14

THE TIMES OF INDIA BANGALORE SATURDAY OCTOBER 11, 2014

Housing
options set to
create more
growth hubs
THE SUBURBS AROUND THE CITY ARE
HOSTING THE NEXT PHASE OF COMMERCIAL
GROWTH AND DEVELOPMENT
INDUSTRIAL BELTS AND ECONOMIC HUBS
ARE LEADING TO DEMAND FOR HOUSING AND
SOCIAL INFRASTRUCTURE IN THESE
EMERGING LOCALITIES
CONNECTIVITY TO THE CORE CITY AREAS
WITH THE ELEVATED ROADS AND UPGRADED
ARTERIAL ROADS IS A MAJOR FACTOR
DRIVING COMMERCIAL AND RESIDENTIAL
PROPERTY DEVELOPMENT IN THESE
SUBURNS

EMERGING HOTSPOT
LARGE LAND PARCELS AT RELATIVELY
LOWER COSTS ARE LEADING TO THE
DEVELOPMENT OF BUDGET HOUSING
THESE HUBS HOLD POTENTIAL FOR
PROPERTY INVESTORS GIVEN THE
RELATIVELY LOWER COST OF LAND, AND
HIGHER POTENTIAL IN CAPITAL GAINS WITH
THE LOCALITIES HOLDING HIGH GROWTH
PROSPECTS IN THE MEDIUM TERM
MORE PROPERTY DEVELOPMENT IS ON
THE CARDS IN THESE BELTS

The location of the

airport and efficient
connectivity have
driven growth here.
Initiatives to promote
industrial growth and
the availability of
land are set to expand
the commercial space
market here, which
in turn will push the
residential property
market

KNOWLEDGE HUBS
SET TO PUSH REALTY
DEVELOPMENT
and the proposed extension up to
the airport in Phase III, and the Peripheral Ring Road (PRR), have
brought the north into focus as the
next growth hub.
Future commercial and IT hub

Sai.Prasanna1@timesgroup.com

With several IT companies looking at the north to expand their faocated around 35 km from the cilities, this region is set to turn
city center, Devanahalli came into an IT and commercial hub.
into prominence with the lo- Prominent and emerging locations
cation of the international airport in the region include Devanahalhere. Close on the heels of this, an- li, Doddaballapur Road and Kogilu
nouncements were made by the Road.
government to develop several inAccording to analysis by JLL Industrial and IT zones around the dia, presently, while there is no
airport, such as the Information ready-to-move-in office space availTechnology Investment Region able in Devanahalli and sur(ITIR), the Devanahalli Business rounding locations, there are some
Park, Logistics Park, Airport City, facilities under construction and
Aerospace Park, Hardware Park many proposed projects likely to
come into the market after 2016. Acto research
EMERGING HOTSPOT cording
by Vestian Global
Workplace
SoluDEVANAHALLI
tions, until 2013,
Bangalore north witnessed activity from
and the Global Financial District. manufacturing and aerospace comTo enhance connectivity to the re- panies. This belt has witnessed a
gion post commissioning of the air- higher preference of built-to-suit
port, Bellary Road or NH-7 was up- campuses over leased office spaces.
graded.
The region is likely to see completion of nearly two million sqft of
Road to growth
office space by the end of 2014.
The Bangalore-Doddaballapur
The airport and infrastructure Road corridor is an emerging desupgrades came up hand-in-hand, tination in this belt owing to the dewhich enabled the unlocking of val- velopment of the Doddaballapur
ue of large land parcels in this belt. Industrial Area and its proximity
The elevated expressway over Bel- to the international airport. Aclary Road, the planned widening of cording to Srinivasa Reddy, ?Assothe Hebbal flyover which is the ciate Director - Research and Real
main link to the city, and to the east Estate Intelligence Services, JLL
and south through the Outer Ring India, "Presently, Devanahalli and
Road (ORR), the planned Phase II surrounding localities are underof the Metro leading up to Nagavara going rapid transformation due to

PROMINENT
LOCATION IN
THE NORTH

Global, while the operational office space

is 0.39 million sqft, it supports a quarterly absorption of 8-10 percent and
draws relatively high rentals in the range
of Rs 24-28 per sqft per month. There are
several representative companies
presently operating out of this market.
Ram Chandnani, Deputy Managing
Director - South India, CBRE South Asia,
says, "Yelahanka is a large and mediumscale industrial hub. There are a few
more industries evaluating opportunities for redevelopment of their existing
facilities, owing to the appreciation of
real estate over the recent past."
Residential growth, social
infrastructure

THE AUGMENTED CONNECTIVITY TO THE AIRPORT

WORKS WELL FOR YELAHANKA

"As Bellary Road gains prominence

in terms of commercial spaces, Yelahanka is anticipated to gain more traction in terms of residential developments in the short to medium terms.
While presently this region houses some
quality educational institutes and healthcare facilities, there is ample scope for
development of social infrastructure
from the heightened residential growth,"
Shrinivas Rao says.
According to Vestian Global's research, this region supports apartments,
villas and plots of various configurations. While the capital values of GradeA apartments come in the range of Rs
3,800-6,000 per sqft, capital values of
Grade-A villas/row houses range between Rs 3,800-4,500 per sqft. Capital values for plot developments are in the
range of Rs 1,500-4,500 per sqft.
Significant residential cluster
R Rajgopal

