Bengaluru's Phase 3 Metro Line: A Game-Changer for South Bengaluru's Real Estate Market?
The upcoming Phase 3 metro line in Bengaluru is expected to boost real estate prices in the southern parts of the city by at least 10-20 percent. Here's what you need to know.
BengaluruPhase 3 Metro LineReal EstateSouth BengaluruInfrastructure DevelopmentReal Estate NewsSep 05, 2024
The new metro corridors will connect residential locations in south Bengaluru with business hubs and tech parks along Mysore Road and Hebbal. This is expected to have a positive impact on the real estate market in the area, with better connectivity and less traffic congestion.
Parts of south Bengaluru, such as Kanakapura Road, Electronic City, Bannerghatta Road, JP Nagar, and BTM Layout, have seen a 10-15 percent rise in real estate prices since December 2023. However, properties in parts of the south, like Kanakapura Road, are relatively cheaper and make for attractive investment.
Residential activity has been limited in locations adjoining the upcoming metro project in south Bengaluru in recent years. Data from Cushman & Wakefield said that between 2022 and the first half of 2024, the south Bengaluru micro-market has contributed around 10-13 percent of total unit launches and the share of total sales has been less than 10 percent.
While data from property consultants say property values in south Bengaluru have risen by 10 percent YoY, local brokers estimate that the hike can be as much as 30-40 percent since last year. In JP Nagar, property prices have appreciated from Rs 7,000 per sq ft to Rs 13,000 per sq ft since last year.
However, south Bengaluru continues to remain more affordable than the north and eastern micro-markets where standalone 2BHKs are up for sale at Rs 85 lakh-1 crore and apartments in gated societies can touch Rs 1.5-2 crore.
The upcoming metro may dent affordability in the long run, after the retail and commercial spaces start developing along the metro routes. Knight Frank India research says that unsold inventory in south Bengaluru has dropped by 14 percent, while unsold inventory for east Bengaluru has spiked 66 percent in the second half of last year.
Healthy price growth is anticipated in locations such as Mysore Road, BEL Circle, Sumanahalli, and Nagarbhavi; these localities will benefit from enhanced connectivity through the metro project and higher demand will translate into strong price growth.
Frequently Asked Questions
What is the estimated cost of the Phase 3 metro line project in Bengaluru?
The estimated cost of the Phase 3 metro line project in Bengaluru is Rs 15,611 crore.
When is the Phase 3 metro line project expected to be completed?
The Phase 3 metro line project is expected to be completed by 2029.
Which areas will the new metro corridors connect?
The new metro corridors will connect residential locations in south Bengaluru with business hubs and tech parks along Mysore Road and Hebbal.
How will the Phase 3 metro line impact the real estate market in south Bengaluru?
The Phase 3 metro line is expected to boost real estate prices in the southern parts of the city by at least 10-20 percent.
Will the Phase 3 metro line impact residential rentals in south Bengaluru?
It is unlikely that the upcoming metro corridors will impact south Bengaluru's residential rentals until seamless transportation infrastructure and commercial corridors are developed.
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