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How does traffic influence the real estate sector?

Indian Real Estate

How does traffic influence the real estate sector?

By Shiva Kumar S

03, December 2025

"Bangalore traffic" is a nightmare for the residents of Bangalore. Face the Music.

"Hey Mr. You are late today also" -I was stuck in a bad**s traffic jam," an excuse any employee can get away with, just like that.

Regular commuters ruin 1/4 of their entire lifespan in chaotic traffic jams. As a wise option, people are investing in properties with all the drop-dead-gorgeous facilities that are in the proximities of their workplaces respectively -increasing demands for meticulously-crafted properties as per their preferences and flavours, ponderously influence the property cost.

Increasing Bangalore City's Traffic Jams conversely, increases the Real Estate property demands. Hard to believe isn't it?

IT professionals, and other corporate workers -who are also the frustrated daily commuters to their respective workplaces. Significantly, are willing to take the risk of investing in property located in the proximity of their workplaces instead of getting stuck in the agonising jams every day -indeed, increasing properties demands. Live close to the workplace, walk it or cycle it -save time and stay healthy.

There exists a deficit of properties available for sale to meet the demands of properties for purchase. Increasing traffic jams are one of the key factors in driving people to purchase real estate properties.

Bangalore is one of the most congested cities in India, with poor infrastructure failing to fulfil the fundamental needs of workers and residents of the city.

This unrelenting issue affects not just commute times but also induces stress, reduces quality family time, and hampers work-life balance, creating a palpable impact on residents' lives and overall well-being.

Bangalore's corporate professionals' new trend is "work-from-car," gone all the good old days of work-from-home culture. Many logs into their official meetings from their car through the laptop, they carry despite getting stuck in chaotic traffic jams for many agonising hours. Armed with their trusty laptops, they transform their cars into impromptu offices, navigating through the agony of prolonged traffic hours while steadfastly attending to their work commitments.

Few others, desperate to reach work on time and are certain of getting stuck in the traffic jam, carry their breakfast and lunch to consume in the car and relish their food amidst the chaotic jams - a complete 'drive-in restaurant's experience,' -all credit to the city's horrific traffic jams.

Here are a few outcomes of the jam

A piece of news went viral: Newly-wed groom, stuck in a jam for many hours after marriage, abandoned his bride and the car and fled. The bride is still in search of her husband.
A former journalist, and resident of the Rajamahal extension, is selling her apartment. Though Rajamahal is one of the oldest areas of Bangalore city, with quick and easy access to commercial complexes and other areas of the city. Prefer relocating to a less populated and low traffic area in the suburbs of the city. Because, Hebbal flyover bridge, Mekhri junction, Cauvery junction and the high-ground junctions are the dangerous bottle-necks with perpetually line-up traffic for miles together on the national high-way and even heavy traffic towards "International Airport and back" makes it one of the worst traffic congested location in the city.

Frustrated residents living around such horrific traffic bottlenecks are seriously considering relocating to more peaceful and calmer localities, increasing the property's demand in turn boosts property prices.

This choice helps reduce travel time, giving them extra time for themselves and balancing work and personal life better amidst the city's hectic traffic.

Many such circumstances relating to traffic jams in the city have changed the dynamics of people opting for properties for purchase.

Properties located in areas with better traffic accessibility and less congestion might see increased demand, driving property prices higher. Traffic conditions directly influence buyers' preferences, prompting property value shifts and driving real estate market changes.

While residential land prices in the prime areas range from INR 8,000 to INR 10,000 per sqft, land prices in the outskirts/suburbs have reached INR 6,000 per sqft areas like Kanakapura; about INR 3,500 per sqft in Hebbal, and INR 5,000 per sqft in Kegeri. Most suburb areas' prices have jumped over 10-15% post-pandemic levels. This price surge paints a picture of burgeoning opportunities and untapped potential in these tranquil locales, making them a magnet for savvy investors and eager homebuyers alike.

The pandemic sparked a remarkable shift in real estate dynamics, turning overlooked areas into hotspots. Investors and homebuyers flock to these once-dismissed places, lured by newfound assurance This surge in suburban prices marks the dawn of a thrilling phase where value blossoms amid peaceful locales, offering both affordability and endless possibilities.

While the congested prime areas are becoming more and more clogged, traffic in the suburbs is slowly picking up. Especially in "Sarjapura and Hennur" - Says a relator.

However, in traffic-prone areas such as Madiwala, Silk Board and Indiranagar, standalone residential apartments have taken the maximum hit.

Bottlenecks like silkboard junctions, have heavy traffic jams and people don't prefer to stay any close to these junctions.

Stand-alone properties around this area have dipped by 10-15% and are dipping further compared to the by-lane away from traffic -says a realtor.

With public transport's increasing connectivity such as the BMTC bus and Namma Metro and increasing traffic, a boom in the commercial properties can be seen. Enhanced connectivity via public transport, such as buses or metro lines, boosts accessibility to commercial hubs, thereby attracting businesses and increasing foot traffic.

"To prevent property depreciation, most homebuyers have begun converting their homes into PG accommodation setup or rent them as retail stores" - he adds.

Property owners living close to bottleneck areas are renting out their properties to young working professionals and are relocating to suburbs, in turn increasing the need for housing property's demands.

A frequent traveller across Sarjapura Road shares an incident: "On a particular day and particular time, I remember driving past a woman walking on the pavement. After driving for over 3-5 mins through the traffic, I saw her cross me again. and then again.

Regular commuters in Bangalore city prefer to reside close to their workplaces with well-connected areas, to evade the pain of driving through the horrific traffic.

Here are Notable Challenges for the Real Estate Sector Due to Traffic:

Reduced Property Values: Traffic congestion is a common urban issue that can have a big influence on property values. Potential buyers are becoming more selective when it comes to location, and regions with high traffic congestion are frequently regarded as less appealing. The continual noise, pollution, and longer commuting times associated with traffic congestion can considerably impair the desirability of houses located in such locations. As a result, property owners in these locales may struggle to obtain comparable prices to those in more accessible areas. This drop in value can have far-reaching financial ramifications for both residential and commercial properties.

Increased Development Costs: Traffic congestion is a big barrier for real estate developers, increasing project costs and diminishing profitability. To reduce the negative effects of traffic on their developments, developers frequently need to invest in new infrastructure. This can include building multi-level parking facilities to meet the growing demand for parking spaces, offering shuttle services to connect residents and employees to public transportation, and contributing to the creation of new roadways or mass transit networks.

These infrastructure investments can significantly increase the cost of a development project, from the original planning and design stages to construction and maintenance. Developers may need to consider these additional costs while considering the project's feasibility and pricing methods.

Delayed Construction: Traffic congestion is a key barrier to the timely completion of building projects. The transfer of goods, equipment, and workers to and from construction sites frequently relies on effective transportation networks. However, when roads are congested, the supply of key materials may be delayed, causing interruptions in the building timetable.

Furthermore, traffic congestion can lengthen construction workers' commutes to and from the job site, lowering productivity and perhaps impacting morale. In other situations, significant traffic congestion may make it difficult for construction vehicles to approach the site at all, causing additional delays and inconveniences.

Environmental Concerns: Traffic congestion is a major challenge to environmental sustainability. Excessive vehicle movement adds to air pollution by emitting harmful pollutants into the atmosphere, including particulate matter, nitrogen oxides, and volatile organic compounds. These contaminants have negative consequences for human health, respiratory systems, and overall well-being. Furthermore, traffic congestion causes noise pollution, disrupting the peace and quiet in residential areas and lowering people' quality of life.

Furthermore, the use of fossil fuels in automobiles leads to greenhouse gas emissions, particularly carbon dioxide, which is a key contributor to climate change.

Limited Commercial Activity: Businesses located in areas with poor traffic flow often face significant challenges in attracting customers and maintaining profitability. The difficulty of accessing these locations due to congestion can deter potential customers, leading to reduced foot traffic and lower sales. Moreover, the time and resources spent navigating traffic can increase operating costs for businesses, eroding their margins. In addition, the negative perception associated with congested areas can discourage businesses from investing in or expanding operations in these locations, further limiting commercial activity and economic growth.

Conclusion:

Bangalore is one of the cities with perpetual traffic jams; across the city; on every possible main road you can think of including, outer-ring roads -defy its very purpose.

Working professionals find it hard to reach to their work on time because they are stuck in jams for many agonising hours. Some to come the over this nu-sense are moving close to their workplace. With houses close to their workplace can think of reaching work on time, and evade the agony of driving through the irritating traffic or helplessly standing inside a jam-packed bus for many hours.

The frustration of driving through the chaos is an experience Bangaloreans are put into, every-time they get stuck in Bangalore's Traffic Jams.

As a wise workaround, many opt out to move close to their workplace with a peaceful and calm location to enjoy the seclusion.

Hence, the city's traffic jams play one of the key factors in the latest real estate boom.

FAQs

Q. What is traffic congestion?

A. Traffic congestion is usually the stagnation of vehicles on the roads, resulting in slow-moving or stop-jammed vehicle traffic. Small roads with high-traffic, fast-moving traffic stuck in bottlenecks lead to traffic congestion.

Q. Why are people moving to Bangalore suburbs?

A. People living around the bottleneck area, frustrated travelling in the perpetual jams, are moving to suburbs closer to their workplaces, and are peaceful and calm with less or no bottlenecks, that way they can save the trouble of travelling in the agonising traffic jams.

Q. What is the biggest challenge in real estate?

A. Dealing with unrealistic sellers: Many sellers compare their properties to those in their neighbourhood and want to quickly sell them as other developers. Invariably, it becomes the buyers' responsibility to make them realise the real scenario, which is one of the biggest challenges in the real estate industry.

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