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Impact of Delhi Metro on
Prof. H.M.Shivanand Swamy
n vers y
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Direct economic benefits
Travel Time savings, vehicle cost savings, transit optionvalue, environmental benefits
Indirect
increase in property values
land use changes,
benefits of improved access to jobs & critical locations,
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Anal se land value chan es
Over Time Project Stage Project Formulation stage (year 1990-1996)
Construction sta e 1996- 2000 and
post project (2001-2006)
Over space
Across different areas/localities
With in localities
non-metro effect
Comment on Value Ca ture
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Impacts Other CasesTyne & Wear Metro, Newcastle, U.K, Manchester Metro link, London Docklands Light
Railway, Helsinki Metro, Finland, Vienna S-Bahn, Austria,Nantes, France
House prices increased 2% within 200 meters of metro stations.
Retail activity or office developments in proximity to stations does not appear to
be directly linked to LRT.
Development of 20 500 sq.m of offices and services in City centre.
50% of capital cost was recaptured through overall office development and job
creation.
In the best locations, dwelling prices raised by 11%.
Price of property located within walking distance of the nearest railway or metro
station increased 7,5% over other locations. Impact was most significant at a distance of 500-750 m., as opposed to adjacent
locations, where values dropped. (Finland)
Districts located along S-Bahn corridor have witnessed increases in number of
new housing units of 18, 7% over 10 yr. period, as opposed to 4% and 10% in moreremote locations.
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Delhi Mass Ra id Transit Pro ect An Overview
Total four phases, firstphase complete.
Total length of first phase
50 kmTotal cost of first phase25550 million
Cost per Km of first phase511 million rupees per km
Total length of full system167 km
system : 53775 million
Return Expected fromPro ert Develo ment : Rs
1533 million
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Study Area Detail
Metro line
LAND AS A RESOURCE FOR URBAN INFRASTRUCTURE DEVELOPMENT FOCUS ON TRANSPORT SECTOR
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1.a. Land values as a function of
s ance rom60000
With Metro becoming
40000
50000
values
,
The curve isbecoming flatter
20000
30000
side
ntialland
2005
Ph-II
Land values in
periphery isincreasing
0
10000
0 5 10 15 20 25 30 35
R 2000
19961990
Ph-I Changing UrbanStructure - Alternate
Distance from CP
elhi
agh
lace
agar
agar
rden
gar
East
Eas
We
ada
ra mor
arka
pura
ohini
The effect of
7
new
d
Karo
l
Rajendra
p
Pateln
Kirti
n
Rajouriga
Tilak
n
Janakpuri
Uttamnag
ar
Uttamnag
ar
N
a
Shah
d
Dwark
D
w
PitaR
improved access!!
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1.b. Land values as a function of
90000
100000 s ance rom
60000
70000
80000
landvalues
200030000
40000
50000
C
omm
ercial 2005
Ph-II
0
10000
0 5 10 15 20 25 30 35
1996
1990
Ph-I
i h cea
rar
enrsta
seda o
ra u
ra
ini
newdel
Karolb
a
Rajendrapla
Patelnag
Kirtina
g
Rajourigar
d
Tilakna
g
JanakpuriE
Uttamnagar
E
Uttamnagar
Naw
a
Shahda
r
Dwarka
Dwar
Pitam
p
Roh
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. Inter-zonal Analysis (16
Intra-zonal Analysis
Zones
A Old City E East Delhi
9
C Civil Lines H NW Delhi
D New Delhi K Dwarka
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Zones A, B, C, D have above avera e rowth
Inter Zonal Analysis Increase Land Values
rate till 2000, due to locational advantage.
Since 2000, only B maintained its average
rowth rate as com ared to A & C as it has
residential component, whereas zones A & C
have more commercial areas
,
Central Zones (A,B,C,D) also have above
average growth rate in land values
zones, also attained land value increase.
Zones G,H,K, have higher growth rate as
zones
Zone E has seen significant increase in
10
commerc a grow ,
Residential Land Values Commercial Land Values
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20.0
25.0
tin
lLand
s
Shift in land values with distance from Me tro line from
'a' to 'b'
20.0
25.0
30.0
mercial
lues
Shift in land values with distance from Metro line from
'a' to 'b'
Land value
0.0
5.0
10.0
.
