Impact of metro station on housing market

Abstract

Housing price is big concern for all the major cities in India and around the world. It can be challenging to generalise it, as there are so many variables responsible, including household's financial status, housing demand, supply, tenure type etc. Now a days with fast growing cities with good transit system people are encouraged to use public transport to commute larger distances in short time. The introduction of a metro line in a city can have a significant impact on the housing market. The impact can be seen through changes in property prices, rents, and the overall supply and demand of housing units. This study focusses on assessing the impact of metro station on housing market with a case of Lucknow Metro. Lucknow being the capital of most populous state and 10th largest city in India has seen significant change in real estate in past 10 years with introduction of metro line. The same has been interpolated in this study. Through the study, it was found that property size is most significant factor to determine the housing price in Lucknow. Other significant factors identified are Land value and distance from metro stations. Correlation has been used to find the relationship between distance to MRTS and housing price/ land price/ rental value to analyses the impact. Analysis is done to demonstrate the change in property price and socio-economic condition over the period. H+T index has been used to analyse the housing cost and transportation costs around metro station buffer. The research indicates that there is large gap between market price and circle rate of property in Lucknow. As metro has a significant impact on the housing market, the same has been tried to highlight in the form of existing regulation and the methodology has been proposed to capture this increase in the pricing in allocation of land use and identification of property tax. Changes in the parameters to valuate property tax and stamp duty has been suggested to bridge the revenue loss. Zoning, FAR and density changes has also been suggested to maintain diversity, accessibility, and affor