‘Whitefield, Hebbal, Devanahalli property rates to rise 8-12%’

Bengaluru: Emerging areas in Bengaluru such as Sarjapur Road, Whitefield, Hebbal, and Devanahalli are projected to see property value increases ranging from 8 per cent to 12 per cent annually, said Amar Mysore, President, Confederation of Real Estate Developers' Associations of India (CREDAI) Bengaluru at an event on Friday.

These price appreciations will primarily be for residential properties, Mysore told DH following the inauguration of CREDAI’s realty expo.

As to whether this may lead to more people buying for investment rather than end-use, this is unlikely considering Bengaluru’s market trends till now, he said. Regardless, it is not encouraged to buy a lot of homes for a single person for the process of “house-flipping”, he cautioned.

Sarjapur Iblur junction 

The property value rises will be driven primarily due to connectivity. “North Bengaluru has seen great momentum in the past two-three years, driven by airport proximity but also the metro connectivity that is currently in the works, which has actually opened up a lot of land parcels, development opportunities, and demand,” he explained.

This is particularly true for the IT, Information Technology enabled services (ITeS), and banking, financial services, and insurance sector companies setting up offices. Even the Satellite Town Ring Road (STRR) has improved connectivity tremendously, he pointed out.

In response to a question about whether this growth would make land an issue in these areas as well, similar to the rest of the city, he said that this would not be the case for areas further up north and upcoming regions, barring mature micromarkets like Yelahanka.

“Developers are interested in clear title land. By this, I mean, with land documents, a clear understanding of the lineage and history, and no partition suits,” he said.

The south, southeast, and east parts of the city remain in demand with a large number of projects, employment generation, civic amenities, food and beverage (F&B), and retail options, he said.

Demand often exceeds supply in Bengaluru, added Kishore Jain, Chairman of CREDAI Bengaluru.

The impact of real estate was highlighted by bankers at the event like Joohi Smita Sinha, Chief General Manager, State Bank of India, Bengaluru Circle. She noted that realty forms 65 per cent of the portfolio at SBI.

“Currently, Bengaluru consumes around 65,000 units annually and we are hopeful that number will go up to 1 lakh homes soon,” Mysore stated. This compares to 25,000-30,000 units clocked in Chennai, he said.