With the Bangalore Metro Rail set up and run, the impact on the values of properties is positive. As soon as the Bangalore Metro Rail took off, it had a positive effect on Bangalore’s residential and commercial real estate market.
Bangalore property experiences a boost upon the construction of the Namma Metro
The Bangalore’s Namma metro has proved out to be one of the most beneficial projects and most useful assets to the residents of the city. The real estate sector witnessed a positive impact on the Bangalore’s micro markets through which there was a passage of the metro track. The areas like Byappanahalli and CMH are witnessing significant changes in the property prices. Since the inception of the Bangalore’s metro in 2012, the property prices in the city have augmented to as high as 20% as compared to past few years and have also adopted some of the major infrastructural developments too. The Namma metro project changed the landscape of the city with major changes being experienced not only in the north, south and east but across the overall Bangalore property market.
Regions through which the metro passes and its impact on property prices
The areas or the regions that experienced connectivity due to Namma Metro subsume Nagavara, BTM layout, Electronics City, Jayanagar, Puttenahalli, Hesarghatta, Yellahanka, Baiyappanahalli, Mysore Road, MG Road etc.
As per a study conducted by centre of environment planning and technology, the impact of Namma metro is more on the commercial properties as compared to the residential properties, as the augmentation in the land value in a radius of 500m of the Metro line is about 19% for the commercial area and 11% for the residential area. However, it has been indicated by several studies that the gap between the prices of the real estate property of Bangalore city center and the peripheral areas will get diminished once the metro becomes completely operational.
Earlier, the launch of metro did not show the amount of real estate benefits that were actually expected. In fact, many real estate experts and other bodies believed that the timely construction of metro lines and in time execution of the Namma Metro Project will help the existing owners and the upcoming real estate developers in the areas connected with Metro considerably, but the result was not an immediate growth. Slow and gradual increase in property prices is undeniable in the area. Though there was an increase of 20 % in the prices, but it was a gradual increase which is expected to even high in the years to come. The real estate gurus are predicting that the real estate market will reach its height as the metro routes will increase and major infrastructural developments will take place in the next five years.
Capital Values of Properties to Rise
The Namma Metro Rail project of Bangalore is envisaged as one of the major game-changers in the real estate scenario of the city, as by interconnecting different parts of the city whilst reducing congestions from the roads of Bangalore significantly it will certainly cut down the commuting time for people.
The Phase 1 of the metro rail project largely covers all the city centers of the area on the east-west corridor and the north-south corridor, while the Phase 2 is expected to cover-up all the major areas of the city and is anticipated to provide the much required “last-mile” connectivity to the commuters while optimizing the utilization of the Phase 1 of the project.
All the areas connected by metro including all the city centers and fast-growing locations in the other areas of city like Bannerghatta Road, Tumkur Road, Mysore Road, Whitefield. All these areas are also expected to witness great developments in terms of all the core property and real estate asset classes and categories.
Improved connectivity and lesser commuting time is certainly an encouraging factors for people to choose the suburban locations of the city for their residential purchases, which in turn, would further catalyze the development of social and physical infrastructure in these areas like retail developments, healthcare, school, entertainment and leisure facilities. All these developments, undoubtedly, impact the real estate prices in any area and when the areas are connected to IT city like Bangalore, certainly the price augmentation in real estate prices will be considerably higher. Substantial development and increase in real estate prices are certainly going to be the two by-products of Namma Metro project in Bangalore.