What Are the Benefits of Metro Rail in Mumbai, India?

We estimate the effects of the first metro rail line in Mumbai using administrative data on assessed property prices from 2011-18 for 723 subzones in the city. Comparing areas within 1 km of the metro with those beyond 1 km but within 3 km, we estimate the effects on property values for commercial, industrial, and residential properties. We find a significant and persistent increase in prices of 6-8% for residential and commercial land use categories in treated areas relative to control areas after Metro Line 1 opens. We show that commute time savings and improvements in employment accessibility are plausible mechanisms underlying these effects.