THE ASSOCIATION BETWEEN MASS RAPID TRANSIT AND RESIDENTIAL PROPERTY VALUES: EVIDENCE FROM BENGALURU’S NAMMA METRO

Abstract

Transit networks significantly influence city evolution, with mass rapid transit systems enhancing access to jobs, housing, and infrastructure. The Indian government is promoting metro rail projects to strengthen public transport, and many cities are developing their metro rail corridors, making an understanding of their impact crucial in the Indian context. This study investigates the relationship between the mass rapid transit system (Namma Metro) and residential property values in Bengaluru, India. Additionally, it examines the association between newly operational and existing metro lines on property values across neighbourhoods in Bengaluru. The study uses an empirical quantitative approach, combining quantitative data analysis with hedonic price regression based on household surveys for the year 2023. The regression results indicate a positive relationship between residential property values, proximity to metro stations, and household income levels, suggesting that properties in closer proximity to metro stations have higher predicted values, while higher-income households are more likely to reside in these areas. The findings have significant implications for urban planning and policy decisions. They help understand how building metro stations may be associated with 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.