Real estate prices may move to the fast track

Aerial view of Indiranagar CMH road, during the test run of Namma Metro rail, in Bangalore on January 23, 2011. Photo: K. Murali Kumar.

Namma Metro may be moving at a snail's pace en route to its commercial launch, but not so the demand and prices of properties along the project's Reach-1 route: they are all set to go on a fast track northwards. Though real estate agents have not noticed a significant trend as of now, most of them are anticipating at least a 20 per cent increase in prices once Bangalore Metro Rail Corporation Limited (BMRCL) begins commercial operations.

In demand

Rajesh B., a real estate agent in Banaswadi, said the areas that are in demand for both purchase and rentals in residential and commercial spaces are Kasturinagar, Kalyan Nagar, Banaswadi and Kammanahalli, all close to the Metro Depot and the Byappanahalli terminal.

“The present rates are Rs. 6,000 a sq ft for residential properties and Rs. 10,000 for commercial. We might see a slight increase, if not a substantial one, once the metro starts operating,” he said. These areas will benefit due to their proximity to the stations, depending on the efficiency of the feeder service.

Asked why the demand has not risen already, he said: “The construction work has left the roads in a mess. Some routes are closed, others are diverted. Once the commercial launch happens, the mess will be cleared up after which people would want to live here.”

On the upswing

This appears to hold true for businesses too. It may be recalled that business on CMH Road took a beating for a couple of years when it was closed for metro construction. However, when it reopened, commercial establishments are seeing an upswing.

Easy connectivity offered by Namma Metro will be the reason for the inevitable increase, say property dealers.

“Traffic is definitely an issue as people tend to look at the distance between workplace and home. For example, it takes about 30 minutes from Indiranagar to M.G. Road. The metro will halve it,” said an Indiranagar agent.

Areas along the periphery of the Metro line too are expecting to see an upward trend in the market rates. Some parts of east Bangalore had lost out on demand when the airport was shifted from HAL to Devanahalli. However, with the advent of IT parks such as ITPB and Bagmane Tech Park, property dealers could regain the lost share partially. Now, with the Metro, they will be looking to strike when the rod is hot.

While speculations surround are on that the Metro Rail will fuel a hike in property rates in Byappanahalli, Indiranagar and even Ulsoor, M.G. Road is likely to remain insulated.