Shrinivas Rao, CEO – Asia Pacific, Vestian Global Workplace Solutions, points out, “Bangalore west has witnessed increased residential real estate activity after the announcement of the Metro Rail alignment. Improved connectivity due to completion of the NICE Ring Road and commencement of construction of Metro line from Hesaraghatta to Majestic has provided the required thrust for real estate development in this micro-market. This region, on an average, accounts for 10 percent of the total absorption in the city and for 2012, has recorded absorption of 2,758 units across all segments. It will gain further prominence in the medium to long terms since the much awaited Bangalore-Mumbai Industrial Corridor originates in this area.”
Factors influencing growth
According to a Vestian report, the most active residential markets this year are anticipated to be the ORR-Sarjapur stretch, Whitefield, Bangalore north and Tumkur Road.
Lack of fresh supply in the Central Business District (CBD) will boost the development of mixed-use townships in the Secondary Business District (SBD) locations. Among the SBD locations, neighbourhoods in Bangalore west – Malleswaram, Rajajinagar Magadi Road and Mysore Road – are expected to witness higher activity on account of availability of large mill lands for redevelopment.
Key areas that will witness increased industrial activity are Narasapura, Vemgal and Hoskote industrial areas in the north-east, and Dabaspet and Greater Peenya Industrial areas towards the northwest.
Mid-range homes: Locations and availability
The west has mainly witnessed the rise of mid-range options with some high-end and budget housing projects too. According to Kalpana Murthy, Associate Director – Residential Services, India, Cushman & Wakefield, Yeshwanthpur, Tumkur Road, Jalahalli Cross, Banashankari etc are mid-segment locations.
She elaborates, “Middle income professionals working in and around the CBD or employed with IT/ITeS companies in the north and north-west move to these locations owing to improved connectivity and lower capital values. The price range for such options in the west is Rs 4,000-6,500 per sqft.”
Shrinivas Rao adds, “A majority of the projects launched during 2013 have been in the mid-budget housing segment located in suburban and peripheral locations of Tumkur Road and Mysore Road. Additionally, projects in the Rs 50 lakhs to Rs 1 crore segment have witnessed relatively higher absorption levels as these projects mainly address the residential demands of the IT/ITeS workforce employed in the various business parks located in this region.”
Budget homes: Locations and availability
Budget housing projects in the peripheral locations mainly cater to demand from the industrial and logistics hubs in the region. Peripheral locations towards Mysore Road have witnessed a rise in projects in the under Rs 25 lakhs bracket.
“Projects in the Rs 25-50 lakhs ticket size cater mainly to those employed in the industrial and logistics sectors. The high supply in this segment is mainly attributed to large-scale projects launched during the last three quarters of 2013. Most projects in this segment are located in the peripheral locations after NICE Road junction on Mysore Road and near Nelamangala junction on Tumkur Road.”
Research by Cushman & Wakefield indicates that there is good demand for homes in the budget segment, followed by demand for options in the mid-segment. Kengeri, Rajarajeshwari Nagar, Mysore Road, Nagarbhavi, Uttarahalli etc are budget locations. Kalpana Murthy states, “Demand is mainly witnessed from persons employed in educational institutions and logistics companies located in this micro-market and industrial areas such as Bidadi. The price range of budget options in these localities falls between Rs 2,800 and Rs 4,000 per sqft.”
Source: Times Property, The Times of India, Bangalore