Proximity to the airport,

a host of residential
options and good social
infrastructure are set to
make this a potential
location
Sai.Prasanna1@timesgroup.com

trategically located along Bangalore's main growth corridor in

north Bangalore, Yelahanka is a
mere 16 km from the city centre and enjoys excellent access and connectivity
through the elevated expressway to the

DEVANAHALLI: THIS BELT IS SET TO HOST RAPID

DEVELOPMENT WITH THE PLANNED BUSINESS HUBS

housing facilities.
Shrinivas Rao, CEO - Asia Pacific, Vestian Global Workplace Solutions, highlights the factors working in favour of
this area. "Yelahanka is also in close
proximity to the Karnataka Industrial
Areas Development Board (KIADB)-developed Doddaballapur Industrial Area
housing electrical and electronics, textiles, construction materials and precision engineering industries, and an Apparel Park comprising textile manufacturing industries. Jointly, these industrial areas provide employment to over
25,000 people with annual growth projected at 10 percent."
Elevated expressway reduces
travel time

Formed as a satellite town

earlier, Yelahanka has
EMERGING HOTSPOT evolved and pushed its
boundaries to form Old Town
and New Town. AdditionalYELAHANKA
ly, this region enjoys location
advantage with proximity to
airport. Yelahanka is also located along the international airport and Hebbal.
the prime approach road to DoddabalShrinivas Rao says, "With the six-lane
lapur Industrial Estate and Apparel Park Bellary elevated expressway operational,
established by the government.
travel time to the city and the airport
Although Yelahanka was planned as has reduced considerably, thereby evoka satellite town by the Karnataka ing increased realtor interest in the reHousing Board (KHB) in the 1970s, it is gion. The proposed Peripheral Ring Road
now a part of the Bruhat Bangalore (PRR) will further assist connectivity of
Mahanagara Palike (BBMP) and seg- this region in the medium to long terms."
regated as New Town and Old
Town. Extending the northern bound- Airport push to commercial growth
aries of Bangalore city, Yelahanka typically comprises industrial and wareAccording to statistics with Vestian

Idirees Chenakkal, Head - Research

and Consulting, LJ Hooker India, points
out, "While Yelahanka New Town is a
prominent location here, emerging localities are Doddaballapur Road, Jakkur
and Bellary Road, up to the international airport. In future, Yelahanka will
become a premium residential cluster
due to the connectivity advantage and
the availability of social infrastructure
such as hospitals, schools, and retail
outlets."
According to research by LJ Hooker
India, residential options around Yelahanka and Doddaballapur Road include
one-bedroom homes in an average size
of 740 sqft at a price of around Rs 35.4
lakhs, and two-bedroom homes in an
average size of 1,244 sqft at a price of
around Rs 59.50 lakhs. Three-bedroom
flats in an average size of 1,798 sqft are
available at a price of around Rs 86
lakhs while four-bedroom apartments
in an average size of 3,200 sqft are available at a price of around Rs 1.51 crores.
Retail set to take off
According to Shrinivas Rao, the retail
scope of this region is at a nascent stage
with standalone stores of notable brands
or super-markets. "However, there is ample scope for growth with 1st A Main
Road, 16th B Main Road and 3rd Cross
Road rapidly engaging retailer interest.
While there is no operational mall at
present, a retail mall offering shopping
as well as entertainment and dining options, due to be operational by late 2015,
will add value to the retail market," he
says.

R Rajgopal

commercialisation. Many of the industrial developments on the major roads are transforming into
commercial developments. There
are pockets of industries, mostly
along Bellary Road, and other IT
establishments".
Occupiers are showing increased interest in this location
due to improved connectivity, selfcontained townships, various hospitality projects, and a significant
office space supply in the pipeline.
The demand for commercial space
is likely to increase in the long
term.
Wide range in housing options
Localities close to the NH-7,
Jakkur, Hennur Road, Thanisandra Road and Yelahanka-Doddaballapur Road are witnessing significant residential activity. There
is a wide range of options available

in this micro-market across segments and price bands.

Research by JLL indicates the
current capital values for high-end
residential projects are in the
range of Rs 5,500-10,000 per sqft,
while the price range for mid-segment housing is between Rs 3,5004,000 per sqft. Budget housing projects are available in the range of
Rs 2,500-3,500 per sqft.
Shrinivas Rao, CEO - Asia Pacific, Vestian Global Workplace Solutions, explains why the residential market here will expand. "The
availability of large land parcels,
completion of infrastructure projects such as the elevated expressway, the planned Metro line, and
operationalisation of governmentpromoted and private industrial
and business parks in Devanahalli will improve the long-term potential for residential growth in
this market."

