Table of Contents
The Union Cabinet on August 16 approved three metro rail projects in Bengaluru in Karnataka, and Thane and Pune in Maharashtra, where assembly elections are due later this year. Experts said that the approved metro projects in the two cities hold significant real estate growth potential for respective cities in the long-term.
Value unlocking is expected across residential, commercial office and retail segments as metro will trigger organic and inorganic growth, they said.
The three Metro corridors
The Phase-3 of the Bangalore Metro, comprising two corridors – JP Nagar to Kempapura and Hoshahalli to Kadabagere – will be completed at a cost of ₹15,611 crore.
The Thane Integral Ring Metro, to be built at a cost of ₹12,200 crore, will provide connectivity to the residential and industrial areas of the city with interchanges provided for the Mumbai Metro rail lines 4 and 5.
The Pune Metro, which will be extended from Swargate to Katraj at a cost of ₹2,954.5 crore, will provide underground connectivity to Market Yard, commercial and residential areas at Padmavati and Katraj, which has residential areas, a university campus and a zoological park.
Also Read: Delhi Metro Phase 4 projects: Approval of two Metro corridors to enhance connectivity and impact real estate markets
Vimal Nadar, Senior Director and Head of Research, Colliers India, said that with a boost to suburban urban mobility, the recently approved metro projects in Bengaluru, Pune and Thane hold significant real estate growth potential for respective cities in the long-term. Value unlocking is expected across residential, commercial office and retail segments as metro will trigger organic and inorganic growth.
Impact on Bengaluru’s real estate market
“The phase 3 of Bengaluru metro aims to connect the western peripherals of the city with ORR and key localities in the Secondary Business District such as JP Nagar and Bannerghatta Road. Apart from perceptible benefits to the industrial and warehousing segment in Western Bengaluru and commercial real estate in IT pockets along ORR, real estate investors should benefit from significant property price appreciation once metro construction work gains momentum,” he said.
Impact on Thane and Pune’s real estate markets
The Thane integral ring metro rail project is expected to significantly improve connectivity within Thane as it will connect key residential and commercial hubs including Navpada, Wagle Estate, Hiranandani Estate, Kolshet.
“It will ease commuting as the metro will serve as an effective internal mode of transport and decongest several areas within Thane. This metro network will act as a catalyst in the growth of established residential and office markets, thus appreciation in capital values and rentals over time,” he said.
Also Read: Gurugram Metro: Here are the sectors which may see the maximum price impact
The extension of the Pune Phase 1 project will also aid in enhanced connectivity and thus augment overall urban infrastructure within Pune.
According to Ritesh Mehta, Senior Director, and Head (North and West), residential services and developer initiative, JLL India, the Cabinet approval for the expansion of Metro from Hiranandani estate towards Naupada will give relief to at least 1 million daily commuters once it’s ready. Thane region has witnessed rapid infrastructure development in the recent past and has been shortlisted 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,” he added.
Also Read: Here’s how metro projects in multiple cities will impact real estate markets
