Namma Metro Phase-3 Project: Orange Line To Impact South Bengaluru’s Real Estate Market

The Union Cabinet has approved the two corridors of Namma metro Phase-3 of the Bangalore Metro Rail Project, which is estimated to cost Rs 15,611 crore. The first corridor will connect JP Nagar 4th Phase to Kempapura with 21 stations, while the second will run from Hosahalli to Kadabagere with nine stations.

The Orange Line, also known as Namma metro Phase-3 metro line will significantly boost real estate prices in southern Bengaluru by at least 10-20 percent, according to local brokers. The new metro corridors will connect residential areas in southern Bengaluru to business hubs and tech parks along Mysore Road and Hebbal.

The metro network will expand by 44.65 km, adding 31 stations, and is expected to be completed by 2029. The corridors will run for 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.

South Bengaluru has been a relatively affordable pocket in the city, with areas like Kanakapura Road, Electronic City, Bannerghatta Road, JP Nagar, and BTM Layout seeing a 10-15 percent rise in real estate prices since December 2023. However, properties in parts of south Bengaluru like Kanakapura Road are still relatively cheaper and make for attractive investment.

Residential activity has been limited in locations adjoining the upcoming metro project in south Bengaluru in recent years. However, data from Cushman & Wakefield shows that the south Bengaluru micro-market has contributed around 10-13 percent of total unit launches and the share of total sales has been less than 10 percent between 2022 and the first half of 2024.

While property values in south Bengaluru have risen by 10 percent YoY, local brokers estimate that the hike can be as much as 30-40 percent since last year. In JP Nagar, property prices have appreciated from Rs 7,000 per sq ft to Rs 13,000 per sq ft since last year. A similar story can be seen in Electronic City and Kanakapura Road.

Experts say that the upcoming Namma Metro Phase-3 Project may dent affordability in the long run, but is unlikely to have a significant impact on rentals until seamless transportation infrastructure and commercial corridors are developed.