An Article form realtycompass.com
Indian railways, as we
all know is the 4th largest network in the world, but years of populist
measures and subsidies have made the network slow, congested & ugly.
This Railway budget has
been unique since it has shunned all populist measures and has shown lot of
promise to improve the derelict railway infrastructure. For the first time,
government is recognizing that infrastructure needs to be improved and private
money needs to be brought in to achieve that.
India railways carry
about 28 million passengers every day (equivalent to the population of
Australia). Around of half of these passengers are short distance passengers
who travel from sub-urban areas and other smaller cities around the bigger
metropolitan cities. Mumbai Suburban alone carries 7.8 million passengers every
day.
On an average these
small distance passengers spend 3-4 hrs every day commuting for work from the
sub-urban areas. Not only these passengers end up wasting lot of time on a
daily basis, the condition of trains makes them sweat and fatigued.
If government actually
expedites the process of infusing in private money to modernize the
infrastructure, it would have a huge long term benefit for home buyers and will
open up new micro-markets for real estate growth.
How
Bullet trains will be a boon for Home Buyers:
·It
reduces the time between the CBD (Central Business Districts) to sub-urban
areas by virtually 1/3rd, thus making these sub-urban areas more livable and
well connected.
·Reduces
migration to Downtown, thus releasing the pressure on prices. This creates
spiral effect on home prices in other parts of the city
·Opens
new micro-markets for growth – both for commercial/industrial purpose and
residential purpose
·Better
quality lifestyle for home buyers as ample land is available in sub-urban areas
for top notch health & sports amenities.
·Well
planned integrated townships far away from the city, yet well connected
·Better
appreciation of homes in Tier-2 cities which are well connected via Bullet
train network.
Several studies in
China, US and Europe have shown that Bullet trains have a far reaching impact
on Real Estate prices. China today has connected 100 cities with high speed
bullet train which carries more than 2 million passengers every day. Studies
have shown that bullet train has led to increase of 59% market potential of the
city, translating into over 20% growth in real estate.
Reference
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