Will Ahmedabad Metro raise the Property Rates in the city, which are stagnant since months?

Ahmedabad (ADI): Ahmedabad city soon to get its first Metro rail, last week city received first work order for the rail 20.53 kilometre East West Corridor (Thaltej Gam to Vastral Gam). The metro rail is expected to provide safe, fast and ecofriendly transportation to the citizens along with well connectivity at affordable rates and will ease the congestion on roads, giving city’s infrastructure a new status-quo. Will this new infrastructure of the city facilitate the real estate market?

As infrastructure plays an important role in the development of city and in decision making of purchasing a home, this may boost the property prices of the city, which are stagnant from many years.

As per the National Housing Bank’s Residex of last few months property rates in Ahmedabad has not seen much appreciation, infact during the period April-June 2013 property rates in Ahmedabad declined by 3.13 per cent, in the next quarter from JulySept 2013 it showed a nominal rise of 2.96 per cent. During the period of April-June 2014 rates show a rise of around 1.91 per cent.

The locations near metro stations can see rise in prices, as purchasing demand will increase in the areas. “The property prices of the locations near the metro stations can see slight appreciation, in future it is expected to rise on considerable amount. Investment may also increase in the areas as high returns are can be gain,” says Experts.

The phase-I of metro will include North-South corridor(APMC market to Motera stadium) and East-West corridor(Thaltej village to Vastral) are part of Metro rail project phase-1. Phase-I route length is 35.956 km, of which 29.621 will be over surface while 6.355 km route will be underground. 28 stations will be over the surface and 4 stations will be underground.

North-South corridor will begin at Motera stadium. It will pass through Sabarmati police station, power house, RTO over-bridge, Ranip 132 ring road, Ranip cross road, Vadaj AMTS bus-stand, Usmanpura, Ashram road, New Gandhigram, Madalpur, Paldi, Anjli, Vasna and end at APMC.

East-West corridor will begin at Thaltej village and pass through Doordarshan kendr, Gurukul road, Gujarat University, Commerce six roads, Stadium, Ashram road, Shahpur, Ghikanta, Kalupur railway station, Kankaria east (Gomtipur), Apparel park, Amraiwadi, Rabari colony, Vastral, Nirat char rasta and Vastral village, which will be the last station.

The work has been granted to J Kumar Infraprojects Ltd. to build first six kilometres route Vastral Gam to Apparel Park – that is part of the 20.53 kilometre East West Corridor (Thaltej Gam to Vastral Gam). The total length of the proposed metro is about 37.76 kilometres. The construction of the project will be commenced by March 2015 and is suppose to be completed by 2018.