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
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