Average property values double along Bengaluru metro's 3 kilometre green line extension.

By Bricksnwall | 2024-11-08

Experts predict a further increase in property prices and rental yields near the Nagasandra-Madavara metro line in Bengaluru's northern corner.

According to data obtained from numerous real estate companies, average property values in key communities along the Nagasandra-Madavara stretch of the Bengaluru metro's green line have increased by double during construction.

For example, average property prices in Madavara, the last station on the expansion line, was between $4,500 and $5,000 per square foot in 2017. Anarock, a property consultancy, reported that the metric increased from ₹9,000-9,500 in 2023 to ₹10,000-10,500 in Q3 2024.

Anarock data shows that typical real estate prices in Anchepalya, 2 km from Madavara, have increased from ₹5,000-5,500 in 2017 to ₹10,000-10,500 in 2023 and ₹10,600-11,100 in Q3 2024.

The 3.14-kilometre expansion line in North Bengaluru was officially opened to commuters in the IT capital earlier today. Since construction began in 2017, this expansion line has been among the slowest to build in the city's history, lasting more than double the projected timeframe of 27 months.

The shortest elevated extension line in Phase 1 consists of three stations: Manjunathanagar, Chikkabidarakallu, and Madavara.

The 1,169 crore line is anticipated to reduce traffic congestion on Tumakuru Road and improve metro access to the Bangalore International Exhibition Centre (BIEC), a key hub for business conferences and exhibits in the state.

The line follows the national highway and passes NICE (Nandi Infrastructure Corridor Enterprises) Road twice.

"We expect property prices and rental yields in the area to rise as increased connectivity makes these micromarkets more appealing to young professionals and families. 

Micromarkets that were once considered peripheral, such as Madavara and Anchepalya, will now emerge as viable residential and commercial hubs," said Sanjay Chugh, ANAROCK Group's City Head in Chennai.

"The enhanced connectivity will particularly benefit the workforce employed in the nearby industrial areas and tech hubs, potentially triggering a surge in residential demand in locations within a 2-3 km radius of the new stations," he told me.

Others agreed. "Given that the notable developers having already strategically positioning themselves along the operational sections of the Green Line in northern Bengaluru, and demand momentum pushing average property prices and monthly asking rents upwards by 9-12% annually since 2019, we foresee a similar trend continuing in the newly opened metro sections in the coming years," said Sopan Gupta, an analyst.

Meanwhile, property values in other areas along the 3.14 km stretch, such as Chikkabidarakallu, Bagalakunte, and Nagasandra, soared by around 90% during the same time period.

Rentals rise by 16–25%.

According to data from proptech platform Square Yards, average rental values along the extension line increased by 16-25% over five years.

In Nagasandra, average monthly rents increased from ₹26,394-30,100 to ₹30,690-32,550 in 2023 and ₹33,000-35,000 in the first ten months of 2024.

Nagasandra metro station is a major terminal station and one of the busiest on the green line, servicing the Bagalakunte district of North Bengaluru.

The average monthly rental fee in Jalahalli, located roughly 7 km from Nagasandra, has climbed from ₹22,395-25,594 in 2019 to ₹26,040-29,760 in 2023 and ₹28,000-32,000 in 2024.

Pricing and rental values for real estate near a metro project rise on a regular basis throughout the project's life cycle, from announcement to construction and operation," according to a local property consultant.

According to Bangalore Metro Rail Corporation data, the commissioning of this leg brings Bengaluru's metro network to 76.95 km and 69 stops. The North South corridor (Green Line) is presently 33.46 kilometres long with 31 stations, while the East West corridor (Purple Line) is 43.49 kilometres long with 38 stations.

Source: Hindustan Times