With major industrial development planned here and projects such as the Bangalore-Chennai Industrial Corridor, this micro-market is set for an uptrend in realty prices

1. 16THE TIMES OF INDIA BANGALORE SATURDAY OCTOBER 11, 2014
With major
industrial development
planned here and
projects such as the
Bangalore-Chennai
Industrial Corridor,
this micro-market is
set for an uptrend in
realty prices
Sai.Prasanna1@timesgroup.com
L
ocated towards south-east Ban-
galore on NH7, Bommasandra
is one of the oldest and most
prominent industrial areas of the
city. It is located approximately 26 km
from M G Road, with primary access
through Hosur Road, and secondary
access through Sarjapur Road and
Bannerghatta Road. The State gov-
ernment acquired land and allotted
it to industries.
Ram Chandnani, Deputy Manag-
ing Director - South India, CBRE
South Asia, outlines the real estate
landscape here. "The land was ini-
tially allotted to biotech, chemicals,
printing press, garment industries
and construction companies. The
government improved connectivity
to the area by building a link road
between Bommasandra and Jigani,
another industrial estate towards
south Bangalore, and promoted in-
dustrial development along this
road. Apart from industrial devel-
opment, the setting up of a large,
multi-specialty hospital in Bom-
masandra has created opportunity
for small scale, unorganised retail-
ers too."
Hub of large developments
A biotech major is a large occupi-
er of Bommasandra Industrial Es-
tate with a 100 plus acres campus. In
addition to this facility, an IT/ITeS
major has acquired 25 acres and built
an IT SEZ here, among other large
industrial developments. Completion
of the flyover from Bommanahalli to
Electronics City, as well as the NICE
Ring Road, have improved connec-
tivity to Bommasandra from other
parts of Bangalore.
Ram explains, "Robust commercial
and residential development in and
around Electronic city is pushing re-
development opportunities in Bom-
masandra. In terms of outlook, Bom-
masandra is expected to witness re-
development of industries to small-
scale commercial development and
also small budget residential devel-
opments from Tier II and III devel-
opers."
Future growth corridor
Shrinivas Rao, CEO - Asia Pacific,
Vestian Global Workplace Solutions,
traces the emergence of this location
into prominence. "Bommasandra was
earlier an indistinct location enroute
to the Jigani Industrial Area. Prox-
imity to Jigani and the IT/ITeS hub
of Electronics city has played a piv-
otal role in the transformation of this
location into a thriving space for both
commercial and resi-
dential real estate. Com-
ing in the automobile,
auto-components belt,
684 acres of land has al-
ready been developed by
the Karnataka Industri-
al Areas Development Board (KI-
ADB), while 712 acres have been ac-
quired for future growth. Post com-
missioning of the Chennai-Banga-
lore Industrial Corridor, this region
is anticipated to observe heightened
growth in the medium to long terms."
According to Vestian Global's re-
search analysis, a workforce of over
75,000 employees is engaged in vari-
ous facilities in Bommasandra In-
dustrial Layout. These operational
units are an extension of the com-
mercial offices in Electronics City
and Hosur Road. The monthly rentals
here currently range between Rs 28-
35 per sqft while an escalation be-
tween five to six percent is expect-
edly annually.
Emerging localities
According to Ram, emerging lo-
cations in and around Bommasan-
dra include parts of Hosur Road, the
Jigani-Bommasandra Link Road and
initial parts of Chandapura Road.
"A few residential layouts/devel-
opments are proposed and some are
under construction on multiple pri-
vate land parcels, located at the pe-
riphery of Bommasandra (non-KI-
ADB land), Hosur Road and Chan-
dapura. Karnataka Housing Board
has promoted and is in the process
of building low-cost apartments and
layouts on Chandapura Road," he
says.
Affordably-priced
housing options
Idirees Chenakkal, Head - Re-
search & Consulting, L J Hooker In-
dia, adds, "It is close to the hi-tech
zone of Electronics City and the
growth in industrial development
on this stretch till Hosur will gen-
erate a good amount of demand for
residential developments, especial-
ly for budget homes, in this region.
Housing options around Electronics
City and Jigani-Bommasandra Road
include one-bedroom apartments in
an average size of 663 sqft at a price
of around Rs 19 lakhs, two-bedroom
flats in an average size of 1,097 sqft
at a price of around Rs 31.50 lakhs.
Three-bedroom apartments are in
an average size of 1,541 sqft at a price
of around Rs 54.20 lakhs while four-
bedroom apartments in an average
size of 3,384 sqft are available for
around Rs 1.19 crores."
