Cabinet clearance of three metro projects in Maharashtra and Bengaluru is expected to boost to growth in the real estate sector

By Bricksnwall | 2024-08-17

New metro corridors in Bengaluru and Maharashtra are expected to accelerate the growth of the housing, office, and retail markets.

On August 16, the Union Cabinet approved three metro rail projects in Bangalore, Karnataka, and Thane and Pune, Maharashtra, where assembly elections are scheduled for later this year. According to experts, the approved metro projects in the two cities have tremendous real estate growth potential for their respective cities in the long run.

The Bangalore Metro Phase-3 project will cost ₹15,611 crore and include two corridors: JP Nagar to Kempapura and Hoshahalli to Kadabagere.

The Thane Integral Ring Metro, costing ₹12,200 crore, will connect the city's residential and industrial regions and include interchanges for Mumbai Metro rail lines 4 and 5.

The Pune Metro would stretch from Swargate to Katraj at a cost of 2,954.5 crore. It will give subterranean connectivity to Market Yard, business and residential districts in Padmavati, and Katraj, which includes residential neighbourhoods, a university campus, and a zoo.

According to Vimal Nadar, Senior Director and Head of Research at Colliers India, the recently approved metro projects in Bengaluru, Pune, and Thane would increase suburban urban mobility and have tremendous long-term real estate growth potential for their respective cities. Value unlocking is predicted in the residential, commercial office, and retail areas as metro drives organic and inorganic expansion.

Impact on the Bengaluru real estate market

"The third phase of the Bengaluru Metro proposes to connect the city's western outskirts to ORR and significant secondary business district locations such as JP Nagar and Bannerghatta Road. Apart from the obvious benefits to the industrial and warehousing sectors in Western Bengaluru and commercial real estate in IT areas along the ORR, real estate investors should benefit from significant property price growth once metro construction work begins," he said.

Impact on the Thane and Pune real estate markets

The Thane integral ring metro rail project is projected to greatly improve connectivity in Thane by connecting key residential and business areas such as Navpada, Wagle Estate, Hiranandani Estate, and Kolshet.

It will make travelling easier because the metro would serve as an efficient internal mode of transit, relieving traffic congestion in numerous Thane locales.. This metro network will operate as a stimulus in the growth of established residential and office markets, therefore increasing capital values and rentals over time," he said.

The extension of the Pune Phase 1 project will also aid in increased connectivity, hence improving total urban infrastructure in Pune.

According to Ritesh Mehta, Senior Director and Head (North and West), residential services and developer initiative, JLL India, Cabinet clearance for the Metro expansion from Hiranandani estate to Naupada will provide respite to at least 1 million daily commuters once it is completed. Thane has seen substantial infrastructural development in recent years and has been identified as one of the smart cities for development under the Smart Cities Mission.

"This approval further testifies the government's growth vision for Thane which has emerged as one of the hotspots for real estate investment and a sought-after housing destination for people of Mumbai," revealed the minister.

Source: Hindustan Times