The real estate sector has had a progressive impact on the micro-markets in Bangalore in areas including east-west corridor from Baiyappanahalli terminal to Mysore Road terminal and along the north south corridor from Puttenahalli to Anjanapura Township along the Kanakapura Road. Due to the development of Metro, there are many builders coming up with new projects that will bring significant changes in the vicinity of the Metro pathway. With the completion of the Metro project, the real estate prices are expected to soar up by 25percent in the next five years.
In Banglore, the impact of the Metro Rail project will be felt in the north, south, east and west of the city. With plans already afoot for Phase III of the project, this ambitious infrastructure project will change the landscape of the city, stretching its boundaries further beyond and creating micro markets in the suburbs of the city.
As the city grows, and the population increases, the main factor that will contribute to the city’s realty appreciation will be connectivity. In the east, locations like Baiyappanahalli, Old Madras Road, K R Puram and CV Raman Nagar, which are along the operational Metro line have witnessed appreciation of around 20 percent in property prices since the Metro become operational. This is largely due to enhanced connectivity with Indiranagar and M G Road. North of the city being the future growth corridor due to its proximity to the airport and availability of land parcels, has also witnessed the effect of the underconstruction Metro project. Yeshwanthpur and Rajajinagar are witnessing significant real estate activity in all the asset classes. In the southern parts of the city, where the Metro reach is anticipated to expand by next year, the capital values are expected to move up. Locations like Jayanagar, Banashankari and Kanakapura Road are expected to be the beneficiaries. The western parts of the city have still not witnessed much momentum in real estate activity as the Metro connectivity is planned up to Mysore Road. Once the accessibility of west Bangalore improves, considerable real estate activity is anticipated for both commercial and residential assets. Although there is optimism about the positive impact of the Metro on real estate development of the city, the actual impact will be seen once Phase I nears completion.
As cities expand, they are faced with multiple issues but none is as critical as that of suitable physical infrastructure. Bangalore is no different. Bangalore’s traffic woes have been well documented and the infrastructure issue in Bangalore is serious with far-reaching ramifications. The Metro offers a solution to many of these issues. As we see it today, the Metro will extend and connect almost the entire city – central, peripheral and suburban districts. As commute times reduce, it will most certainly have a positive impact on both residential and commercial capital values.
According to Avinash Rao – Regional Director (South) – Knight Frank India, “The Metro is designed in such a way that travelling to any corner of the city will be a matter of minutes and as a result this is expected to impact the growth of the secondary micro-markets positively and decongest the central areas of Bangalore.
In the north, the main infrastructure projects such as the international airport and the seamless Outer Ring Road will be a value add to the real estate development.
The impact of Metro on the northern quadrant will be up to Nagawara. Locations such as Nagawara, HBR Layout, Hennur Main Road, and Kammanahalli are expected to see positive impact. Further, the Metro will impact Hennur Road positively on account of the location in proximity to the central area of Bangalore. In addition, the Hennur Road stretch is expected to see healthy real estate growth.
The IT bastion, this sector will see increased connectivity to the Central Business District once the Metro project reaches Bannerghatta Road. “Locations such as Koramangala, BTM layout, Bommanhalli and Electronic city are expected to have better connectivity to the central regions. Also, the Metro along this stretch will decongest Sarjapur ORR which is densely populated.
The M G Road-Kanakapura Road corridor will impact locations such as Jayanagar, J P Nagar, Banashankari and Kanakapura Road. Kanakapura Road will benefit the most as this stretch is witnessing good real estate activity. It needs good connectivity to micro-markets such as Jayanagar, J P Nagar and Banashankari.
In this section of the city, the Whitefield corridor will be greatly benefitted by the Metro connectivity. Whitefield is a growing micro-market and this project will add significant value to the residential and commercial property prices here.
The growth in this location has moved to Hoskote. Narsapur is tipped to be an automobile hub. With all these developments, the increased connectivity that the Metro will bring will change the dynamics further.
Yeshwanthpur is already a changed location today. Its growth story has been stupendous, given the number of projects that have come up here. With the Metro connectivity up to Hesaraghatta and plans to extend this to the international airport, industries will get a boost with the additional connectivity.
The Kengeri stretch will have a major impact on micro-markets such as Mysore Road, NICE Road, and Kengeri Satellite Town. The Mysore Road stretch has been witnessing heavy traffic and the Metro will significantly enhance connectivity, and thus propel real estate developments mainly in the residential and retail segments.
Alok Kumar Upadhayay
Real Estate Professional