Green light for Phase 3 of Bengaluru Metro Rail Project likely to boost property prices by over 30%, say experts
The Union Cabinet has approved Phase 3 of the Bengaluru Metro Rail Project comprising two elevated corridors spanning 44.65 km with 31 stations
The Union Cabinet’s approval for phase 3 of the Bengaluru Metro Rail Project is expected to boost property prices in select localities by over 30%, real estate consultants who spoke to HT.com said.
Manoj Agarwal, founder of Agarwal Estates, foresees an immediate increase of 10%, alongside a sustained rise of another 20% in the medium-term horizon. This jump is exclusive of the annual price appreciation on account of inflationary pressures, he clarified.
“The news itself will jack up prices by 10%. Developers will increase prices for projects located along the two lines in 1-3 months,” Agarwal said.
Others agreed. “Investors may start purchasing properties in anticipation of the metro’s completion, potentially driving prices up even before construction begins. This speculative activity is common in areas where development is expected to significantly improve connectivity and accessibility,” explained Bhavesh Kothari, Founder and CEO, Property First Realty.
Phase 3 of the project will provide connectivity to the Southern part of the city, Outer Ring Road West, Magadi road and various neighbourhoods along the two lines proposed, enhancing overall connectivity in the city and improving last mile reach.
Phase 3 to add 44.65 km to existing rail network
Phase 3 of the Bangalore Metro Rail Project will see the development of two elevated corridors spanning 44.65 km at an estimated cost of ₹15,611 crore. It is slated to be operational by 2029.
The first corridor will run from JP Nagar 4th Phase in South Bengaluru to Kempapura in the North, along the Outer Ring Road West. It will cover a stretch of 32.15 km comprising 21 stations.
Meanwhile the second will be from Hosahalli to Kadabagere along Magadi Road in West Bengaluru with nine stations spread across 12.5 km.
This phase of the metro project aims to connect the western peripherals of the city with the Outer Ring Road and key localities in the Secondary Business District such as JP Nagar and Bannerghatta Road. Upon completion, this phase will help provide metro connectivity to the entire ORR and connect southern and western Bengaluru to the Kempegowda International Airport via Hebbal. The under-construction Blue Line (Silk Board Junction-KR Pura-KIA spread across 58.19 km) covers the eastern part of ORR.
“Apart from perceptible benefits to the industrial and warehousing segment in Western Bengaluru and commercial real estate in IT pockets along ORR, real estate investors should benefit from significant property price appreciation once metro construction work gains momentum,” said Vimal Nadar, Senior Director and Head, Research at Colliers India.
Upon operationalisation of Phase 3, the IT capital will have an active metro rail network spanning 220.2 km.
What will be the impact on residential and commercial real estate?
Metro connectivity is seen as a strong selling point for both residential and commercial projects, developers say. “The metro authorities are very clear that they want mostly commercial development along the metro lines. About 200-500 metres beyond the stations would see residential projects come up, wherever there is availability of land,” a Bengaluru-based property consultant said.
Talking about land availability, Kiran Kumar of Hanu Reddy Realty pointed out that localities such as JP Nagar, Hebbal and Kempapura have seen notable development alongside property price appreciation of 15-20% in the last two years. Easy land availability poses a challenge here, going forward.
Meanwhile areas such as Peenya, Sumanahalli, and Hosahalli in West Bengaluru present scope for further development with land parcels commanding relatively reasonable prices.
Consultants in the city anticipate the highest spike in prices of residential projects located in JP Nagar, given the closer proximity of the locality with the city centre.
“The areas around metro stations, especially at key intersections or near major hubs, could see the development of new commercial projects, further boosting property prices. This could attract businesses, retail outlets, and other commercial entities, transforming these areas into vibrant neighbourhoods,” Kothari said.
Also Read: Bengaluru's residential property prices jumped 57 per cent in the last 5 years: Report
Historically, metro projects through the entire cycle of announcement, construction and operationalisation have resulted in over two-fold surge in prices of surrounding real estate projects. In a latest example, property prices in Whitefield have seen a jump of around 20% post extension of the purple metro line. Monthly rentals in the areas have increased by 7-10%, according to proptech unicorn NoBroker.
Multi-modal connectivity
In phase 3 of the project, multi-modal integration is planned at 10 locations - JP Nagar 4th Phase, JP Nagar, Kamakya, Mysore Road, Sumanahalli, Peenya, BEL Circle, Hebbal, Kempapura and Hosahalli. The Bengaluru Metropolitan Transport Corporation (BMTC) will also run feeder buses to these stations.
All the Phase 3 stations are proposed with dedicated bus bays, pick up and drop off bays, pedestrian paths and IPT/auto rickshaw stands.