Market Trends / NRI

Real Estate Growth Around Metro Corridor

- by - 47 Comments.

Introduction

The real estate sector is one of the most globally recognised sectors. In India, real estate is the second largest employer after agriculture and is slated to grow at 30 per cent over the next decade.

It is expected that this sector will incur more non-resident Indian (NRI) investments in both the short term and the long term. Bengaluru is expected to be the most favoured property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun.

India’s rank in the Global House Price Index has jumped 13* spots to reach the ninth position among 55 international markets, on the back of increasing prices in mainstream residential sector. Know the real estate growth around metro corridor and its impact.

Market Size

The Indian real estate market is expected to touch US$ 180 billion by 2020. The housing sector alone contributes 5-6 per cent to the country’s Gross Domestic Product (GDP).

In the period FY2008-2020, the market size of this sector is expected to increase at a Compound Annual Growth Rate (CAGR) of 11.2 per cent.

Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India’s growing needs.

A total of 2,17,900 new houses in six Indian states were sanctioned by the Ministry of Housing and Urban Affairs, Government of India under the Pradhan Mantri Awas Yojana (Urban) (PMAY) to push affordable housing in the urban areas of the country.

Bangalore

Bangalore is one of the promising markets for the investors because of the infrastructural development happening in full swing one of the major contribution after the IT industry is the Metro.

The Bangalore metro has contributed towards the growth of Real estate indicating progressive impact on micro markets near metro lanes. Connecting not just the major locations in Bangalore city but also the IT-Parks, Namma metro is the second longest operational metro network after Delhi metro, easing people in hassle free and time saving commute; this is drawing the major attention and interest of the customers.

The property prices have increased around a minimum of 12% up to 20% compared to last few years expected to grow even up to 30% by the time phase 2 is completed, the major changes happening in East, north and south Bangalore.

Namma Metro Development and the properties in and around the Metro Corridor

The development of Bangalore metro is happening in phases, as of now Phase 1 is operational that is Purple line: Baiyappanahalli to Mysore road. Below is a list of projects that are close to Metro stations across different lines and have either seen appreciation or are expected to yield good returns for investors.

  • Brigade Panaroma
  • Provident Sunworth
  • Provident Rays of dawn
  • VBHC Palm haven 1 & 2
  • Prestige Temple bells
  • Salarpuria Divinity
  • Salarpuria Melody
  • Pride Enchanta
  • Salarpuria Anugraha
  • Purva Sunflower
  • Purva 270
Green line

Nagasandra to Kanakapura Road.

  • Total environment- The Magic Faraway tree
  • Sobha Park & Plaza
  • Godrej Eternity
  • Sobha Forest view
  • Rohan Akriti
  • Brigade Omega
  • Brigade 7 gardens
  • Mantri Serenity
  • Prestige Falcon city
  • HM Indigo
  • Prestige Lakeridge
  • Century central
  • Shriram Southern crest
  • Prestige Brooklyn heights
  • Sobha-Indraprastha
  • Sobha-Elite
  • Sobha-Garrison
  • Sobha-Ruby
  • Sobha-Emarald

Phase 2 includes the extension of the two Phase 1 corridors, as well as the construction of two new lines. The south-end of the Green Line will be extended from Yelachenahalli to Anjanapura Township along the Kanakapura Road and the north-end from Hesarghatta Cross to Bangalore International Exhibition Center (BIEC) on Tumkur Road (NH-4).

The east-end of the Purple Line will be extended from Baiyappanahalli to Whitefield and the west-end from Mysore Road to Kengeri.

R V Road – Bommasandra line will be constructed under Phase 2. The second new line is Gottigere – Nagawara line.

