and monorails make a significant contribution to traffic congestion. said that projects in the area will increase urban real estate values, because consumers are willing pay more for convenience.