The city witnessed a net absorption of 33,988 units in 2012, of which the lion’s share of 45-50 per cent was seen in Bangalore East
“Unlike Mumbai, the garden city expands laterally as more and more people move to the city for work. The residential sector throughout India may appear dull despite numerous attractive schemes offered by developers, in addition to the housing loan exemptions from the Government. However, Bangalore has a different story to tell,” says Shrinivas Rao, CEO-Asia Pacific, Vestian Global. “Accommodating over one million IT/ITeS workforce, and expecting to add over 100,000 employees annually, Bangalore witnessed a net absorption of 33,988 units in 2012 of which a lion’s share of 45-50 per cent was seen in Bangalore East. Once upon a time nothing but vast expanse of agricultural land, today Whitefield and ORR-Sarjapur count as the city’s most exciting residential destination, he says, “with everyone keen to move into that area.” What could have possibly led to such popularity and rapid transformation of Bangalore East into “the most sought after” region by home-buyers and investors?
Says Shrinivas Rao, “Neighbourhoods in Whitefield, ORR-Sarjapur, HSR Layout, and Mahadevpura boast of their proximity to the SEZs. Majority of the IT/ITeS companies present in the city house expansive campuses on ORR, Whitefield, ITPL and Electronic City. This region has witnessed massive growth in infrastructure in terms of connectivity. The ‘signal-free ORR’ stretching all the way from Silk Board junction to Hebbal and linking Electronic City to Whitefield is the major highlight of the eastern quadrant. Composed of a series of flyovers and underpasses, this 8.5 km extension is a boon for working professionals residing in HSR Layout, BTM-Madivala, and Marathahalli. The Madivala-Electronics City flyover is another useful linkage that transports you to the State boundary from the city centre within a quick 15-minute drive. Over time, this route has facilitated a residential surge in adjoining neighbourhoods of BTM, Silk Board and Bommanahalli. Who could possibly defy the benefits of the Bangalore Metro Phase 1 connecting the city centre to eastern extension of Byappanahalli? This development has immensely facilitated working professionals opt for residential enclaves in the lush neighbourhoods of Bangalore East.” Subsequently rapid development in terms of social infrastructure has boosted the desirability quotient. Whitefield and ORR-Sarjapur today collectively house six 5-star hotels, six operational malls and a host of fine dining options. It has competent international schools, reputed hospitals and is progressively developing into a niche segment. Over the last five years, these substantial infrastructure and social developments have enhanced the land value of the region, attracting developers to plan extensive residential projects.
“The average annual capital appreciation is around 13 per cent for the next 3-5 years, while the average yield on rental rate is expected to hover around 4-6 per cent for Bangalore East. In terms of investment plans, this is definitely a lucrative choice since the expansion of Bangalore Metro Phase 2, joining Whitefield to Byappanahalli, will aid residents in Bangalore East to commute better to CBD region,” adds Rao.
According to a special real estate response market report by consultants Cushman & Wakefield, Bangalore largely driven by end-user demand witnessed the highest number of unit launches amongst the top seven cities in India, adding to over 22,000 units with majority of them (close to 90 per cent) in the affordable and mid-end segment category. The residential market has been less speculative with property being affordable compared to other metros, leading to continued end-user interest. With development of peripheral locations and developers offering residential units in various ticket sizes, the buyers have variety of options to choose from. The first half of this year witnessed a considerable uptrend in the number of unit launches with organised developers launching large affordable projects in peripheral areas such as Budigere Cross in the east, Anekal Road-Attibele in the south, Tumkur Road in the north and Mysore Road in the western part of the city. Locations such as East Bangalore registered a rise of 6 per cent in high-end and 5 per cent in mid-end primarily due to IT hub proximity and demand from IT employees.
Mid-end segment projects were concentrated in Sarjapur Road in the south along with Whitefield in the east and Hennur Road and Hebbal in the northern micro markets. The city also witnessed the launch of over 450 units in the luxury category primarily in suburban areas such as Magadi Road and Old Airport Road. During the first half of the year, close to 9 per cent of the total launches were accounted by villa/row house category residential units. These launches were spread across Hennur-Horamavu Cross in the north, Whitefield and Old Airport Road in the east and Sarjapur and Harlur Road in the south. Over 70 per cent of these villas were in the high-end category with prices starting at Rs. 1.4 crore per unit.