Changing dynamics at Rajajinagar

This is an area where the titles of land are very clear as most of the land parcels are occupied by corporates...

Best known for its calm and cultured living, Rajajinagar is a conventional residential locality lined up around greenery and commercial spaces. It was earlier considered to be a traditional Bengaluru location housed by people working in industrial suburbs of Peenya and other government offices in western precincts of the City. Due to liquidation of some large corporate-owned industrial land parcels, this region has seen high real estate activity, post 2005.

As this area is composed of a healthy mix of commercial areas, playgrounds, educational institutes, it provides for a great realty prospect. “The demand for modern housing here comes mainly because of three reasons – desire to be a part of the old-world charm and the inherent intellectual appeal, easy accessibility to the City centre and the rise of post-modern entertainment spaces. Metro is a big boost to the growth of the place, which will help the people to reach Peenya, and other industrial areas within 10-15 minutes,” says R G Sunil, executive director, Concorde Group.

For one and allThe first major development in this micromarket was Brigade Gateway, an
integrated township of residential, retail and commercial spaces. “The approximate value of apartment in this project was 65 lakhs in 2008. At present, resales are taking place above Rs two crores. The micromarket is continuously witnessing upward trend in capital values. Further, connectivity of metro station and completion of underpasses, which offers better connectivity to nodal points, have also catapulted real estate prices in this business district,” says Pawan Jasuja, director, Finlace.
“This is the area where the titles of land are very clear because most of them are occupied by industrial corporates. Traditionally, this area was dominated by independent houses, though now we can witness more apartments coming in this micro market. Rajajinagar also houses IISC, Iskcon Temple and CPRI campus,” adds Pawan.

Due to the presence of many parks and tree-covered lanes, the neighbourhood is cited to be one of the most calm and serene localities in the City. It has easy access to places like Sadashivnagar, Mahalaksmi Layout, Malleshwaram, Yeshwantpur, Majestic, Seshadripuram, BEL Colony and Marathahalli, which makes it an attractive destination for residential as well as commercial space hunters. Rajajinagar is a first business precinct of Bengaluru to Bengaluru-Mumbai expressway.

In the recent years, a few developers have launched apartment projects in the mid to high-end segments in this locality. “With the Peenya-Yeshwanthpur-Malleshwaram arm of the metro rail becoming operational in 2014, connectivity between Rajajinagar and other surrounding industrial and commercial pockets of the City has improved significantly. The neighbourhood hosts a number of schools, hospitals and other required social infrastructure for sustainable residential developments.

Going forward, as in other established residential pockets of Bengaluru, steady demand coupled with limited availability of land is likely to result in redevelopment activities in Rajajinagar,” opines Naveen Nandwani, executive director, Cushman & Wakefield.

Present rates in the market are hovering around Rs 5000-7500 per sq ft. In other words, a premium two-BHK apartment of 1300 sq ft under construction will cost somewhere around Rs 95 lakhs (basic) and landing cost will include 15-20 per cent over that. “In the past one year, the capital value of apartments have appreciated over 25 per cent. In 2013, the quarterly per square foot (sft) rate was Rs 7500 per sq ft. However, in 2014, the average per sq ft was Rs 8700 and in 2015, it is Rs 9500. Rental returns of properties have increased over 25 per cent, with average rent for a two-BHK being Rs 25 per sq ft per month,” says Sunil.

Quoted capital values for units in this area range between Rs 6,000-6,750 per sq ft in the mid-segment and Rs 8,000-11,000 per sq ft in the high-end segment. “Over the past few years, Rajajinagar has witnessed a record price appreciation. This may be attributed to rapid infrastructure growth, which has taken place in the Yeswanthapur-Rajajinagar-Malleshwaram corridor. With Rajajinagar being a favourable investment proposition, it has seen appreciation of 12-14 per cent annually,” says Nimesh Bhandari, CEO, Realtycompass.com.

Not everything is hunky-dory“While Rajajinagar is a self-sustaining , established neighbourhood, it witnesses massive traffic congestions. As most of the independent dwelling units in Rajajinagar do not have an in-built parking area, availability of parking spaces is also a major constraint. In addition, the scope for future residential development is restricted due to limited availability of large land parcels,” says Naveen.

Vikram Bharadwaj, business development, Square Yards Consulting, agrees, “Due to limited land parcels, availability of land becomes a problem. For any new construction ,small plots of land need to be acquired and amalgamated. In this sense, this area has, more or less, reached saturation as far as future development is concerned.”

Some upcoming residential projects

Phoenix One Bangalore West - Phoenix Mills Ltd.
Assetz Lumos - Assetz Property Group
Purva Sunflower- Puravankara Projects Limited
Sobha Indraprastha- Sobha Developers Ltd.