Analysis of Impact of East West Metro Corridor on Land Use

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Analysis of Impact of East West Metro Corridor on Land Use

By:Anirban MahajanGuided By:Prof. Uttam Kumar Banerjee


ObjectivesThe objective of this project are:

To analyze the impacts of the East West Metro corridor on the zonal land use development.

Scope of WorkThe scopes and limitations of the dissertation include:

Delineation of the major influence area along the proposed East West Metro corridor, Kolkata. Study of existing Transport Situation of the study area. Study of existing facilities in the study areas. Assessment of change in infrastructure development of that area due to up coming East-West metro. Land use analysis and results due to the metro corridor.

Limitations Not to Design proposed Metro Stations. Not to Design any facilities for the Metro Stations.

Introduction


Project JustificationIn recent years, land value capture has attracted increasing attention as a result of its potential for funding transport infrastructure. Location plays a key role in property choices. Accessibility is one of the most important factors about location.Transport infrastructure can improve accessibility to both employment and amenities suggesting that improved accessibility can add value to land. The question is ‘‘Can this added value be captured to fund or partly fund transport infrastructures?’’ To answer this question it is crucial to examine the evidence as to how much value transport facilities add to land value.


Determining the Influence Zone of Metro affecting Land Use

Study of existing transport system, demographic,

socio-economic structure

Objectives

Final Result

Literature Review, Case Studies, Primary Survey,

Secondary Survey

Influence Zone to be analyzed based on Spatial Criteria

Delineating the metro station influenced zone

Prediction of levels of zonal land use development

Project Methodology

Existing Transport System of Study Area

Analyzing the changes in land use transformation due

to metro railAvailable Infrastructure

Results

Broad Study Domain


East-West Metro Proposal

Master Plan was prepared in 1971 for the construction of rapid transit rail lines with a total route length of 97.5 km.

Introduction

Route Length (km)

Status

Dum Dum - Tollygunge 16.45 OperationalTollygunge - Garia 8.70 OperationalSalt Lake – Ramrajatala(East – West Metro)

17.10 Detailed Project has been prepared

Dakshineswar- Barrackpore 26.70 Conceptual, No progressDum Dum - Barrackpore 15.50 Conceptual, No progress

The proposed East-West metro corridor (EWC) was initiated by West Bengal Government, who transferred the project to Kolkata Metropolitan Development Authority (KMDA).

KMDA then commissioned Delhi Metro Rail Corporation Ltd. (DMRC) to undertake the feasibility study entitled ‘Detailed Project Report East-West Corridor of Kolkata Metro’. The current status of the lines are as

follows:

JBIC Pilot Study on Urban Transport Development in KMA, Draft Final Report, 2007


Project Rationale Wetlands prevent further expansion of

Kolkata to the south-east.

The places like Rajarhat to the east and north-east of Salt Lake City are getting developed.

Sealdah Station could not accommodate increased volumes of passenger demand from new development.

The large-scale development at Rajarhat is not within proximity of a suburban line connecting the city centre.

Project Route The proposed EWC alignment was conceived to

run along the route of New Das Nagar - Haora Station - Metro Central - Sealdah - Salt Lake- New Town.

The DMRC Study proposes that the rail corridor should proceed to Salt Lake Sector V initially, with a later extension to New Town.

Haora will be the terminal station requiring crossovers and tail tracks to permit reversal of trains.

Source: http://kmrc.in/home.php


Passenger Volume Forecast The total population:

KMC, Haora Municipal Corporation Area,Salt Lake City and New Town - estimated to grow from 5.8 million in 2001 to 6.5 million in 2011.

About 171,000 bus passenger board along the influence strip of the proposed metro corridor.

The number of passengers having both origin and destinations along the metro corridor is 51,000.

The metro corridor was forecast to provide the greatest daily passenger demand of 635,000 passengers per day and 4.5 million km/day in the year 2011.

The peak hour peak direction trips are calculated at 23,000 phpd for 2011 and 27,700 phpd for 2021.

