The long-awaited Bangalore Metro (Namma Metro in Kannada), which is expected to be completed by March 2016, has come as a boon for property developers. The realtors are witnessing huge appreciation in property prices ever since the construction for this large infrastructure project began way back in 2007. Property prices have increased by up to 450% along the corridors of Metro.
According to real estate experts, the demand for properties – land, office space and even residential space – along the stretch between MG Road and Baiyappanahalli on the East-West Corridor and Yeshwantpur, Kanakapura Road, J P Nagar, Jaya Nagar on the North-South Corridor has increased manifold. This has resulted in property prices shooting up enormously.
“Prices have picked up ever since Metro project work started. For example, in Yeshwantpur, prices have zoomed up to R11,000 per square feet and going up to Rs 15,000 per square feet from just about R2,000 per square feet in 2008 when the work started for Metro,” Satish B N, executive director, Knight Frank India, the Indian arm of global property consultancy firm said.
Property prices in Yeshwantpur area were quoted at Rs 1,500 per sq ft to Rs 2,000 per sq ft in 2007-08, he said. Similarly, despite general market slowdown, the southern parts of Bengaluru, where Metro is still under construction, highest number of new projects have been launched in localities like Kanakapura Road, J P Nagar and Anjanapura among others.
In total, the Metro Rail in Phase-I comprises of 42.30 kms between two corridors. The East-West corridor covers 18.10 km and North-South corridor covers 24.20 kms. The East-West corridor begins from Baiyappanahalli in the east and reaches up to the outer ring Road of Nayandanahalli by connecting Mysore Road in the west.
The north-south corridor begins from Hesaraghatta Cross on Tumkur Road in the north side and reaches up to Kanakapura Road by connecting Puttenahalli cross in the south. The Bangalore Metro Rail Corporation Limited (BMRCL) is already operating trains on a part of east-west corridor from Baiyappanahalli to MG Road and from Mantri Mall to Peenya Industrial area on the North-South corridor. The entire Phase-I is expected to be operational by March 2016.
“The realtors and the public had lot of expectations on Metro. However, the slow pace of work has resulted in slowing down of several projects along both the corridors. The full effect can be seen once the Phase-I is completed,” said Suresh Hari, a senior official of Confederation of Real Estate Developers’ Association of India (CREDAI).
Besides Yeshwantpur, property prices have also gone significantly in other areas such as Baiyappanahalli, Old Madras Road, Mysore Road, Vijayanagar and Magadi Road among others where the Metro work is in full swing. In areas along side of Old Madras Road, property prices have increased as much as 150% and ruling at Rs 9,000 per square to 10,000 per square feet from just about Rs 3,000 per square feet in 2008. Mysore Road and Nayandahalli, where the East-West corridor of Bangalore Metro is terminated, price appreciation has been much slower compared to other areas. Here, prices have increased by over 160% to Rs 4,000 per square feet from Rs 1,500 per square feet in 2008.
“Lack of other infrastructure facilities and absence of IT and technology companies on Mysore Road are the main reasons for slower growth in property prices. However, Mysore Road is the next growth corridor in terms of real estate development. Once the Metro is completed and the completion of track doubling between Bengaluru and Mysuru, the prices will appreciate much faster,” Hari said.