According to Shrinivas Rao, "Res-
idential choices, although plenty in
number and priced lower in com-
parison to Sarjapur Road and Ban-
nerghatta Road, comprise apartment
blocks on Hosur Road or Electron-
ics City, while plot developments and
villas are gradually gaining traction.
High commercial activity antici-
pated here will support good resi-
dential development in the short to
medium terms."
Vestian Global's research indicates
that capital values for Grade-A apart-
ments are in the range of Rs 3,000-
5,200 per sqft. Capital values for
Grade-A villas/row houses are be-
tween Rs 3,000-3,500 per sqft. Capi-
tal values for plot developments
range between Rs 1,500-2,500 per sqft.
Vestian's quarterly research re-
veals the average monthly rentals
for apartments range between Rs 10-
15 per sqft while the average annu-
al capital value appreciation is be-
tween 12-15 percent.
The spatial expansions of
Whitefield and the EPIP
area, and proximity to
the ORR as well as
upcoming industrial
areas around, have
turned Hoskote into a
bustling commercial hub
Sai.Prasanna1@timesgroup.com
H
oskote town is located towards the
northern periphery of the city
and is connected to the city by the
NH-207. It is located on the way from Ban-
galore to Tamil Nadu and is well-con-
nected to other established and emerg-
ing locations via the NH-207, Old Madras
Road (NH-4), State Highway (SH)-35, SH-
82 and SH-95.
It is an emerging industrial hub and
houses prominent companies which have
their manufacturing plants in the region.
The region is also perceived as a promi-
nent logistics hub. The government has
notified land in Bagur and Narsapur for
developing these locations into an IT and
electronics hardware hub. Its strategic
location between Whitefield and K R Pu-
ram along with the upgradation of the
highway has led to hectic development
in this belt.
Development along the highway
The Hoskote belt is spread on the NH-
4 which connects Mumbai, Bangalore and
Chennai. This belt benefits from con-
nectivity as well as easy access to the city's
infrastructure. The Outer Ring Road
(ORR) connects Hebbal and the airport
in the north with Sarjapur Road
and Electronics City in the south
from Hoskote (Old Madras Road).
The planned Peripheral Ring
Road (PRR) will improve con-
nectivity from Magadi Road to
Hosur Road.
According to Ram Chandnani, Deputy
Managing Director - South India, CBRE
South Asia, "Developments in Hoskote
are mostly concentrated along NH-4. But
since 2010, the micro-market has wit-
nessed the mushrooming of plot devel-
opments along SH-82 (Chintamani Road)
and SH-35 (Sidlaghatta Road)."
Prominent locations
Hoskote Road or Old Madras Road (NH-
4) begins after M G Road extending right
up to Hoskote. Any area beyond the KR
Puram-ORR junction can be considered
under the Hoskote Road belt. Locations
around this belt are K R Puram, Ma-
hadevapura, Old Madras Road including
T C Palya, Medahalli, Avalahalli and Budi-
gere Cross, Kannamangala and Hoskote
town.
According to Idirees Chenakkal, Head
- Research & Consulting, L J Hooker (In-
dia), the expansion of IT as well as oth-
er tertiary sector developments from EPIP,
Whitefield and the ORR has led to the ris-
ing demand here.
Demand for industrial area
According to Ram, "The Eastern Cor-
ridor comprising parts of NH-207,
Hoskote, Budigere Cross and other loca-
tions are witnessing steady demand for
industrial area, particularly e-commerce,
third party logistics and automobile com-
panies."
Mixed use developments on the rise
Locations witnessing residential de-
velopment are Avalahalli, Huskur, Budi-
gere and Kannamangala. While Huskur
is witnessing the rise of budget housing
projects ranging from Rs 25-45 lakhs, de-
velopers are coming up with projects in
Budigere too.
Shabeer Sait, Executive Head of Op-
erations, Irshad's Property Matters, ex-
plains, "Several companies are shifting
here or evincing interest in this belt. Sec-
tors such as manufacturing, semi-con-
ductors and IT have their facilities around
this belt. Several mixed use developments
are coming up here. You will find a host
of residential projects right up till the
toll plaza."
Wide range in options
According to research by CBRE South
Asia, significant residential activity tak-
ing place in this area is through plot de-
velopments along locations on the SH-35
and SH-82. They are priced between Rs
1,100-1,600 per sqft. Developments along
NH-4 command a premium, with pricing
varying from Rs 2,000-Rs 2,700 per sqft.
Two-bedroom apartments are available in
the price range of Rs 2,000-2,500 per sqft.
