The Price of Proximity: How Bengaluru's Metro Affects Residential Property Values

Shikha Ballal and Sabyasachi Tripathi

MPRA Paper from University Library of Munich, Germany

Abstract: Transit networks significantly influence city evolution, with mass rapid transit systems enhancing access to jobs, housing, and infrastructure. Indian Government is promoting metro rail projects to strengthen public transport, and many cities are developing their metro rail corridors, making understanding their impact crucial in the Indian context. This study investigates the impact of the mass rapid transit system (Namma Metro) on residential property values in Bengaluru, India. It investigates the impact of recently operational and existing metro lines on property values in different neighborhoods across Bengaluru. The research uses a mixed-methods approach, combining quantitative data analysis with hedonic price regression based on household surveys. The regression results show that proximity to metro stations and higher income levels lead to significant housing value increases. The dense areas and longer metro operation years contribute to higher property values, while the distance from the city centre and higher metro connection costs negatively impact property values. The findings have significant implications for urban planning and policy decisions. It helps understand how building metro stations leads to real estate development and value creation in the vicinity of the metro corridor and how transit-oriented development policies around metro stations can support land value capture.

Keywords: Metro rail; transport systems; distance; housing value; Bengaluru; India (search for similar items in EconPapers)
JEL-codes: L90 R21 R32 (search for similar items in EconPapers)
Date: 2025-05-03
New Economics Papers: this item is included in nep-tre
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