BANGALORE: Bangalore east, as a result of the high concentration of IT and ITeS companies, has witnessed an increased residential spread over the last 8-10 years, with its localities emerging as self-sufficient micro-markets.
Connectivity through the Old Madras Road, the National Highway Authority of India’s six-lane Bangalore-Chennai expressway and the Outer Ring Road (ORR), along with commercial and industrial development, social infrastructure, and the availability of large land parcels at comparatively lower prices towards the peripheries, have resulted in the emergence of Bangalore east as a residentialrealty hotbed.
Ashutosh Limaye, Head – Research & REIS, Jones Lang LaSalle India, explains, “A location or sub-market is categorised as a ‘hotspot’ when it is emerging as a self-sustained ecosystem with development at all levels. A location focused on residential segment and low or no commercial and entertainment options is not likely to sustain for a long time. Similarly, a commercial hub with low or no residential development is likely to cause problems for the employees who will seek alternate residential districts in the vicinity, which can reduce the commuting time to work and therefore is not sustainable.”
Infrastructure and development
In addition to the overall real estate development, infrastructure also plays a pivotal role in developing a location. Poor infrastructure or delayed infrastructural developments can eventually reduce the investment potential of a location. “Though allround development requires considerable time, it lends maturity to the real estate market in the location while ensuring that price growth is sustained over a longer time period,” Limaye says.
JLL’s Research and REIS team identified select destinations in the seven cities of Delhi-NCR, Mumbai, Bangalore, Chennai Pune, Hyderabad and Kolkata as ‘emerging investment hotspots’. In Bangalore, Whitefield figures on the list. “We selected locations which are classified as either emerging or growing sub-markets and are likely to be well-supported by excellent infrastructural development. According to our assessment, these locations offer a large bouquet of investable options in real estate with their relative lower price levels providing the incentives for future capital appreciation and healthy returns.”
Localities with potential
According to Irshad Ahmed, President, Bangalore Realtors Association of India, Whitefield, Old Madras Road, parts of Hennur Road, such as Ramamurthynagar, and Horamavu are areas that are witnessing residential spread and hold potential in the east in the long term. “In the north-east, Budigere Road is emerging as a potential residential hub. Whitefield still has the potential to spread out. Old Madras Road, leading up to Hoskote, benefits from excellent connectivity and affordably priced options. For instance, two-bedroom apartments are available in a price range of Rs 1,100-1,200 per sqft and three-bedroom apartments fall in an average price bracket of Rs 1,600-1,700 per sqft,” he says.
Restaurateur Elizabeth Bowden-David recently purchased a villa in Whitefield. Citing reasons for settling down in this locality, she says, “We rented a home for six years and grew to love Whitefield so much that we then purchased a home in the same neighbourhood. I’ve always felt comfortable in Whitefield. In my neighbourhood, we do a lot of walking, and thanks to good sidewalks outside, I enjoy walking to nearby shops and even to a wellknown theatre closeby to watch plays. It is also convenient being a short drive away from my family’s restaurant.”
The ORR stretch – from Sarjapur Road to K R Puram – and Whitefield in Bangalore east are highly preferred destinations for office real estate because of the proximity to the employee catchment areas, accessibility and availability of ready-to-occupy/under construction Grade-A space with large, efficient floor plates and large land parcels that offer builtto-suit options.
Santhosh Kumar, CEO – Operations, Jones Lang LaSalle India, elaborates, “Bangalore has ceaselessrental requirements across its geography as the social infrastructure is evenly developed and better connectivity is made through signal-free ring roads. The IT and ITeS sectors are the predominant demand drivers in Bangalore. South and east Bangalore account for a major share, as these corridors have almost 70 percent of IT and ITeS corporates. Indiranagar, CV Raman Nagar, Sarjapur Road, HSR Layout, Bellandur-Outer Ring Road and Banaswadi are the most popular residential areas in the east.”