Any infrastructure project that boots connectivity always impacts real estate prices. The same is the case with the Chennai metro rail. The expansion of the Chennai Metro has caused an increased demand for properties near metro stations and on their routes. Riding on the convenience factor and the affordability, real estate prices along Phase I and the rest of the metro phases are seeing an upward swing. The increased mobility attracts many buyers to choose their property in and around the development. A JLL report mentioned that after Phase I of the Chennai metro became operational, properties around the areas witnessed a 15-33 % hike.
Phase I of the Chennai metro became operational in a phased manner. In the first stage, the section between Alandur and Koyambedu was commissioned in 2015. The first underground line between Thirumangalam Metro Station and Nehru Park Metro Station was inaugurated in 2017. The Underground stretches – Nehru Park Metro Station to Chennai Central Metro Station and Saidapet Metro Station to AG-DMS Metro Station were opened in 2018. In 2019, the stretch from AG-DMS to Washermenpet of blue line was opened, completing a 45 km network under Phase I of the Metro Rail Project.
Now that Phase II is under construction, realtors suggest directly investing in areas near the upcoming metro stations would be profitable.
The obvious benefits of metro rail are a sharp reduction in commuting time, improved accessibility, and less traffic congestion. As realtors and individuals are in a hurry to buy properties in and around metro projects, the property value is appreciating quickly. It has also opened up a lot of redevelopment opportunities.
Projects ranging from plots to high-rise apartments and villas are available in the city for investment. As many realty advisors note, Chennai has been witnessing steady real estate growth, and the pandemic did not impact it much. Due to the metro stations in corridor Phase II and Phase III, which are under progress, the south and west Chennai have witnessed major momentum in real estate projects.
Also, the presence of the Chennai metro has improved the city’s overall appeal as a thriving urban city. Even with the first Phase, the change is evident as people find it easy to commute across the city, including to railway stations and airports, thus saving time and money on private transport.
With most offices returning to work from office mode, many people have started relying on the metro for their commute, which is less chaotic and easy on the pocket.
Some locations where Metro work is going on for Phase II and III are Madhavaram, Porur, Poonamalle, Guindy, OMR, Thoraipakkam, and more. Investing in these areas would be one of the most profitable financial investments one would be making in real estate. With the rental yield returning to pre-COVID levels, nothing should stop a shrewd investor in you from purchasing a property.
Metro rail has been causing a revolution in real estate, and in some places, property appreciation has gone over 10X. Hence, investing early in development areas will be a sure-shot win for real estate buyers.
