The increase in number of footfalls anticipated thanks to the Metro connectivity is leading to more demand for retail property in the corridor
The Metro countdown is on. With the launch scheduled for next week, many are looking at the Metro for what it will mean to the city in the months ahead. Reach I - the stretch from M G Road to Byappanahalli - is billed as a trailer, an indication of things to come. It will showcase the Metro and what to expect from it in the next couple of years by which time the network is scheduled to be complete.
The Metro promises to be a game changer for the city's property sector. Going by what the Outer Ring Road (ORR) and more recently the six-laning of Bellary Road have done for the city's realty sector, the prospects from the Metro is much more. While these roads brought connectivity to specific localities in the vicinity, the Metro networks the entire city. Along with the connectivity, it is also a mechanism that delivers the target audience to the doorstep, a step ahead of the connectivity that the roads entailed.
So, what does this mean for the realty sector and more importantly the investor?
Property in the vicinity of the Metro corridor, to begin with, will acquire a 'premium' tag. The Reach I commissioning promises to work well for the other segments thanks to a demonstration effect. With the Metro passing through two premium shopping and commercial districts, the convenience of connectivity will lead to demand for commercial spaces to begin with. Retail outlets and eateries along the way will find the connectivity a boon with more footfalls, leading to higher value for strategically-located property.
That brings up the question of what 'strategically-located' means? While walking distance from a station is certainly a strategic location, convenience through the feeder bus service too makes for strategic location. In the context of the property market dynamics, location has many connotations. A property can be termed to be in a premium location if it is on a main road, at a junction, a corner building or near a significant landmark. Now, it can also be strategically located if it is connected to the Metro directly by virtue of being near a Metro station or close to a feeder bus stop that thereby connects it to the Metro line. The impact of such a location will be more obvious once the entire network is complete. However, a property with this potential will be a value buy, especially if it is in the proximity of ongoing Metro construction work and therefore at a discount.
The retail outlets along the C M H Road stretch are now 'premium' locations. "When the construction was on, many closed down as there was a sharp drop in business. Now, it is picking up as the road has opened up and it is even broader than before. The pavement has been planned well. Once the Metro starts, business will boom as footfalls will increase tremendously", says Ramesh Ailoo, who owns a garment store on C M H Road.
The demand for retail space is picking up. "Rentals have gone up since the last two months as the Metro launch was expected. More businessmen are looking at retail space on C M H Road thanks to the Metro. This will happen in the other Metro corridors too", adds Ramesh.
The additional footfalls once the Metro begins operations is a key factor. "We are expecting more shoppers to come once the Metro starts running. In fact, property prices have already gone up in the recent past on the back of the Metro launch", says Bhoopalam P Srinath, President, Bangalore Trades Association.
While many heave a sigh of relief that parking woes will be a thing of the past, there are many other angles to the Metro too. The convenience of shopping is one that is waiting to be discovered. To the shoppers connected by the Metro, it is cause for celebrations.
QUICK BYTES
- THE INCREASE IN NUMBER OF FOOTFALLS ONCE THE METRO STARTS OPERATIONS WILL PUSH DEMAND FOR COMMERCIAL PROPERTY
- A PROPERTY IN THE VICINITY WILL ACQUIRE A ‘PREMIUM’ TAG
- PROPERTY NEAR AN UPCOMING METRO CORRIDOR COULD BE A VALUE BUY NOW
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