Blue Line: Silk Board to KR Puram
Purple Line ext: Biayappanahalli to Whitefield
  • Purva Rivera
  • Pura Fountain Square
  • Rohan Vasantha
  • UKN Esperenza
  • Vaswani Brentwood
  • Gopalan Habitat Splendor
  • Brigade Lakefront
  • Divyashree ROW
  • Godrej AIR
  • Shriram Gardenia
  • Gopalan Grandeur
  • Ozone Promenade
  • Godrej United
  • Brigade Metropolis
  • Prestige Shantiniketan
  • Vaswani Exquisite
  • DSR Lotus
  • Prestige-White Meadows
  • Prestige-Park View
  • Prestige Boulevard
  • DNR Atmosphere
  • Prestige Laughing Waters
  • Brigade Cosmopolis
  • Goyal Orchird Whitefield
  • UKN Belvista
  • Alembic Urban Forest
  • Sobha Habitech
  • Golden Gate Blossom
  • Umiya Woods
  • Assetz Marq
  • Sterling Villa Grande
  • Sobha Avenues
Red Line: Gottigere to Nagawara
  • Purva Panorama
  • Valmark Orchard square
  • Ajmera Green Acres
  • Prestige Notting hill
  • Nitesh Hyde park
  • Valmark Apas
  • Valmark City ville
  • Prestige Song of South
  • Mantri Pinnacle
  • Mantri Woodlands
  • Adarsh Rhythm
  • Mantri Tranquil
  • Sobha Magnolia
  • Blue jay Aristos
  • Sobha Grandeur
  • SNN Clermont
  • G Corp The ICON
  • Sobha Chrysanthemum
  • Mantri Lithos
  • Mantri Energia
  • Karle Town
  • Assetz Here & Now
  • Arvind Sporcia
  • Vasathe Avanthe
  • Monarch Serenity
  • Sobha City (4kms from Jakkur Metro n 6km from Nagwara metro)
  • Bhartiya City (5kms approx from Kogilu or Jakkur Metro)
  • Brigade Northridge
  • Godrej Woodsman
  • Godrej Platinum
  • Brigade Caladium
  • RMZ Latitude
  • Century Ethos
  • L&T Raintree
  • Sobha-Pristine
  • Sobha-Moonstone
  • Sobha-Palm Court
  • Century Breeze
  • Legacy Cirocco
Yellow Line: R V Road to Bommasandra
  • Adarsh Garden Apartment
  • Peninsula Heights
  • Mahaveer Oberon
  • Mantri Elegance
  • Sobha Magnolia
  • Sobha Grandeur (This will be covered in other line as well)
  • Prestige St. John’s Wood (2.1kms approx)
  • Brigade Lakeview Apartment (2.3kms approx)
  • Raheja Pebble Bay
  • LGCL Luxuriate
  • Prestige Pine Wood (around 2.4kms)
  • SNN Raj Grandeur
  • Keerthi Residency (Around 2.3kms)
  • Salarpuria Sattva Serenity
  • Salarpuria Sattva Greenage
  • Purvankara Westend
  • Salarpuria Sattva Cadenza
  • Total environment Greensleeves
  • Bren Trillium
  • Salarpuria Symphony
  • Prestige Casabella (2.7kms approx)
  • Godrej E-City
  • SNN Raj Greenbay (2.3kms approx)
  • Shriram Summit
  • Gopalan Gardenia
  • MJR Clique (2.4kms approx)
Property Appreciation around Metro Stations

Land values are inversely related to the distance of land parcels from the metro station. Ordinarily, land values decrease along with the distance from Metro stations. Technically, a Metro exerts an influence buffer of up to 1 km radius, with the maximum influence being within 500 meters. Typically in a city, the market value of properties will increase by more than 50% over the prevalent values after the launch of metro rail, depending upon the location, land use, and the micro-market’s overall potential.

The fully operational 18-km line has kicked up realty prices along its route.

