Hebbal - The Area to Invest in North Bangalore

Real estate in Northern Bangalore peaked in 2008, when the international airport was started in Bangalore. Since then, Northern Bangalore has managed to sustain its boom in the real estate segment. In terms of infrastructure growth, commercial establishments and launch of residential projects in the area, development in Northern Bangalore has been going on in full force.  The area enjoys good connectivity with other parts of Bangalore through the Outer Ring Road (ORR), Hebbal Flyover and the expressway constructed over Bellary Road and these factors have attracted the attention of buyers, investors and developers.

In the past two years, the localities in this area have seen an increase in prices. For example, Hebbal has shown an increase in property values of around 70 percent in the past couple of years. In 2012, the price of property was around Rs 3000 to Rs 3800 which jumped to Rs 5000 to Rs 6800 per square feet in 2014. Hebbal is largely known for its connectivity to other areas via flyovers. Going to places such as Bellary Road and Outer Ring Road is not an issue from Hebbal at all. The locality also acts as a meeting area for the Bangalore Metro, Vayu Vajra and the BMTC buses.

After the entry of major infrastructure projects in the area including improvement in connectivity and setting up of commercial establishments, realty sector picked up. Hebbal is located only 45 minutes from the airport and major companies such as AstraZeneca and Micro Software Services are located near this area. Manyata Tech Park and the Embassy Kirloskar are the business parks located in the area. These factors have pulled up the demand for housing in this area and it has impacted property values positively. Currently under construction are five more tech parks such as the RMZ Galleria, Karle Town Centre, Sattva Galleria, RMZ Latitude and Brigade Magnum. The office space that has been estimated to come up is around 1.72 million square feet.

The Bangalore Metro’s Phase II has been proposed to be extended to the Nagavara-Gottigere line right till BIA through Yelahanka and Hebbal. This shall push up the realty landscape of Hebbal immensely. The location has a lot of new projects in place right now. All kinds of properties viz. duplex apartments, single floor apartments and multi storey apartments are available in this residential community to cater to the different segments of buyers.  Hebbal is also more favourable to most buyers because of the placement of social infrastructure such as colleges, schools, shopping malls and banks etc.

Water is one of the most important aspects when deciding to buy property in Bangalore. Hebbal is quite favourable in these terms as well. Most areas in Hebbal and around it receive Cauvery water. Because of the placement of a number of lakes, a large number of people show interest in buying property and property in Bangalore Hebbal.

In terms of connectivity, there are BMTC buses plying on the shuttle service of Vayu Vajra along 10 selected routes to the international airport in Bangalore from the Brigade Gateway located in Rajajinagar, 6^th Phase JP Nagar, HAL Main Gate, Kadugodi, HSR Layout, Electronic City, BTM Layout and the satellite bus terminal on Mysore Road. These buses pass by Hebbal through the ORR or Mekhri Circle. Hebbal is a prominent locality on the Mass Rapid Transit Bangalore projects.

Initially when Hebbal was being developed, there was a large demand for multi storeyed apartments mainly for the purpose of security. Basic utility and security was the main cause of concern for individuals moving into the area as infrastructure was still developing. This led to the creation of only multi storeyed houses for the coming 10 years. Currently, with better infrastructure and offices close by, buyers do not hesitate to opt for builder floor flats which are a part of the high end luxury category, quite like boutique hotels.

You can get property in Bangalore and flats for sale in a wide range of prices. A 2 BHK apartment can be bought within Rs 35 lakhs to Rs 85 lakhs depending on the kind of amenities and construction aside from the location. The price of a regular 3 BHK luxury flats/apartment in the area is around Rs 6000 per square feet. On the other hand, builder floor apartments are quite affordable, in the range of Rs 4400 to Rs 4900 square feet. This has led to an increase in popularity of such apartments, as evident from their growth indices.

Even though the highest increase in property price has been seen in Hebbal, RT Nagar and Thanisandra have also shown good appreciation. It has been seen that the rise in property prices in Thanisandra has been around 28 per cent while that in RT Nagar has been around 12 percent in the past 2 years. The values of property in RT Nagar and Thanisandra were around Rs 3000 to Rs 3700 per square feet and Rs 2900 and Rs 3300 per square feet respectively. However, now the prices stand at Rs 4000 to Rs 5200 per square feet and Rs 3800 to Rs 4700 per square feet respectively.

RT Nagar, Thanisandra and Hebbal are situated at a distance of 10kms from one another. Like Hebbal, the other two localities are also close to IT parks and the international airport. The price of property in Hebbal is around 15 percent more than what it is in Thanisandra and RT Nagar.

Another area which has become quite significant is Yelahanka as it has shown an increase in property values by almost 37 percent in the past 2 years. In 2012, per square feet price of properties was around Rs 2900 to Rs 3600 which is now priced at Rs 3600 to Rs 4700 per square feet. The area is only 29kms from the airport which has shot off the property values in this area. In the past 5-6 years, the area has seen a number of launches of real estate projects which are either ready to be moved in or under construction.

Therefore, without doubt, the main areas of Northern Bangalore have provided good returns on property. The growth of the BPO and IT industry along with the infrastructure plans proposed shall lead to an increase in values of property in this area.

