Around two decades ago, if you happened to drive to Bangalore north, chances are you wouldn’t venture beyond R T Nagar, at most touching CBI and Gangenahalli, now Ganganagar. However, enhanced connectivity through the Outer Ring Road (ORR), the location of the international airport at Devanahalli with consequent boost to infrastructure by the Bruhat Bangalore Mahanagara Palike (BBMP) and the National Highways Authority of India (NHAI) has turned the north into a much sought-after destination for homeowners as well as investors.
Dr Samantak Das, Director, Research and Advisory Services, Knight Frank India, outlines the factors that propelled this region into the limelight. “The establishment of the airport at Devanahalli brought the northern parts of Bangalore into prominence. This led to anticipation of opportunity in the region and the focus of real estate development turned towards the north.
The interest of government agencies, corporate houses and the general public also picked up considerably. The spurt in real estate development in the region can be primarily attributed to the availability of large land parcels at relatively reasonable rates. Also, connectivity to the city through the six-lane Bellary Road augmented the shift to the northern corridor.”
Connectivity: Key to development
Connectivity to and from the central business district (CBD) to the airport and to other key locations in the south and east through the ORR has spurred hectic development in the region. Upcoming projects such as the elevated expressway to the airport will also ensure seamless travel.
“There are numerous infrastructure projects being planned by the government such as high speed rail link (HSRL), Metro line and the Peripheral Ring Road (PRR). On completion, these projects will further enhance connectivity to the city center with the airport. Also, a commuter rail system has been planned to connect Devanahalli with Yeshwantpur via Yelahanka. Additionally, widening of the NH-7 up to the airport from the existing six-lane to eight lanes is under process. This will sustain higher traffic due to the airport’s expansion and expected real estate developments on the NH-7. Another major infrastructure project underway is the elevated signal-free expressway, connecting Hebbal Flyover to the airport,” Das adds.
Locations gaining prominence
According to Santhosh Kumar, CEO – Operations, Jones Lang LaSalle India, “Hebbal, Yelahanka and Thanisandra Road are currently nascent markets which are expected to emerge as locations with high rentals in the next three to five years. Currently, the average rental for a two-bedroom apartment in Hebbal and Thanisandra Road is Rs 15,000-20,000 per month. It is as high as Rs 25,000 in certain projects. In Yelahanka, it is around Rs13,000-15,000 per month.”
After the airport commenced operations and the subsequent improved connectivity, the Hebbal-Devanahalli stretch has turned out to be one of the fast-emerging residential hubs. Hebbal, in particular, has gained much importance as a residential destination. Of late, it has come to be recognised as a high-end residential market.
“Another location along the stretch, Yelahanka, has also come up as a preferred residential market owing to its good connectivity with the airport as well as the city center through the NH-7. At present, several residential projects by high profile developers have been launched in Hebbal and Yelahanka. Other northern areas that have seen recent residential developments due to improved connectivity include Hennur Road and Thanisandra,” says Das.
Complementary factors fuel demand
Apart from connectivity, the announcement of mega projects such as the KIADB Park, IT Investment Region and Devanahalli Business Park triggered the rush to these locations. Further, the Karnataka government has invited a number of corporates to set up their facilities and offices here. Many large companies have signed MoUs with the government.
Das elaborates, “The scope for capital value appreciation in the Hebbal-Devanahalli stretch is also attracting a lot of attention from buyers. The proposed malls and hospitality projects are expected to increase the development potential in the region. The presence of operational business parks here has also made these markets preferred residential destinations, primarily by the employees engaged in the IT/ITeS sector.”
Kumar says, “The supply pipeline in north Bangalore is expected to be completed in the next three to five years which will ensure enough Grade A projects with various amenities. The ongoing infrastructure and commercial activities will provide a boost to the demand in this region. With enhanced connectivity, reduced travel time, the north will be attractive even to the employee catchment in Whitefield and in the Sarjapur-Marathahalli ORR belt.”
Options for home buyers
According to a research by Knight Frank, the residential development in Hebbal largely consists of apartment projects while Yelahanka has both apartment projects as well as villas. Hebbal has apartments in the range of Rs 4,250-10,000 per sqft. Yelahanka has apartments in the range of Rs 2,700-5,000 per sqft while villas are in the range of Rs 5,000-7,900 per sqft.
The capital appreciation envisaged for Hebbal and Yelahanka is in the range of 15-18 percent per annum.
Kumar elaborates, “In the long run, north Bangalore looks attractive. The improved infrastructure, developing social infrastructure, planned commercial developments, proximity to the airport and enhanced connectivity has resulted in north Bangalore grabbing the limelight. As a result of the infrastructure initiatives which are in various stages of construction and planning, it is anticipated that capital values will continue to appreciate. Similarly, rental values will also witness appreciation. The IT Investment Region and aerospace SEZ planned by the government will provide further impetus to north Bangalore with a growth horizon of three to five years.”
Potential for investors
Areas that hold potential for investors in the long run include Yelahanka, Hennur Road and Thanisandra.
According to Das, “At present, the social and physical infrastructure in these areas is not yet fully developed. However, the Government of Karnataka has ear-marked Rs 1,150 billion in order to make north Bangalore a self-sustaining hub. Cumulatively, the developments planned in the region have the potential to generate four million direct and indirect jobs over the next two decades. Hence, we believe that Yelahanka’s eventual evolution as a Peripheral Business District will give birth to a thriving residential real estate destination. The upcoming markets of Hennur Road and Thanisandra are expected to follow suit.”
Source: Times Property, The Times of India, Bangalore