IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/124686.html
   My bibliography  Save this paper

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

Author

Listed:
  • Ballal, Shikha
  • Tripathi, Sabyasachi

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.

Suggested Citation

  • Ballal, Shikha & Tripathi, Sabyasachi, 2025. "The Price of Proximity: How Bengaluru's Metro Affects Residential Property Values," MPRA Paper 124686, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:124686
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/124686/1/MPRA_paper_124686.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Li, Yan & Chen, Zhenhua & Wang, Peng, 2020. "Impact of high-speed rail on urban economic efficiency in China," Transport Policy, Elsevier, vol. 97(C), pages 220-231.
    2. Robert Cervero & Hiroaki Suzuki & Kanako Iuchi, 2013. "Transforming Cities with Transit : Transit and Land-Use Integration for Sustainable Urban Development [Transformando las ciudades con el transporte público : integración del transporte público y el," World Bank Publications - Books, The World Bank Group, number 12233, April.
    3. Tan, Ronghui & He, Qingsong & Zhou, Kehao & Xie, Peng, 2019. "The effect of new metro stations on local land use and housing prices: The case of Wuhan, China," Journal of Transport Geography, Elsevier, vol. 79(C), pages 1-1.
    4. Claudio A. Agostini & Gastón A. Palmucci, 2008. "The Anticipated Capitalisation Effect of a New Metro Line on Housing Prices," Fiscal Studies, Institute for Fiscal Studies, vol. 29(2), pages 233-256, June.
    5. Zachary T. Keeler & Heather M. Stephens, 2023. "The capitalization of metro rail access in urban housing markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(3), pages 686-720, May.
    6. Piyush Tiwari & Kirit Parikh & Jyoti Parikh, 1999. "Effective Housing Demand in Mumbai (Bombay) Metropolitan Region," Urban Studies, Urban Studies Journal Limited, vol. 36(10), pages 1783-1809, September.
    7. Cervero, Robert B., 2013. "Linking urban transport and land use in developing countries," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 6(1), pages 7-24.
    8. Camins-Esakov, Jacob & Vandegrift, Donald, 2018. "Impact of a light rail extension on residential property values," Research in Transportation Economics, Elsevier, vol. 67(C), pages 11-18.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thi Mai Chi Nguyen & Hironori Kato & Le Binh Phan, 2020. "Is Built Environment Associated with Travel Mode Choice in Developing Cities? Evidence from Hanoi," Sustainability, MDPI, vol. 12(14), pages 1-16, July.
    2. Abdi, Mohammad Hamed, 2021. "What the newcomers to transit-oriented development are confronted with? Evidence from Iranian policy and planning," Journal of Transport Geography, Elsevier, vol. 92(C).
    3. Mohammad Hamed Abdi & Ali Soltani, 2022. "Which Fabric/Scale Is Better for Transit-Oriented Urban Design: Case Studies in a Developing Country," Sustainability, MDPI, vol. 14(12), pages 1-22, June.
    4. Lorea Mendiola & Pilar González, 2021. "Urban Development and Sustainable Mobility: A Spatial Analysis in the Buenos Aires Metropolitan Area," Land, MDPI, vol. 10(2), pages 1-23, February.
    5. Dubé, Jean & Le Gallo, Julie & Des Rosiers, François & Legros, Diègo & Champagne, Marie-Pier, 2024. "An integrated causal framework to evaluate uplift value with an example on change in public transport supply," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).
    6. Satya Sai Kumar Jillella & Annie Matan & Peter Newman, 2015. "Participatory Sustainability Approach to Value Capture-Based Urban Rail Financing in India through Deliberated Stakeholder Engagement," Sustainability, MDPI, vol. 7(7), pages 1-25, June.
    7. AlQuhtani, Saad & Anjomani, Ardeshir, 2019. "Do rail transit stations affect housing value changes? The Dallas Fort-Worth metropolitan area case and implications," Journal of Transport Geography, Elsevier, vol. 79(C), pages 1-1.
    8. Cervero, Robert & Dai, Danielle, 2014. "BRT TOD: Leveraging transit oriented development with bus rapid transit investments," Transport Policy, Elsevier, vol. 36(C), pages 127-138.
    9. Schmidt, Adam & Bardaka, Eleni & Thill, Jean-Claude, 2022. "Causal, spatiotemporal impacts of transit investments: Exploring spatial heterogeneity from announcement through long-run operation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 161(C), pages 151-169.
    10. López-Morales, Ernesto & Sanhueza, Claudia & Herrera, Nicolás & Espinoza, Sebastián & Mosso, Vicente, 2023. "Land and housing price increases due to metro effect: An empirical analysis of Santiago, Chile, 2008–2019," Land Use Policy, Elsevier, vol. 132(C).
    11. Pengyu Ren & Zhaoji Li & Weiguang Cai & Lina Ran & Lei Gan, 2021. "Heterogeneity Analysis of Urban Rail Transit on Housing with Different Price Levels: A Case Study of Chengdu, China," Land, MDPI, vol. 10(12), pages 1-15, December.
    12. Murakami, Jin, 2018. "The Government Land Sales programme and developers’ willingness to pay for accessibility in Singapore, 1990–2015," Land Use Policy, Elsevier, vol. 75(C), pages 292-302.
    13. Hirschhorn, Fabio & Veeneman, Wijnand & van de Velde, Didier, 2019. "Organisation and performance of public transport: A systematic cross-case comparison of metropolitan areas in Europe, Australia, and Canada," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 419-432.
    14. Ahmad Adeel & Bruno Notteboom & Ansar Yasar & Kris Scheerlinck & Jeroen Stevens, 2021. "Insights into the Impacts of Mega Transport Infrastructures on the Transformation of Urban Fabric: Case of BRT Lahore," Sustainability, MDPI, vol. 13(13), pages 1-32, July.
    15. Chetan Doddamani & M. Manoj, 2023. "Analysis of the influences of built environment measures on household car and motorcycle ownership decisions in Hubli-Dharwad cities," Transportation, Springer, vol. 50(1), pages 205-243, February.
    16. Mouton, Morgan & Deraëve, Sophie & Guelton, Sonia & Poinsot, Philippe, 2023. "Negotiated windfalls: Mapping how public actors pursue and share land-value capture in Nanterre-la-Folie, France," Land Use Policy, Elsevier, vol. 131(C).
    17. Cavoli, Clemence, 2021. "Accelerating sustainable mobility and land-use transitions in rapidly growing cities: Identifying common patterns and enabling factors," Journal of Transport Geography, Elsevier, vol. 94(C).
    18. Ahmad Adeel & Bruno Notteboom & Ansar Yasar & Kris Scheerlinck & Jeroen Stevens, 2021. "Sustainable Streetscape and Built Environment Designs around BRT Stations: A Stated Choice Experiment Using 3D Visualizations," Sustainability, MDPI, vol. 13(12), pages 1-21, June.
    19. Ibraeva, Anna & Correia, Gonçalo Homem de Almeida & Silva, Cecília & Antunes, António Pais, 2020. "Transit-oriented development: A review of research achievements and challenges," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 110-130.
    20. Hui Zheng & Baohong He & Mingwei He & Jinghui Guo, 2022. "Impact of Urban Spatial Transformation on the Mobility of Commuters with Different Transportation Modes in China: Evidence from Kunming 2011–2016," Sustainability, MDPI, vol. 14(13), pages 1-22, June.

    More about this item

    Keywords

    Metro rail; transport systems; distance; housing value; Bengaluru; India;
    All these keywords.

    JEL classification:

    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:124686. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.