With Metro offering easy commute, rents around stations rise

Tenants paying around Rs 2K more for 1BHK in Dasarahalli

With the first phase of the Namma Metro operational, house rents along the corridor’s stretch from Byappanahalli to Mysuru Road and Nagasandra to Yelachenahalli have seen an increase.

The rent for a one BHK house in Dasarahalli area, which was Rs 4,500-5,000, has risen to Rs 6,000-7,000 after the completion of the Metro. Hesarghatta Road and Yeshwantpur too have seen a rise in rents.

Most brokers attribute the rise in rents on the Metro stretch to the demand for houses near the stations.

“There is a huge demand for houses around Metro stations. Most people who work in Peenya Industrial Area and Yeshwantpur are looking for a house near a Metro station so they can commute to work easily,” said Manjunath Nayak a broker from Dasarahalli.

A real estate agent from Indiranagar said: “Indiranagar and surrounding areas have seen only a slight rise in rents since Indiranagar is already an upmarket area where rents are high.’’

Many house owners agree that the demand has led to a rise in rents. Sumithra Bai, a resident of Cottonpet, says she has seen a sudden rise in the rent due to the area’s proximity to the city railway station (Sangolli Rayanna Metro Station). Earlier, a 1 BHK would cost up to Rs 6,000 but now, it is Rs 7,500 to 8,000.

People are ready to pay more to stay near the Metro station. Jamuna, who owns a house in Jayanagar IV Block said, “Metro connectivity has increased the real-estate value and people are ready to pay more to stay close to a Metro station. Since brokers are seeking a higher commission, we registered our house on an online portal where we can avoid commissions and will suit both tenants and owners.”

Krishna, a resident of Peenya says, “Before the Metro connectivity, the demand was low, but now it’s hard to find vacant homes. Demand is increasing, but there is no such price hike.”   
Vivek Reddy, a techie from Indiranagar, says, “As the place is close to MG Road, there is a huge demand here. People look out for one BHKs which cost up to Rs 13,000. The demand for sharing rooms is also increasing.”

What experts say

“The property near the Metro comes under the premium infrastructure. That’s how market forces work. When the city builds infrastructure like Metro and airports, the value of the land around the infrastructure goes up. Normally, taxes on such properties are increased to reflect the enhanced value because of the public infrastructure,” said V Ravichandar, civic evangelist.

Ravichandar also explains that the government can fix reasonable rates.  “Because the public infrastructure has raised the value of properties, the government can do a re-evaluation of the properties and fix the proper tax.”

Steep rise

In Nagasandra, Hesaraghatta Road, Dasarahalli and Yeshwantpur, rents have risen. For instance, a one BHK house in Dasarahalli area was previously Rs 4,500-5,000. After the completion of Namma Metro, the price has increased to around Rs 6,000-7,000.

DH News Service