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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
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    File URL: https://mpra.ub.uni-muenchen.de/124686/1/MPRA_paper_124686.pdf
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    References listed on IDEAS

    as
    1. 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.
    Full references (including those not matched with items on IDEAS)

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    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

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