The Metro, offering the convenience of quick and easy travel, has pushed up demand for property along the corridor. Property prices in the vicinity are set for an uptrend
With IT becoming the mainstay of the city, the population here has been increasing, necessitating better infrastructure to cut down on congestion and travel time to the different IT clusters.Bengaluru's population, according to the official census report for 2011, has crossed 8.40 million. The city has also been expanded area-wise into Greater Bangalore, segregated into 198 wards from the earlier 100.
Also, with high land prices in core city areas with limited land available, the outskirts are more attractive for the working population. They can live in proximity to their workplace while buying property at more affordable prices.These options, with the development of the area, will offer high returns through capital appreciation, profitable for investors too.
Saqib Ilyas, Director, Trend Shelters, explains, “With the traffic situation getting more hectic by the day, commuting has assumed importance for corporates in terms of time, money and convenience.Hence, the government is putting more emphasis on and investing in infrastructure. To this end, the Metro is one of the most significant projects, also having a positive impact on demand in the real estate market.“
The 6.70 km line Reach I from M G Road to Baiyappanahalli was the first to be operational in 2011. In March 2014, commuters could travel a distance of 10 km from Sampige Road to Peenya Industry. In May 2015, this line was completed up to Nagasandra. In November last year, Reach II running from Magadi Road to the Mysore Road terminal was completed. This year, April-end, the eastwest underground section, a crucial link connecting locations in the east and west of the city was opened to the public.
Convenience due to the easy commute and lesser time taken as well as the ad ditional floor area ratio (FAR) of four for properties within a 500 metre radius along the corridor is having a positive impact on real estate in locations along the Metro lines.
DEMAND FOR PROPERTY
Farook Mahmood, Chairman and Managing Director, Silverline Realty Pvt Ltd, says, “Close to one lakh commuters take the train every day on the completed Purple line. And where logistics improves, prices also improve. In cities across the globe, such as London and Paris, real estate closest to the Metro is most expensive. This is because of the convenience it offers. The closer to the Metro line the property is, the more expensive it will be. Property owners prefer the closest walking distance from the station.“
Saqib adds, “Many of those on the look-out for property prefer options within a half to two km radius from the Metro station.Three years down the line, the market will change, especially in areas where the Metro runs through. The best example is Kanakapura Road. Once the Metro was announced to pass through this location, it witnessed significant price appreciation from an average of Rs 3,200 per sqft, prices went up to Rs 5,500 per sqft.“
According to Saqib, locations around two to three km from the Baiyappanahalli Metro Station are performing well. Areas around Mysore Road are also finding more demand for property. “Mysore Road is not far from the city centre just about 12-14 km away. It has developed social infrastructure too now. Prospective homebuyers, limited by budget, look at locations away from the city centre.Now, with the Metro, it has become easy to commute here.“
As for investors, “Investors can look at both commercial and residential property in a 5-6 km radius around Metro stations. Many are already considering different investment options along the Metro corridor.“