After a long while things are looking better for the connectivity front in South Bengaluru. On Saturday, Honourable President, Pranab Mukherjee inaugurated Phase I of Namma Metro, which connects South Bengaluru to the Majestic Interchange and thence to other parts of the city. The new Green Line connects Yelachanahalli in Kanakapura road to Sampige road in Malleshwaram via the Majestic junction, covering a distance of 12km stretch.
It took 11 years, five chief ministers and an investment of Rs 14,200 crore for the full stretch of metro system to become operational, putting to rest a major segment of the city’s traffic woes. This is part of the last pending stretch of the network; other corridors have been sanctioned and developed in different phases throughout the city over the past few years. Bengaluru is only the second city in the country to have a full-fledged metro system.
The green line runs through major areas such as Tumakuru Road, Malleswaram, Rajajinagar, Peenya, Yeshwanthpura, KR market, South End Circle, Jayanagar, Banashankari, JP Nagar and Puttenahalli, connecting the industrial hub of Peenya to the cultural hub of South Bengaluru.
While under construction, the metro had brought in a 12-15 per cent rise in real estate prices. A similar growth is being projected even after the development of the green line, given the ease with which travel can now occur through these connected areas.
Talking about the projected further increase in real estate prices, Suresh Hari, Vice President, CREDAI, Bengaluru contended that while price may not increase immediately, the increase in value over the next year will be significant. “One can expect an all asset clause valuation increase of 10 to 25 per cent.”
Concurred C N Govindaraju, Managing Director, Vaishnavi Group, “With the completion of the project, we expect close to 20 per cent increase in prices for projects along the metro corridor.” A similar 12 to 15 per cent increase in prices was predicted by Harish Achar Brahmavar, Founder & Director, Homz N Space.
The impact on the residential real estate segment in the areas surrounding the metro line is expected to significant. Newer projects are expected to be launched with an increase in the mix of asset clause products given the shrinkage in the land parcels in this area. Says Brahmavar, “The development of the metro has helped residential real estate in the surrounding areas with the rise in civic amenities, growth in rental potential, and the availability of numerous residential projects at affordable prices.”
Stating that the major beneficiary of the metro line would be the residential real estate, Govindaraju adds, “People will find it easier to commute to work. In fact, over the last two years we are seeing a market preference to projects in these areas due to the proximity and accessibility to metro stations. This has helped in building good and healthy sale traction for residential projects along the metro line.” A major positive outcome would be the reduction in the density of traffic over a period of time, he stated.
As for the increased Floor Area Ratio (FAR) for commercial and residential buildings within 150m radius from the metro terminals, Om Ahuja, CEO- Residential, Brigade Group says, “The green line connects the industrial hub of Peenya with key wholesale markets and South Bengaluru. This zone already has excellent social infrastructure and with good connectivity coming in through the metro, there will be a considerable shift of work places to this area. Corporate houses would prefer to relocate their office space from other zones to here given the better quality of space and functioning. The increased FAR will only add to this incentive of shifting.”