Bangalore (SBC): The attempts of the Bangalore Metro Rail Corporation Limited’s (BMRCL) to earn revenue by renting out commercial spaces at Metro stations seems to have turned a flop show as all the spaces which were rented out on Reach 1 have been vacated. The pharmacy at the MG Road metro station has been vacated. Similarly, the bakeshop at the Trinity Metro station has also been shut and so is the book shop at Swami Vivekananda Metro station. In fact, there are no takers for paid newspaper vending machines slots at all stations on Reach 1.
Unfazed by the lack of takers, Metro officials say that more people will come forward to rent commercial spaces once Phase I becomes completely operational.
“Once the entire phase I is operational, these commercial spaces will all be taken. Just because two or three commercial ventures failed to make money, it does not mean others will not come forward to rent the spaces,” said Pradeep Singh Kharola, Managing Director, BMRCL.
Officials do not cite any specific reason behind this but sources say that these shops allotted space through the tendering process, were unable to make much sales and pay hefty rentals per month, which runs into lakhs.
This is contrary to the wonders that Metro project did for property prices along the Metro corridors. According to estimates, the prices went up by 30 to 40 percent once the project took off.
Along the Reach 1 corridor property prices have appreciated by 50 percent over the past three years. Moreover, Metro has also caused a 40 to 50 percent rise in commercial property rental rates, say real estate experts.