Which zone do you pick?

Bengaluru has consistently emerged as one of the top real estate investment hotspots on account of the expansion of its IT corridors, capital inflow by foreign investments (due to IT and industrial developments), cosmopolitan hubs and improvement in connectivity across the city through extended transport services.

Some of the Government’s proposed infrastructure, namely – the Peripheral  Ring Road (PRR), metro rail, signal-free Outer Ring Road, high-speed rail link, monorail and elevated expressway are factors influencing real estate growth and capital appreciation potential in Bengaluru.

Yeshwantpur, Sarjapur Road, Whitefield and parts of North Bengaluru are the City’s most promising residential micro-markets to invest in a home. The Outer Ring Road (ORR), a 60-km stretch which connects the City with National Highway-4 and runs through all four zones of the City has witnessed massive real estate investment which promises high returns. Here’s a summary of where one can invest in residential real estate across the four regions of Bengaluru:

North Bengaluru

Aggressive promotions by the government for future economic activities in this region has significantly transformed North Bengaluru for the better. Proximity to the Kempegowda International Airport, peaceful neighbourhoods, and excellent social infrastructure are the main factors that attract home buyers to North Bengaluru. Yelahanka, Thanisandra, Hennur (because of proximity to the Airport, Banaswadi Railway Station, and HBR layout), Hebbal (which is running as high as Rs 9,500 per sq ft with 49% market share) and Devanahalli are the high returns yielding localities to invest in.

Projects such as the Information Technology Investment Region (ITIR), 950 acres earmarked for an aerospace special economic zone (SEZ) adjacent to the Airport and Industrial Finance Corporation of India (IFCI)’s 50-acre Global Finance District have been planned in the region as well.

These projects promise a phenomenal growth in real estate here. Urban experts predict that these suburbs will be home to over 25 lakh residents with investment plans by IT majors that will create massive job opportunities. North Bengaluru ensures investments secured with well-planned logistics and infrastructure, along with metro connectivity.

East Bengaluru

The East of Bengaluru constitutes major work centres such as Whitefield, and the EPIP Zone, which have enhanced the development of residential apartments over the past few years, making it a major real estate hotspot. Land rates here range from Rs 3,995 to Rs 5,355 per sq ft. This is the most favoured part of the city for a buyer who is looking to invest in luxury apartments and villas.

The rental demand for 3BHK units are observed to be high due to the presence of IT/ITeS companies in the vicinity. The proposed eight-lane PRR connectivity will connect Whitefield to Tumakuru on one side, and Hosur Road on the other. Currently, the Diesel Electric Multiple Unit Train between Yeshwanthpur and Whitefield is the only means of connectivity through trains for Whitefield. But BMRCL’s upcoming 15.5-km metro line between Baiyyappanahalli and Whitefield will further improve connectivity to this corridor. Also, the self-sufficient social and physical infrastructure this zone offers is of prime importance for residential development.

South Bengaluru

Over the past few years, the southern suburbs have witnessed a high percentage of appreciation on investments. As a testimony to this, every quarter, a new residential project gets launched in Sarjapur Road. The number of under-construction projects is higher than the ready-to-move homes which constitute row houses, villas and apartments.

With several projects in the pipeline on the Sarjapur Road stretch, it serves as a good zone for investments. About 30% of residential real estate demand in South Benguluru is for Sarjapur Road and HSR Layout. Its easy access to major work centres along the Outer Ring Road has made these suburbs an upper middle-class residential catchment. The initiated 33-km metro line from Central Silk Board to Hebbal will link Sarjapur road to rest of the City.

The newest entrant in the list of most profitable locations is Nayandahalli. The recent metro connectivity from this location has increased the average price in Nayandahalli to Rs 5,400 per sq ft. The prices are expected to rise further as the connectivity from the metro station to the nearest residential areas of NGEF Layout, Balaji Layout and D-Group Layout will improve.

Bannerghatta Main Road yields fair rental returns on 2BHK properties and has limited availability. When it comes to water facilities, this area beats the rest of the City, making it one of the best places to invest in.

West Bengaluru

West Bengaluru is characterised with low social profile and industrial surroundings. Progressive and modern residential projects reveal the potential of real estate growth in these localities. Till 2014, West Bengaluru was the industrial hub of the city.

Yeswantpur observes higher investments in real estate, compared with other localities of western Bengaluru. The average sale price of multi-storeyed apartments in Yeshwantpur is around Rs 3,384 per sq ft, and that of individual homes is Rs 8,547 per sq ft. Next to Yeswantpur, Jalahalli and Peenya are the two other localities in the west zone that one can look at for a sound real estate investment. The Metro Green Line connecting the East-West and North-South corridors, covering 42.3 km will influence infrastructure expansion for a promising investment.


(The author is director, Sales & CRM, Assetz Property Group – Bengaluru)