Metro, road infra projects to give push to realty sector in 24 locations in Bengaluru

Bengaluru: Knight Frank India, an international property consultancy, in its report said that key transit infra projects like Metro and roadways, will unlock possibilities for heightened real estate development across 24 key locations. In its latest city report: 'Bengaluru Urban Infrastructure Report 2020 –A Comprehensive Take on Major Transit Oriented Infrastructure Projects with Key Impact Markets' it assessed the impact of the current transport infrastructure projects on the real estate sector and identified locations across the city that are expected to benefit due to ease of travel.

It is estimated that 127 kilometres (km) of metro and 270 km of road projects are under various stages of construction in the city. Bengaluru Metro Phase 2, Extensions and New Lines are expected to be completed between 2021-2025. The major road projects - Peripheral Ring Road (PRR), Satellite Town Ring Road (STRR) and Suburban Rail Network are likely to be completed beyond 2025. All these projects are being implemented under various models at an estimated cost of more than $ 11.4 billion. These projects will bring new locations to the forefront and will also be instrumental in driving incremental real estate development across some of the well-established office hubs as also isolated locations which needed public transport connectivity. According to Knight Frank Research's analysis, 24 locations have been identified to benefit from the transit-oriented infrastructural development in the city.

At Whitefield, once operational, the 15.5 km elevated metro line under Phase 2 Extension on Byappanahalli Whitefield route is expected to bring a considerable reduction in the travel time from Whitefield to K.R. Puram by 39 minutes during peak hours.

Developers in the city remain bullish on building more commercial inventory in this established office hub as the enhanced connectivity will lure more tenants in the long term. Whitefield is expected to see 13 million sq ft of incremental office space supply set for completion in the next four years.

Electronic City Phase – I is going to have its own metro station, which will ease the situation of traffic snarls for the employees. Once operational, this 18.8 km elevated metro line under Phase 2 on R.V.Road-Bommasandra route is expected to bring a considerable reduction in the travel time from Electronic City Phase- I to Central Silk Board by almost 22 minutes during peak hours. At present, nearly 1.8 million sq ft of additional office space is under construction in Electronic City Phase I.

Just like Electronic City Phase – I, this key impact market is also going to benefit from the upcoming 18.8 km elevated metro line under Phase 2 on R.V. Road to Bommasandra route. During peak hours, the metro line is expected to considerably reduce the travel time from Electronic City Phase- II to the Central Silk Board by 38 minutes. Few local developers are coming up with nearly 1.4 million sq ft new office spaces in Electronic City Phase – II.

Rajani Sinha, Chief Economist & National Director – Research, Knight Frank India said, "Bengaluru in recent times has emerged as the start-up hub of the nation, bringing innovation and employment opportunities, while making a significant contribution to India's GDP. Sectors like aerospace, IT, biotechnology, manufacturing, e-commerce, and logistics are expected to drive the city's economy in the future. Fast-paced urbanization in Bengaluru has resulted in increased pressure on the existing infrastructure. Enhancement of transit infrastructure in the city through projects like Metro Rail Phase 2, Peripheral Ring Road and Satellite Town Ring Road will improve connectivity and result in significant reduction in travel time to prominent employment hubs. These massive upcoming infrastructure projects will result in huge development potential for the real estate market."