BANGALORE: Better connectivity to the city as well as to the airport, development plans such as the IT and aerospace parks by the government, signal-free roads, well-developed social infrastructure, availability of land, proximity to IT/ITeS parks, industrial belts etc are some reasons that are working in favour of Bangalore north.
Elaborating on the increasing demand for premium options in the city, Om Ahuja, CEO – Residential Services, Jones Lang LaSalle India, says, “Commercial leasing in Bangalore has surpassed Mumbai and Delhi in the last few quarters and with current buoyancy in the software industry the trend seems to be picking up further in the coming months. Stronger commercial leasing scenario means more companies expanding their operations in the city and this further leads to job creation. More jobs translate to more demand for apartments. Current environment in the IT industry means better bonuses and increments for employees, who look at upgrading their existing apartments in terms of size and luxury.”
Areas and options
Ram Chandnani, Deputy Managing Director – South India, CBRE South Asia, gives an idea about the areas, options and pricing of luxury homes in the north. “Around Hebbal, villas are available for Rs 3 crores and above and apartments over Rs 1.50 crores. In Yelahanka, villas come in a ticket size upwards of Rs 2 crores. Apartments in Jakkur range above Rs 2 crores. In Devanahalli, you can get villas from Rs 1.50 crores onwards. Around Nagawara and Hennur Road, apartments are priced at Rs 1.50 crores and above and in RMV IInd Stage, above Rs 2 crores.”
Ahuja adds, “A villa within a budget of Rs 5 crores is still a possibility in Bangalore. The Outer Ring Road (ORR), Sarjapur Road and north Bangalore is where the action is in terms of employment and that’s where the demand is growing. Villa projects range from Rs 3 crores to Rs 12 crores and apartments range from Rs 1.50 crores to Rs 10 crores across key areas in these three micro-markets. Localities close to tech parks are the key areas to watch for in terms of best picks.”
Demand and appreciation
Research by CBRE indicates that demand for high-end housing, above Rs 1.50 crores, across Bangalore is approximately around 10 percent. This has increased a little over the last 3-5 years in the north with the elevated expressway taking shape, development of high-end healthcare facilities, shopping malls, dining and entertainment etc.
“These locations also offer a relatively decongested living environment with the ORR, Bellandur, and Sarjapur Road getting extremely crowded. Approximately 10-12 percent is the average year-on-year appreciation. There is a high potential of rentals from expats due to easy access to the airport,” Ram says.
Ahuja points out, “Bangalore has the best rental yield when compared to other cities in India. We expect the city to lead the appreciation and rental yield scenario over other cities in the years to come considering the demand scenario and number of jobs being created currently. North Bangalore currently commands over 30 percent of the enquiries and we have witnessed this trend increasing in the past 2-3 years considerably.”