Primed Location: What the KR Pura-Whitefield Metro Line means for Bengaluru realty

Every day, Ershad Bothiwalla, who stays in Kadugodi near Whitefield, walks 15 minutes to reach the Kadugodi Industrial Area metro station. He gets off at Mahadevpura metro station and walks to office.

For IT professionals like Bothiwalla, the recently-launched Krishnarajapura (KR Pura)-Whitefield metro line has been a respite from serious traffic bottlenecks in the eastern IT corridor of the city.

Prime Minister Narendra Modi inaugurated this 13.7 km stretch on March 25. The maximum travel time is about 25-30 minutes, and the maximum fare is Rs 35. The line travels across the Old Madras Road connecting most of the major tech parks in Whitefield.

The major areas along the metro line are KR Pura (12.5 km from Whitefield), Mahadevpura (11 km from Whitefield), Kundlahalli (about 4 km from Whitefield), and Adugodi (about 3 km from Whitefield).

The eastern tech corridor

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According to experts, grade A office stock and residential launches have increased manifold since the announcement of the metro in the Whitefield corridor last year.

Umakanth Y, Director of Advisory Services at Colliers, a real estate investment management firm, said the first IT project in the suburb, the International Technology Park of Bengaluru (ITPB), was established in 1998. "ITBP and the Export Promotion Industrial Park (EPIP) have boosted real estate activity in Whitefield over the past two decades, signified by a growing number of residential and office properties," he added.

According to a Colliers report, Whitefield — with both Special Economic Zone (SEZ) and non-SEZ campuses — accounts for 22 percent of grade A stock in the city.

The Patandur Agarahara metro station directly connects ITPB, while Kadugodi Industrial Area connects Kadugodi Tree Park.

Several micro areas like Hoodi, Nallurahalli, and Hope Farm, close to the metro line, have become growing real estate pockets in the eastern suburbs.

The micro-market offers relocation and expansion opportunities as the rentals here are about 32 percent lower than the Bengaluru average, Umakanth added.

He also said that the Kundalahalli and Mahadevapura real estate markets have taken off due to their proximity to Bagmane Tech Park, and the inclusion of the area in the jurisdiction of the Bruhat Bengaluru Mahanagara Palike (BBMP), the city’s municipal corporation.

According to Colliers, about a fifth of the upcoming supply of the city is located in Whitefield. "About 6.7 million square feet (msf) is expected to be completed by 2024-2025, aligned with metro project timelines," said Umakanth.

Experts say Whitefield will cater to spillover demand from the Outer Ring Road and will become a preferred office location once the connectivity to central Bengaluru gets enhanced (with the completion of the metro routes).

Real estate impact

According to brokers, rental prices had already started appreciating when the metro line was announced last year.

A chunk of the IT crowd resides in the Mahadevpura, Kundalahalli, and Patandur Agarahara areas.

"Most of these areas are seeing mixed usage now, with commercial and residential developments in pockets. Kadugodi has a prominent industrial area and is also considered an extension of Whitefield," Govind Raj, a realtor at Coldwell Banker, said.

Raj said residential prices have already increased since the announcement of the metro launch and are set to rise by another 10 percent over the next six months.

"For Mahadevpura and KR Pura, the monthly rental of a mid-segment 2-BHK flat was Rs 20,000-Rs 30,000 last year. Today, it has jumped to Rs 35,000-Rs 50,000, with 6-10 months’ rental as security deposit," Raj added.

Sunil Singh, a realtor at Realty Corp, added that for gated apartments in these areas, the minimum rental for a 2-BHK is Rs 45,000. "An apartment that was Rs 40,000 last year has touched Rs 50,000 today," he added.

However, brokers say that among all the areas the metro line touches, Kundalahalli is most in demand, followed by Whitefield, Mahadevpura, and KR Pura.

Singh said that Kundalahalli is close to the Ring Road and the Old Airport Road, that connect the city. " Several schools around Kundlahalli have made it a perfect destination for families who work in the IT sector. While Marathalli is close to several other IT parks," he added.

In suburban areas like Hoodi, close to Mahadevpura and Kundalahalli, the purchase price of a premium 1-BHK has already touched Rs 1 crore and will see further appreciation. In Kundalahalli, a 2-BHK rental starts at Rs 40,000-50,000 monthly. Rentals are lower in places like Kadugodi, about Rs 20,000 for a 2-BHK.

Brokers say that most of these areas are seeing a shortage of available land parcels. "The only land available may be in parts of Whitefield, away from the metro line and the suburbs of KR Pura," Singh said. Most of the developments happening today are gated apartments with a significant number of builder’s floors. A builder’s floor is an independent floor in a low-rise.

Raj added that such land parcels hold potential for commercial development. "For example, today at Mahadevpura the purchase price of a commercial property is Rs 60 per sq ft and can go up to Rs 100 per sq ft for grade A spaces," he added.

Brokers say the metro line will lead to the appreciation of commercial and warehousing portfolios in Kadugodi. "Warehousing rates there start from Rs 40-80 per sq feet, and will jump in the coming months," Raj added.

Among the potential areas for investment, brokers say the stretch between KR Pura and Mahadevpura is a prime location. "The new Chennai-Bengaluru expressway is close to Narasapura, which is close to KR Pura. Additionally, Hoskote, which is witnessing major plotted development, is also close to this area," Raj added.

Among areas close to the metro, Kundalahalli and Varthur are already saturated. Brokers say areas like KR Pura-Mahadevpura and Kadugodi to Whitefield hold more potential for further real estate appreciation.

Way ahead

Currently, the 2.1-km stretch between Baiyappanahalli and KR Puram metro stations remains incomplete, and is supposed to be completed by June 3, according to state government officials. This disrupts the connection between the central business district and Whitefield.

Umakanth said that the five stations in the CBD that were operationalised in 2011 improved connectivity towards a few central areas, but did not have much of an impact as the line did not connect key destination / interchange stations in the city for the larger commuting groups.

However, with the complete operation of the phase 1 metro line, the residential and office market witnessed a considerable boost. The CBD micro-market saw more than a 100 percent jump in rentals and purchase prices.

"Similarly, the Whitefield metro corridor requires last-mile connectivity to other parts of the city. Apart from the availability of good quality residences, presence of infrastructure such as schools, hospitals, and shopping malls will make Whitefield a favoured location," Umakanth added.

Raj added that Bagmane Tech Park is continuously constructing more offices, and with the metro connection, real estate will flourish over the next few years.

"Once connected, KR Puram to TC Palya in the north, Mahadevpura to KR Puram Ring Road, and Kadugodi to Old Madras Road will witness major real estate appreciation," Singh added.