The document discusses the growth and development of commercial and residential real estate markets in the northern suburbs of Bangalore, including Devanahalli, Yelahanka, and Peenya. It notes that initiatives to promote industrial and IT growth through business parks and economic zones near the airport are driving demand for commercial office and residential spaces in Devanahalli. Improved connectivity through roads and planned metro lines are also supporting growth in Yelahanka and Peenya as these industrial areas see redevelopment. Residential options are expanding across price segments in these emerging hotspots to meet growing demand from employees in local industries and IT firms.

1. 14THE TIMES OF INDIA BANGALORE SATURDAY OCTOBER 11, 2014
The location of the
airport and efficient
connectivity have
driven growth here.
Initiatives to promote
industrial growth and
the availability of
land are set to expand
the commercial space
market here, which
in turn will push the
residential property
market
Sai.Prasanna1@timesgroup.com
L
ocated around 35 km from the
city center, Devanahalli came
into prominence with the lo-
cation of the international airport
here. Close on the heels of this, an-
nouncements were made by the
government to develop several in-
dustrial and IT zones around the
airport, such as the Information
Technology Investment Region
(ITIR), the Devanahalli Business
Park, Logistics Park, Airport City,
Aerospace Park, Hardware Park
and the Global Financial District.
To enhance connectivity to the re-
gion post commissioning of the air-
port, Bellary Road or NH-7 was up-
graded.
Road to growth
The airport and infrastructure
upgrades came up hand-in-hand,
which enabled the unlocking of val-
ue of large land parcels in this belt.
The elevated expressway over Bel-
lary Road, the planned widening of
the Hebbal flyover which is the
main link to the city, and to the east
and south through the Outer Ring
Road (ORR), the planned Phase II
of the Metro leading up to Nagavara
and the proposed extension up to
the airport in Phase III, and the Pe-
ripheral Ring Road (PRR), have
brought the north into focus as the
next growth hub.
Future commercial and IT hub
With several IT companies look-
ing at the north to expand their fa-
cilities, this region is set to turn
into an IT and commercial hub.
Prominent and emerging locations
in the region include Devanahal-
li, Doddaballapur Road and Kogilu
Road.
According to analysis by JLL In-
dia, presently, while there is no
ready-to-move-in office space avail-
able in Devanahalli and sur-
rounding locations, there are some
facilities under construction and
many proposed projects likely to
come into the mar-
ket after 2016. Ac-
cording to research
by Vestian Global
Workplace Solu-
tions, until 2013,
Bangalore north wit-
nessed activity from
manufacturing and aerospace com-
panies. This belt has witnessed a
higher preference of built-to-suit
campuses over leased office spaces.
The region is likely to see comple-
tion of nearly two million sqft of
office space by the end of 2014.
The Bangalore-Doddaballapur
Road corridor is an emerging des-
tination in this belt owing to the de-
velopment of the Doddaballapur
Industrial Area and its proximity
to the international airport. Ac-
cording to Srinivasa Reddy, ?Asso-
ciate Director - Research and Real
Estate Intelligence Services, JLL
India, "Presently, Devanahalli and
surrounding localities are under-
going rapid transformation due to
commercialisation. Many of the in-
dustrial developments on the ma-
jor roads are transforming into
commercial developments. There
are pockets of industries, mostly
along Bellary Road, and other IT
establishments".
Occupiers are showing in-
creased interest in this location
due to improved connectivity, self-
contained townships, various hos-
pitality projects, and a significant
office space supply in the pipeline.
The demand for commercial space
is likely to increase in the long
term.
Wide range in housing options
Localities close to the NH-7,
Jakkur, Hennur Road, Thanisan-
dra Road and Yelahanka-Dodda-
ballapur Road are witnessing sig-
nificant residential activity. There
is a wide range of options available
in this micro-market across seg-
ments and price bands.