%S
hi
Residentia
Valu
A B E G H K
Zone 1990 19962000 2005
0.0
5.0
10.0
15.0
%
ShiftinCo
LandV
A B E G H K
Zone 1990 19962000 2005
analyzed inbelts alongmetro line:
20.0
25.0
30.0
35.0
40.0
tinResidential
andValu
es
Shift in land values with distance from Metro line from
'a' to 'c'
20.0
25.0
30.0
35.0
40.0
inCommercial
andValu
es
Shift in land values with distance from Me tro line from
'a' to 'c' a 1000m
one s ows sa ura on n res en a areas as ere s no e ec odistance on land values.
In the peripheral zones E,H and K which are in developing
s age; mpac s g an c ear y v s e . There is an average decrease of 8-10% and 15-18% in values as we
move from belt a to belt b and c respectively
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Intra-zonal analysis
Land value analysis bysubzones for zones E,G,H & K Variation by time (before and after
Most properties in all zones lie
between 10,000/- to 20,000/- per
project completion)
Variation by land use
Variation by distance from metro Besides the Metro facility, there are
other factors which affect the land
40
50
60
ies
Distribution of Land Values in Zones value
To assess degree of impact of
20
30
%
ofProper ,
detailed regression analysis done
using other factors like:
0
10
10000 20000 30000 40000 50000 60000
location, dist from metro line, yrs of
metro operation, infrastructure
availability, nature of development
Combined E-Zone G-Zone H-Zone K-Zone
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Metro link-
Phase 1
17
Intra Zonal Analysis Zone E (East Delhi)Introduction
, ,
Most of the area was vacant, except old settlements such as Shahdara, Geeta
colony.
1814 15
16
6532
7 eve opmen o more roa r ges n rapras a r ge, az ra a r ge,
Nizzamuddin bridge), lead to development of unauthorized colonies at the entry point
of these bridges, due to its proximity to walled city CBD, connaught place etc. E
19
8
1011
1213
Po ulation Growth- E Zone
O20 21
Land Use- E Zone
100%
200
250
300
('000
)
1981 1991 2001
40%
60%
Very few green spaces, inadequate
Area: 8797 Ha
50
100
150
Population
0%
20%
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10 E11 E 12 E13 E 14 E15 E 16 E 17 E19 E 20 E21
transport linkages (ROW is less than
required in most of the areas)
Commercial area in each sub zone caters
0
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10 E11 E12 E13 E14 E15 E16 E17 E18 E19 E20 E21
Sub Zones
Population in zones E1 & E2, is highest, since 1981, as these have the only connection of road cum rail
brid e and have unauthorized re ularized colonies
13
Sub Zones
Residential Semi-Public Commercial Industries Green
Transport Utility/ Vacant Public Circular Community Centres commerc ial centres
% increase in population in E1 & E2, is less as compared to the other far off zones, as these mainly are
unauthorized regularized colonies
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Intra Zonal Analysis Zone E (East Delhi)
R e s ide nt i a l La nd Va l ue s100 . 0 2001 2002 2003
2 0 . 0
4 0 . 0
6 0 . 0
8 0 . 0
lue/sqm(
000)
2001 2002
0 . 0
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10 E11 E12 E13 E14 E15 E16 E17 E18 E19 E2 0 E2 1
Sub zones
V
An overall increase in land values since 2004-2005
Zones along the metro route, have shown comparatively higher rise,
14
Zones near to the metro route in E Zone mostly has unauthorised regularised colonies, slums, poorinfrastructure.
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Summary
1. Distance from Metro
Hedonic Analysis: The variables which are having a significant impact on land
Distance of land from Metro Line
Distance of land from CP.Location of area.
. Among the variables distance from the metro alone explains the 22% of the
variation in the land value. Thus, the availability and proximity to metro, plays a
major role in determining the impact of Metro on real estate prices.
Properties within 500m of the metro line have experienced a higher land value
change as compared to properties beyond 500m. Land value decreases as
one moves away from the metro line.
Within 500 mtrs of Metro Line, change in land value is higher and is more or less
same for both the residential and commercial properties.
15
,
properties
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Summary
2. Land use Effect
commercial properties.
For Residential area, on an average land value within 500m of metro line
. . ,
500m of metro line increased by 18.1%.
Threshold limit for the residential properties is approximately up to 500m from
me ro ne, w ereas m ncreases up o approx ma e y m or commerc a
properties.
Increase in land value is highly dependent on the income of the people
occupy ng e area ese are a so e areas w c are p anne
16
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Summary
3. Number of years of Operation of Metro
Land Value changes are more consistent and higher after the operation of
metro as compared to the construction and planning stage. (land value
increases by 2- 4% every year.)
