BANGALORE: Real estate prices around the newly commissioned Metro line are expected to soar in the coming months if past trends are any indication.
Property prices have gone up the most in localities on either side of the MG Road-Baiyappanahalli Metro line, which was commissioned in October 2011.
According to local real estate consultants, prices rose by 60 to 100 per cent in Baiyappanahalli and its surrounding areas in the last two years. Muniswamy, a local real estate consultant, said, “Properties that were close to the main road were being sold for `4,000 per sq ft and today it costs around `8,000. In the interiors, property prices have escalated from around `2,000 per sq ft before the Metro was commissioned to `4,000 today.”
However, the rate of appreciation was less in the core areas of the city. V Ravi, an Ulsoor real estate agent, said prices have been appreciating by over 25 per cent every year ever since the Metro was commissioned, and a site that used to cost `4,000 per sq ft in Cox Town now costs around `7,500.
In Jogupalya, the prices of commercial properties have escalated from `10,000 to `18,000 per sq ft. “Though some people are willing to pay the prevailing market prices, no one is willing to sell their properties,” he said.
Nagaraja Reddy, president of the Confederation of Real Estate Developers’ Associations of India (CREDAI), Karnataka, said that while property prices in developed areas of the city appreciated by around 15 per cent, in some areas of Bangalore East, the escalation was over 30 per cent a year after the MG Road-Baiyappanahalli stretch was commissioned.
“Property prices in areas that are situated on either side of the recently commissioned Reach 3 and 3A in Bangalore West are likely to appreciate by around 30 per cent in the coming years,” he said.
Many builders have already started housing projects in these areas to maximise profits. Vikas Malpani, co-founder of Commonfloor, a real estate web portal, said as Namma Metro provides for hassle-free and speedy travel, commuters can easily reach the core areas of the city within minutes from peripheral areas like Peenya.
“Therefore, property prices towards Peenya and its adjoining areas are likely to appreciate at a faster pace,” he said.