Vikas was a happy man on March 7th – Just a week earlier, Reach 3 and 3A of Namma Metro, that connects Sampige Road and Peenya Industrial Area was inaugurated. On this day, a week later, Vikas was going to take his first Metro ride to work at Peenya and cover a distance of 10 km in just 15 minutes for all of Rs 19.50 (he had purchased the commuter Smart Card).
No more traffic snarls to deal with, no more leaving home way to early to reach office on time, no delays in getting home – travelling was now going to be a pleasure.
But what makes Vikas an even happier man is that as a landlord, his property, close to the Metro station at Sampige Road, was now going to fetch him a higher rent. With the Metro up and running, the infrastructure in the area just got a significant boost.
Scheduled infrastructure projects tend to increase the value of properties in the adjoining areas. This occurs because the infrastructure project becomes a part of USP for the developers or property owners. There have been instances where property prices have increased 50-70% from the announcement of an infrastructure initiative until the operational phase, says Saugata Maitra, National Director – Strategic Consulting, JLL India. That said, property price increases may not be a unanimous phenomenon across all property segments.
In the case of the Metro, while the low-to-mid-income property segments would definitely be positively affected, property prices in high-end residential areas in the Bangalore real estate sector would be less likely to experience a steep rise with the announcement of a major infrastructure project.
Impact of the Metro so far
The development of infrastructure, especially one that encourages connectivity within a city is critical for its growth. Since the inauguration of Reach 3 and 3A of the Metro the decongestion of traffic is an obvious benefit. It serves to decongest traffic on the stretch and provide an affordable, fast moving travel option to the public. Areas in and around the Metro stations are already witnessing transformation.
Ganesh Vasudevan, CEO & Co Founder, Indiaproperty, says, “When Reach 1 from M.G.Road to Baiyappanahalli was inaugurated, prices of many high-end apartments for sale in Indiranagar went up by close to 20% over the past 6 quarters leading to its opening. Today these homes are priced between INR 10,000 to INR 12,000 per sq. ft. Commercial real estate in Bangalore received a much needed push with the proposed increase in FAR (Floor Area Ratio) from 3.2 to 4 improving revenue from commercial and residential real estate and encouraging investment. The Reach 3 and 3A have further improved the overall sentiments of the buyers and the real estate sector although only 4 out of the 10 stations are currently operational.”
There are scores of residential projects coming up in the vicinity of the Metro project. Schools, hospitals and retail malls are located along the track and this has changed the face of realty in the region.
Reach 3 and 3A have a long way to go in terms of completion of all necessary infrastructure. However, its impact is already perceptible. Only time will be able to give us a clearer picture of the where Bangalore’s realty in the region is headed.
Ramesh Kumar has extensive experience in real estate in a career spanning over a decade. With his critical expertise in sales and marketing, he has successfully launched and closed out projects across a complete spectrum of properties like plots, budget apartments, comfort homes as well as luxury villas.
Ramesh Kumar holds a Post Graduate Diploma in Management from Bombay University and is currently serving as the Deputy General Manager – Marketing & Sales at Vakil Housing.