Impact of Metro Expansion on Property Values.

Bangalore, also known as the Silicon Valley of India, has undergone

tremendous growth in the past few decades. With the rise of technology companies and
startups in the city, there has been a surge in demand for quality infrastructure and
transportation facilities. One of the most significant developments in the city's
transportation infrastructure has been the introduction of metro train connectivity. The
Bangalore Metro Rail Corporation Limited (BMRCL) has been making steady progress in
expanding the metro network in the city, and this has had a significant impact on the real
estate market.

Bangalore Metro Phase 1

For instance, during the construction of the Bangalore Metro Phase 1, flats for sale in Bangalore
located along the metro corridors saw a price appreciation of 22-30%.

Furthermore, post-construction of Bangalore Metro Phase 1, the price appreciation further escalated
to 6-10% for residential projects (built or under construction) along the metro corridors.
Impact of Bangalore Metro Phase 2 (Anjanapura):
Considering the launch of new projects in the metro-connected areas in Bangalore, it
can be said that property prices are set to witness a significant increase. As Metro
phase 2 continues to progress, the real estate projects are also continuing towards
their completion. Once the metro service becomes operational after Phase 2, the real
estate market will demand properties in the metro-connected areas. This will lead to a
boom in the prices of both commercial and residential properties.
Residential Plot Price Trend(Avg).
Price

2021

2022

2023

2024

0 2,000 4,000 6,000 8,000 10,000

The real estate market Anjanapura exhibited a consistent upward trend from
2021 to 2024. Property prices increased steadily each year, starting at 5,200 in 2021 and
reaching 9,500 in 2024. This positive trajectory indicates strong growth and potential
profitability for investors and homeowners during this period.

Impact of Whitefield Metro Expansion on Real Estate

Whitefield

Bellandur

Sarjapur

0 2,000 4,000 6,000 8,000 10,000 12,000

The announcement and subsequent progress of the metro extension have catalyzed an
increase in property values comparing to the other areas in Bangalore.

12,000

10,000

8,000

6,000

4,000

2,000

0
2020 2021 2022 2023 2024

In 2023, with the introduction of the metro, there was a significant jump in property
prices to Rs.9,300. The positive momentum continued into 2024, reaching a price of
Rs10,200. The introduction of the metro appears to have had a substantial impact on the real
estate market, leading to a notable increase in property prices in 2023.
Metro Phase 3 Impact on Real Estate:
Inline with the Comprehensive Mobility Plan(CMP) for Bengaluru city, the DPR of Phase-
3 of Bangalore Metro Rail Project for a length of 44.65km consisting of two corridors,
Corridor-1 from JPNagar4th Phase to Kempapura(along ORR West) for a length of
32.15km with 22stations and Corridor-2 from Hosahalli to Kadabagere(onMagadi Road)
for a length of 12.50km with 9stations.Scheduled to start in 2025 and continue into the
mid-2030s,the construction timeline may see changes in scope and alignment.
 Locality Property Rates

Apartment: 70lac-1.5Cr
JP Nagar Residential Plot: 85lac-2Cr
Residential House: 1.2Cr-1.7Cr

Commercial Land:70lac-2Cr
Hebbal Industrial Plot:1.6Cr-5Cr
Residential plot:80lac-1Cr

Apartment:60lac-1Cr
Residential Plot:1.2Cr-1.5Cr
Hosahalli

Apartment:40lac-60lac
Kadabagere Residential Plot:20lac-40lac
Residential House:40lac-60lac

Apartment:1.2lCr-2.5Cr
Sarjapur
Residential Plot:1Cr-1.2Cr

Metro Phase 4 Impact on Real Estate:

The upcoming Bangalore Metro Phase 4 is poised to have a significant impact on the city's
real estate landscape. The expansion into areas such as Bidadi, Harohalli, Attibele, and
Kunigal Cross is expected to create new opportunities for real estate development. Investors
and developers are showing interest in these emerging zones, anticipating a surge in demand
for properties as a result of improved connectivity provided by the metro. The cautious
exploration of opportunities reflects the potential for growth in these areas, driven by the
expansion of the metro network.

With the upcoming Bangalore Metro Phase 4,property rates in surrounding areas will gently
rise. Here is a quick look at how rates are evolving in key localities
 Locality Property Rates

Apartment: 40lac-60lac
Bidadi Residential Plot: 20lac-40lac
Residential House: 80lac-1Cr

Commercial Land:40lac-60lac
Harohalli Industrial Plot:1.6Cr-1.8Cr
Residential plot:20lac-40lac

Apartment:40lac-1Cr
Attibele Residential Plot:40lac-90lac
Villa:60lac-80lac

Apartment:60lac-1Cr
Jigani Residential Plot:20lac-40lac
Residential House: 80lac-1.5Cr

Apartment:40lac-60lac
Anekal
Residential Plot:20lac-40lac

Apartment:80lac-1Cr
Varthur
Residential Plot:1Cr-1.2Cr

How Metro Connectivity will Increase the

Property Price in Electronic City Bangalore?
Phase 2 of the 128 km Bangalore Metro rail network is expected to be operational by 2024.
This part will cover Electronic City and make commuting much more convenient.

It indicates that property prices will rise exponentially across Electronic City once the metro
line is functional. We can predict this property appreciation through previous data.

Residential Price Trend:

 In this graph the dotted line shows the future forecast price of electronic city .It shows that
the price will gradually increase in the future.

Rental:

The rental market will likely garner traction in the Electronic City, with an expected overall increase
of 20%-25% in rentals.

Impact of North Bangalore Metro Expansion on Real

Estate(Yelankha, Devanahalli...):

70%

60%

50%

40%

30%

20%

10%

0%
Last 1year Last3year Last5year Last10year

These percentages indicate the rate at which property prices in Yelankha have
increased over the specified time periods. The data suggests a positive trend with notable
appreciation, especially over the last decade, where property values have risen by 64.6%.
This information may be valuable for potential investors and individuals looking to assess the
historical performance of real estate prices in Yelankha.

Impact of Residential Market:

 Other Areas
29.1%

Metro Connected Areas

70.9%

By this visual we can see that most of the people in Bangalore are interested to stay
near the metro connected area this leads to demand in the real estate market of that areas
for residential as well commercial market.

Impact Of Commercial Market:

Outskirts
22.2%

Metro Connected Areas

44.4%

Other Areas
33.3%

This figure shows the interest of tenants based on the areas .We can see that most of the
tenants for commercial purpose are very much interested in metro connected areas.

Conclusion:
The Bengaluru Metro and its stations (functioning and upcoming) have a positive impact
on the real estate value.

Residential projects within 500m proximity to the Bangalore Metro route are expected to
appreciate by at least 20%. This appreciation will likely go up even further with the
completion of pending phases. The proposed Metro line to Kempegowda International
Airport is poised to be a game changer.

In the near future, one can anticipate people commuting daily 40-50 km up and down or
across the city for work as long as they reach their destination in an hour or less. This shift
in perception will bring new career opportunities and employment across different parts
of the city, attracting more people and further appreciating the value of Bangalore’s real
estate to new heights.