Connectivity factor and realty prices

A major factor that helps in appreciation of property value is road connectivity to important landmarks from the project site. Builders advertise about new project launches which often carries a list of amenities and facilities, and connectivity to major hubs finds a prominent place in the list. 

Property brokers or developers generally take advantage of this good connectivity factor and possible appreciation value of the property in future, to off load their inventory to prospective clients. But is there any relationship actually exists between better roads and real estate values? 

Basically, good roads reduce the time of travelling between the destinations. This has a direct impact on residents on both sides of the road and adjoining areas. We have seen the real estate value appreciation whenever any new major road link was announced. 

“I have a piece of land in Sholinganallur, which I bought in 1998 for Rs 40,000. With the new elevated 400-feet Outer Ring Road connecting Vandalur to Minjur getting ready, the plot value along the corridor has risen phenomenally and I understood from the market that my plot would fetch between Rs 11-12 lakh if I sell now, says S Gopal, who works with Army accounts.

Better road connectivity also helps to improve overall safety of the locality. During emergency situation like fire or natural calamity, services such as fire brigade and ambulances can reach the area faster. On health point of view, residents can reach hospitals or health centres faster if they have better road network.

Such facility would help employees working in the nearby offices or industries to reach and return from their workplaces faster, thereby they can spend some quality time with family. The same principle applies to school-going children also. 

As cities are increasingly affected with vehicular pollution and extreme climate,  exposing one to longer period while travelling between workplace to home would cause various physical ailments. Several health issues such as lung infections and deep vein thrombosis are directly linked to extended automobile travel on a regular basis, according to health experts.

Also, as road connectivity shortens the travel distance between shops and other market places, it can further encourages the residents to use pro-health travel mode such a bicycle or one can even walk down to these places. Another advantage for good road connectivity would be less fuel consumption and hence saving some money for home and country.

So, it is amply clear that good roads have a major impact on real estate prices in the respective areas.

“Simply put, there is a high demand for homes in well-connected areas because they provide easy, safe, healthy and cost-effective life style to residents. In this context, in Pune, the arrival of the PCMC Spine Road has become a game-changer for the region's real estate market, says Anil Pharande, Chairman - Pharande Spaces and Vice President of CREDAI Pune Metro. 

Explaining further he says, Spine Road is a major contribution to the PCMC real estate sector by the Pimpri Chinchwad New Township Development Authority (PCNTDA). The road connects two major highways and also provides an access to key in the PCMC. This is the longest road within the PCNTDA limits and hence plays major role in relieving traffic congestion on link roads. It also features six lanes with separate cycle tracks, service roads at applicable areas provided with parking lots, thereby improving the quality of living for residents living on both sides and adjoining areas.