Research by JLL indicates the
current capital values for high-end
residential projects are in the
range of Rs 5,500-10,000 per sqft,
while the price range for mid-seg-
ment housing is between Rs 3,500-
4,000 per sqft. Budget housing proj-
ects are available in the range of
Rs 2,500-3,500 per sqft.
Shrinivas Rao, CEO - Asia Pa-
cific, Vestian Global Workplace So-
lutions, explains why the residen-
tial market here will expand. "The
availability of large land parcels,
completion of infrastructure proj-
ects such as the elevated express-
way, the planned Metro line, and
operationalisation of government-
promoted and private industrial
and business parks in Devanahal-
li will improve the long-term po-
tential for residential growth in
this market."
Strong social infrastructure
The presence of world-class hos-
pitals, international schools and
the recently-upgraded highway to
the airport are driving demand for
apartments in north Bangalore. The
Bellary Road micro-market has
seen hectic construction activity
over the past year. Projects close to
the Hebbal flyover witnessed sig-
nificant absorption due to the
strong investment sentiment in this
micro-market.
As for the outlook for this belt,
Srinivasa Reddy says, "Capital val-
ues in the north will continue to
rise in the long run with the pro-
posed apparel park, self-contained
townships and a rise of options in
hospitality. The revamp of con-
nectivity points such as Bellary
Road, Mekhri Circle and the ORR
will further add to the capital gains
potential of the north."
Proximity to the airport,
a host of residential
options and good social
infrastructure are set to
make this a potential
location
Sai.Prasanna1@timesgroup.com
S
trategically located along Banga-
lore's main growth corridor in
north Bangalore, Yelahanka is a
mere 16 km from the city centre and en-
joys excellent access and connectivity
through the elevated expressway to the
airport. Yelahanka is also located along
the prime approach road to Doddabal-
lapur Industrial Estate and Apparel Park
established by the government.
Although Yelahanka was planned as
a satellite town by the Karnataka
Housing Board (KHB) in the 1970s, it is
now a part of the Bruhat Bangalore
Mahanagara Palike (BBMP) and seg-
regated as New Town and Old
Town. Extending the northern bound-
aries of Bangalore city, Yelahanka typ-
ically comprises industrial and ware-
housing facilities.
Shrinivas Rao, CEO - Asia Pacific, Ves-
tian Global Workplace Solutions, high-
lights the factors working in favour of
this area. "Yelahanka is also in close
proximity to the Karnataka Industrial
Areas Development Board (KIADB)-de-
veloped Doddaballapur Industrial Area
housing electrical and electronics, tex-
tiles, construction materials and preci-
sion engineering industries, and an Ap-
parel Park comprising textile manufac-
turing industries. Jointly, these indus-
trial areas provide employment to over
25,000 people with annual growth pro-
jected at 10 percent."
Elevated expressway reduces
travel time
Formed as a satellite town
earlier, Yelahanka has
evolved and pushed its
boundaries to form Old Town
and New Town. Additional-
ly, this region enjoys location
advantage with proximity to
the international airport and Hebbal.
Shrinivas Rao says, "With the six-lane
Bellary elevated expressway operational,
travel time to the city and the airport
has reduced considerably, thereby evok-
ing increased realtor interest in the re-
gion. The proposed Peripheral Ring Road
(PRR) will further assist connectivity of
this region in the medium to long terms."
Airport push to commercial growth
According to statistics with Vestian
Global, while the operational office space
is 0.39 million sqft, it supports a quar-
terly absorption of 8-10 percent and
draws relatively high rentals in the range
of Rs 24-28 per sqft per month. There are
several representative companies
presently operating out of this market.
Ram Chandnani, Deputy Managing
Director - South India, CBRE South Asia,
says, "Yelahanka is a large and medium-
scale industrial hub. There are a few
more industries evaluating opportuni-
ties for redevelopment of their existing
facilities, owing to the appreciation of
real estate over the recent past."
