Real estate prices may shoot up in suburbs

BANGALORE: The city may be going high on the Metro, but there's more to cheer for citizens. Real estate prices along the Metro track are expected to accelerate capital values on the periphery as downtown land becomes scarcer.

The city's first Metro line from MG Road to Byappanahalli has a limited reach as of now, but a well-knit network connecting far-flung areas like Whitefield and Electronics City will boost land values by 15 to 20%, say real estate experts.

The action has moved from downtown to the suburbs. Metro connectivity to areas like Kanakapura and Mysore Road will see a lot of realty traction. Hence, price escalation on the periphery is sharper than in the Central Business District, said Irfan Razack, CMD of Prestige Group.

But experts don't rule out 10% to 15% jump in capital value in areas like MG Road and Indiranagar where the Metro is chugging along. Currently, MG Road and Indiranagar command capital values in the range of Rs 20,000 per sqft and Rs 15,000 per sqft respectively.

Real estate prices along the Metro will follow the same pattern as in Delhi where prices shot up by 15% to 20%, said Sushil Mantri, CMD of Mantri Developers.

With price-to-income ratio, the affordability measure for housing, increasing , developers are targeting customers buying a BMW, Audi or even an Innova for the Rs 1-crore-plus homes. Look at the waiting period for these cars, it merely indicates the buying appetite. Though there are concerns on the interest rate front, sales are quite robust, said JC Sharma, MD, Sobha Developers.

Prestige Sunnyside in Marathalli, Sobha Pristine and Mantri Glades on Sarjapur fit the bill as premium offerings. Times Property's seventh edition of 'Home Affairs' , being held in Bangalore on Saturday and Sunday, reflects a healthy appetite for mid-segment and premium homes.

Source: http://timesofindia.indiatimes.com/city/bangalore/-Real-estate-prices-may-shoot-up-in-suburbs/articleshow/10459998.cms