JOIN USFor many, the arrival of 2016 may mean having to buy a new home. If you’re new to Bengaluru, unfamiliar with its geography, or just unsure of the realty scene here, Homes & Interiors offers some perspective from realty experts on what they think would be the best bets in the City
Major roads to watch out for
The year 2015 has ended and the overall market can be considered moderate. People who stayed invested will be the winners during this period, for the rise is steady and the demand has not been fully met.
During the year, many developments were initiated, that helped the sector look forward to a greater growth. One of the prime movers will be the Metro connectivity across all four lines.
During mid-2016, the effort of connectivity will be felt and one should look for opportunities in these sectors. The second phase of connectivity will see extended areas of Metro connectivity picking up.
On the existing front, Tumkur Road will see increased activity due to developments that have started in the last few years. There is good scope for investment in this section and one can expect good return. For a home buyer who is also planning to stay here, this section will be ideal due to connectivity.
The other section which has good scope is Kanakapura Road. With good connectivity and development happening, the belt will see positive growth with reference to neighbourhood areas. Availability of large tracts of land and good projects have infused potential in the area.
Airport Road is another good bet for investors. Well-planned approach and good connectivity makes this area attractive. The investment in this area is sure to see quantum leaps in the next couple of years due to anticipated overall economic pick up.
Among recent developments and one which had not seen much activity in the past is Old Madras Road. The area is bubbling with activities and the next couple of years will see major spurts in developments. Also the connectivity to the International Airport is an added attraction. One should stay invested in this area to reap good benefits.
Suresh Hari
Secretary, CREDAI Bengaluru
Infrastructure will be the prime driver
Investing in residential properties in the following areas in Bengaluru is what I would consider. Here’s why:
Thanisandra is an upcoming locality with large planned projects by several reputed builders. Going ahead, prices are expected to rise in the locality owing to its relatively lower capital values and proximity to employment hubs.
Presence of social infrastructure in nearby localities adds to the liveability quotient of the locality. The planned metro (Phase 2A) will improve connectivity with the rest of Bengaluru.
The primary demand driver in the area is the emergence of Whitefield as a business district with the presence of large IT hubs and SEZs. Proximity to the Airport will continue to drive demand for office spaces in the area, leading to demand for residential spaces.
Infrastructure developments such as the planned extension of the East-West corridor till Whitefield will improve connectivity. Hebbal is a preferred residential destination although capital values here have witnessed significant rise in the last five years. The presence of good physical and social infrastructure along with proximity to one of the largest IT hubs in Bengaluru augurs well for the future appreciation of residential spaces in the area.
Improving infrastructure, reducing supply in the region and relatively lower pricing is expected to lead to increases in capital values in KR Puram. The 116-km long Peripheral Ring Road (PRR) will improve connectivity.
Panathur-Varthur’s proximity to the employment hubs of ORR and Whitefield, excellent connectivity and significant existing price differential is expected to lead to capital value appreciation in the submarket. The under-construction metro along with PRR will greatly improve connectivity of the locality.
Karun Varma
MD, Bengaluru, Cushman Wakefield
North is the emerging champ
Bengaluru’s office market comprises two major zones — east and south — with the north gradually emerging on the horizon. One of the noteworthy developments in recent years has been the emergence of North Bengaluru.
With the commencement of the new International Airport at Devanahalli in 2008 and with adequate infrastructure in place, this region is on the cusp of becoming a preferred business district of Bengaluru, presenting immense potential for real estate investment.
The fundamental economics of real estate maintain that price appreciation is dependent on two factors — employment generation and infrastructure development (connectivity).
As per our research, RMV II Stage, which is a 20-minute drive from Thanisandra, is considered a mature residential market in North Bengaluru. Easy access to the City centre via Bellary Road, well-established social infrastructure and limited availability of vacant land for real estate development make this market a premium residential destination.
The current prices in RMV II Stage are in the range of Rs 5,250–Rs 10,200 per sq ft, and will continue to attract homebuyers in the premium segment. However, as the prevailing prices are relatively unaffordable for the working population in the nearby employment hubs, the upward potential in prices will be muted, going forward.
