When Bengaluru Development Minister K.J. George was recently asked, what his thoughts are on the Namma Metro, he was quick to respond saying that it is a dream come true for thousands of Bengalureans. Needless to say, every bit of it is true. The gleaming Namma Metro has become the new definition marker for this rapidly-progressing IT city. From North to South and East to West, the Purple and Green lines are a welcome sight for innumerable commuters who have had their patience tested, time and again, till they saw red.
The North-South Metro corridor that runs from Nagasandra in the north to Puttenahalli in the South is a 24.20 km long stretch. The East-West corridor is an auspicious 18.10 km stretch, starting from Baiyappanahalli in the East and Mysore Road terminal in the West. The Namma Metro is the first project in India that was commissioned with 750V DC Third Rail on Standard Gauge. Mr. George believes that by the year 2025, the city’s Metro will be carrying at least two million passengers, as Bengaluru’s population will cross the 12 million mark.
The air-conditioned coaches that appear every five minutes have made commuting enjoyable. Those living at the very edge of the city can now cover a distance of 30 km in less than 40 minutes. During peak hours, commuting this distance on road takes at least two hours. These silent trains have added to the beauty of the city, and just like world-class cities, Bengaluru now has a world-class metro. The city has set the standards high with the injection of metro connectivity, and soon these stations will become cultural centres, like the MG Road station.
The Trending Real Estate Market Of Bengaluru
The 42 km metro corridor is expected to boost Bengaluru’s real estate market like never before. According to The Economic Times, capital prices have already increased approximately by 150 percent in the last five years in areas that are close to metro stations. In the next quarter, the prices are expected to go up further by 10-20 percent. The current goldmines of Bengaluru real estate are Whitefield in the East, New Airport stretch in the North and Koramangala to Electronic City in the South.
Localities with the highest yields (average of four percent) are AECS Layout (4.4%), Hoodi, Banaswadi, Bellandur, BTM Layout, Horamavu, Hosa Road, Marathahalli, Panathur, Sarjapur Road, Varthur, and Basavesh. On the other hand, the localities that have the lowest yields (average of two percent) are Kanakapura Road, Malleshwaram, Rajajinagar, Sanjaynagar and Basaveshwaranagar (1.3 percent). During the period July 2016 to June 2017, there has been a 33 percent rise in the number of Bengalureans looking to buy property.
There has been a five percent increase in capital prices overall compared to 2016. There has also been a one percent rise in property prices, less than one percent drop in ready-to-move properties, a three percent rise in prices of under-construction properties this quarter and 40 percent rise in demand for low-budget properties that are below INR 80 lacs and in the INR 6,000/square feet category. However, two-thirds of property demand is for the affordable housing segment, and time taken to finalise a property deal is now seven months, compared to four months in 2016.
The luxury living segment has been more or less stagnant in the rest of India. However, Bengaluru has seen a 45 percent rise in demand. The city is going the apartment way and villas are a niche now. Whitefield will benefit greatly from the Namma Metro as it is a major IT hub. Property prices in this area will witness a significant increase in near future. Currently, average price values (April-June 2017) are in the range of INR 3,866 per square feet to INR 6,637 per square feet. With improved connectivity, residential and commercial values are set to go up further.
Population density will also increase in Whitefield, as it is within the metro route. Areas that are close to metro corridors have an edge of other areas, both in respect of travel time and cost advantages. The demand for 2 and 3 BHK units have already gone up in Whitefield in the mid to high-end housing projects. In 2015, a residential property that had a sale value of INR 6,900 per square feet was priced at INR 7,500 per square feet in 2016. It is an appreciation of about nine percent.
Apart from improved metro connectivity, Whitefield has seen numerous projects getting launched, as it is a major employment hub. The metro route will allow people to explore new areas to buy property in Whitefield. According to independent property consultancy Knight Frank, Bengaluru’s east and south contributed about 69 percent (16,754 units) out of 24,281 new launches in 2016. Top IT companies like IBM, Oracle, Wipro etc are in Whitefield. With influx of more working people in Bengaluru, demand for property is going to break the roof.
Other Factors Contributing To Increased Property Demand In Whitefield
Whitefield, which was a small village until the 1990s, has become a major job giver in recent times. The Export Promotion Industrial Park (EPIP) is one of India’s first IT parks. The area is also surrounded by prominent areas such as KR Puram, Bellandur, Marathahalli and Mahadevapura, all residential and commercial property pullers. The railway station is about three kilometres away. The Kempegowda International Airport is about an hour via NH44 or SH104. The Electronic City is just 40 minutes away.
Speaking of social infrastructure, Whitefield has a plethora of top educational institutes, multi-specialty hospitals, shopping centres and star-rated hotels. Investing in property in Whitefield means, people will be able to traverse the city’s retail and business centre points in minutes because of the Namma Metro. They do not have to battle it out on the congested streets. The metro will not only remove traffic bottlenecks but in turn make Whitefield a more alluring business destination.
Share your thoughts below on metro’s impact on Whitefield property prices.