Residential growth, social
infrastructure
"As Bellary Road gains prominence
in terms of commercial spaces, Yela-
hanka is anticipated to gain more trac-
tion in terms of residential develop-
ments in the short to medium terms.
While presently this region houses some
quality educational institutes and health-
care facilities, there is ample scope for
development of social infrastructure
from the heightened residential growth,"
Shrinivas Rao says.
According to Vestian Global's re-
search, this region supports apartments,
villas and plots of various configura-
tions. While the capital values of Grade-
A apartments come in the range of Rs
3,800-6,000 per sqft, capital values of
Grade-A villas/row houses range be-
tween Rs 3,800-4,500 per sqft. Capital val-
ues for plot developments are in the
range of Rs 1,500-4,500 per sqft.
Significant residential cluster
Idirees Chenakkal, Head - Research
and Consulting, LJ Hooker India, points
out, "While Yelahanka New Town is a
prominent location here, emerging lo-
calities are Doddaballapur Road, Jakkur
and Bellary Road, up to the interna-
tional airport. In future, Yelahanka will
become a premium residential cluster
due to the connectivity advantage and
the availability of social infrastructure
such as hospitals, schools, and retail
outlets."
According to research by LJ Hooker
India, residential options around Yela-
hanka and Doddaballapur Road include
one-bedroom homes in an average size
of 740 sqft at a price of around Rs 35.4
lakhs, and two-bedroom homes in an
average size of 1,244 sqft at a price of
around Rs 59.50 lakhs. Three-bedroom
flats in an average size of 1,798 sqft are
available at a price of around Rs 86
lakhs while four-bedroom apartments
in an average size of 3,200 sqft are avail-
able at a price of around Rs 1.51 crores.
Retail set to take off
According to Shrinivas Rao, the retail
scope of this region is at a nascent stage
with standalone stores of notable brands
or super-markets. "However, there is am-
ple scope for growth with 1st A Main
Road, 16th B Main Road and 3rd Cross
Road rapidly engaging retailer interest.
While there is no operational mall at
present, a retail mall offering shopping
as well as entertainment and dining op-
tions, due to be operational by late 2015,
will add value to the retail market," he
says.
Gathering momentum of
development in this
industrial hub as well as
connectivity with the
Metro Rail are bringing
Greater Peenya into
focus
Sai.Prasanna1@timesgroup.com
Peenya Industrial Area extends to-
wards the northern corner of Bangalore
city. Proclaimed to be one of the largest
industrial areas in Asia, Peenya lies on
the Bangalore-Tumkur Highway and
was jointly developed by Karnataka In-
dustrial Areas Development Board (KI-
ADB) and Karnataka State Small In-
dustries Development Corporation
(KSSIDC) in the early 1970s.
Prominent industrial hub
Srinivasa Reddy, ?Associate Director
- Research and Real Estate Intelligence
Services, JLL India, says, "The Peenya
Industrial Area micro-market has a high-
density population and is a major in-
dustrial hub of Bangalore. It is currently
surrounded by vacant land, and is still
predominantly an industrial sub-mar-
ket dominated by warehousing and in-
dustries which include large public sec-
tor companies and small units. Not sur-
prisingly, this sub-market - especially
Peenya Industrial Area (Phase IV, Stage
III) - continues to be promoted as an in-
dustrial hub."
Peenya Industrial Area is known for
engineering, electrical goods, auto com-
ponents, textile (silk) and machine tool
industries. With several established op-
erational units in Peenya, it supports a
workforce of nearly 3.50 lakhs.
Shrinivas Rao, CEO - Asia Pacific, Ves-
tian Global Workplace Solutions, elabo-
rates, "Currently, Peenya Industrial Area
IInd Phase supports a quarterly ab-
sorption between 8-10 percent with
monthly rentals ranging between Rs 15-
20 per sqft and is projected to escalate
by approximately 5-6 percent annually."