On the other hand, prices in Thanisandra will grow at a much faster pace, with strong demand from incremental employment resulting from significant new office completions, exerting an upward pressure on prices, thereby emerging as one of the two top investment destinations.
Also, with the neighbouring residential micro-markets of Hebbal and Hennur Road, which lie parallel to Thanisandra on either side, quoting average prices of Rs 7,000 per sq ft and Rs 5,500 per sq ft respectively, buyers are likely to prefer Thanisandra, owing to its lower price, at Rs 4,800 per sq ft.
The work commencing on the North–South corridor of the Metro rail network and the Peripheral Ring Road (PRR) project will also boost residential property demand during our forecast horizon. We expect prices in Thanisandra to appreciate by 55 per cent from 2015 to 2020.
The existing discount between RMV II Stage and Thanisandra will thus come down from 38 per cent to 23 per cent by 2020, translating into a price increase from Rs 4,800 per sq ft to Rs 7,450 per sq ft during the same period, showing an appreciation of 55 per cent.
In the east, while prices in Whitefield are expected to increase by 30 per cent, or approximately 5.4 per cent annually, from the average of Rs 7,000 per sq ft in 2015 to Rs 9,100 per sq ft by 2020, prices in Panathur-Varthur belt will escalate at a faster pace than Whitefield.
Currently, at an average price of Rs 4,350 per sq ft, Panathur-Varthur belt is expected to touch an average price of Rs 7,000 per sq ft by 2020, showing an appreciation of 66 per cent. This belt enjoys proximity to two major employments hubs in the city — Whitefield and the ORR stretch and additionally will have connectivity of the upcoming metro rail at Kundana-halli. The PRR project will also be an advantage thereby making this a prime location with investment potential.
Since both these locations are expected to witness incremental employment of over 80,000 employees, they will surely attract a significant population wanting to settle down nearby.
Additionally, planned infrastructure transport projects, such as the Metro and the PRR, will benefit both Varthur Road and Thanisandra, connecting them seamlessly to other parts of the City
Satish B N
Executive director, South, Knight Frank India
Strategic investments
The following are the five areas that I would invest in:
Nagasandra-Channasandra stretch is one of the fastest growing locations and has great potential. The infrastructure is improving steadily with many malls, schools and healthcare facilities in the vicinity.
Also, there is good connectivity to major hubs of the City and the international airport as well. With the proposed Metro coming up, it will further boost the area’s connectivity. This area is also seeing a good appreciation in prices. Connectivity and infrastructure has grown in this area as it has developed closer to the airport.
Hennur Road offers close proximity to both the Airport and the City. The prices in this locality can be seen rising steadily. Connectivity is one of the main advantages that it offers. Furthermore, the presence of well-known schools and commercial spaces such as malls and good healthcare facilities have contributed to Hennur’s growth.
One of the main reasons why investment is high in Hoskote is its proximity to the IT corridor in Whitefield. Furthermore, what acts in favour of the locality is its affordability. With the Peripheral Ring Road being announced, the connectivity to City will be significantly improved. The other key driving factor that drives growth in this area would be connectivity to major hubs across the City. Those who cannot afford to buy in Whitefield are looking at Hoskote as a second option.
The Sarjapur Road stretch continues to offer many options in real estate. Over the years, this area has grown exponentially due to the presence of many IT companies in the area and its close proximity to Whitefield and other IT hubs via the Outer Ring Road. As a result, there have been a lot of developers investing in this area and it has seen a good appreciation price-wise.
Varthur/Gunjur area has emerged as one of the potential residential investments due to its proximity to Whitefield, ITPL and the EPIP areas, where many IT companies are located. According to a recent real estate report, the Varthur/Gunjur area is expected to see a price growth of 55 per cent and will see high returns on its investments over the next five years. The prices are expected to increase by 61 per cent to Rs 7,000 from Rs 4,350.
Pratik Mehta
MD, Unishire Group