The EWC passenger volume is 550,000 in 2011 rising to 675,000 in 2021.

The existing N-S passenger volume is forecast to roughly double by 2011.

Metro Passenger Demand (without extension)Source: Data within DMRC Report, 2006


Fare Structure

Distance (km)

Fare (Rs.)

0-2 8

2-4 9

4-6 11

6-9 13

9-12 15

12-15 16

15-18 17

18-21 19

Proposed E-W Metro Fare Structure (2011)

The proposed fare structure of the EWC is recommended by the Fare Fixation Committee of DMRC.

Source: DMRC Report. March 2006

Fare Affordability Affordability much depends on income and the proportion of

income that the public is prepared to spend on transport. For 1997/98, over 50% of the population is stated as having a

monthly income of under Rs.3000. The DMRC Report also indicates that

In a sample of 48,000 households, 57% stated no income.

Comparison of Fare Structures (single journey) for Public Transport Modes in Kolkata


Socio-Economic Issues A potential non-financial threat to the implementation of the EWC may arise out of the essential

requirement of land acquisition.

As the route of the proposed EWC will have to pass through long patches of high-density settlements, the social and financial cost of resettlement and compensation may be high.

No workers' union will have any reason to oppose the project. On the other hand they may welcome the project

Implementation Timeframe The timeframe for sanctioning of the project was

stated in the DPR as beginning of 2006.

The project is therefore currently 1.5 years behind schedule.

Karunamoyee Metro Station


Case Study I: Delhi MetroTransportation Investment ImpactsDirect economic benefits Travel Time savings, vehicle cost savings,

transit option value, environmental benefits.

Indirect Increase in property values Land use changes,

Benefits of improved access to jobs & critical locations, benefits to employment wage & productivity.

Research Focus Analyse land value changes

Over Time – Project Stage• Project Formulation stage (year 1990-1996)• Construction stage (1996- 2000) and• Post project (2001-2006)

Over space• City Level• Across different areas/localities• With in localities

Decompose land value increases to metro and non-metro effect

Comment on Value Capture


Delhi Mass Rapid Transit Project: An Overview

Total four phases, first phase complete.

Total length of first phase 50 km

Total cost of first phase 25550 million

Cost per Km of first phase 511 million rupees per km

Total length of full system 167 km

Total capital cost of full system : 53775 million

Return Expected from Property Development : Rs 1533 million


2005

200019961990C

omm

erci

al L

and

Val

ues

Distance from CP

1. Land values as a function of distance from CBD

2005

2000

19961990

With Metro becoming operational, The curve is becoming flatter Land values in periphery is increasing Changing Urban Structure – Alternate CBDs The effect of improved access.


2. Inter Zonal Analysis

Inter-zonal Analysis (16 zones) Intra-zonal Analysis

ZonesA: Old City E: East DelhiB: City Ext (Karol Bagh) G: West DelhiC: Civil Lines H: NW DelhiD: New Delhi K: Dwarka

Inter Zonal Analysis… Increase Land Values Zones A, B, C, D have above average growth rate

till 2000, due to location advantage.

Since 2000, only B maintained its average growth rate, as compared to A,& C, as it has residential component, whereas zones A & C have more commercial areas.

With coming of Metro, the zones in vicinity of Central Zones (A,B,C,D) also have above average growth rate in land values.

The zones which were far from theses prime zones, also attained land value increase.

Zones G,H,K, have higher growth rate as compared to the zones in vicinity of central zones

Zone E has seen significant increase in commercial growth.


3. Land values and distance from metro

Land value change analyzed in belts along metro line:a: <500mb: 500m-1000mc: >1000m

Zone ‘A’ shows saturation in residential areas as there is no effect of distance on land values. In the peripheral zones ‘E’,’H’ and ‘K’ which are in developing stage; impact is high and clearly

visible. There is an average increase of 8-10% and 15-18% in values as we move from belt ‘a’ to belt ‘b’ and

‘c’ respectively


Land value analysis by subzones for zones E,G,H & K

Variation by time (before and after project completion) Variation by land use Variation by distance from metro

Most properties in all zones lie between 10,000/- to 20,000/- per sqm.

