Impact of metro on real estate Bangalore
The Bangalore metro has proven to be one of the most useful assets in the city. The real estate sector has had a progressive impact on micro markets in Bangalore through which the metro track passes. Areas like CMH road, Byappanahalli and others which are connected to metro are witnessing a significant change in their property prices. The property prices in Bangalore have increased to 20% as compared to last year and have adopted various infrastructural developments as well. The metro project is set to change the landscape of Bangalore with major changes in North, East and South Bangalore. The Metro Phase II is expected to boost the suburban localities in Bangalore.
The phases of metro:
The impact of Bangalore metro is based on three phases of the metro, i.e., the pre-construction phase, under-construction phase and post-construction phase. The pre-construction phase has witnessed a significant launch of projects in the metro connected areas and the under construction phase is witnessing a nominal increase of 2% in the metro connected areas with the increase in the launch of projects in peripheral areas. The post construction phase will see a significant increase in the property prices of about 25-30% in the areas connected to the metro routes.
Bangalore areas impacted with the development of metro:
According to a study done by centre of environmental planning and technology, the impact of metro on commercial properties is more than the residential properties, as the increase in the land value within 500m of metro line is 11% for residential area and 19% for commercial area. Moreover, the threshold limit for the commercial area is approx. 800m in comparison to 500m for the residential property. Studies have also indicated that the gap between the property prices of the peripheral areas and the city centre will almost diminish once the metro gets completely operational.
As per the development of metro, areas like Yelahanka, Hesarghatta, Puttenahalli, Jayanagar, Electronics City, BTM Layout and Nagavara will witness a drastic change in the property price due to the metro connectivity. Earlier, the launch of metro hadn’t shown the amount of real estate benefits as expected, in fact it was believed that a timely conception and execution of the Namma Metro project will help both the existing owners and developers planning projects in the areas. It is predicted that the real estate market will reach the heights and the property price along the metro routes will increase up to 25% in the next five years.
Upcoming projects based on metro:
Many developers are planning their projects keeping in mind the metro development in that area. Major projects like Prestige Park View and Salarpuria Greenage are less than 500 m away from a proposed metro station. While projects like Skylark Esta, Keerthi Royal Palms, Habitat Crest, Foyer Infinity, MJR Platina, Gopalan Urban Woods are less that 1 Km away from the metro station.
When will the metro have a greater impact?
It is believed that the real impact of the metro will be visible only when the second phase is operational. As of now it is only a plan on how and where to invest by the buyers and sellers. Based on various studies, one can expect that there will be 20%-30% appreciation upon the completion of the Phase II. The prices in areas with micro market have already increased by about 10%-15% and will see more appreciation with the completion of phase II. While there will not be any increase in major areas like MG road, Indiranagar etc. of the city as they are already saturated.
Considering metro development, when to buy or sell a property?
With the development of metro, property owners in metro connected areas can have great benefits. Real estate advisors suggest that property owners can benefit to a greater extent by either selling their property once the metro becomes completely operational or by putting up commercial establishments. They can also rent it for commercial or retail purposes to fetch the maximum gains.
Similarly, property owners who reside in localities away from metro corridors should opt for buying a property around the proposed metro stations as this will benefit them with increased connectivity and increased real estate development. Henceforth, it is better that if you are planning to buy or get a property on rent, you should do it before 6 months of the full-fledged metro operation.
Phase II of the Metro will be operational in 2017 and will cover 72.09 km with 61 stations. This is getting the property developers and residents of Bangalore really excited as this metro phase will ensure that this public transport would serve the IT population of this city in a better way; the east-west corridor would be extended up to Whitefield in the east and Kengeri in the West. The north-south corridor would now be extended up to the Bangalore International Exhibition Centre in the north and up to Anjanapura township in the south.
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