Bengaluru's Yellow Line Metro: A Game Changer for Affordable Housing

With the inauguration of Bengaluru’s Yellow Line of the Namma Metro by Prime Minister Narendra Modi, real estate experts predict a significant shift in the city’s housing market, particularly for tech professionals. Improved connectivity is expected to make more affordable neighborhoods attractive to first-time homebuyers.

BengaluruNamma MetroYellow LineReal EstateAffordable HousingReal Estate NewsAug 10, 2025

Bengaluru's Yellow Line Metro: A Game Changer for Affordable Housing

Real Estate News:With Prime Minister Narendra Modi inaugurating Bengaluru’s Yellow Line of the Namma Metro, real estate experts say the enhanced connectivity could significantly reshape the city’s housing market, particularly for tech professionals in the southern IT corridor. The metro’s seamless access is expected to make farther but more affordable neighbourhoods attractive to first-time homebuyers.

Areas such as HSR Layout, Kudlu Gate, and Bommanahalli are set to benefit, as the Yellow Line will improve links to southern industrial and manufacturing hubs while strengthening Bengaluru’s overall transit network. Rather than diverting demand from established micro-markets like Whitefield or Sarjapur, the new line is poised to create a complementary growth corridor.

Experts say hybrid workers and young techies may choose areas like JP Nagar, Jayanagar, and Silk Board for lower housing costs. Improved metro access lets them live farther from Electronic City without longer commutes.

The Yellow Line will connect key locations such as RV Road, Jayadeva, BTM Layout, Silk Board, and Electronic City Phases 1 and 2, ultimately culminating in Bommasandra. A major interchange at Jayadeva Hospital will link commuters to the Pink Line, while the RV Road terminal will connect to the Green Line.

Along the Yellow Line, developers like Brigade and Sobha have launched several projects in E-city starting from ₹1-1.5 crore onwards. Other developers, including Shriram Group, have also launched projects in Bommasandra starting from ₹80 lakh onwards. In contrast, prices in the prime eastern IT corridor of Whitefield start from ₹1.5-2 crore onwards.

The new Yellow Line metro will let tech workers live farther from Electronic City while enjoying shorter commutes. Instead of spending 1-1.5 hours in traffic from places like Majestic Terminal, Nelamangala, and Peenya, they'll have reliable 30–45-minute metro rides. This would work because the Yellow Line will connect with the Green Line, currently operational in northwest Bengaluru. The Yellow line would also reduce the commute time (to approximately 30-40 minutes) between Jayanagar and Electronic City, which currently stretches to around 1 hour of commute during peak office hours, Samantak Das, chief economist and head of research & REIS, India, JLL, told HT.com.

Real estate experts say that the metro route would also act as a connector between areas like BTM Layout and Jayanagar in south Bengaluru, which offer lifestyle benefits, and southern peripheral locations like Electronic City, which were previously inaccessible but may now provide newer housing options in terms of gated community living. Young professionals may now prefer central locations despite longer commutes, while families may seek spacious homes southward along the Yellow Line corridor, Das said.

Real estate experts say that the metro line is likely to make areas like Electronic City and Bommasandra, the city’s major industrial and tech hubs, more accessible and integrated for commuters. From a residential perspective, the metro makes peripheral locations more attractive for homebuyers. It unlocks new land parcels for developers and allows them to diversify their offerings. Rather than cannibalizing demand from established micro-markets like Whitefield or Sarjapur, the Yellow Line is likely to create a complementary growth corridor, Anshuman Magazine, chairman and CEO for India, South-East Asia, Middle East and Africa at CBRE, highlighted.

It will lead Bengaluru towards being a more polycentric city, with multiple hubs flourishing simultaneously and easing pressure on overburdened areas. For occupiers, especially in tech and industrial sectors, better connectivity would enable them to attract and retain a broader workforce, Magazine said.

Affordability is a growing concern for many first-time homebuyers in Bengaluru. For them, improved connectivity to major employment hubs, including Electronic City, will certainly help to make informed decisions. They may consider living farther away in areas that are still more affordable but are well connected via a sound public transportation. That said, several other factors may also play a role here. For instance, the liveability of the area in concern, the social and physical infrastructure, etc, Ashish Sharma, city head, Bengaluru, ANAROCK Group told HT.com.

Experts say homes priced between ₹80 lakh and ₹1.5 crore are seeing strong demand and supply in Yellow Line impact zones, including Electronic City. The mid-income segment, primarily 2 and 3-BHK homes, continues to dominate demand in Bengaluru and stands to gain substantially from improved accessibility. That said, as metro connectivity enhances the corridor’s desirability, there is a visible shift towards premium housing, Housing.com said.

Experts say that given the Yellow Line’s strategic route, both the mid-income and premium/luxury segments are expected to benefit, with the latter gaining traction due to rising end-user interest and developer focus. Premium homes (₹1.5-3 crore) near Electronic City are also likely to become popular among executives and entrepreneurs who value transit accessibility and connectivity alongside premium amenities.

In Electronic City, developers like Brigade Group, Sobha Ltd and Shriram Properties have already launched their projects starting from ₹80 lakh to ₹1 crore onwards. While the mid-segment will see the most significant uplift, the luxury segment is also expected to benefit. Electronic City and its surroundings already host several upscale residential projects, and enhanced infrastructure will likely increase their appeal, particularly among senior IT professionals and NRIs, Madhukar Babu, associate principal partner, Square Yards said.

JLL pointed out that the Yellow Metro Line is anticipated to result in an appreciation of property values by around 6-8% over the short term (6 months to 1 year) near Electronic City (current average property price ₹7,000-7,500/sq ft) and Bommasandra (current average property price ₹6,000-6,500/sq ft) stations by improving access to the tech hub at these locations. Rental demand will grow as tech workers seek shorter commutes, while developers targeting these previously underserved areas would appreciate the property prices. Neighbouring areas like HSR Layout, Kudlu Gate and Bommanahalli, among others, will also benefit, as the metro line would enhance Bengaluru's overall connectivity to southern industrial and manufacturing zones and strengthen the city’s transit network, Das said.

Frequently Asked Questions

What areas will benefit from the Yellow Line Metro?

Areas such as HSR Layout, Kudlu Gate, and Bommanahalli are set to benefit from the Yellow Line Metro, as it will improve links to southern industrial and manufacturing hubs and strengthen Bengaluru’s overall transit network.

How will the Yellow Line Metro impact property prices?

The Yellow Metro Line is anticipated to result in an appreciation of property values by around 6-8% over the short term (6 months to 1 year) near Electronic City and Bommasandra stations by improving access to the tech hub at these locations.

Who are the key developers in the Yellow Line impact zones?

Developers like Brigade Group, Sobha Ltd, and Shriram Properties have launched projects in the Yellow Line impact zones, including Electronic City and Bommasandra, with prices starting from ₹80 lakh to ₹1 crore onwards.

How will the Yellow Line Metro affect rental demand?

Rental demand is expected to grow as tech workers seek shorter commutes, and developers targeting these previously underserved areas will appreciate the property prices.

What is the expected impact on the mid and luxury housing segments?

The mid-income segment, primarily 2 and 3-BHK homes, will see the most significant uplift, while the luxury segment is also expected to benefit. Premium homes (₹1.5-3 crore) near Electronic City are likely to become popular among executives and entrepreneurs.