To Conclude:- Impacts on urban structure is significant. Integrated landuse transport planning
- e ro con r u on o an va ue r se s a ou . par va ue s cap ure nproperty taxes. Re-appropriation is difficult as they are 2 different agencies.
- Value capture is possible only if linked to additional FSI/TDR
- To reap benefits of better accessibility, redevelopment schemes for non-planned/slum areas
17
- g me o cap ure va ue rs rea e a ue an en ap ure
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Thankyou
Contact information:
hmshivanandswamy@cept.ac.in
Poonam Dudani (2008), Impact of Transit Project onLand Values- A Case Study of Delhi Metro, CEPTMasters Thesis
CEPT UniversityKasturbhai Lalbhai Campus
Navrangpura, Ahmedabad 380009
RESOURCE FOR URBAN INFRASTRUCTUREDEVELOPMENT, CEPT Masters Thesis
I t Z l A l i
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Metro link-
Phase 1
17
Intra Zonal Analysis Zone E (East Delhi)Introduction
, ,
Most of the area was vacant, except old settlements such as Shahdara, Geeta
colony.
1814 15
16
6532
7 eve opmen o more roa r ges n rapras a r ge, az ra a r ge,
Nizzamuddin bridge), lead to development of unauthorized colonies at the entry point
of these bridges, due to its proximity to walled city CBD, connaught place etc. E
19
8
1011
1213
Po ulation Growth- E Zone
O20 21
Land Use- E Zone
100%
200
250
300
('000
)
1981 1991 2001
40%
60%
Very few green spaces, inadequate
Area: 8797 Ha
50
100
150
Population
0%
20%
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10 E11 E 12 E13 E 14 E15 E 16 E 17 E19 E 20 E21
transport linkages (ROW is less than
required in most of the areas)
Commercial area in each sub zone caters
0
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10 E11 E12 E13 E14 E15 E16 E17 E18 E19 E20 E21
Sub Zones
Population in zones E1 & E2, is highest, since 1981, as these have the only connection of road cum rail
brid e and have unauthorized re ularized colonies
19
Sub Zones
Residential Semi-Public Commercial Industries Green
Transport Utility/ Vacant Public Circular Community Centres commerc ial centres
% increase in population in E1 & E2, is less as compared to the other far off zones, as these mainly are
unauthorized regularized colonies
I t Z l A l i
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Metro link-
Phase 1
Intra Zonal Analysis Zone E (East Delhi)
Introduction
Till 1962, only one road cum rail bridge, was link between city & Trans Yamuna Zone
Most of the area was vacant, except old settlements such as Shahdara, Geeta colony.
Development of 3 more road bridges (Indraprastha bridge, Wazirabad bridge, &
17
18
14 1516
Nizzamuddin bridge), lead to development of unauthorized colonies at the entry point of
these bridges, due to its proximity to walled city CBD, Connaught place etc.
E
6532
1 4
7
9
8
1011
Po ulation Growth- E Zone
O
13
19
20 21
200
250
300
('000
)
1981 1991 2001
50
100
150
Population
0
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10 E11 E12 E13 E14 E15 E16 E17 E18 E19 E20 E21
Sub Zones
Population in zones E1 & E2, is highest, since 1981, as these have the only connection of road cum rail
brid e and have unauthorized re ularized colonies
20
% increase in population in E1 & E2, is less as compared to the other far off zones, as these mainly are
unauthorized regularized colonies
I t Z l A l i
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Intra Zonal Analysis Zone E (East Delhi)
R e s ide nt i a l La nd Va l ue s100 . 0 2001 2002 2003
2 0 . 0
4 0 . 0
6 0 . 0
8 0 . 0
lue/sqm(
00
0)
2001 2002
0 . 0
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10 E11 E12 E13 E14 E15 E16 E17 E18 E19 E2 0 E2 1
Sub zones
V
An overall increase in land values since 2004-2005
Zones along the metro route, have shown comparatively higher rise,
21
Zones near to the metro route in E Zone mostly has unauthorised regularised colonies, slums, poorinfrastructure.
I t Z l A l i
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Intra Zonal Analysis Zone E (East Delhi)
C o m m e r c i a l L a n d Va l u e s
250
300
2001 2002 2003
100
150
200
lue/sqm(
00
0)
0
50
E1 E2 E3 E4 E5 E6 E7 E8 E9 E10 E11 E12 E13 E14 E15 E16 E17 E18 E19 E20 E21
Sub Zones
V
20012002 2003 2004 2005 2006
Sub zones E8, 12, 13 which are one of the oldest, planned areas in E zone, have the highest rise in
commercial land value, though they are far from the metro.
