The Union Cabinet’s recent approval for Phase 3 of the Bengaluru Metro Rail Project is anticipated to significantly impact property values across the city. According to real estate experts, the green light for this major infrastructure upgrade is likely to drive property prices up by over 30% in the affected areas.
A representative from Agarwal Estates forecasts an immediate price increase of around 10%, with an additional 20% rise expected over the medium term. This anticipated appreciation is separate from the typical annual price increments due to inflation. “The announcement itself will trigger an initial 10% price surge, with developers likely to adjust project costs in the next 1-3 months,” noted the spokesperson.
Experts predict that speculative buying may start even before construction commences, as investors look to capitalise on the anticipated improvements in connectivity and accessibility. “Anticipatory buying in metro-connected zones is common, often driving up prices prior to the actual start of construction,” explained a spokesperson from Property First Realty.
Phase 3 of the Bengaluru Metro Project will introduce two elevated corridors, spanning 44.65 km at an estimated cost of INR 15,611 crore. The first corridor will link JP Nagar 4th Phase in South Bengaluru to Kempapura in the North along Outer Ring Road West, covering 32.15 km with 21 stations. The second corridor will connect Hosahalli to Kadabagere along Magadi Road, stretching 12.5 km with nine stations. This expansion is poised to enhance connectivity between the city’s western and southern peripheries, improving access to key areas such as the Kempegowda International Airport and various Secondary Business Districts. The newly operationalised Blue Line, covering 58.19 km from Silk Board Junction to KR Pura, further complements this development.
Real estate analysts suggest that Phase 3 will bring substantial benefits to commercial and industrial sectors, particularly in IT hubs along the Outer Ring Road. “With the metro extending coverage, significant property value increases are anticipated in surrounding areas, particularly once construction gains momentum,” said a representative from Colliers India. Developers are poised to capitalise on the metro’s influence, with commercial developments expected to proliferate around the stations. Areas within 200-500 metres of metro stations are likely to see a rise in residential projects as well.
Hanu Reddy Realty highlights that localities such as JP Nagar and Hebbal have already experienced notable price increases of 15-20% over the past two years, though land availability remains a challenge. Phase 3’s multi-modal integration plans at key locations, including JP Nagar and Hebbal, are expected to facilitate smoother commutes with the introduction of dedicated bus bays and pedestrian paths. Historical trends suggest that similar metro expansions have previously led to substantial property price surges, a trend expected to continue with the forthcoming Phase 3 developments.