Besides the Metro facility, there are other factors which affect the land value.

To assess degree of impact of metro on land values, a more detailed regression analysis done using other factors like:

location, dist from metro line, yrs of metro operation, infrastructure availability, nature of development.

Intra-Zonal analysis


Summary

1. Distance from Metro

Hedonic Analysis: The variables which are having a significant impact on land value are:

Distance of land from Metro Line Distance of land from CP Location of area Income group

Among the variables ‘distance from the metro’ alone explains the 22% of the variation in the land value. Thus, impact of Metro is a major role on real estate prices.

Land value decreases as one moves away from the metro line.

Within 500 mtrs of Metro Line, change in land value is higher and is more or less same for both the residential and commercial properties.

Between 500m to 1km, change in land value is more for commercial properties.

2. Land use EffectThe impact of metro on residential land value is less as compared to the commercial properties.

On an average land value within 500m of metro line increased by 11.3% and 18.1% for residential area and commercial area respectively.

Increase in land value is highly dependent on the income of the people occupying the area. These are also the areas which are planned.

3. Number of years of Operation of Metro

Land Value changes are more consistent and higher after the operation of metro as compared to the construction and planning stage. (land value increases by 2- 4% every year.)


Developmental Transformations in and around metro stationsMetro station Type of structures Activity

Before After Before After

Dwarka Low residential area Residential apartments coming up approved by DDA

Residential area Increased residential use.

Dwarka Mod Unapproved area covered by slums

Single storied buildings, unapproved colony.

Low residential area Dominant land use is residential,Development of informal commercial activities.Small size shops all along the metro line

Nawada

Uttamnagar West Single storied buildings occupied by lower middle class

Lower middle class residences predominantly two storied buildings

Residential area with very few shops.

Dominant land use is residential but small size shops all along the metro lineUttamnagar East

Tilaknagar Upper middle class residential area

High and upper middle class residences predominantly two storied.Multi-storeyed commercial Buildings.

Residential area with few commercial centres located within the residential zone.

Dominant land use is Rajouri garden residential.New categories of higher order commercial activities coming up.

Rajouri Garden

Kirti Nagar

Patel Nagar

Rajendra Place

Shahdara Prior to metro slums were there

Single storied lower middle class residences.

Lab our class residential area.

More residential character.Commercial complexes coming up.

Pitampura Scarcely populated single storied structures

Newly developed residential areas, predominantly two storied structures.

Predominantly residential character

Increase in commercial Rohini activities.

Rohini

New Delhi Station Combination of old and new structures

Combination of old and new structures

Mixed land use Commercial use is dominant

Karol Bagh High income group residences

Apartments coming up Residential area Dominant residentialcharacter

Connaught Place Multi-storeyed commercial buildings.

Multi-storeyed commercial buildings

Commercial hub Commercial hub of the city.


Impacts on urban structure is significant. Integrated land use transport planning.

Metro contribution to land value rise is about 22%. A part value is captured in property taxes. Re-appropriation is difficult as there are 2 different agencies.

Value capture is possible only if linked to additional FSI/TDR1.

To reap benefits of better accessibility, redevelopment schemes for non-planned/slum areas.

Right time to capture value – First Create Value and then Capture.

Conclusion


Case Study II: Naples Metro Naples case study is based upon Empirical studies. The empirical research focus on land-use and

economic effects. Rail transit system land-use impacts involve urban

physical transformations. Property value studies show higher impact

intensities than the land-use impact studies.

Naples is a Large Urban Zone (LUZ), i.e. an area with a significant share of residents travelling to work within the city.

Provinces Inhabitants Area(km sq)

Residential density

(inh/km sq)

Caserta 852,872 2,639 323

Benevento 287,042 2,071 139

Naples 3,059,196 1,171 2,612

Avellino 429,178 2,792 154

Salerno 1,073,643 4,917 218

Total Campania

5,701,931 13,590 420

Between 2001 and 2007 several new rail lines were opened with upgrading and opening of many stations both in central and peripheral areas of the city of Naples.

