The effect of proximity to the transit system on property values has become a key issue of discussion on public infrastructure and economic development. This article aims to examine the impact of selected stations on the blue line of Delhi mass rapid transit system (MRTS). The impact was observed on 1256 commercial property sold before and after the commissioning of these stations on the blue line in 2005. Hedonic Price Analysis (HPA) models are used to control other characteristics, such as structural, environmental, locational, neighbourhood and accessibilities in estimating the effects of proximity to metro rail on commercial property values. The method is applied to two time periods from 2000 to 2008 that coincide with the planning and construction (pre-commissioning stage) and operation phase (post- commissioning stage) of the metro rail system. Using sale prices of commercial units near metro rail stations, the study reveals the potential effects on values in the existing commercial property market. The results indicated that the station node shows a negative trend except one during the planning and construction period. The possible reason may be due to traffic, noise, pollution and poor collection of commuters by the existing Delhi bus transportation system. During operation of metro rail system, the results showed that it has produced a significant price premium associated with nearby commercial properties, realised due to improved accessibility, strong collection of users, and a new mass transit system. The coefficients show that the metro rail has induced increase in price premium by 732.7978 ₹to 246.1906₹ (station-wise) in the vicinity and the impact extends to almost 500 meters away from MRTS stations.