Phase 3 of Namma Metro to boost property prices by over 30%
RAILWAYS & METRO RAIL

Phase 3 of Namma Metro to boost property prices by over 30%

The Union Cabinet's approval for Phase 3 of the Bengaluru Metro Rail Project is anticipated to drive up property prices in select localities by more than 30%, according to real estate experts.

Manoj Agarwal, Founder, Agarwal Estates, predicts an immediate 10% price increase, with an additional 20% rise expected over the medium term. He emphasised that this increase is separate from the annual appreciation driven by inflation.

"The mere announcement of Phase 3 will push prices up by 10%, with developers likely to hike prices for projects along the new metro lines within the next one to three months," Agarwal noted.

Bhavesh Kothari, Founder and CEO, Property First Realty, echoed this sentiment, explaining that investors often 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," he said.

Phase 3 of the Bengaluru Metro Rail Project will include two elevated corridors spanning 44.65 km at an estimated cost of Rs 156.11 billion. The new lines are scheduled to be operational by 2029.

The first corridor will extend from JP Nagar 4th Phase in South Bengaluru to Kempapura in the North, covering 32.15 km with 21 stations. The second corridor will run from Hosahalli to Kadabagere along Magadi Road in West Bengaluru, with nine stations spread across 12.5 km.

This phase aims to enhance connectivity between the city's western peripheries, the Outer Ring Road, and key localities in the Secondary Business District, such as JP Nagar and Bannerghatta Road. Upon completion, it will provide metro access across the entire ORR and link southern and western Bengaluru to Kempegowda International Airport via Hebbal. Real estate experts believe the metro connectivity will be a strong selling point for both residential and commercial projects. A Bengaluru-based property consultant highlighted that the metro authorities are focusing on commercial development along the new lines, with residential projects expected to emerge within 200-500 meters of the stations, depending on land availability.

Kiran Kumar, Hanu Reddy Realty pointed out that areas like JP Nagar, Hebbal, and Kempapura have already seen significant development and property price appreciation of 15-20% in the last two years. However, he noted that further land availability could be a challenge in these localities.

Conversely, areas like Peenya, Sumanahalli, and Hosahalli in West Bengaluru still offer opportunities for development, with relatively affordable land prices.

Experts anticipate the highest price increases in residential projects located in JP Nagar, due to its proximity to the city centre. Bhavesh Kothari added that areas around metro stations, particularly at key intersections, could see new commercial developments, further boosting property prices and attracting businesses, retail outlets, and other commercial entities.

Historically, metro projects have led to significant property price surges throughout their announcement, construction, and operational phases. For instance, property prices in Whitefield jumped by around 20% following the extension of the Purple Line, with monthly rentals in the area increasing by 7-10%, according to proptech unicorn NoBroker.

Phase 3 will feature multi-modal integration at 10 locations, including JP Nagar Phase 4, JP Nagar, Kamakya, Mysore Road, Sumanahalli, Peenya, BEL Circle, Hebbal, Kempapura, and Hosahalli. The Bengaluru Metropolitan Transport Corporation (BMTC) will run feeder buses to these stations, and all Phase 3 stations will include dedicated bus bays, pedestrian paths, and auto rickshaw stands. (Hindustan Times)

The Union Cabinet's approval for Phase 3 of the Bengaluru Metro Rail Project is anticipated to drive up property prices in select localities by more than 30%, according to real estate experts. Manoj Agarwal, Founder, Agarwal Estates, predicts an immediate 10% price increase, with an additional 20% rise expected over the medium term. He emphasised that this increase is separate from the annual appreciation driven by inflation. The mere announcement of Phase 3 will push prices up by 10%, with developers likely to hike prices for projects along the new metro lines within the next one to three months, Agarwal noted. Bhavesh Kothari, Founder and CEO, Property First Realty, echoed this sentiment, explaining that investors often 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, he said. Phase 3 of the Bengaluru Metro Rail Project will include two elevated corridors spanning 44.65 km at an estimated cost of Rs 156.11 billion. The new lines are scheduled to be operational by 2029. The first corridor will extend from JP Nagar 4th Phase in South Bengaluru to Kempapura in the North, covering 32.15 km with 21 stations. The second corridor will run from Hosahalli to Kadabagere along Magadi Road in West Bengaluru, with nine stations spread across 12.5 km. This phase aims to enhance connectivity between the city's western peripheries, the Outer Ring Road, and key localities in the Secondary Business District, such as JP Nagar and Bannerghatta Road. Upon completion, it will provide metro access across the entire ORR and link southern and western Bengaluru to Kempegowda International Airport via Hebbal. Real estate experts believe the metro connectivity will be a strong selling point for both residential and commercial projects. A Bengaluru-based property consultant highlighted that the metro authorities are focusing on commercial development along the new lines, with residential projects expected to emerge within 200-500 meters of the stations, depending on land availability. Kiran Kumar, Hanu Reddy Realty pointed out that areas like JP Nagar, Hebbal, and Kempapura have already seen significant development and property price appreciation of 15-20% in the last two years. However, he noted that further land availability could be a challenge in these localities. Conversely, areas like Peenya, Sumanahalli, and Hosahalli in West Bengaluru still offer opportunities for development, with relatively affordable land prices. Experts anticipate the highest price increases in residential projects located in JP Nagar, due to its proximity to the city centre. Bhavesh Kothari added that areas around metro stations, particularly at key intersections, could see new commercial developments, further boosting property prices and attracting businesses, retail outlets, and other commercial entities. Historically, metro projects have led to significant property price surges throughout their announcement, construction, and operational phases. For instance, property prices in Whitefield jumped by around 20% following the extension of the Purple Line, with monthly rentals in the area increasing by 7-10%, according to proptech unicorn NoBroker. Phase 3 will feature multi-modal integration at 10 locations, including JP Nagar Phase 4, JP Nagar, Kamakya, Mysore Road, Sumanahalli, Peenya, BEL Circle, Hebbal, Kempapura, and Hosahalli. The Bengaluru Metropolitan Transport Corporation (BMTC) will run feeder buses to these stations, and all Phase 3 stations will include dedicated bus bays, pedestrian paths, and auto rickshaw stands. (Hindustan Times)

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