Devanahalli-Hebbal stretch:  Fast growing

Most of the residential projects are concentrated in the northern and southern parts of the City. The Hebbal-Devanahalli stretch is considered to be one of the fastest emerging residential hubs, according to the latest research report by Knight Frank.

The report comprises highlights of both the residential and office market in the City. Some of the findings are:

Influx of multinational companies as well as expansion of domestic firms have largely contributed to the growth of the City’s population. While the concept of affordable housing was in the forefront during  the recession period, with most  of the developers marketing their projects within a lower price bracket, the second half of 2010 saw relatively higher priced projects being launched in the region

The elevated expressway project between Silk Board intersection and Attibele will enhance the connectivity of Electronic City and surrounding locations on Hosur Road with the city. This will improve the potential of the residential locations around Electronic City

The Hebbal – Devanahalli stretch is considered to be one of the fast emerging residential hubs. Availability of land at relatively reasonable rates and key infrastructure developments had spurred developers to launch premium projects in this region

While real estate in the south, south-eastern and eastern parts of Bangalore have flourished since the mid-1990s thanks to the IT/ ITeS boom, the west has lagged behind.

New rates would mean an increase in spending by way of higher stamp duty and registration charges. Buyers may now have to shell out 30-35 per cent more in the form of taxes and duties

Bangalore office market
Bangalore has garnered a significant absorption of approximately 5.46 mn sq ft in the first six months of CY 2011.

Approximately 2.09 mn sq ft of office space was absorbed in Q1 2011 and another 3.4 mn sq ft as taken up in Q2 2011.

The share of the IT/ ITeS sector in office space absorption went up marginally in Q2 2011 and was recorded at 64 per cent of the total transacted area, amounting to around 2.14 mn sq ft.

The consistent demand for IT space as well as for other emerging sectors have led to absorption levels picking up across all the micro-markets in Bangalore.

The suburban micro-market of Koramangala was amongst the most preferred office destinations in Q2 2010 while the PBD of Whitefield was the focus of office space absorption in Q2 2011.

With the expansion of existing operations in the IT sector and the entry of newer sectors due to the renewed optimism in the market, the city is further expected to see improved uptake of  office space in the next two quarters this year.

Addition of over six million sq ft of retail mall space
According to the findings of CB Richard Ellis India’s latest report titled ‘Indian Retail Market view’ for H1, 2011, India witnessed the addition of more than six million sq ft of organised retail mall space in the country across various primary and secondary locations of the National Capital Region, Mumbai, Bangalore and Chennai.

 A number of leading brands and national and international retailers began renewing their expansion plans across the country towards the latter part of 2010. This move gained further momentum in the first half of 2011. NCR, Mumbai, Bangalore, Pune and Chennai were the key markets that witnessed most of the expansion activity.

Pre-commitments in under-construction retail space in prime locations is also an encouraging sign that rental flexibility, along with the minimum guarantee coupled with revenue share model has become more acceptable in the industry.

According to Anshuman Magazine, Chairman & Managing Director, CB Richards Ellis South Asia Pvt. Ltd, “India is the fifth largest retail market in the world. Currently expansion by both national and international retailers is concentrated in the prime locations of key cities thus prompting an upward movement of rentals. However secondary locations will witness a larger supply in the next two years thus leading to the further expansion of the retail sector. This renewal of activity is a testament that the retail market in India is slowly recovering. With the possibility of the cabinet passing a bill allowing 51 per cent FDI in multi brand retail, I believe that our economy will attract more international attention and investment in the future.”

In all the seven cities reviewed in the report, the retail real estate market appears to be promising with an appreciable increase in enquiries being witnessed from retailers.
Retail mall rentals witnessed growth in prime city micro-markets, while witnessing stability in suburban (supply laden) destinations. Moving ahead, transaction activity and size are expected to increase on the back of increase in consumer spending and expanding mid-income purchasing power.

However, despite this incremental demand, the retail mall supply pipeline is quite large, especially in leading cities like NCR, Mumbai, Bangalore, Pune and Chennai. This would continue to exert some pressure on developers to offer rental discounts and maintain flexibility to avoid higher vacancy levels in the long term.

 It is expected that the coming few months might witness the relaxation of restrictions on foreign direct investment in multi-brand retail in India. This is supposed to be a positive move, to be implemented in a phased manner starting with the leading metropolitan retail hubs like Delhi and Mumbai.

New residential project  
Vaswani Group recently launched its brand new residential project – Vaswani Reserve in Bangalore. Vaswani Reserve offers an optimum mix of aesthetics and functionality.

The project offers a total of 236 apartments in configurations of three, four and five-bedroom apartments in both single-level and duplex styles, on a mix of tall and intermediate towers with plentiful parking and excellent open spaces all around.

Individual apartments vary from 1,715 square feet to 4,495 square feet, in several styles and configurations, some of which offer unique 180 degree views. Homes start upwards of Rs 82 lakh. (excluding statutory charges) The project is located 300 meters off the Sarjapur Outer Road.