Peripheral B'luru sees 35% rise in property prices owing to Metro

The Namma Metro project has brought cheer to the real estate market in Bengaluru. The property prices in peripheral areas of Bengaluru have seen in excess of 35% jump in the last seven years, following the commencement of work on Metro rail project along both the corridors.

“In the last two years itself, the property prices in peripheral Bengaluru have gone up over 12% due to Metro connectivity,” Shantanu Mazumdar, Director, Knight Frank India, a property consultant, told DH. Among the micro-units, the east Bengaluru and south Bengaluru have seen the maximum appreciation in the prices.

The prices in peripheral areas of Bengaluru such as Yeshwantpur, Kanakapura Road, Mysuru Road, Vijayanagar and Baiyappanahalli among others have gone up to Rs 4,000 per sq feet from Rs 2,950 in 2010, showing an increase of 36%.

“Accessibility through the metro leads to creating office hubs and producing jobs, which in turn aids in improving the demand for residential property of select residential neighbourhoods, while providing a boost to the commercial sector of the region simultaneously,” a report released by Knight Frank said.

However, the city has seen a marginal decrease in its average residential prices to Rs 4,831 per sq feet from Rs 4,850, in the six months ended June 2017. This was due to the reduction in demand, following the demonetisation of high value currencies in November 2016.

The city has seen a jump of over 8% in its weighted average prices since 2014. In the first half of 2017, Bengaluru saw launch of 14,026 residential units, a steep drop of 42% from H12016 at 24,281 launches. The unit sales also fell down by 19% to 21,210 from 26,220 a year-ago. North Bengaluru saw the share of new launches increase to 28% in H1 2017 from 22% in H1 2016, although, as compared to H2 2016 the share of new launches was less by three percentage points.