A 17 km section of the country’s first Regional Rapid Transit System (RRTS) between Sahibabad and Duhai Depot, which will be inaugurated by Prime Minister Narendra Modi on October 20, may boost real estate prices along the route in the Ghaziabad area.
Experts said prices in the residential hubs of Vasundhara, Vaishali and Raj Nagar Extension along the route increased by as much as 19 percent since the RRTS project was announced three years ago and may rise further after the rapid rail becomes operational.
However, price appreciation will also depend on factors such as the law and order situation in the area, last-mile connectivity and civic amenities, they said.
The 17 km route of rapid rail that is being inaugurated – also known as the priority section – has five stations – Sahibabad, Ghaziabad, Guldhar, Duhai and Duhai Depot.
The entire 82 km RRTS corridor from Delhi to Meerut via Ghaziabad is set to become functional in June 2025, according to officials of the National Capital Rail Transport Corporation, the agency implementing the project. The foundation stone of the project was laid by PM Modi in 2019.
Improved connectivity
Santhosh Kumar, vice chairman of ANAROCK Group, a real estate consultancy, said Raj Nagar Extension, Vasundhara, Vaishali and NH-24 are the key micro markets that are likely to gain once this section becomes operational.
“It will immensely boost connectivity and with the enhanced connectivity, residential demand will only grow in these areas. While Vasundhara and Vaishali are already well-developed locations, with boosted connectivity it will help in property appreciation in the future,” Kumar told Moneycontrol.
According to ANAROCK, average property prices in these localities have gone up by 17-19 percent over the past few years on expectations of improved connectivity. Prices in Vasundhara climbed 19 percent from 2021 to 2023 and 18 percent in Vaishali. Prices in Raj Nagar Extension went up by 18-19 percent.
The average price in Raj Nagar Extension increased to Rs 3,900 per square foot in September from Rs 3,300 per sq. ft in September 2021. In Vasundhara, prices went up to Rs 6,200 per sq. ft from Rs 5,200 per sq. ft, while in Vaishali, they rose to Rs 6,100 per sq. ft from Rs 5,150 per sq. ft.
Gaurav Gupta, secretary of the National Capital Region chapter of the Confederation of Real Estate Developers Associations of India, said the country’s first intercity rapid rail, called RapidX, will provide alternative connectivity to the residential hubs and open up more real estate opportunities in the region. He said that apart from the rapid rail, the authorities will have to build sector roads in Raj Nagar Extension for better development.
Pankaj Kumar Jain, director of the KW Group, a builder based in Noida, said RapidX will accelerate the development of Raj Nagar Extension and its neighbourhood. The Ghaziabad Development Authority has decided to develop the area along the corridor under the Transit Oriented Development policy.
Flip side
However, some experts and homebuyers were apprehensive about prospects for the area. They said the RRTS may not benefit Raj Nagar Extension much because of issues such as the absence of last-mile connectivity, a poor law-and-order situation, and inadequate civic infrastructure in the region.
Devesh Tyagi, a real estate broker who lives in the area, said that when the Delhi Metro’s Red Line was extended to Ghaziabad, it was anticipated that property prices would rise exponentially, but that did not happen.
The Hindon River metro station on the Red Line is located 5-6 km from Raj Nagar Extension and in the absence of last-mile connectivity, the metro was of little benefit for the residents of the area, he said.
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“Though the distance between the RRTS station and Raj Nagar Extension is not very far, last-mile connectivity is still a problem as public transport is not easily available in the late evening hours,” said Akanki Sharma, a resident of Raj Nagar Extension.
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