22
Among the sub zones near to the metro, only zones E1 & E4 have shown, a markable rise in land values,
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Intra Zonal Analysis Zone E (East Delhi)
17
16
6532
1 47 162
15
3 5
18
14 15 16
6532
1 47
Sub Zones lying withinE
8
1011
14
E
O
8
10
12
13
19
1.5 km of metro line
8 109
Characteristics
High Density Area
Road width 5m to 7m
Very few developed open spaces
Metro line abutting GT road, & rail line, which are one of the oldest
linkages for the area to the main city
23
Intra Zonal Anal sis
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Intra Zonal Analysis Zone E (East Delhi)Residential Land Values
Within 0-.5 km of Metro line
50
60
70
80
90
qm(
'000)
E1
E2
Between 0.5-1 km from Metro Line
30
40
50
60
sqm(
'000)
E1
E2
E3
0
10
20
30
40
2001 2002 2003 2004 2005 2006
Value/
E3
E4
E5
0
10
20
2001 2002 2003 2004 2005 2006
Value/
E4
E5
ear ear
2001 2002 2003 2001 2002 2003
2004 2005 2006 2004 2005 2006
24
Land Value/ Sqm (000)Legend: Land Value/ Sqm (000)Legend:
Metro Route
Intra Zonal Analysis
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Within 0-.5 km distance from Metro Line Within 0.5-1 km distance from Metro Line
Intra Zonal Analysis Zone E (East Delhi)Commercial Land Values
100
120
140
160
180
200
/sqm(
'000)
E1
E2
E3
50
60
70
80
90
100
sqm(
'000)
E1
E2
E3
0
20
40
60
80
2001 2002 2003 2004 2005 2006
Year
Value
E4
E5
0
10
20
30
40
2001 2002 2003 2004 2005 2006
Year
Value
E4
E5
2001 2002 2003 2001 2002 2003
2004 2005 2006 2004 2005 2006
25
Land Value/ Sqm (000)Legend: Land Value/ Sqm (000)Legend:
Metro Route
Intra Zonal Analysis Z G (W D lhi)
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Intra Zonal Analysis Zone G (West Delhi)
Introduction
- .
Except Sub zones 1, 2, 3, which have the industrial belt of the zone, other
sub zones have adequate mix of land use, which provides in zone G a good
ualit of livin
Population Grow th250
L and Use - G Z o n e
100%
Vacant
Rural
Sub Zone 5, 6, 7, 11, 12, 15 which is cantt area has lot of open space,
Area: 11,865 Ha150
200
30%
40%
50%
60%
70%
80%Public & Semi Pub.
Govt (Det)
Govt (Undet.)
Util ity
0
50
G-1 G-2 G-3 G-4 G-8 G-9 G-10 G-13 G-14 G-16 G-17 Cantt
0%
10%
20%
Sub Zone
Traff ic Transport
Recreational
Manufacturing
Commercial
Resident ial
Sub Zones 1981 1991 2001
26
Intra Zonal Analysis G ( )
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R es id en t i a l L an d Va lu es140
2001
Intra Zonal Analysis Zone G (West Delhi)
60
80
100
120
2002
2003
0
20
40
G1 G2 G3 G4 G8 G9 G10 G13 G14 G16 G17
2004
2005
2006
2001 2002 2003 2004 2005 2006 Legend:
Land Value/
sqm (000)
Sub zones alon metro G-2 3 8 9 13 14 16 have shown the hi hest increase
Metro Line
Though metro passes through the G1, but not much hike in land values could be found, it could be
attributed to the fact, that its basically a industrial zone
27
, , ,
than G4.
Intra Zonal Analysis Z G (W t D lhi)
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Intra Zonal Analysis Zone G (West Delhi)
C o mmercial Land V alues350
150
200
250
300
2002
2003
2004
0
50
100
G1 G2 G3 G4 G8 G9 G10 G13 G14 G16 G17
S u b Z o n e s
2005
2006
2001 2002 2003 2004 2005 2006
Though zones G1, 4, 10, share the similar characteristics, but the percent shift in G1 is more as Legend:
Land Value/compare o e
Shopping malls, 5 star hotel, Multi level parking, Development of district centre in sub zone G13
Flyovers (reducing congestion on the roads), Shopping malls, improvement in provision of water,
sqm (000)
28
e ec r c y e c n su zone - ,Metro Line
Intra Zonal Analysis Z G (W t D lhi)
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Residential Land Value with 0-.5 km distance from metro -
Intra Zonal Analysis Zone G (West Delhi)Residential Land Values
80
100
120
140
0)persqm
2001 2002 2003 2004 2005 2006
.
