Nagpur Metro to Boost Property Values in Near Future
Nagpur is one of the fastest growing Tier II cities in India. After Mumbai and Pune, Nagpur is the most sought after real estate market in Maharashtra. This is primarily due to its affordability, connectivity, growing civic and social infrastructure, and employment opportunities. With Nagpur growing as a city, property values have started to rise in the city. Another factor which is expected to significantly affect the property values in the city in the near future is the Nagpur metro.
Nagpur metro
The Nagpur metro is a rapid transit system proposed for the city. The estimated cost of the project is about Rs 9,000 crore. The metro project received a final approval on February 2014 from the Maharashtra government. The metro system is being built by the Nagpur Metro Rail Corporation (NMRC), a special purpose vehicle formed by the Nagpur Improvement Trust (NIT) for constructing the metro. The NIT signed an agreement with the Delhi metro Rail Corporation (DMRC) to prepare a detailed project report for the metro system.
The cost of the project will be shared by the State Government as well as the Central Government (20 per cent each), Nagpur Municipal Corporation and NIT (5 per cent each). The remaining 50 per cent of the project cost will be funded through loans. The construction work is expected to begin sometime in 2014 and the project is expected to commence operations from 2018-2019.
There are currently two routes being planned. The first route will be from north to south covering Automotive square, Kamptee and MIHAN. The second route will be from east to west covering Prajapati Nagar, East Wardhaman Nagar, Lokamanya Nagar and Hingna. The first route will have 18 stations with a depot at MIHAN while the second route will have 19 stations with a depot in Lokamanya Nagar. Munje Square is a metro station where the two routes will be expected to intersect.
Impact on real estate
A metro rail system always has a positive impact on real estate as it significantly reduces the commute time for the public between different areas. With that, there is a growth in demand for commercial as well as residential units in and around the areas. The social amenities too may be expected to grow in these areas. All these will result in increasing property values in the areas, especially the ones that have the metro stations.
