Chennai Metro’s 2nd Rail Depot To Catalyze Real Estate Development
Access to housing, commercial operations, and entertainment in the region is altered by new or enhanced transportation infrastructure, such as metro train systems. With the construction of Chennai Metro’s 2nd metro rail depot at Wimco Nagar, the dynamics of the rail corridor and the ‘influence zone’ around the depot is set to change. The introduction of new transport facilities not only have a huge impact on the real estate prices surrounding it, but it also increases the quality of living for a large segment of the urban population and serves as a catalyst for long-term growth in large cities. Let’s look at salient features of the upcoming metro rail depot at Wimco Nagar and its potential impact on the real estate in that area.
The Salient Features Of The Upcoming Wimco Nagar Depot
- The upcoming depot at Wimco Nagar on a 48,000 square meters plot is being constructed in addition to the existing one at Koyambedu. The depot is designed to include facilities to service and maintain trains and in addition to this, it will be expanded to include 20 story residential and commercial segments in the future.
- The depot will be constructed on 15,500 square meters and will include a 1,055 square meter auto coach washing plant with three levels of property construction. There will be a small station constructed for both the depot staff and the people residing in the property along with a training and resting area for the staff.
- The depot will have 11 stabling units for regular maintenance and minor repairs on trains that run along the 32.1 km Wimco Nagar-Airport via the Anna Salai corridor.
- The proposal for the rest of the plot is to construct a four-level parking garage underneath the elevated depot and a 20-story building above the depot with industrial and residential spaces to accommodate 4,000 families. The apartments would have a view of the sea since the facility is just 600 meters from the beach.
Potential Impact Of The Depot On Real Estate
The metropolitan cities are deemed so, as they have undoubtedly benefited from the construction and implementation of sophisticated transport systems such as the metros. This positive impact is of a large scale as it not only affects the functioning of commercial activities surrounding it but also changes the dynamics of the entire city.
The direct benefit derived from the construction of the elevated metro rail depot will be easy efficient servicing and maintenance of trains. The addition to the existing depot at Koyambedu, the upcoming depot at Wimco Nagar will be used to repair and overhaul trains after their daily services. This will improve overall logistics and provide a more time-efficient solution to the smooth functioning of the metro in Chennai.
Typically, the construction of systematic transport facilities such as the metro depot impacts real estate through increased land value, land use reform, and densification along the metro corridor. It is no doubt that a faster more efficient metro system will help solve traffic problems. Moreover, consumers are willing to pay more for convenience, so such ventures result in higher urban real estate prices. The following are some of the direct and significant impacts on real estate:-
- One of the most significant benefits includes better accessibility, and improved accessibility decreases travel costs. Certainly retail and commercial sectors benefit from this increased accessibility but residential areas receive dual benefits as convenient travel systems attract buyers to areas near the metro station. Moreover, with increased accessibility, there are more job opportunities that arise, thereby resulting in increased demand for homes in general.
- It is noticed that in the areas closest to the rail or the ‘influence zone’ the commercial property value increases even more than the residential property value.
- Office spaces, entertainment, and residential segments situated adjacent to the station at a convenient walking distance witness a significant rise in the price of the properties.
- A well-connected network of taxis, city buses and other transport facilities makes the area surrounding the station or the depot, a potential hub for development as developers wish to invest in areas with greater connectivity and customer traffic.
- Properties along the rail corridor and the ‘influence zone’ witness great capital appreciation. This makes the neighboring properties and lands a great potential investment zone.
The closer the land parcel is to the metro station, the higher is the capital appreciation of the property in that land parcel. Land values usually decline as the distance from a Metro station increases. This shows an inverse relationship between the gap between the land and the station and the prices in that area of land. Technically, a Metro has a 1 km radius of influence, with the maximum influence being within 500 meters. Depending on the venue, land use, and overall capacity of the micro-market, the market value of properties in a city will typically increase by more than 50% over current values after the introduction of metro rail.
The construction and implementation of sophisticated transport facilities such as metro rail depots have a huge impact on real estate prices. Homebuyers and potential investors are attracted by reduced commuting time to offices, schools, and entertainment hubs. The areas surrounding the stations have a considerably higher return on investment as the value of the land and property in such areas appreciates. Moreover, developers also seek to capitalize on the profitable land by launching new developments. All these factors certainly point towards the upcoming lucrative investment hub in Chennai.
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Chennai Metro’s 2nd Rail Depot To Catalyze Real Estate Development FAQ's:
A Metro’s effect on real estate along its corridor is direct and important. Of course, enhanced mobility benefits retail and industrial areas, but residential areas benefit from a dual demand driver: the Metro creates jobs, which increases demand for homes, and the decreased commuting costs and convenience attract buyers to areas near the Metro.
It is also seen that the closer the property or the development is to the metro station, the higher capital appreciation or price growth it enjoys. This is certainly a good spot for investment as your asset will appreciate in value and always be in demand, given its location and proximity to important landmarks such as a metro station.
For developers and brokers, proximity to the metro has become a big selling point. It is true that owning a property near a metro station has advantages in terms of property value and potential future appreciation. When a metro is announced, the capital values of the cities that will be served by the metro usually increase. As a result, that is the best time for those looking to sell a home because they will profit from the increased mileage that the metro provides.
Currently, the Chennai Metro rapid transit system has 2 operational lines and 3 lines under construction. The network of the metro system in Chennai is spread across 42 stations and caters to mainly office goers and domestic travelers over weekdays. On weekends the stations witness greater traffic and footfall owing to the higher number of travelers for leisure.