 

Rentals

Most areas along Kanakapura Road, including Basavanagudi, Banashankari, J.P. Nagar, Jaraganahalli, Yelachenahalli and pockets of Vasanthapura, Uttarahalli and ISRO Layout are already seeing 10 per cent increase in rentals. In ISRO Layout, a three-bedroom unit saw a steep rise in rent to Rs. 30,000, said to be a 20 per cent higher compared to the last quarter. Near Nayandahalli, residential localities such as Binny Layout, Attiguppe, Bapuji Layout, and Deepanjalinagar are also seeing increased rentals. Property rates too are expected to increase by 10 per cent in the next three months

Conclusion

According to a global market research report by Eric Pels & Piet Rietveld, Railway station proximity is addressed from two spatial considerations: a local station effect measuring the effect for properties with in 1/4 mile range and a global station effect measuring the effect of coming 250 m closer to the station.

We find that the effect of railway stations on commercial property value mainly takes place at short distances. Commercial properties within 1/4 mile rang are 12.2% more expensive than residential properties. Where the price gap between the railway station zone and the rest is about 4.2% for the average residence, it is about 16.4% for the average commercial property.

At longer distances the effect on residential property values dominate. We find that for every 250 m a residence is located closer to a station its price is 2.3% higher than commercial properties.

Commuter railway stations have a consistently higher positive impact on the property value compared to light and heavy railway/Metro stations. The inclusion of other accessibility variables (such as highways) in the models reduces the level of reported railway station impact.

References
  1. Metro Rail – An Unmatched Real Estate Catalyst
  2. Realty prices go north along metro corridor in Bengaluru
  3. Metro pushes property rental values north
  4. Green signal for higher realty prices?
  5. The Impact of Railway Stations on Residential and Commercial Property Value: A Meta-analysis

Related Posts

Why villa plots are selling fast in Bangalore

Why villa plots are selling fast in Bengaluru

Indian Cities Classified into Tier1, 2, 3 and 4

Understanding Indian Cities Classified into Tier I, II, III, and IV

Trends in Apartment Architecture

Trends in Apartment Architecture

About

View all posts by →

47 Comments on “Real Estate Growth Around Metro Corridor”

  1. I have to express appreciation to this writer just for bailing me out of this particular condition. Just after surfing throughout the the web and seeing views which are not pleasant, I figured my life was gone. Existing devoid of the strategies to the issues you have sorted out by way of your short article is a critical case, and ones which could have in a negative way damaged my career if I hadn’t discovered your web site. Your personal expertise and kindness in maneuvering almost everything was important. I am not sure what I would have done if I had not come across such a solution like this. I can also at this point look ahead to my future. Thanks very much for your professional and results-oriented guide. I will not hesitate to propose the blog to any individual who will need guidance on this subject matter.

    Reply

  2. I want to point out my respect for your kindness for folks who have the need for help on your area of interest. Your real commitment to passing the solution all around appears to be incredibly productive and have always permitted girls just like me to realize their pursuits. Your new warm and helpful instruction can mean a lot to me and especially to my fellow workers. Best wishes; from all of us.

    Reply

  3. I want to express some thanks to this writer for bailing me out of such a challenge. As a result of checking throughout the the web and getting basics which were not productive, I was thinking my life was done. Being alive minus the solutions to the issues you’ve sorted out as a result of your entire article content is a serious case, and ones that could have adversely damaged my career if I had not encountered your web site. The expertise and kindness in dealing with a lot of things was very helpful. I am not sure what I would have done if I hadn’t come across such a stuff like this. I can also now relish my future. Thank you very much for this skilled and result oriented guide. I will not be reluctant to propose your web site to any person who needs and wants guide on this issue.

    Reply

  4. I precisely desired to say thanks once more. I do not know what I would’ve accomplished without the pointers shared by you directly on such topic. It absolutely was the distressing crisis in my circumstances, nevertheless taking a look at your well-written technique you managed the issue made me to cry over delight. Now i’m thankful for this help and then sincerely hope you know what a powerful job you are providing educating men and women using your websites. I know that you have never met all of us.