Research by L J Hooker India reveals
the value homes segment (up to Rs 30
lakhs) contributes around one million
sqft of supply while the budget homes
segment (Rs 30-60 lakhs) contributes about
5.40 million sqft. The mid-range segment
(Rs 60 lakhs-Rs 1 crore) contributes
close to 3.75 million sqft of supply.
Upcoming housing stock can be expect-
ed around Avalahalli, Budigere and
Kannamangala.
The city continues to charm
both industrialists and talent
Rama N S
From the days of acute shortage of foreign
exchange, today we have a decent foreign ex-
change position. This would have not have been
possible without the IT industry and its expo-
nential growth in exports over the decade and
a half. IT/ITeS has spread their wings and is
today responsible for USD 85 billion exports
and three million jobs.
According to reports, India needs over 10-15
million jobs every year with 10-15 percent
growth per year which is challenging and can-
not be achieved by one sector or industry. Ban-
galore occupies a key position in delivering IT
services globally.
Prominent IT hubs
Electronics City, Whitefield, Outer Ring
Road, Inner Ring Road, and Bannerghatta Road
are some of the major clusters of IT and en-
gineering activity in Bangalore. In addition,
there are over 2,000 small and medium IT com-
panies adding to the economy of Bangalore.
There are more areas like Devanahalli, Sar-
japur, and Anekal on the growth path. Banga-
lore continues to charm both industrialists
and talent. Hence, there is a long list of com-
panies in Bangalore including both global and
local giants in IT and electronics.
Integrated solutions
There is no denying that the vanilla IT busi-
ness is essential for stability of industry and
opportunities will continue with a growth of
12-15 percent (NASSCOM). Product develop-
ment and service solutions which are closely
integrated with manufacturing and engi-
neering industry are opening up in emerging
markets. Transport services, surveil-
lance, traffic management, health-
care, municipal services, gover-
nance, education, automobile,
aerospace, electronics manu-
facturing, online services and
many more require integrated
innovative service solutions us-
ing the engineering and IT in-
dustries.
Technology to reach out
Currently, the IT industry in India is sup-
porting the service solutions as conceived by
its customers across the globe. The local and
new markets in developing countries will re-
quire innovation and engineering solutions
applicable to them.
Mobile, big data and IoT (Internet of Things)
are the order of the day and will be very crit-
ical for the growth of the IT industry. These
technologies are essential for ambitious pro-
grammes like reaching out to more than a bil-
lion people in the country, creating smart cities,
smart farming, surveillance and overall serv-
ice delivery in the country. The dream of bring-
ing healthcare, education to everyone, im-
proved farming, smart cities and villages of-
fers great opportunity to the industry.
Manufacturing and IT
The manufacturing industry is showing
signs of growth with supportive government
policies, enthusiastic industry and more im-
portantly, interest shown by engineering tal-
ent. Engineering and problem-solving mind-
set will blur the line between manufacturing
and IT. This offers new opportunities for com-
panies and talent provided some policy im-
plementation challenges are addressed.
There is awareness all around that manu-
facturing is critical for economic growth. Tal-
ent for design of electronics products is part
of Bangalore's ecosystem. Innovation, en-
trepreneurship and product spaces are
inviting the talented. Electronics and
IT are two sides of a coin and Ban-
galore is all set to cash in on this
opportunity.
The presence of local and glob-
al companies in Bangalore makes
it an interesting combination to de-
velop business in both manufactur-
ing and IT sectors which can provide ho-
listic growth and opportunities. As an exam-
ple, Electronics City is slated to pilot 'smart
city' which requires both electronics subsys-
tems and IT applications. This will certainly
bolster the IT and electronics manufacturing
in Bangalore.
Here is an opportunity to marry our IT ex-
cellence and engineering prowess to address
the needs of global and local markets, to pro-
vide holistic solutions for better quality of life,
together with sustainable industry growth.
(The author is CEO, Electronics City
Industries Association)
EMERGING HOTSPOT
BOMMASANDRA
TRADE
TALK
A GROWTH
CORRIDOR WITH
POTENTIAL
GROWTH AND
FUTURE OF IT
EMERGING HOTSPOT
HOSKOTE
ON THE HIGHWAY TO GROWTH
HOUSING OPTIONS FIND MORE DEMAND
ALONG THE BOMMASANDRA MAIN ROAD
THE DEVELOPMENT OF ROAD CONNECTIVITY IS LEADING
TO MORE DEMAND FOR PROPERTY IN HOSKOTE
INFRASTRUCTURE IS PUSHING PROPERTY PRICES HERE
HOSKOTE IS AN INDUSTRIAL HUB SET TO EXPAND
Pics: R Rajgopal
R Rajgopal
R Rajgopal