Commercial Realty Development In Bangalore

Bangalore’s real estate market’s dynamics has been revolutionized by the IT sector which mushroomed across the length and breadth of the city. Considered to be the IT capital of the country, Bangalore soon became a booming hub of employment opportunities and professional education. Its real estate market followed this boom without any lag.

For catering to the requirements of the massive IT sector, SEZ or Special Economic Zones had been marked in and around Bangalore for the making of large IT parks. The zones have come become defining landmarks of Bangalore of its realty sector’s growth in the coming years.

Through the years, activities in commerce have shifted from the CBD or Central Business District to peripheral and suburban areas. Micro markets in the suburbs like Kormangala, CV Raman Nagar and Bannerghatta Road right now have 27.70 million square feet of land for commercial and residential purposes. An addition of 2.70 million square feet in the coming years will definitely set a record for these areas.

Expanding space needs for the booming IT industry, inexpensive rentals for spaces of improved quality and access to pool of talent residing in the residential hubs in the suburbs have propelled large companies to relocate and consolidate their offices to micro markets along the periphery such as ORR or Outer Ring Road that has a land stock of 28.8 million square feet along with a supply that is under construction, amounting to almost 10.10 million square feet.
When considering the current, real estate market for commercial property in Bangalore, it is a booming scenario as companies are expanding and outsourcing a lot of their jobs. Commercial leasing mechanism in Bangalore has seen good activities of transaction in the first half of 2014. Growth prospects are highest in areas along the ORR or Outer Ring Road as they offer an opportunity for expansion of the commercial real estate market. For example, Whitefield is considered to be a good micro market as it shall have a 2.50 million square feet added to the existing 27 million square feet stock. Moreover, with the airport being relocated to the northern side of Bangalore, areas located in this particular sub market have shown prominent realty activity.

The upcoming hub of commerce is probably going to be North Bangalore as it has initiatives in infrastructure like the Hebbal airport expressway, ORR and widening of Bellary Road which improves the connectivity to this micro market.

There are almost 10 million square feet of office space available in the northern pocket of the city while 3 million square feet is under construction presently. Areas with upcoming and current commercial developments in the northern fringes include Thanisandra Road, Bellary Road, Tumkur Road and the north half of the ORR.

The Outer Ring Road has a character of supply being controlled which ensures low levels of vacancy and good absorption rate along with increase in rentals. The micro market shall continue to bring in new occupiers and entrants who are looking out for expansions. The ORR is a preferred destination for occupiers working in the corporate sector for its closeness to catchment segments for employees, improving infrastructure, connectivity and numerous SEZs and tech parks. Pre commitments and leasing are prevalent here because of the limited supply of ready to move in units.

Even though fresh supply in the commercial realty market has been frugal in the first quarter of 2014, supply is much in the pipeline and construction is robust. A large infusion of supply is being experienced in Bangalore. There is long run potential because of improving infrastructure and expanding residential market. The eye of commercial realty developers have been caught by Sarjapur Road as next destination because of the existing catchment for residences, improving social infrastructure and closeness to the Outer Ring Road. Land parcels are held by developers in this area and it shall see an infusion of supply for addressing spilled over demand from the Outer Ring Road.

The expansion of Bangalore outwards, locations along the periphery are seeing an increase in value houses. Costing less than Rs 30 lakhs, these houses are the best choice for employed professions who move to the city to become employed in the upcoming commercial hubs.

Yelahanka Doddaballapur Road and Devanahalli in north, Chandapura along Hosur Road towards the south is where plotted developments can be availed for roughly Rs 18 and 20 lakhs. Townhouses can be bought for Rs 30 lakhs roughtly. In the western side, affordable housing options are coming up near the NICE Road. As price of land is going up, they have an appreciation potential of almost 20 percent.

Studio apartments that are sizes between 400 and 750 square feet are available within Rs 30 lakhs. Such apartments can be bought along Magadi Road, Old Madras Road, Attibele etc. Doddaballapur Road and Old Madras Road offer 2BHK apartments with square feet area of 650 and 1075 square feet. 2BHK and 3BHK apartments can be bought in areas like Magadi Road, Anekal, Sarjapur Road which have a carpet area of 650 square feet and 1600 square foot.

In this segment, the total supply of projects is around 22 of which 22 percent of the total stock has not been sold, which roughly amounts to 36,000 units. Over the last year, the affordable apartment segment has seen the highest velocity of sales when compared to other segments. Most of the affordable units have been launched in the south east and then the north east.

The demand for property here is being driven via the development of commercial properties and the employment that will be created as a result. A large share of existing commercial property is located in south east while a new chunk is coming up in the north east. Another important thing to consider is availability of value land to build on.

Elevated expressways and flyovers, ring roads like the NICE Peripheral and the Outer Ring Road along with the Metro Project act as key factors that drive the sale of affordable housing. This section has fared very well as a large part of this market is at the end which offers high scope to grow. There has been a very high percentage rise in value stock as some projects have seen a rise in price to almost 100 percent between the pre- launch and handing over.