25/01/2013
Metro blazes trail for realty boom
CONNECTING CITY: As The Metro Spreads Out, Housing Projects Are Planned In Catchment Areas From Yeshwantpur To ECity
Aparajita Ray & Anshul Dhamija | TNN
Namma Metro is a harbinger of the realty boom in Bangalore. This is true from its first corridor in the eastern parts of the city to the still-on-drawing-board stretches of Phase II of the mass rapid transit project.
By the time Reach 1 of Namma Metro’s Phase I was operational in early 2011, property dealers and real estate business honchos were talking of a 20% growth in business. Places in proximity to the Reach 1 stretch, like Byappanahalli, Ramamurthynagar, Kasturinagar, Banaswadi, Indiranagar, CMH Road, CV Raman Nagar, Halasuru and MG Road had been fully exploited for their realty potential.
As the realty boom was being replicated in other Phase I corridors like Malleswaram, Peenya, Vijayanagar, Mysore Road, Jayanagar and Banashankari, came the news that Phase II of the project was on the cards. Realty big guns landed in Gottigere, Nagawara, Jayanagar and Electronics City. The Metro is, in fact, giving an extra push to the already booming real estate sector in these areas, and pushing up land prices.
Realty firms and industry insiders say the Metro catchment areas have already been developed or are fast developing. Prashanth Sambargi, partner at Mars Realty, a brokerage firm, said the Metro has become a marketing tool for many developers. “In every brochure, you will now find the mention of how close the project is to the nearest Metro station,” he said.
Sambargi said that though real estate activity follows only after development work commences, developers are evincing interest in the stretch between Silk Board and Electronics City, which hadn’t seen much residential activity taking place. The realty turnaround owes it to the elevated Hosur Road Expressway as well as the Metro Phase II line.
“Anywhere in the world, prices of properties closest to the Metro are always the highest,” said Farook Mahmood, CMD, Silverline Group. He said investors and developers are closely following the Metro line and picking up properties along the way, which would be developed once the infrastructure is in place.
“Logistics is an important component in any residential area. And given the current traffic snarls, having a Metro station close to your house would be a huge advantage. That’s why most developers are planning development along the Metro corridor,” said Mahmood.
CORRIDOR IN HIGH DEMAND “Metro Phase I has had the most profound impact in Yeshwantpur region, as property prices in and around the area have appreciated by 30% ever since construction work began,” said Prashanth Sambargi, partner at Mars Realty, a brokerage firm.
He added that the Jayanagar-Kanakapura stretch has also seen price appreciation by 15% to 20% after work began on the Metro. “The demand for property/ space has grown by 10%-15% along all Metro corridors and even in areas where it is proposed to be. Capital investment on real estate development has grown up to 20%, but it depends on location to location. More viable is an option to look at travel time of 20-25 minutes than an hour’s travel to work and an hour more to come back. It would also halve the load on public transport (non-Metro),” said Ganesh Vasudevan, CEO, Indiaproperty.com, a web-based real estate agency. RIGHT TIME TO INVEST Iwanted to search for a home close to Puttenahalli as the southern corridor of Metro Phase 1 would have a terminal there and the line is set to be open by early 2014. A two-bedroom house would cost me around Rs 60 lakh. I chose to take a rented house or apartment, but even then it was costly because the landowners realized the potential of their properties being close to the Metro corridor. I am now looking at areas like Gottigere which is said to have Metro connectivity in future. Shamik Singha Bharadwaj | CHARTERED
ACCOUNTANT I’ve been in Delhi and I know what the Metro can do to a city and commuting. I’m looking for property around Whitefield or Electronics City which would help me commute easily. I can change my workplace on request, but living close by is my priority. Property prices in these areas are already high, and with Metro connectivity in the next few years, real estate companies have started overcharging. Avijeet Ray | TECHIE I’ve been staying near Hebbal because it has good connectivity through the Outer Ring Road and to the international airport too. The airport has already made an impact on property prices which have gone up four times in the past two years. There are proposals to extend Metro connectivity to the airport via Hebbal, which will push up prices further. The time to buy a house or apartment is now. Nilotpal Samanta | FINANCIAL ANALYST
