Don't know if the age old saying 'find ants, where the sugar is' holds true for everything or not. But it certainly holds good for the real estate prices along the metro stations. Name any city in the country, real estate has seen a significant rise in prices in these areas which has always been more than that in other areas of the city. Like Delhi, now its time for Bangalore to gain from Namma Metro. Real estate players are in a wait and watch mode hoping that sooner or later they will be witnessing a rise in the land prices.
Generally, the prices of land anywhere in the city see a jump of 5-10 per cent year-on-year. But, realtors and real estate analysts say the rise in prices of land along the metro route is about 10 per cent more than that in any other part of the city. But this rise seems very natural as the present metro phase-I runs through one of the prime business locations in the city.
“We cannot be sure if we can attribute the rise of land prices only to the metro,' said a real estate analyst in Jones Lang LaSalle. The Bangalore market is yet to see a substantial rise due to the metro. As of now the land along the metro lines are seeing a slump due to heavy construction going on and are not easy to commute. 'The shops and restaurants along the metro routes saw huge fall in sales and occupancy,' he added.
The prices along the metro stretch has seen a low when the construction was on in full swing. There were almost no buyers of land in those limits. The data charts of magicbricks.com shows the prices of land in these areas slowly but steadily picking up.
Interestingly, the prices in the areas which are not on the metro route saw a fillip during the metro construction and now they are showing a marginal downward movement.
Moreover, the metro line is going through the heart of city, which is already preoccupied and there is hardly any sale of land happening in this area said realtors in the city. 'The primary focus is now on the Floor Area Ratio that has been raised from an average of 3.25 to 4 which means the existing constructions within 150-200 metres from metro stations can raise their number of floors,' said Irshad Ahmed, President, Bangalore Realtors Association of India.
But, this nod has to come from the MD of BMRC. But, in Delhi, the picture is quite different. 'The prices here rose in five different stages and that is anywhere between 150-300 per cent,' noted an industry player.
The rise in prices started right from speculation by some players who came to know that the metro rail is coming up. This is the first stage of the rise; the second rise is when government officially proposed the metro route; the third, when people actually witness the construction catching up pace; the fourth is when metro started functioning and the last is when people started realising the benefits of the metro. These stages have spanned five years to seven years, he explained.
However, the scenario of realty in Bangalore is not following the same pattern.
It's probably too early to sense the pulse of Bangalore realtors. But, from the past experience the prices could see a jump when metro becomes fully operational.
