Bengaluru’s realty sector is all set to get a metro boost
The Bengaluru realty market is all set to get a much-neeeded boost+ with the Metro Green Line connecting the East-West and North-South corridors, covering 42.3km.
With the recent launch, realty on Metro routes will become hot property, and sensing the windfall, the state government is working on an increased Floor Area ration (FAR) policy for commercial and residential buildings within 200 metres of Metro stations and this could be beneficial for the real estate sector. The government also plans to raise guidance value rates along Metro routes, possibly in November, as part of its annual exercise.
“Real estate prices zoomed 150% in areas closer to Metro stations over the past five years but the guidance value has gone up by just 20%-30%. Now we expect prices to go up by a further 10%20% in the next quarter and we assume it needs some value correction,” said a senior official of the state revenue department.
Industry players hope the boost of property prices along Metro routes will help infuse new lease of life to the market.
Harish Achar Brahmavar, founder-director, Homz N Space, said property sales are growing more towards surroundings of Metro terminus when compared to other zones. While there has been steady growth of 12%-15 % along the Purple Line on the eastwest corridor, he said there could be higher appreciation of property value along the Green Line.”We are projecting growth in areas like Jalahalli, Peenya, Yeshwantpur, Rajajinagar, Sampige Road, Krishna Rajendra Market, South End Circle, Jayanagar, Banashankari, JP Nagar and Puttenahalli,” he added.
Om Ahuja, CEO-Residential, Brigade Group, said: “As the Green Line connects industrial hub (Peenya) with commercial hub (Central Business District) and cultural hub (South Bengaluru), business houses and offices are likely to relocate their offices closer to the Metro line to save on travelling time and ex penditure incurred by employees. Since prices in these zones are fairly undervalued, property values will witness further 15%-20% jump in the next 2-3 quarters. Rentals too for the existing supply will shoot up in the coming months and new supply will start witnessing minimum 10% premium to other zones in Bengaluru.” C N Govindaraju, managing director, Vaishnavi Group, said residential real estate will be a major beneficiary. Over the past two years or so, he said they are seeing a marked customer preference to buy into a project due to its proximity and or accessibility to Metro stations. “This will help build good and healthy sale traction for residential projects along the Metro line.The rates of residential apartments and land value are also likely to go up,” he added.