delhi case study
TRANSCRIPT
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Impact of Delhi Metro onImpact of Delhi Metro on
Real EstateReal Estate
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Transportation Investment ImpactsTransportation Investment Impacts
Direct economic benefitsTravel Time savings, vehicle cost savings, transit option
value, environmental benefits
IndirectIncrease in property values
Land use changes,
Benefits of improved access to jobs & critical locations,
benefits to employment wage & productivity
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Research FocusResearch Focus
Analyse land value changes
OverTime Project Stage Project Formulation stage (year 1990-1996)
Construction stage (1996- 2000) and
Post project (2001-2006)
Over space City Level Across different areas/localities
With in localities
Decompose land value increases to metro
and non-metro effect
Comment on Value Capture
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ImpactsImpacts Other CasesOther Cases
Tyne & 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, asopposed 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 more remote locations.
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Delhi Mass Rapid Transit ProjectDelhi Mass Rapid Transit Project
An OverviewAn Overview
Total four phases, firstphase complete.
Total length of first
phase 50 km
Total cost of first phase
25550 million
Cost per Km of first
phase 511 million rupees
per km
Total length of full
system 167 km
Total capital cost offull system : 53775
million
Return Expected from
Property Development :
Rs 1533 million
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Study Area DetailStudy Area Detail
LAND AS A RESOURCE FOR URBAN INFRASTRUCTURE DEVELOPMENTFOCUS ON TRANSPORT SECTOR
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1.a. Land values as a function of distance1.a. Land values as a function of distance
from CBDfrom CBD
20052005
20002000
19961996
19901990
With Metro becoming operational, The curve is becoming flatter
Land values in periphery is increasing
Changing Urban Structure Alternate CBDs
The effect of improved access!!
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1.b. Land values as a function of distance1.b. Land values as a function of distance
from CBDfrom CBD
20052005
20002000
19961996
19901990
CommercialLandValues
Distance from CP
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2. Inter Zonal Analysis2. Inter Zonal Analysis
Inter-zonal Analysis (16 zones)
Intra-zonal Analysis
ZonesA: Old City E: East Delhi
B: City Ext (Karol Bagh) G: West Delhi
C: Civil Lines H: NW Delhi
D: New Delhi K: Dwarka
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Inter Zonal AnalysisInter Zonal Analysis Increase Land ValuesIncrease Land Values
Residential LandResidential Land
ValuesValues
Commercial LandCommercial Land
ValuesValues
Zones A, B, C, D have above
average growth rate till 2000, due to
location advantage.
Since 2000, only B maintained its
average growth rate, as compared to
A,& C, as it has residential
component, whereas zones A & C
have more commercial areas.
With coming of Metro, the zones invicinity of Central Zones (A,B,C,D)
also have above average growth rate
in land values.
The zones which were far from
theses prime zones, also attained land
value increase.
Zones G,H,K, have higher growth
rate as compared to the zones in
vicinity of central zones
Zone E has seen significant increase
in commercial growth.
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3. Land values and distance from metro3. Land values and distance from metro
Land value changeanalyzed in belts
along metro line:
a: 1000m
Zone A shows saturation in residential areas as there is no effect of
distance on land values.
In the peripheral zones E,H and K which are in developing stage;
impact is high and clearly visible.
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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IntraIntra--zonalzonal analysisanalysisLand value analysis by subzones for
zones E,G,H & KVariation by time (before and after
project completion)
Variation by land use
Variation by distance from metro
Most properties in all zones
lie between 10,000/- to20,000/- per sqm.
Besides the Metro facility,
there are other factors which
affect the land value.
To assess degree of impact
of metro on land values, a
more detailed regression
analysis done using other
factors like:location, dist from metro
line, yrs of metro operation,
infrastructure availability,
nature of development.
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Inter Zonal AnalysisInter Zonal Analysis Zone E (East Delhi)Zone E (East Delhi)Till 1962, only one road cum rail bridge, was
link between city & Trans Yamuna Zone.
Most of the area was vacant, except oldsettlements such as Shahdara, Geeta colony.
Development of 3 more road bridges
(Indraprastha bridge, Wazirabad bridge, &
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.
Population in zones E1 & E2, is
highest, since 1981, as these have
the only connection of road cum
rail bridge, unauthorized,
regularized 20 and have colonies.
% 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 AnalysisIntra Zonal Analysis Zone E (East Delhi)Zone E (East Delhi)
An overall increase in land values since 2004-2005.
Zones along the metro route, have shown comparatively higher rise.
Zones near to the metro route in E Zone mostly has unauthorised regularised
colonies, slums, poor infrastructure.
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SummarySummary1. Distance from Metro
HedonicAnalysis: The variables which are having a significant impact
on land value are:Distance of land from Metro Line
Distance of land from CP
Location of area
Income group
Among the variables distance from the metro alone explains the 22% of thevariation 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.
Between 500m to 1km, change in land value is more for commercial properties.
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SummarySummary
2. Land use Effect
The impact of metro on residential land value is less as compared to the
commercial properties.
For Residential area, on an average land value within 500m of metro line
increased by11.3%. For Commercial area, on an average land value within 500m
of metro line increased by 18.1%.
Threshold limit for the residential properties is approximately up to 500m from
metro line, whereas limit increases up to approximately 800m for commercial
properties.
Increase in land value is highly dependent on the income of the people
occupying the area. These are also the areas which are planned.
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SummarySummary3. 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.)
ConclusionConclusion
Impacts on urban structure is significant. Integrated land use transport planning.
Metro contribution to land value rise is about 22%. A part value is captured in
property taxes. Re-appropriation is difficult as there 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.
Right time to capture value First Create Value and then Capture
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Intra Zonal AnalysisIntra Zonal Analysis Zone E (East Delhi)Zone E (East Delhi)
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.
Among the sub zones near to the metro, only zones E1 & E4 have shown, a
markable rise in land values.
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161616
Sub zones lying within
1.5 km of metro line
Intra Zonal AnalysisIntra Zonal Analysis Zone E (East Delhi)Zone E (East Delhi)
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
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G-1 G-2 G-3 G-4 G-8 G-9 G-10 G-13 G-14 G-
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