The Union Cabinet’s recent approval of the Namma Metro Phase-3 project is poised to significantly impact South Bengaluru’s real estate market. With an estimated cost of ₹15,611 crore, this ambitious phase of the Bangalore Metro Rail Project includes two major corridors: the first connecting JP Nagar 4th Phase to Kempapura with 21 stations, and the second stretching from Hosahalli to Kadabagere with nine stations.
Dubbed the Orange Line, the Phase-3 extension is expected to drive a substantial appreciation in property values in South Bengaluru, with estimates ranging between 10% and 20%. This anticipated rise in real estate prices is attributed to the improved connectivity the new metro lines will bring, linking residential areas in the southern part of the city with key business hubs and tech parks along Mysore Road and Hebbal.
The expansion of the metro network by 44.65 km, featuring 31 new stations, is projected for completion by 2029. The new routes will cover 32.15 km along the Outer Ring Road West from JP Nagar 4th Phase to Kempapura and 12.5 km along Magadi Road from Hosahalli to Kadabagere. Historically, South Bengaluru has been regarded as a more affordable region compared to other parts of the city. Areas such as Kanakapura Road, Electronic City, Bannerghatta Road, JP Nagar, and BTM Layout have seen real estate prices increase by 10-15% since December 2023. Despite these gains, some locations like Kanakapura Road remain relatively inexpensive and attractive for investors.
Recent trends show that residential activity near the forthcoming metro project sites has been limited. According to Cushman & Wakefield, South Bengaluru’s micro-market contributed approximately 10-13% of total unit launches, with total sales making up less than 10% between 2022 and mid-2024. However, property values have increased by about 10% year-on-year, with some areas like JP Nagar witnessing price surges from ₹7,000 per sq ft to ₹13,000 per sq ft. Experts indicate that while the Namma Metro Phase-3 project may drive up property values and impact affordability, rental rates are expected to remain stable until the infrastructure and commercial development align with the new transportation links.