Campania region: Residential densities

Source: ISTAT 2001


Methodology

Since the opening of new lines and stations has occurred in different years, this study considers two separate data sets:

one for the year 2001 when the extension of Line 1 (L1) was conceived the other one for the year 2008, after the opening of Line 6 (L6).

Line 1

Line 6 Catchment and control areas considered in this study


The case study considered the time frames 2001–2005 and 2005–2008.

Catchment areas have been identified as areas where both land-use and economic impacts are expected from the introduction of a new rail line.

The areas of 500 m radius around the stations have been adopted as catchment areas (this would approximate to about a 7 min walk).

A set of control areas has been identified as a control area should have similar characteristics to its paired catchment area. the control area should not have benefited from other improvements or the presence of other metro stations.

Percentage changes (for different types of property) have been computed with GIS techniques as the average change of the values in census tracts belonging to station area.


Results and analysis

In the time frame 2001–2005, the increase of property values in the station catchment areas is higher compared to that of the control areas for all types of property.

While in the time frame 2005–2008, the trend is decreasing for shops.

In fact for shops, property values decrease considering the trend of the property market in the Municipality of Naples.

Therefore the introduction of a new station has a positive impact on property values of all types. In control areas the decrease of property values is higher than in catchment areas. In order to compare results between catchment and control areas, property prices (Euro/m2) have been

normalised into a 0–100 numerical range, assuming the year 2001 = 100. In the following section a detailed analysis of each group of stations is carried out.


Stations of Line 6: Control area - Fuorigrotta (Opening year : 2007)

Analysis of the housing property price. For catchment area Augusto and control area Fuorigrotta

For 2001-2005: Increase in price for Augusto For 2005-2008: Decrease This is because there was no real urban renewal intervention in the station area when Augusto station opened.

For catchment areas Mostra and Lala Increase in property price for both 2001-2005 and 2005-2008.This is because urban renewal interventions carried out in both stations’ areas.

Analysis of the retail property price. For 2001-2005: Increase For 2005-2008: Decrease for both catchment and control areas.

Analysis of the office property price. Positive increase during the period 2001-2008.

Property price index for housing, retail and offices in Mostra, Lala, Augusto catchment areas and Fuorigrotta control area.

Average change in number of residentsFor areas Mostra, Lala and Augusto:

2001-2005 (0.03%) 2005-2008 (0.02%)For control area of Fuorigrotta:2001-2005 (-2.85%)2005-2008 (-1.90%)


Stations of Line 6: Control area - Mergellina (Opening year : 2007)

Property price index for housing, retail and offices in Mergellina catchment and control area. Mergellina station is located in a central part of the town with easy access to transport rail services

before the year 2007.

From 2001 to 2005, positive percentage changes for all property types can be observed. They are almost equal to the values in the control area, except for retail properties. From 2001 to 2005, before the station opened, the impact of the forthcoming railway station was

strong. From 2005 to 2008 the housing and office property price indices still show positive trends. This means that the ‘‘metro effect” was also evident after its opening. The retail property price index in contrast decreases from 2005 to 2008, like the stations for the

Fuorigrotta area.

Average change in number of residents2001-2005 (2.72%) 2005-2008 (1.90%)This trend is same for the control area.


Stations of Line 1: Control area - Quattro Giornate (Opening Year : 2001)

Property price index for housing, retail and offices in Quattro Giornate catchment and control area.

From 2001 to 2005, the housing property prices increased less than in the control area. However from 2005 to 2008, the house prices increased faster than in the control area.

The same phenomenon is observed for office property price indices.

For retail property prices the percentage change is higher than in control area from 2001-2005, whilst from 2005-2008 a decrease is observed in both catchment and control areas.

The opening of the station in 2001 had its main impacts on property values in subsequent years.

