With the inauguration of the Ashram flyover extension, built to clear traffic bottlenecks on the ring road in Delhi between Noida and AIIMS, properties along the newly developed facility are likely to witness a boom. Real estate experts say rates in these areas are likely to go up by 10 to 15 percent in the coming few months. Rentals are also expected to rise.
“Areas such as Friends Colony East and West, Maharani Bagh, New Friends Colony and Jangpura are likely to witness around 10-15 percent appreciation in property prices,” said Rohit Chopra of Southdelhiprime.com, an online real estate firm.
“The newly opened facility will clear major bottlenecks on the Ring Road, especially near Ashram, and will provide seamless connectivity up to AIIMS, thereby improving connectivity, so property owners will surely cash on this opportunity,” Chopra told Moneycontrol.
The Project
Delhi Chief Minister Arvind Kejriwal, who inaugurated the Ashram Flyover extension on March 6, said that it would bring major relief to commuters travelling between Delhi and Noida. He said that motorists would be able to travel from Noida to AIIMS signal-free, as three traffic signals between Ashram and the Delhi-Noida-Direct (DND) expressway would be bypassed.
The flyover is an extension of an already existing overpass at the Ashram intersection. It will connect the Ashram flyover with the DND and Sarai Kale Khan. The total length of the flyover, including the ramp, is 1.4 kilometres.
The Ashram stretch on the Ring Road and Mathura Road has been infamous for long traffic jams, which adversely impacted connectivity in the region, particularly during the peak hours in the morning as well as evening.
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According to officials in the Public Works Department (PWD) of the Delhi government, the project was approved by the Cabinet in November 2019 and its foundation stone was laid by chief minister Arvind Kejriwal in December 2019. However, the work could not start due to the Covid-19 lockdown.
Work finally commenced in January 2021 and was completed in March 2023. Some finishing touches are still being given, officials said.
The six-lane elevated road will touch down where the DND starts. Near the DND, the elevated road splits into two wings, with one going towards the DND flyway and the other in the direction of Sarai Kale Khan. The estimated cost of the construction of the flyover is around Rs 128.95 crore.
Impact on real estate prices
Chopra said that real estate development and price appreciation are directly proportional to good connectivity and security, so with improved connectivity in the region, prices would rise 10-15 percent.
He said that during the construction phase of the flyover and also of the underpass at the Ashram intersection, prices of properties in New Friends Colony, Maharani Bagh, Jangpura, Friends Colony East and West saw a decline of nearly 10 percent. This was mainly because of long traffic snarls due to the construction activity.
“A similar thing happened in Vasant Vihar when the new Rao Tula Ram (RTR) flyover was being built. Property prices had dropped there by around 10 percent during the construction phase but a few months after the facility was opened to traffic, prices went up 10-15 percent due to improved connectivity. We may see a similar phenomenon in localities around the Ashram crossing,” Chopra said. He added that the current property rate in Friends Colony East and West, Maharani Bagh ranges between Rs 3.5 lakh to Rs 4 lakh per square yard.
Jaswant Giri, a real estate broker active in the area, also said the opening of the flyover extension would have a positive impact on real estate pricing. “In coming months the property prices in localities nestled around the newly built elevated road will see a hike of around 10-15 percent,” Giri said.
Rent also set to rise
Real Estate experts said that after the inauguration of the flyover extension, rentals in the area are also likely to go up by around 10 percent. “I anticipate a hike in rentals proportionates with the increase in property prices. So, rentals are likely to go up by around 10 percent,” said Chopra.
According to real estate brokers active in localities near Ashram, the monthly rent on an 800-900 square feet 2 BHK unit in neighbourhoods such as Bhogal and Kilokri is Rs 25,000-Rs 30,000. In the more upscale Jangpura and Maharani Bagh, the rents for similar units range between Rs 35,000 and Rs 45,000. A 3 BHK flat of up to 1,400 sq ft in Jangpura can have rents of anywhere between Rs 60,000 and Rs 80,000.
Raman Kumar, another real estate broker, said that in upscale neighbourhoods such as Friends Colony and Nizamuddin East and West, the price of a 3 BHK fully furnished home ranges between Rs 1 lakh to Rs 1.5 lakh per month.
“Since connectivity in these areas will now improve because of the Ashram Flyover extension, the rentals in these locations will certainly spike. An average hike of 10 percent is expected in rentals in these localities,” said Kumar.
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