The Bengaluru real estate sector has geared up for a much-awaited boost as the government has shown a green flag to the launch of Metro Green Line linking the East-West and North-South corridors, covering 42.3km. “This implementation could be advantageous for the real estate sector,” says an expert from Modi Builders.
With this launch, properties in the vicinity of metro routes will become high in demand and it is expected that the state government is working on an increased Floor Area ration (FAR) policy for commercial and residential buildings within 200 meters of metro stations. The government is also planning to lift up guidance value rates along metro routes, probably in November, as part of its yearly exercise.
“Real estate prices zoomed 150% in areas closer to Metro stations over the past five years but the guidance value has gone up by just 20%-30%. Now we expect prices to go up by a further 10%20% in the next quarter and we assume it needs some value correction,” said a senior official of the state revenue department.
The leading realty players, like Modi Builders, are looking forward to the augment of property prices next to metro routes as it will help infuse new scope of life to the sluggish market.
The property sales are increasing more towards Metro terminus as compared to other areas. Since property prices in these areas rate too low, property values will undergo 15%-20% rise in the coming months. In addition, rentals for the existing supply will surge in 2-3 quarters and fresh supply will start witnessing at least 10% premium to other areas in Bengaluru.
The housing real estate will be at a receiving end. Over the past two years, the market is seeing a marked customer inclination towards buying a project because of its nearness to metro stations. This will facilitate in building of strong and healthy sale traction for housing projects alongside the metro line. The rates of residential flats and land value are also expected to rise.