BANGALORE: The north of the city continues to witness a surge in demand for office and residential spaces. Though sizeable chunks of land have already been designated for an aerospace, IT and BT Special Economic Zone (SEZ) the demand from private players for realty development is huge.
The location of the international airport plays a significant role as a value driver in this growth story. Property buyers are suddenly confronted with a rise in rates also due to the elevated road by the National Highways Authority of India (NHAI) over Bellary Road and proposed Metro Rail link. These are critical factors to be considered to invest in any property and the region satisfies these criterions in all aspects.
“The Devanahalli micromarket is defined by an impressive scale of activity on premium and luxury projects. This is largely due to the ongoing and planned infrastructure developments in these areas, with the establishment of the international airport being one of the primary catalysts for the north Bangalore micro-market,” says Mayank Saksena, Managing Director – Land Services, Jones Lang LaSalle India. “A recent strategic acquisition by a private player on NH7 at Devanahalli adds credibility to the fact that it is the city’s most promising growth corridor by virtue of its proximity to the international airport,” adds Mayank.
It is a known fact that infrastructure projects are bound to escalate the value of properties in its vicinity. A mere announcement of an infrastructure initiative sends the prices soaring between 50-70 percent until the operational phase.
“The north Bangalore region currently has a number of mid-sized commercial offices under construction, but closer to the city than the international airport. Prominent developers have commercial office projects either under construction or in the pipeline between Hebbal and Yelahanka,” explains Aniruddh Wahal, Managing Director – Occupier Services, Transactions, DTZ India. “More significantly, three large projects may completely alter the office space growth dynamics in the city in the coming years. The upcoming IT/ITeS SEZs on Hennur Road and Bellary Road are likely to propel the growth of north Bangalore suburb as a key office market as well,” adds Aniruddh.
In the second quarter of this year, the first large commercial office lease of over one lakh sqft was inked in an under-construction project in Yelahanka, indicating the openness of occupiers to move to this region, adds Aniruddh.
According to Naveen Nandwani, Director – South India, Cushman and Wakefield, the Outer Ring Road (ORR) continues to draw a majority of the demand from tenants occupying office spaces. The Sarjapur-Marthahalli-K R Puram stretch still remains buoyant for office space supply.
“The social infrastructure in the region too is getting a boost with the first mall in Yelahanka, currently under construction and a number of hotel projects also under development. The region already is a hub of international schools. With improving connectivity through under-construction elevated expressway, the proposed high-speed rail link, the Metro line, and the planned Peripheral Ring Road (PRR), access to Devanahalli and the international airport will improve further over the next few years. In addition to connectivity, the government’s initiatives including the Information Technology Investment Region (ITIR), International Finance Centre, Hardware Park and Aerospace Park will result in a complete transformation of the region around the international airport in the coming years,” says Aniruddh.
The region has emerged as a hub of premium villas, mostly meant as second homes or investments, after the opening of the international airport with a number of villa project launches by prominent developers. This growth is seen along Doddaballapur Road too.
“Since 2012, there have been many large apartment project launches across affordable, mid-segment and premium segment in proximity to the international airport. In addition, there are numerous residential projects under development across the established residential hubs of Hebbal, Sahakaranagar, Amruthahalli, Jakkur, Hennur Road and Thanisandra Main Road in the north Bangalore region. As the city grows in this direction, a significantly large residential supply will be seen in the coming years. This will give the much-required catchment and impetus to office space development near the international airport,” says Aniruddh.