Average change in number of residentsFor areas Quattro Giornate :

2001-2005 (-2.26%) 2005-2008 (-1.50%)For control area of Quattro Giornate :2001-2005 (-2.84%)2005-2008 (-1.90%)


Materdei and Salvator Rosa are two boroughs of Naples where the opening of the metro stations had a very significant impact on property prices.According to the analysis, the property prices of shops did not get benefited after opening of the metro.

Average change in number of residentsFor catchment areas :

2001-2005 (-1.64%) 2005-2008 (1.09%)For control areas:2001-2005 (-2.87%)2005-2008 (-1.91%)The trend is same for Dante.

Stations of Line 1: Control area – Materdei (2003) and Salvator (2001)

Property price index for housing, retail and offices in Materdei and Salvator Rosa catchment areas and Materdei + Salvator Rosa control area.

Stations of Line 1: Control area – Dante (2002) and Museo (2001)Average change in number of residents for Museo catchment area:

2001-2005 (2.49%)2005-2008 (1.66%)

For Museo and Dante station catchment areas an average increase of prices is observed for all property types during the period from 2001-2005.

From 2005 to 2008 the same effects occurred around Materdei and Salvator Rosa stations because this group of stations are located in the same part of the Municipality of Naples


Stations of Line 1: Control area – Piscinola (Opening year: 2003)

Property price index for housing, retail and offices in Piscinola catchment and control area.

Average change in number of residentsFor catchment areas :

2001-2005 (2.18%) 2005-2008 (1.46%)

PopulationThe change in population is due to gentrification where the migration is from the city centre towards peripheral area.Piscinola benefits from this migration because it is mainly a residential area with good accessibility to the city centre.

AnalysisAnalysis shows that all types of property prices increased faster than in the control area from 2005 to 2008, after the opening of the station.In the previous period (2001–2005) the opening of the metro mainly affected prices of shops and offices.


Values are shown to be higher in station catchment areas than in control areas only in specific cases due to several factors:

1) Location2) Local property market trend3) Connectivity given by the new metro line to the city centre

This phenomenon is more evident in inner city stations’ catchment areas, which did not have good accessibility to other urban, regional and national rail services before the opening of the metro line.

Gentrification is observed in the urban area of Naples.

Migration from the central part of the town, where property prices are higher, toward peripheral areas, which are well served by the urban rail system, with lower property prices growing slowly.

Conclusions


Data Collection

Data Source

Household Travel SurveysHouseholds by SizeIndividuals by Monthly Income

Directorate of Census OperationsWest Bengal

Purpose wise Distribution of TripsTransport Demand Forecast

Trip GenerationTrip Distribution

1) Detailed Project Report, E-W corridor of Kolkata Metro, March 2006 by DMRCL2) Kolkata Metro Rail Corporation Ltd. (KMRCL)

Landuse ParametersZone wise Population and Employment

Directorate of Census OperationsWest Bengal

Metro Rail Passengers’ Data Kolkata Metro Rail Corporation Ltd. (KMRCL)

Land Use Plan of Kolkata National Atlas and Thematic Mapping Organisation (NATMO)


Bibliography

Documents/Reports Web Sites

JBIC Pilot Study on Urban Transport Development in KMA, Draft Final Report, 2007.

Detailed Project Report, E-W corridor of Kolkata Metro, March 2006 by DMRCL

http://upload.wikimedia.org/wikipedia/commons/4/41/Ew_metro.png; http://kmrc.in/home.php

Impact of Delhi Metro on real estate by Prof. H.M. Shivanand Swamy, CEPT University.

http://www.iutindia.org/urban09/041209/H.M.Shivanand%20Swamy.pdf

Urban rail systems investments: an analysis of the impacts on property values and residents’ location, by: Francesca Pagliara, Enrica Papa

http://www1.caminos.upm.es/music/files/Urban%20rail%20systems%20investments.pdf

The short-term land value impacts of urban rail transit: Quantitativeevidence from Sunderland, UK, by: Hongbo Du, Corinne Mulley

http://www.sciencedirect.com/science/article/pii/S0264837706000020


Thank You!

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Analysis of Impact of East West Metro Corridor on Land Use