JOIN USCommercial and retail sectors are poised to grow in a big way in North and East Bangalore. Ruth Dsouza Prabhu speaks to realtors and analysts to assess the scenario.
The year has just begun and it is natural to feel upbeat about what’s to come. For Bangalore, real estate activity this year is pointedly based in North and East Bangalore.
The areas have several aspects going for them, in terms of availability of land, great infrastructure being put in place and several office spaces coming up. Here is a look at some of the opinions on commercial and retail realty in Bangalore for this year.
Karun Varma, Managing Director – Bangalore & Kochi, Jones Lang LaSalle India says that in terms of commercial property absorption, Outer Ring Road will work exceedingly well in 2013.
Thanks to its proximity to employee catchments, the enhanced connectivity via signal-free flyovers and availability of SEZ as well as non–SEZ office spaces will ensure that ORR continues to build up its already dense corporate presence in 2013.
He adds that Whitefield will not lose any of its sheen in 2013. The office space market drivers there will continue to be its economic rentals, sufficient Grade A spaces ready for occupation and Whitefield’s on-going evolution as a self-sustained micro market with generous residential and retail developments, backed by good social infrastructure.
In North Bangalore, infrastructure development, the controlled office space supply coming up and this region’s proximity to Bangalore International Airport will provide continuing impetus in 2013. North Bangalore will strengthen its status as the business continuity location of choice.
Infrastructure matters
Thomas Teo, CEO, Ascendas India Operations, feels that projects which have already seen pre-commitments or confirmed interest from companies, are expected to be taken up by developers on a priority basis in 2013. With the government committed to improving the infrastructure for better connectivity, viz. the upcoming metro, urban development in the city will get a further boost.
Ravindra Pai, MD, Century Real Estate says, “The off take for commercial real estate has been very subdued in 2012. I am hoping that it will improve in 2013. Likely areas for absorption of commercial real estate will be in the already established areas of Electronic City, Whitefield and Sarjapur Outer Ring Road.
There will be pockets in the North where we can expect some commercial activity. He adds that the trend towards retailers moving to the mall format is irreversible. Malls are likely to spring up wherever there is a good residential catchment.
Where there are residential catchments, there is a natural tendency for retail to pop up as well. Suraj Asrani, COO, Cornerstone Properties says, “The announcement of FDI in retail would see a lot more retailers looking at India more closely, Bangalore has remained a preferred destination for retailers, 2013 would be an exciting year for retail development. With more brands coming in, we expect stabilization in the retail space. We would expect developers to launch larger malls with more interesting tenant mixes and as the infrastructure (Metro and PRR) expand footprints, concepts like strip malls and malls with added elements of retail and entertainment would find favour.”
Sound investment advice
For those looking to invest in realty this year, here is what some of those in the thick of things have to say. Sanjay Raj, ED&CEO, Golden Gate Properties Pvt Ltd says one must invest in properties only after meticulous retrospections of the future aspects.
He says, “Consider more of established locations that have significant Grade A commercial real estate development by prominent developers.”
Bijay Agarwal, MD, Salarpuria Sattva Group feels that infrastructure is the key. Once that is in place, retail spaces will start booming. The North and East carry the most potential for investment. You can expect 50 to 70 per cent appreciation within the next three years for residential as well as office spaces.
Driven by IT
Jitu Virwani, Chairman and Managing Director, Embassy Group opines that the City is driven by the IT sector, which contributes to a large portion of the state’s GDP. He says that the northern region of Bangalore is seeing immense growth as far as the commercial real estate sector is concerned. The availability of large parcels of land for commercial and residential developments is one of the main reasons for the growth in this region.
As proposed by the government, the new IT hub is expected to come up in the northern part of Bangalore apart from the two IT parks located in the southern and south-eastern regions. This will create a boom in the commercial sector as well. Brotin Banerjee, MD and CEO, Tata Housing aptly sums up by saying that Bangalore on the whole has emerged as a very good investment destination in all areas of real estate development.
Most residential, commercial and retail developments have been showing good absorption rate and will continue to do so in the near future as the prices don’t seem to be unrealistic and there isn’t any kind of bubble being built up as compared to other top metros, he adds.