Bengaluru Metro Phase 3, which was approved by the Union Cabinet, is anticipated to increase property values by 30%, with an initial 10% increase.
The union cabinet has approved the Bengaluru Metro Phase 3 Rail Project. This phase will involve the construction of two elevated corridors that span 44.65 km and include 31 stations.
Bengaluru Metro Phase 3 foresees Real Estate Growth
Real estate experts anticipate that this sanction will have a substantial effect on property values in specific regions, potentially increasing them by over 30%.
According to sources in the medium term, the approval of Bengaluru Metro Phase 3, anticipates a sustained increase of 20%, in addition to an imminent 10% increase. It was clarified that this increase is not included in the annual price appreciation due to inflationary pressures.
Prices will increase by 10% as a result of the news. In the next 1-3 months, developers will raise the prices of projects situated along the two lines.
Industry sources say prices may increase before the commencement of construction as investors begin to acquire properties in anticipation of the proposed metro phase 3 completion.
This speculative activity will be prevalent in regions where connectivity and accessibility are anticipated to be substantially enhanced by development.
Bengaluru’s metro phase 3 will enhance the city’s overall connectivity and improve the last-mile reach by providing connectivity to the Southern part of the city, Outer Ring Road West, Magadi Road, and various neighborhoods along the two proposed lines.
The existing Rail Network will be added with 44.65 km
Two elevated corridors totaling 44.65 km at an estimated cost of ₹15,611 crore. It is expected to be operational by 2029. with the proposed Bengaluru Metro Phase 3.
In contrast, the second will cover 12.5 kilometers and nine stops along Magadi Road in West Bengaluru, running from Hosahalli to Kadabagere.
This section of the metro project aims to connect the city’s western outskirts to the Outer Ring Road and significant Secondary Business District locations including JP Nagar and Bannerghatta Road.
This phase, once completed, will help offer metro connections throughout the ORR and connect southern and western Bengaluru to Kempegowda International Airport via Hebbal.
The under-construction Blue Line covers the eastern portion of the ORR (Silk Board Junction-KR Pura-KIA, which spans 58.19 kilometers).
Apart from visible benefits to the industrial and warehousing industry in Western Bengaluru and commercial real estate in IT areas along ORR, real estate investors should benefit from significant property price increases as metro phase 3 construction work takes steam, says an industry source.
After the proposed Bengaluru Metro Phase 3 is operationalized, the IT capital will have a 220.2-kilometer active metro train network.
Bengaluru Metro Phase 3 Impact on Residential and Commercial Real Estate:
Developers claim that metro connectivity is a powerful selling feature for both residential and commercial constructions.
According to a property consultant with headquarters in Bengaluru. “It is evident that the metro officials want mostly commercial development along the metro lines. Residential developments would start to appear 200–500 meters beyond the stations, depending on the availability of land”.
Regarding land availability, Kiran Kumar of Hanu Reddy Realty noted, “During the previous two years, there has been substantial development along with a 15-20% increase in property prices in areas like JP Nagar, Hebbal, and Kempapura. Moving forward, this presents a dilemma with easy land availability”.
He further added, “With land parcels commanding rather reasonable prices, places including Peenya, Sumanahalli, and Hosahalli in West Bengaluru show prospects for future growth”.
Given the proximity of the area to the city center, consultants in the city expect the prices of residential developments situated in JP Nagar to show the biggest rise.
The development of new commercial projects in the vicinity of metro stations, particularly at key intersections or near significant hubs, could further increase property prices.
This has the potential to attract businesses, retail establishments, and other commercial entities, thereby transforming these areas into lively neighborhoods.
According to Bengaluru real estate sources, Historically, the prices of adjacent real estate projects have increased by more than twofold during the entire cycle of announcement, construction, and operationalization of metro projects.
In the most recent instance, the purple metro line extension has resulted in a 20% increase in property prices in Whitefield. The areas have experienced a 7-10% increase in monthly rentals.
Multi-Modal Integration with Bengaluru Metro Phase 3:
Multi-modal integration is slated for ten locations in phase 3 of the project: JP Nagar 4th Phase, JP Nagar, Kamakya, Mysore Road, Sumanahalli, Peenya, BEL Circle, Hebbal, Kempapura, and Hosahalli.
Additionally, auxiliary buses will be operated by the Bengaluru Metropolitan Transport Corporation (BMTC) to these stations.
Dedicated bus bays, pick-up and drop-off facilities, pedestrian paths, and IPT/auto rickshaw stands are proposed for all Phase 3 stations.
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