Strong social infrastructure

The presence of world-class hospitals, international schools and
the recently-upgraded highway to
the airport are driving demand for
apartments in north Bangalore. The
Bellary Road micro-market has
seen hectic construction activity
over the past year. Projects close to
the Hebbal flyover witnessed significant absorption due to the
strong investment sentiment in this
micro-market.
As for the outlook for this belt,
Srinivasa Reddy says, "Capital values in the north will continue to
rise in the long run with the proposed apparel park, self-contained
townships and a rise of options in
hospitality. The revamp of connectivity points such as Bellary
Road, Mekhri Circle and the ORR
will further add to the capital gains
potential of the north."

INDUSTRIAL
DEVELOPMENT
HOLDS POTENTIAL
FOR GROWTH
Gathering momentum of
development in this
industrial hub as well as
connectivity with the
Metro Rail are bringing
Greater Peenya into
focus

PEENYA: METRO AND ROAD CONNECTIVITY

ENHANCE VALUE IN THE REGION

Sai.Prasanna1@timesgroup.com
Peenya Industrial Area extends towards the northern corner of Bangalore
city. Proclaimed to be one of the largest
industrial areas in Asia, Peenya lies on
the Bangalore-Tumkur Highway and
was jointly developed by Karnataka Industrial Areas Development Board (KIADB) and Karnataka State Small Industries Development Corporation
(KSSIDC) in the early 1970s.

R Rajgopal

20 per sqft and is projected to escalate

by approximately 5-6 percent annually."
Metro advantage

In terms of connectivity, this region

has benefitted significantly from the opSrinivasa Reddy, ?Associate Director eration of the Metro Rail - Reach III and
- Research and Real Estate Intelligence IIIA operating between Peenya IndusServices, JLL India, says, "The Peenya trial Area and Sampige Road,
Industrial Area micro-market has a high- Malleswaram since March this year. Addensity population and is a major in- ditionally, the Tumkur Road elevated expressway has reduced travel
time and improved connectivEMERGING HOTSPOT ity to the city center.
The proposed Peripheral
Ring Road (PRR) will connect
PEENYA
Tumkur Road to Hosur Road
via Doddaballapur and will endustrial hub of Bangalore. It is currently hance connectivity in the medium to
surrounded by vacant land, and is still long terms.
predominantly an industrial sub-market dominated by warehousing and in- Connectivity impacts
dustries which include large public sec- residential growth
tor companies and small units. Not surprisingly, this sub-market - especially
Primarily an industrial region situPeenya Industrial Area (Phase IV, Stage ated towards the northern extremes with
III) - continues to be promoted as an in- limited social infrastructure did not
dustrial hub."
make Peenya a viable residential choice
Peenya Industrial Area is known for for buyers at one time. However, this has
engineering, electrical goods, auto com- changed now.
ponents, textile (silk) and machine tool
Shrinivas Rao explains, "Due to good
industries. With several established op- connectivity to the international airport
erational units in Peenya, it supports a and the city centre, and availability of
workforce of nearly 3.50 lakhs.
industrial land for redevelopment, sevShrinivas Rao, CEO - Asia Pacific, Ves- eral integrated township projects are
tian Global Workplace Solutions, elabo- likely to develop in this region. Tumkur
rates, "Currently, Peenya Industrial Area Road, Yeshwanthpur, Nelamangala and
IInd Phase supports a quarterly ab- Rajajinagar are also suitable residential
sorption between 8-10 percent with corridors for most professionals workmonthly rentals ranging between Rs 15- ing in Peenya. The Tumkur Road- NelaProminent industrial hub

mangala stretch is a popular choice and

observed to be an emerging residential
hub hosting plot developments and
Grade-A apartments."
Srinivasa Reddy adds, "Capital values
for high-end residential projects are currently in the range of Rs 3,800-6,500 per
sqft. The homebuyer matrix in this submarket has been predominantly employees working in industries, services
sector employees and businessmen."
According to Vestian Global's research, currently, the capital values for
apartments is around Rs 3,000-4,200 per
sqft and for plot developments it is
around Rs 1,200-4,000 per sqft.
Prominent and emerging locations
Srinivasa Reddy says, "The upcoming
areas in west Bangalore include
Karivobanahalli, Laggere, Jalahalli, Hessaraghatta, HMT Housing Colony, BHEL
Colony, Peenya, Chikkasandra, Nagasandra and Dasarahalli."
Research by LJ Hooker India indicates
that residential options around Peenya,
Jalahalli and Tumkur Road include twobedroom apartments in an average size
of 1,025 sqft at a price of around Rs 39
lakhs and three-bedroom apartments in
an average size of 1,330 sqft available at
a price of around Rs 51 lakhs.
Idirees Chenakkal, Head - Research
and Consulting, LJ Hooker India, says,
"Emerging locations around are the outskirts of Jalahalli and the Dasarahalli
region. We can expect tremendous
changes in this region due to the infrastructural advantage of the planned Bangalore-Mumbai Economic Corridor."