Knight Frank India, leading international property consultancy, in its report cited that key transit infra projects – including 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’. Knight Frank assesses the impact of the current transport infrastructure projects on the real estate sector and thereby understands that the identified locations across the city 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 USD 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.
Some of the prominent key impact markets are as below:
Once operational, this 15.5 km elevated metro line under Phase 2 Extension on BaiyappanhallißàWhitefieldroute 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
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 underPhase 2 on R.V.RoadßàBommasandraroute 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.
ELECTRONIC CITY PHASE – II
Just like Electronic City Phase – I, this key impact market is also going to benefit from the upcoming 18.8 km elevated metro line underPhase 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 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.
BELLANDUR TO MARATHAHALLI BELT
During the peak hours, the 18.5 km elevated metro line – phase 2 A on Central Silk Road ßàK.R. Puram routeis expected to bring a considerable reduction in the travel time from Bellandur to K.R Puram by 50 minutes.
This belt is one of the busiest stretches on Outer Ring Road with many IT Parks, SEZs and non SEZ office assets. The metro line will bring public transport connectivity right inside the IT Parks and help save a lot of time for commuters. Once operational, Metro line Phase 2A will reduce travel time from KR Puram to Bellandur by 50 minutes during peak hours.This belt has an incremental office development potential of 13 million sq ft on private land parcels in existing IT parks.
MAHADEVPURA TO KR PURAM BELT
Metro line Phase 2A (Central Silk Board to KR Puram) is expected to heighten real estate development in the Mahadevpura - KRPuram belt. With the metro connectivity under Line 2 and 2A, accessibility to the central and eastern parts of Bengaluru will improve. Once operational, these routesare expected to bring a considerable reduction in the travel time from Mahadevpura Flyover to MG Road by 25 minutes during peak hours.The office development potential on the Mahadevpura to KR Puram beltisestimated to be around 5-6 million sq ft in non-SEZ spaces.
Shantanu Mazumder, Senior Branch Director – Bengaluru, Knight Frank India said “The transit infrastructure projects will bring about an evolutionary change in the city’s real estate landscape. These projects are expected to not only to bring inclusive growth with an incremental inventory supply in established locations but also mark the inception of real estate development and the emergence of new micro-markets in the peripheral parts of the city. Bengaluru has been a major hotspot of the global fund investments into commercial real estate in India. The transit-related infrastructure developments will strengthen Bengaluru’s ranking as an attractive gateway for realty focused investment flow in Asia.”
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 willresult in huge development potential for the real estate market.”
Based on Knight Frank Research’s assessment, the following key impact markets are likely to open new avenues of real estate development for developers and investors.