With the state government’s decision to fast track Metro Phase II’s 18 kms stretch that connects K.R. Puram with Central Silk Board, different real estate asset classes in the vicinity are set to benefit positively over the long haul. This would have a clear impact on Bengaluru’s real estate market essentially in the following ways:
Higher Development Potential as ORR is a Mutation Corridor as per the Revised Master Plan of 2015 and any real estate development within 100 meters of a metro station gets a higher FAR of 4.0 apart from the general norms. Having said that, there is an existing ceiling on the height of development on ORR at present, which needs to be increased to avail the benefit of increased FAR.
“Since no land is available on ORR stretch [from Sarjapur till Bagmane WTP] which can cater to a larger IT park development, development activity for large scale IT parks should concentrate in the adjoining Sarjapur road micro market. Additionally, Whitefield and Varthur will also benefit in due course.” says, Goutam Chakraborty, Senior Director, Office and Integrated Services at Colliers International India.
Commercial Segment: A well-planned public transportation network on ORR will reduce travel time considerably and will help reduce traffic density. Despite a very high absorption rate and maintaining sub 5% vacancy levels, occupiers on ORR have been wary of loss of employees’ productivity lately. This announcement addresses their long-standing clamor for infrastructure upgrades, which will be key to retention and entry of new tenants in the long term.
Residential Segment: Residential clusters along all 13 metro stations along this corridor, including Central Silk Board and K.R. Puram will witness a boost in demand due to increased connectivity to prime employment hubs. Mahadevpura, Bayappanahalli, Bellandur, Sarjapur, HSR Layout and Marathahalli are some key locations which will witness moderate price appreciation for residential products in mid to long term. Given the current oversupply situation, arrival of Metro in these locations will certainly revive sales.
Retail Segment: Lastly, metro stations have, off late, been gaining popularity from retail segment. Several small and large format stores have become operational at metro stations in the country, which provide an additional revenue stream to the metro operator to keep fares low and meet debt obligations.
Whilst an operational Metro Line on this stretch will benefit the wider commuter pool, a detailed project report to meet the three-year deadline (to become operational by 2020) is still awaited. Cost overruns, problems associated with land acquisition and design and route of the metro corridor on this stretch (which also has some flyovers) are key parameters to be considered failing which this project may not serve the desired purpose.
Credits India Infoline