    Reply

  5. My spouse and i felt so fulfilled when Michael could finish up his researching through the entire precious recommendations he was given out of your site. It’s not at all simplistic to simply possibly be handing out solutions that many a number of people have been trying to sell. Therefore we understand we have got you to give thanks to because of that. Most of the illustrations you made, the straightforward web site navigation, the relationships your site help engender – it’s mostly terrific, and it’s making our son and our family reason why the situation is thrilling, which is quite essential. Many thanks for all the pieces!

    Reply

  6. I truly wanted to send a simple message so as to express gratitude to you for all the magnificent facts you are sharing here. My time consuming internet search has at the end been paid with brilliant facts and strategies to talk about with my friends and classmates. I ‘d believe that most of us readers are very fortunate to be in a good community with so many wonderful professionals with insightful secrets. I feel somewhat blessed to have come across the website and look forward to plenty of more enjoyable minutes reading here. Thanks a lot again for a lot of things.

    Reply

  7. I would like to express appreciation to you just for rescuing me from such a matter. After browsing throughout the internet and coming across principles that were not powerful, I was thinking my life was done. Existing devoid of the solutions to the issues you have resolved by way of this post is a serious case, and ones that could have badly affected my career if I hadn’t discovered your blog. Your main talents and kindness in playing with a lot of stuff was very useful. I don’t know what I would’ve done if I had not come upon such a subject like this. I can also at this time look forward to my future. Thanks a lot so much for this skilled and result oriented guide. I will not be reluctant to endorse your web site to anybody who needs and wants recommendations about this topic.

    Reply

  8. My spouse and i got cheerful John managed to complete his investigations by way of the ideas he grabbed using your web pages. It is now and again perplexing to simply happen to be releasing procedures other people could have been trying to sell. We really grasp we have the blog owner to appreciate for that. The main explanations you have made, the easy website menu, the friendships you will help to engender – it’s most fabulous, and it’s letting our son in addition to us know that that idea is excellent, which is certainly really mandatory. Thanks for the whole lot!

    Reply

  9. I intended to send you one very small observation so as to thank you very much again about the amazing guidelines you have provided here. It is simply shockingly generous of people like you to give without restraint precisely what a lot of folks could possibly have made available for an ebook to help make some cash on their own, even more so seeing that you could have tried it if you ever desired. The tactics additionally served to be a fantastic way to understand that other people online have the identical dreams like my personal own to learn more in terms of this condition. I believe there are many more pleasant periods ahead for people who view your blog post.

    Reply

  10. Thank you for your entire work on this website. Gloria take interest in participating in research and it’s really obvious why. Many of us know all regarding the powerful tactic you offer effective steps through your blog and even strongly encourage response from some other people on that subject matter so our favorite daughter is truly being taught so much. Have fun with the rest of the year. You are doing a brilliant job.

    Reply

  11. Thanks a lot for providing individuals with an extraordinarily pleasant opportunity to read from this web site. It’s always very beneficial and also stuffed with amusement for me personally and my office mates to search your website a minimum of thrice in one week to read the new tips you have. And lastly, we’re certainly pleased with all the mind-blowing information you give. Selected 3 points in this article are rather the most efficient we’ve ever had.

    Reply

  12. I have to point out my admiration for your kindness in support of men and women who require help on this important subject matter. Your personal dedication to passing the solution all-around ended up being amazingly insightful and has surely enabled professionals much like me to get to their ambitions. Your entire interesting instruction denotes much a person like me and especially to my office colleagues. Many thanks; from all of us.

    Reply

  13. Thanks a lot for giving everyone an extremely breathtaking chance to discover important secrets from this site. It’s always very pleasing and jam-packed with a good time for me and my office co-workers to search the blog at the least 3 times in one week to read the new guides you have. And lastly, we’re actually contented with all the astounding strategies served by you. Selected 1 facts in this post are surely the most efficient I have ever had.

