BANGALORE: While Jayanagar, J P Nagar, Koramangala, Basavanagudi, Bannerghatta Road, HSR and BTM Layouts have witnessed the emergence of high-end housing options, much of the southern belt is occupied by midrange housing options in the newer localities close to the economic hubs, with some budget options emerging towards the peripheries. Mid-range options are popular as they are located in proximity to IT hubs, with well-developed social infrastructure and access to good health care and education centres.
Ram Chandnani, Deputy Managing Director, CBRE South Asia, elaborates on the spread of residential options towards the peripheries over the years. “Some of the prominent residential areas in south Bangalore include Jayanagar, Koramangala, Hosur Road, Bannerghatta Road and Kanakapura Road. Jayanagar and Koramangala are two of the oldest residential plotted developments. Electronics City was the game-changer for south Bangalore residential development triggered by the entry of some large IT giants in the micro-market.
However, south Bangalore didn’t achieve its premium due to poor social infrastructure. The NICE Corridor which bettered the accessibility to this location resulted in multiple developments across the corridor. The availability of Cauvery water and presence of some IT majors on Bannerghatta Road together with the proposed Metro connectivity to Kanakapura Road has spurred the residential real estate growth in this corridor.”
Connectivity and development
Connectivity between Bannerghatta Road, Kanakapura Road and Electronics City via the NICE Ring Road has played a key role in spurring residential development in these locations, as a result of the lesser commuting time between them. Kalpana Murthy, Associate Director, Residential Services – India, Cushman & Wakefield, says, “The elevated expressway from Silk Board Junction to Electronics City led to cutting down of commute time from Electronics City and the peripheral areas of Hosur Road, providing impetus to residential development around. Going forward, the upcoming Metro line to Kanakapura Road will further enhance attractiveness of this micro-market as a residential destination.”
Research by CBRE indicates that in the south, the mid-range and budget segments are doing extremely well. While mid-range options are doing well across Electronics City to Sarjapur link road, the budget segment is doing well in the Electronics City-Bannerghatta link road belt. Ram adds, “More than 50 percent of the supply is in the mid-segment and approximately 38 percent is in the budget segment.”
Mid-range options: Localities in focus
Proximity to IT hubs, good social infrastructure and availability of land parcels at better rates than in the city center have led to the emergence of mid-range options around key economic hubs. Kalpana explains, “Bangalore, being an end-user driven market with majority of the demand coming from the IT/ITeS sector, witnesses the highest demand in the mid and affordable segments. Around 75 percent of the total demand lies in the mid and affordable segments. Midrange properties are primarily concentrated in Sarjapur Road, Kanakapura Road and peripheral Bannerghatta Road, with IT/ITeS employees accounting for a major portion of demand in this segment. The average price range for mid-segment homes in these localities ranges is Rs 4,500-6,000 per sqft.”
Ram states, “The mid-segment contributes to more than 50 percent of residential development in the corridor. While IT remains the primary demand driver, employees from manufacturing, pharma and biotechnology too are contributing to the demand. Such options have come up around Hosur Road, Electronics City, Bannerghatta Road, JP Nagar and Kanakapura Road.”
Budget options: Localities in focus
According to Ram, Attibelle, Anekal, Jigani and majority of developments after NICE corridor on both Bannergatta Road and Kanakapura Road target the budget segment. He says, “The ticket sizes range between Rs 10 lakhs and Rs 30 lakhs and cater to employees across Jigani and Bommanahalli industrial belts. Junior employees in IT majors are also investors in these locations.”
Kalpana points out, “Budget options are essentially present in Chandrapura-Anekal Road and peripheral Kanakapura Road. Due to the skyrocketing prices in the city center and suburban areas, many first-time homebuyers cannot afford properties in these locations. As a result, several organised developers have ventured into the budget-housing segment in the outskirts of the city, primarily due to the lower land acquisition costs. A majority of the demand for this segment is driven by first-time homebuyers. Also, these affordable projects have attracted investors.”