For residential purposes, the real estate in North Bangalore is likely to remain in the forefront with development in infrastructure, price appreciation and increased buyers demand.
A great improvement has been witnessed in property sales in Bangalore’s residential market as a result of increased demand during the month of December 2013 compared to the earlier two months. During the month of December 13, there were new project launches. Among the major projects which have been launched included New Heaven by TATA Housing, Woodland Heights by DLF and Royal Gardens by Prestige Group.
There has been a slight increase in rents in the month of December owing to the scarcity of ready-to-occupy flats and more number of people. Capital values increased marginally all across the sub markets along with price appreciation in projects which are about to be completed. The levels of vacancy remained at low point on the back of restricted supply and stable demand.
The Future Ahead
The market of Real Estate Bangalore is likely to remain robust in coming days owing to various reasons. The main factor behind this is growth in infrastructure. The values of the property would increase as the State Government has lately approved the Peripheral Ring Road. The project at Peripheral Ring Road would be completed in 2 phases.
Under Phase-I, a sixty-five kilometre stretch which includes the stretch of Hosur Road (NH-7) to Tumkur Road (NH-4) , crossing Old Madras Road, Bellary Road and Varthur Road would be taken up for development under Phase-I, while a fifty-one kilometre length from Tumkur Road toHosur Road would be completed under phase-II.
One of the contributing factors is the proximity of the area near the IT corridor. The area is likely to buzz for increasing investments from the IT corridor and the plan made by the Government for the Aerospace SEZ over a period of three to five years. BAP or the Bangalore Aerospace Park would be developed as a top-notch aerospace hub. It would be built near to the BIAL or the Bangalore International Airport.
Moreover, the access route into the Bangalore city from Devanahalli is also likely to increase the growth in this area. The other factor is social infrastructure in North Bangalore which has played a major role also. Reputed hospitals and good schools have been set up in this region long before the setting up of the airport. The main advantage was the availability of land at cost effective price.
As the capacity of airport has been increased, the local government wants to make it as the IT hub in North Bangalore. Number of service sector related firms would begin their activities in Northern part of Bangalore. So, there will be great prospects for the hotels, schools, retail and IT park, hospitals and schools along with residential projects.
Besides, projects on Sarjapur Road under construction will be completed in the near future. Afterwards, North Bangalore would find incremental sales owing to preference for residential projects and ready-to-occupy flats by end users.
Activities of property developers
As per the findings of real estate companies, there are some specific locations such as North Bangalore which are buzzing with great activities. This is owing to infrastructure developments such as the metro project, flyovers, underpasses, international airport and road widening activities that are attracting the attention of developers who hope for increase in demand. At present, Real Estate Bangalore is going through rapid transformation because of commercialization. It is also found that the area is experiencing important activity for commercial developments and real estate activity for residential purposes.
Availability of land
The availability of plots for the purpose of commercial development is one of the prime factors for boosting development of real estate activities in North Bangalore. The demand is increasing due to non-availability of existing pipeline besides the present tech park located here. Other important reasons are the upcoming hospitality and residential developments, road projects and proximity to the airport.
More than three thousand acres of land, IT/BT, hardware and aerospace parks would be setup around the international airport. There is provision for developing residential facility also for employees working in those industrial units cover around two hundred fifty to three acres of land.
Some of the reputed real estate developers like KHB or Karnataka Housing Board have been offered land. Twenty five acres to private developer and one hundred acres have been provided to the Karnataka Housing Board. Few of the projects are under consideration and some of the projects have been approved already. While ninety percent of area would be allotted for commercial and industrial activities, rest of the 10 percent would be kept reserved for the purpose of housing. Together with this, infrastructure development program is being given a top priority in this region.