80
100
120
140
0)persqm
2001 2002 2003 2004 2005 2006
0
20
40
60
G1 G2 G3 G8 G9 G13 G14 G16
Values('0
0
20
40
60
G1 G2 G3 G8 G9 G13 G14 G16
Values('0
Sub Zones abutting Metro line Sub Zones abutting Metro line
2001 2002 2003 2001 2002 2003
29
Land Value/ Sqm (000)
Legend:
Metro Route
Intra Zonal Analysis Z G (W t D lhi)
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Commercial Land Value with 0-.5 km distance from metro Commercial Land Value with.5-1 km distance from metro
Intra Zonal Analysis Zone G (West Delhi)Commercial Land Values
20 0
250
30 0
350
)persqm
2001 2002 2003 2004 2005 2006
150
20 0
250
)persqm
2001 2002 2003 2004 2005 2006
0
50
100
150
V
alues('00
0
50
100
V
alues('00
G1 G2 G3 G8 G9 G13 G14 G16
Sub Zones abutting Me tro line
G1 G2 G3 G8 G9 G13 G14 G16
Sub Zones abutting Metro line
2001 2002 2003 2001 2002 2003
30
Land Value/ Sqm (000)
Legend:Land Value/ Sqm (000)
Legend:Metro Route
Intra Zonal Analysis Zone H (North West Delhi)
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Intra Zonal Analysis Zone H (North West Delhi)
Comprised of extension of city in North West of Delhi,
Characterized by well planned residential localities.
Broadly it can be divided into two parts viz.,
-
H-7, 8, 9 (Rohini scheme & Mangolpuri).
Special characteristics:
H1, 6, - 2 JJ re-settlement colonies namely Wazirpur & Shakurpur &
9 urban villages. , , , .
5 Ha of special children cum trafficpark, for providing training park, as
part of distt park at Gulabi Bagh. (H1)
,
Land near Pitampura TV Tower (H5 sub zone) to be developed for
eating places in evening & late evening
31
- -
Delhi admin & DDA offices.
Intra Zonal Analysis Zone H (North West Delhi)
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Residential land Values
80
90
Intra Zonal Analysis Zone H (North West Delhi)
30
40
50
60
70
e('000)per
sqm
0
10
H1 H2 H3 H4 H5 H6 H7 H8 H9Subzones
val
2001 2002 2003 2004 2005 2006
Commercial land Values
160180
200
m
40
60
80
100
120
140
v
alue('000)pers
0
20
H1 H2 H3 H4 H5 H6 H7 H8 H9Subzones
2001 2002 2003 2004 2005 2006
32
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Developmental Transformations in and around metro stations
Metro station Type of structures Activity
Before After Before After Dwarka Low residential area Residential apartments
coming up approved by
DDA
Residential area Increased residential use.
Dwarka Mod Unapproved area covered Single storied buildings, Low residential area Dominant land use is
by slums unapproved colony. residential,
Development of informal
commercial activities.
Small size shops all along
Nawada
Uttamnagar West Single storied buildings
occupied by lower middle
class
Lower middle class
residences predominantly
two storied buildings
Residential area with very
few shops.
Dominant land use is
residential but small size
shops all along the metro
line
Uttamnagar east
Tilaknagar Upper middle class
residential area
High and upper middle
class residences
Residential area with few
commercial centers
Dominant land use is
residential.
predominantly two storied.
Multistoried commercial
buildings.
located within the
residential zone New categories of higher
order commercial activities
coming up.
Kirti nagar
Patel nagar
Rajendra place
there class residences. area.
.
Commercial complexes
coming up.
Pitampura Scarcely populated single
storied structures
Newly developed
residential areas,
predominantly two storied
structures.
Predominantly residential
character
Increase in commercial
activities.Rohini
New Delhi station Combination of old and
new structures
Combination of old and
new structures
Mixed land use commercial use is
dominant
Karol bagh High income group
residences
Apartments coming up Residential area Dominant residential
character