BANGALORE: In the early 1990s, Bangalore east beyond K R Puram was bracketed under ‘Bangalore Rural’. People didn’t head out there unless they could manage travelling on mud roads, with no habitation or streetlights for long stretches. Around 10 years down the line, Bangalore east has transformed into a bustling cosmopolitan and self-sufficient economic hub. With a host of infrastructure projects that have upgraded connectivity and seamless travel, peripheral locations in the east are witnessing the rise of budget housing options.
Satish B N, Executive Director (South), Knight Frank India, says, “Affordability is relative to geographical area, time and income category. However, if we were to provide a ballpark range for an affordable project in Bangalore east, it would be within the ticket size of Rs 30-45 lakhs.”
Alexander Moore, Chief Executive Officer – India, LJ Hooker, explains, “Affordable housing can be defined as a marketable product that suits the buyer requirements, located within a practical commute of the place of work, and priced at no more than five times the average salary of the target market. In Bangalore east, given a weighted average IT professional’s salary of around Rs 6.5 lakhs, the borrowing capacity of the average buyer is Rs 15-35 lakhs meaning affordable property at present is property priced at Rs 50 lakhs or less. The lower the ticket price the larger the available market.”
Triggers for growth of region
Before the 1990s, the eastern zone was home to reputed manufacturing industries that were instrumental in the growth of this region. The set-up of the EPIP Zone followed by the ITPB was mainly responsible for catalysing commercial development and subsequent residential development.
Proximity to the Outer Ring Road (ORR) coupled with the availability of large graded office space attracted major IT/ITeS companies in the eastern zone. This further fuelled interest in residential development in this region.
Satish, explains, “Locations such as Whitefield, CV Raman Nagar, Brookefield, Old Madras Road, Indiranagar, K R Puram, Old Airport Road, Mahadevapura, Hoodi Circle and Kadugodi emerged as preferred residential destinations among the IT employees. These locations saw the launch of several projects priced in the range of Rs 2,200-3,000 per sqft in 2007 that today have resale values in the range of Rs 4,700-5,800 per sqft. Thus, the projects that were affordable then have witnessed good appreciation. Today, the average price range of residential projects in Bangalore east is Rs 2,800-10,000 per sqft. Most projects have price brackets which fall in the mid-range category.”
Connectivity and emerging localities
Upgraded roads, signal-free corridors, the first Metro line connecting M G Road with Byappanahalli and a planned extension in Phase II heading right up to Whitefield, the upgraded Old Madras Road and the planned Bangalore-Chennai expressway are opening up locations and spurring the growth of affordable housing options.
Idirees Chenakkal, Research Head, LJ Hooker India, says, “Connectivity is the major factor that paved the demand for affordable homes, especially in these areas. Some of the projects such as the elevated express highway on Hosur Road, NICE Corridor, the Outer Ring Road and the planned Peripheral Ring Road have made this possible. The north-east and south-east, especially the Chandapura-Anekal-Attibele belt in the south-east, is witnessing the rise of affordable housing options”.
Satish adds, “The two major roads in the east – Old Madras Road and Old Airport Road – are primarily responsible for connecting east Bangalore to the rest of the city. Also, the region’s connectivity with the northern locations through the ORR has improved the commuting experience. Further, the upcoming Peripheral Ring Road which is expected to connect all the peripheral districts will also aid in the development of affordable housing in the far flung areas.”
“Areas with affordable residential options in Bangalore east include Hoskote, Channasandra Road, Budigere Road and K R Puram. Proximity to Whitefield makes K R Puram an ideal residential location. Proximity to Old Madras Road and Narsapur Industrial Area has spurred affordable housing in Hoskote. Relatively lower real estate costs work in favour of Budigere Road and Channasandra Road which is also in proximity to Whitefield,” he says.
Options in budget homes
Research by Knight Frank indicates that two-bedroom apartments in K R Puram fall in the range of Rs 35-45 lakhs. Two-bedroom apartments in Hoskote are in the range of Rs 25-40 lakhs. Twobedroom apartments in Whitefield are in the range of Rs 35-45 lakhs.