Completed Kengeri-Whitefield metro line will boost rental, capital values of real estate by 10-15%

Most importantly, the metro will connect the western parts of Kengeri township and the eastern IT corridor to the central business district of MG Road.

The long-awaited metro corridor between Challaghatta in West Bengaluru and Whitefield, the former suburb that has been subsumed into the city, is likely to be operational on October 9, according to officials at Bangalore Metro Rail Corporation Limited.

This follows the completion and safety audit of the Krishnarajapuram-Baiyappanahalli and Kengeri-Challaghatta stretches that form part of the Purple Line that will eventually link Kengeri in the southwest with IT hub Whitefield.

Most importantly, it will connect the western parts of Kengeri township and the eastern IT corridor to the central business district of MG Road.
Real estate brokers say the connectivity boost will have a knock-on effect on apartment rentals and capital prices that could rise by 10-15 percent along the metro route.

The completed metro corridor will connect Kengeri in the western part of the city to the eastern IT corridor of Whitefield.

Prime Minister Narendra Modi had 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 Old Madras Road connecting most of the major tech parks in Whitefield.

Related stories

Souptik Datta

Sub Editor|Moneycontrol

• 
  If illegal floors can't be razed, demolish the building, says Karnataka High Court
• 
  Karnataka RERA asks Ozone Group to repay homebuyer's home loan, clears all liabilities on buyer
• 
  India turns 2nd fastest-growing data center market in Asia-Pacific with 28% growth in capacity

Real estate appreciation in once-affordable areas

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

Local real estate brokers say that since the line was announced, real estate prices in prime areas along the route jumped by 10 percent. "And with the news of the complete line being operational soon, landlords and apartment owners have started hiking the prices again," Kiran Kumar, vice president of Bengaluru-based Hanu Reddy Realty, added.

For example, in KR Pura, a 2BHK property that was listed for Rs 1 crore, the asking price is now Rs 1.2 crore. The 3 BHK units that were selling at Rs 1.3 crore are being listed at Rs 1.7 crore.

Brokers also add that Kengeri township, which was the most affordable real estate market in the city, will start seeing appreciation in both real estate and capital values. For example, apartment prices that were fixed at Rs 4,800 per sq ft are now being sold at Rs 6,200 per sq ft.

In Whitefield, already one of the prime areas, the inventory available has dropped sharply. "A villa that was listed at Rs 3.9 crore four weeks ago has more than 20 buyers waiting to freeze the deal. Some are eager to buy at a higher price also. So even before the metro became operational, the eastern IT corridor saw a tremendous jump in prices," Kumar said.

Demand to spill over

The metro connectivity will have effects beyond the line’s immediate catchment area. Kumar believes the outskirts of KR Pura and Whitefield will start seeing more demand. Prices of real estate in areas like Hoskote (10 km from KR Pura) and Budigere Cross (8 km) are expected to jump in the next few quarters.

Other 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 rents here are about 30 percent lower than the Bengaluru average, experts say.

In suburban areas like Hoodi, close to Mahadevapura and Kundalahalli, the purchase price of a premium 1BHK has already touched Rs 1.3 crore and will see further appreciation. In Kundalahalli, the monthly rent for a 2BHK starts at Rs 60,000. Rates are lower in places like Kadugodi, about Rs 25,000 for a 2BHK.

Among the potential areas for investment, brokers said the stretch between KR Pura and Mahadevapura is a promising location. The new Chennai-Bengaluru Expressway abuts Narasapura, which is close to KR Pura. Additionally, Hoskote, which is witnessing major plotted development, is also close to this area.