Here's an update on Bangalore's real estate market
The proposed Mumbai-Bangalore Industrial Corridor is expected to
connect Bangalore City in the north-western side of the city along
Tumkur Road. Since the last 7-8 years (since 2005/2006), Tumkur Road
and its surroundings are witnessing significant augmentation and
improvement in terms of infrastructure in general and connectivity in
Some of the key infrastructure projects rendered operational in the
area in the recent past include the Elevated Expressway, Bangalore-
Mysore Infrastructure Corridor (BMIC) and Bangalore International
Exhibition Center (BIEC).
Other on-going and proposed infrastructure initiatives are Metro Rail
Phase 1 & 2 and Peripheral Ring Road. These infrastructure projects,
along with the proposed Mumbai-Bangalore Industrial Corridor, are
expected to significantly improve the physical characteristics of the
The result will be the development of large integrated projects, as
there are large industrial land parcels waiting to be unlocked for
quality real estate development with the growth of economic drivers
in the area.
Until the recent past, the population of this micro-market had a low
socio-economic profile - it was dominated by blue-collar workers as
the area was a hub for small scale industries manufacturing ancillary
parts for PSUs, automobile industries, garment industries, etc.
Courtesy: Girish KS JLL India
Over a period of time, the area saw the arrival of large Indian and
multinational industrial entities such as Kennametal, Widia, ITC, Volvo,
BOC, Reliance Packing Industries, etc.
Since last 4-5 years, the area is being viewed as one of the fast
developing micro-markets in the city, as is evidenced by the launch
of some large real estate projects complemented by key
This has vastly improved the characteristics of the area, which now
has good availability of large land parcels due to the unlocking by
sick industrial units at competitive prices, and a visibly changing
socio-economic profile of the resident population.
Some of the large developments envisaged then (now completed)
are BIEC, Taj Vivanta - Tumkur Road, etc., to mention a few.
Till date, about 17 residential apartment projects launched and an
there is expected to supply about 5,099 units in the micro-market on
a cumulative basis.
Some of the graded developers are ventured into this market and
are targeting the upper-middle income, middle and upper-lower
Social infrastructure facilities like hospitals and schools are already in
place and are acting as catalysis for residential development in the
Most of these social infrastructure developments are adequately
catering to the existing residing population. With the proposed
Mumbai-Bangalore Industrial Corridor, this micro-market is expected
to benefit from an increase in much-needed economic driver, which
will significantly increase demand for all core real estate asset
classes like residential, commercial / office, retail, hotel, industrial
Tumkur Road is also fast emerging as an attractive destination for
stand-alone developments and graded shopping complexes. This is
evident from newly launched Brand Factory at 8th Mile, McDonalds,
etc. along with 'vanilla ' stores having brands like United Color of
Benetton, Wrangler, Levis, Lee and Woodlands.
The proposed Mumbai-Bangalore Industrial Corridor is likely to
leverage the residential, commercial and industrial infrastructure
along with existing, ongoing and proposed infrastructure initiatives in
terms of transforming this micro-market into a major growth node for
We see the emergence of an important economic hub catering to
the city in general and the micro-market in particular. The area
within a 4-5 km radius along both sides of Tumkur Road is likely to
develop into an influence zone for the proposed Mumbai-Bangalore
Industrial Corridor in terms of residential belts like Magadi Road,
Hesaraghatta, Jalahalli, etc. up to Yeshwanthpur.
Metro Rail Extensions To Spawn New Residential Locations
The Bangalore Metro Rail Project is envisaged as a major game-
changer for Bangalore City in terms of inter-connecting different
parts of the city and reducing traffic congestion on city roads, and
significantly cutting down the commuting time.
Phase 1 of the Metro Rail Project largely covers the city centre,
running a total length of 42.3 km through two corridors - the East-
West Corridor (about 18.10 km linking Baiyappanahalli and
Puttenahalli along Kanakapura Road) and the North-South Corridor
(about 24.20 km liking Mysore Road with Tumkur Road till
Hesaraghatta Cross). Phase 1 is likely to be commissioned by 2014.
Details of the proposed Phase 2 of the Metro Rail Project, consisting
of four extension lines and two new lines with a total length of 72.095
km and 61 stations are given below:
The four proposed extension lines under Phase 2 are expected to
provide much-needed 'last mile' connectivity to commuters and also
optimize the utilization of Phase 1. The two new lines traverse through
some of the densest and traffic-congested areas of the city, and will
offer faster connectivity to the Information Technology Industry.
With Phase 2 covering a large part of the city, especially fast-
growing locations like Whitefield, Mysore Road, Tumkur Road and
Bannerghatta Road, these areas are likely witness further
development in terms of all core real estate asset classes for the
* Metro Rail Projects are being developed across the world's high-
density corridors because they provide vastly improved connectivity.
This phenomenon is likely to be seen all along the alignment in
Bangalore as well, resulting in substantial development
* There is a proposal to permit a maximum FAR of 4.00 (against the
current average FAR of 2.50) all along the Metro Rail alignment
within 500 meters on both sides of the Influence Zone. This additional
built potential of the properties along the influence zone will be able
to make use of this additional FAR, as land values along these
corridors are very high
* Improved connectivity and reduced travel time may encourage
the city population to prefer suburban locations for residential
purposes (to avoid residing in high-traffic areas), which would further
catalyse the development of social infrastructure like schools,
healthcare, retail developments, leisure and entertainment facilities,
etc. in the suburban locations due to the further development of
Considering the combined coverage of both Phase 1 and Phase 2
of Metro Rail Projects, all localities up to the BMIC Corridor alignment
within Bangalore City are likely to witness significant growth over next