    Reply

  14. I and also my pals appeared to be taking note of the best information on the website and so then I got a horrible feeling I had not thanked the web site owner for them. Most of the young men happened to be consequently very interested to read through all of them and have now without a doubt been taking pleasure in those things. Thanks for turning out to be indeed helpful and for deciding on some extraordinary resources millions of individuals are really eager to discover. My personal sincere apologies for not expressing appreciation to earlier.

    Reply

  15. My spouse and i got so satisfied that John could finish off his survey via the ideas he grabbed out of the web site. It is now and again perplexing just to choose to be offering tips and hints that many people could have been trying to sell. And we fully grasp we’ve got the writer to thank for this. All of the explanations you have made, the straightforward website navigation, the friendships you assist to foster – it is everything spectacular, and it’s assisting our son and our family imagine that that theme is brilliant, which is wonderfully important. Thanks for everything!

    Reply

  16. Thank you for all your effort on this web site. My niece enjoys managing research and it is obvious why. We hear all of the compelling ways you convey great ideas via this web site and in addition encourage contribution from some other people about this issue so my daughter is now understanding a lot. Take pleasure in the remaining portion of the new year. You’re carrying out a first class job.

    Reply

  17. I actually wanted to post a remark so as to say thanks to you for those precious guides you are showing on this site. My extended internet look up has now been rewarded with reliable facts and strategies to exchange with my visitors. I ‘d claim that many of us site visitors actually are rather lucky to exist in a superb community with very many wonderful professionals with helpful opinions. I feel really grateful to have come across the web site and look forward to many more fabulous times reading here. Thanks again for a lot of things.

    Reply

  18. I enjoy you because of your entire effort on this website. Gloria takes pleasure in doing internet research and it’s easy to understand why. Many of us learn all of the compelling mode you deliver effective steps by means of this blog and as well foster contribution from website visitors on the content so my princess is actually becoming educated a lot of things. Take pleasure in the remaining portion of the new year. You’re doing a dazzling job.

    Reply

  19. I enjoy you because of all of the work on this site. Gloria loves conducting research and it’s simple to grasp why. Most people hear all concerning the dynamic mode you render both interesting and useful tips and tricks through your blog and recommend contribution from some other people on this subject and our own princess is really becoming educated a great deal. Take advantage of the rest of the year. You are performing a very good job.

    Reply

  20. I wanted to create you a very small word so as to thank you the moment again about the wonderful guidelines you have shared in this article. This is simply surprisingly generous with you to give without restraint all that numerous people could have offered for sale for an e book to make some money for themselves, especially considering that you could have tried it if you ever wanted. These thoughts additionally worked to be the good way to be certain that the rest have similar desire like my personal own to see great deal more with respect to this matter. I know there are thousands of more pleasurable opportunities in the future for many who take a look at your website.

    Reply

  21. I precisely wanted to thank you very much all over again. I do not know the things that I would’ve gone through without the actual smart ideas revealed by you about such a question. It truly was the frightening difficulty in my view, nevertheless coming across the very specialised mode you managed the issue made me to jump with delight. I will be thankful for this information and even expect you know what a powerful job that you are doing instructing men and women through your web blog. I am sure you’ve never come across all of us.

    Reply

  32. I simply wanted to develop a small message to thank you for all of the fabulous items you are placing here. My time intensive internet search has at the end of the day been rewarded with good quality tips to share with my best friends. I would suppose that most of us website visitors actually are undeniably blessed to be in a great place with many marvellous professionals with very helpful advice. I feel really grateful to have discovered your web site and look forward to so many more thrilling moments reading here. Thanks once more for everything.

    Reply

  43. I wanted to post you the bit of note just to thank you the moment again with your magnificent advice you’ve featured in this article. It is really extremely generous with you to make without restraint all many people would have supplied as an ebook in making some profit for their own end, precisely considering that you might well have tried it if you ever decided. Those tips as well worked to be a fantastic way to fully grasp that many people have the same keenness similar to my very own to know the truth way more on the topic of this problem. I believe there are many more enjoyable opportunities up front for individuals who find out your site.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *