The infrastructure development across the city on the anvil will fuel growth in the property segment

City realty geared for growth

There are a host of infrastructure projects slated for completion in the near future. These along with the new jobs in the IT sector that will open up shortly will see the property industry grow towards this year end.

North

Once considered a sleepy neighbourhood, North Bangalore has emerged as a hotbed of the realty boom sparked off by the international airport coming up at Devanahalli. Apartment prices have skyrocketed from Rs 2,000 per sqft a year ago to Rs 3,400 per sqft in some localities. There has been fresh growth towards the north with residential developments in the range of Rs 35 lakhs to Rs 60 lakhs per unit for an area of 2,000 sqft to 3,000 sqft with some bordering Rs 1 crore. Planned construction activity without any legal wrangles and well-planned amenities such as hospitals, malls and multiplexes coming up along Bellary Road seem to be propelling people towards investing in property in North Bangalore.

West

The State Government has initiated a 1,000-acre dedicated hi-tech corridor between Magadi Road and Mysore Road for 'clean industries' in the Comprehensive Development Plan (CDP). The corridor will be 17-29 km from the city centre and will house IT and ITenabled service industries. This proposal has already triggered hectic mixed-use property development between Rajajinagar and Malleswaram with a number of lifestyle residential enclaves and commercial complexes on the anvil. "This part of the city has essentially been a prominent residential locality for many years now and there is bound to be a large demand for lifestyle residential complexes as in the other emerging suburbs," says B Praveen Kumar, vice president - South India, consultancy and land advisory, Jones Lang Lasalle Meghraj. "Also, there are not many large plots available."

South and East

The demand drivers for residential property in Whitefield and Sarjapur Outer Ring Road are the IT/ITES sectors. An estimated one lakh jobs will be for the taking across IT, ITES and biotechnology in the next couple of years. This holds promise for the realty segment. The elevated expressway to Electronic City has propelled a dramatic rise in real estate prices along this corridor. The land prices along Bannerghatta Road and Kanakapura Road have skyrocketed dramatically up to 300 percent in the last two to three years. "In Whitefield, the prices are between Rs 2,400-2,700 per sqft and are likely to see a rise of 20-30 percent next year," says Kumar. Many commercial complexes have been planned on Sarjapur Ring Road and J P Nagar. Prime streets of Jayanagar 4th Block will continue to witness high rentals in retail space.

Outlook

According to Kumar, areas of Whitefield, Sarjapur Outer Ring Road and Northern Bangalore (Bellary Road to Yelahanka) have witnessed rapid development of new apartment projects. The demand in Northern Bangalore is driven by the upcoming international airport at Devanahalli and the enhanced connectivity to the city through the six-lane Bellary Road. "Large land parcels have been opened up due to the valleys in the area being diluted as per the new Comprehensive Development Plan," he points out. As per the current timelines, five million sqft of mall space is coming up over the next three years in the city. Given the current demand-supply dynamics with the former expected to continue outstripping the latter over the medium term, the rental values for malls are expected to appreciate over the short and medium term. Secondary and suburban residential micro markets will continue to witness the launch of prime apartment projects. The Outer Ring Road stretch from Hebbal to Old Madras Road is being re-laid.


Source: Times Property