Bangalore East: High demand for premium homes
Feb 23, 2014
Source : The Times of India

 

BANGALORE: Bangalore east was known for its plush colonial-style bungalows in the established neighbourhoods of Fraser Town, Cox Town, Cooke Town and Indiranagar, all the way up to the sparsely-populated Whitefield. With the expansion of the city to include several new areas, the east belt has seen an uptake in luxury housing options, mainly owning to the spread of IT in the region. Proximity to workplaces, easy access and high disposable incomes has led to a rise in demand for villas, row houses and apartments in the premium bracket of over Rs 1.50 crores here.

Satish B N, Executive Director – South, Knight Frank India, elaborates on the emergence of luxury options in the east. “Essentially, luxury housing in the east took off in the form of mid-segment villa projects which were patronised by top executives working in IT/ITeS companies around Whitefield. The fast-paced growth of the IT/ITeS sector in the subsequent years led to increased demand for high-end luxury apartments and villas.”

Alexander Moore, Chief Executive Officer – India, LJ Hooker, says, “The first luxury options were apartments, which first appeared in the east in areas such as Whitefield, Bellandur, Harlur Road and Marathahalli. This was due to the development of the hi-tech zones here. This created high income employment in greater numbers and the effect was a demand for quality housing nearby. Villas and row house developments came up predominantly in Whitefiled as well as Sarjapur Road.”

Areas witnessing traction

Research by Knight Frank identifies localities in the east with options in the ticket size of Rs 1.50 crores and above – Indiranagar, CV Raman Nagar, Domlur Road, Old Airport Road, Brookefields, Whitefield Road, Hoodi, KR Puram, Marathahalli, Panathur Road, Varthur Road and the Outer Ring Road belt (ORR).

Satish says, “Proximity to the ORR coupled with the availability of large graded office space has transformed Bangalore east into a self-sustaining IT/ITeS hub with support infrastructure like malls, hospitals and reputed educational institutions. Growth of high-end residential markets in this zone has primarily been in Whitefield, Hoodi, Old Airport Road, KR Puram and Marathahalli.”

The buyer profile has also changed significantly in the last 10 years. “On an average, the age of the typical high-end homebuyer has come down from the 40s to the mid-30s. A large number of highend homebuyers now belong to the IT industry, rather than having their own businesses,” he adds.

Why these locations?

High-end options have emerged in these areas owing to several factors such as good connectivity to the international airport, physical infrastructure and proximity to prime locations, presence of workplaces in the vicinity, easy access to various retail and entertainment options, stable demand etc. Satish points out, “Indiranagar and Domlur are preferred high-end locations due to established neighbourhoods and proximity to the Central Business District, while locations like ITPL Main Road, Varthur Road and Brookefields are preferred due to their proximity to the Exports Promotion Industrial Park (EPIP) zone. Also, widening of parts of the Old Madras Road has enhanced connectivity, reducing the commuting time to the IT hub of Whitefield considerably, thereby increasing the demand for the location.”

Moore adds, ‘The high-income earning density is concentrated around these hitech zones -Whitefiled (ITPL) and Sarjapur Road (ORR IT cluster). Better social infrastructure and civic amenities, connectivity and access, and spacious living options are some of the advantages of these premium neighbourhoods. The appreciation potential is 12-15 percent and the rental potential can range anywhere between Rs 40,000 to Rs 1.50 lakhs per month.”

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