Metro scales up property value Prices may go up substantially only after the entire stretch is completed

With parts of Namma Metro finally seeing the light of day, home buyers and realtors in the city are abuzz with talks of capitalising on its launch.
The question on everyone's mind is how much would the Metro boost their property value? For those awaiting their property to appreciate in value, hold your guns. Industry experts suggest it is still too early for the full impact of the metro to be known, though the future looks bright.
"It is still premature to say how future prices will appreciate. From a property perspective, however, at the moment a very small stretch is operational. So the impact on real estate is negligible," said K S Girish, local director, Strategic Consulting, Jones Lang LaSalle India.
Due to the heavy traffic and road infrastructure in the city, people here would definitely value having homes close to the Metro station, said P Ravindra Pai, managing director, Century Real Estate Holdings.
Any residential purchase made now near Metro terminals would be more from a convenience point of view, rather than for investment value, he said.
"Seeing Phase I of the Metro go live, it seems more real and people are optimistic of seeing the completed Metro now," said Pai, expecting an upward correction of 15% to 20% of properties along the present network, as opposed to others in the same locale.
However, once phase I is completed, experts predict Bangalore to follow along similar lines of the Delhi Metro, expecting an appreciation of 20% to 30% in the next two years after completion.
Although only a 6.5 km stretch of Namma Metro is up and running, it has generated a feel good factor among the public.
"This will help in fetching good premiums around the Metro," said Girish, "Particularly, retail properties benefit most appreciation in value, owing to the increased footprint," Pai said.
Sushil Mantri, president of CREDAI Karnataka and CMD Mantri Developers, said: "It is definitely a win-win situation to hold a property near the Metro. For those looking to cut down on commuting costs, it is wise to purchase now, as costs will only go upwards. Land prices around the Metro have already increased."
He said the government, too, has started encouraging investments in these areas.
This should ease the real estate prices in and around the CBD area, as locales along the periphery too would have good connectivity to the city.
"Although high-end developments will not be impacted much by the Metro, those purchasing mid-segment properties are willing to move 2km to 5km away from their prime locations to a bigger property with more conveniences and at lower costs," Mantri said.
"This will also reduce congestion at the city centre," he said.
Citing Mumbai as an example, JC Sharma, managing director, Sobha Developers, said: "Previously, the eastern part of the city had better accessibility thanks to the airport being situated there. But now prices in West Mumbai have skyrocketed with the introduction of the local train service. I expect a similar price phenomenon to happen along the Metro lines here."
For the moment, industry stalwarts recommend holding on to any property one might have along the metro route. The full benefits of the metro connectivity will only be achieved once the entire phase is completed, thus prices too will not go up exponentially until such a time. "If you have a residential property and are looking to sell, its best to hold onto it until the construction is complete, then exit or convert your properties into a commercial development," Girish said.