Metro advantage
In terms of connectivity, this region
has benefitted significantly from the op-
eration of the Metro Rail - Reach III and
IIIA operating between Peenya Indus-
trial Area and Sampige Road,
Malleswaram since March this year. Ad-
ditionally, the Tumkur Road elevated ex-
pressway has reduced travel
time and improved connectiv-
ity to the city center.
The proposed Peripheral
Ring Road (PRR) will connect
Tumkur Road to Hosur Road
via Doddaballapur and will en-
hance connectivity in the medium to
long terms.
Connectivity impacts
residential growth
Primarily an industrial region situ-
ated towards the northern extremes with
limited social infrastructure did not
make Peenya a viable residential choice
for buyers at one time. However, this has
changed now.
Shrinivas Rao explains, "Due to good
connectivity to the international airport
and the city centre, and availability of
industrial land for redevelopment, sev-
eral integrated township projects are
likely to develop in this region. Tumkur
Road, Yeshwanthpur, Nelamangala and
Rajajinagar are also suitable residential
corridors for most professionals work-
ing in Peenya. The Tumkur Road- Nela-
mangala stretch is a popular choice and
observed to be an emerging residential
hub hosting plot developments and
Grade-A apartments."
Srinivasa Reddy adds, "Capital values
for high-end residential projects are cur-
rently in the range of Rs 3,800-6,500 per
sqft. The homebuyer matrix in this sub-
market has been predominantly em-
ployees working in industries, services
sector employees and businessmen."
According to Vestian Global's re-
search, currently, the capital values for
apartments is around Rs 3,000-4,200 per
sqft and for plot developments it is
around Rs 1,200-4,000 per sqft.
Prominent and emerging locations
Srinivasa Reddy says, "The upcoming
areas in west Bangalore include
Karivobanahalli, Laggere, Jalahalli, Hes-
saraghatta, HMT Housing Colony, BHEL
Colony, Peenya, Chikkasandra, Na-
gasandra and Dasarahalli."
Research by LJ Hooker India indicates
that residential options around Peenya,
Jalahalli and Tumkur Road include two-
bedroom apartments in an average size
of 1,025 sqft at a price of around Rs 39
lakhs and three-bedroom apartments in
an average size of 1,330 sqft available at
a price of around Rs 51 lakhs.
Idirees Chenakkal, Head - Research
and Consulting, LJ Hooker India, says,
"Emerging locations around are the out-
skirts of Jalahalli and the Dasarahalli
region. We can expect tremendous
changes in this region due to the infra-
structural advantage of the planned Ban-
galore-Mumbai Economic Corridor."
KNOWLEDGE HUBS
SET TO PUSH REALTY
DEVELOPMENT
EMERGING HOTSPOT
DEVANAHALLI
EMERGING HOTSPOT
YELAHANKA
PROMINENT
LOCATION IN
THE NORTH
EMERGING HOTSPOT
PEENYA
INDUSTRIAL
DEVELOPMENT
HOLDS POTENTIAL
FOR GROWTH
DEVANAHALLI: THIS BELT IS SET TO HOST RAPID
DEVELOPMENT WITH THE PLANNED BUSINESS HUBS
THE AUGMENTED CONNECTIVITY TO THE AIRPORT
WORKS WELL FOR YELAHANKA
PEENYA: METRO AND ROAD CONNECTIVITY
ENHANCE VALUE IN THE REGION
R Rajgopal
Housing
options set to
create more
growth hubs
THE SUBURBS AROUND THE CITY ARE
HOSTING THE NEXT PHASE OF COMMERCIAL
GROWTH AND DEVELOPMENT
INDUSTRIAL BELTS AND ECONOMIC HUBS
ARE LEADING TO DEMAND FOR HOUSING AND
SOCIAL INFRASTRUCTURE IN THESE
EMERGING LOCALITIES
CONNECTIVITY TO THE CORE CITY AREAS
WITH THE ELEVATED ROADS AND UPGRADED
ARTERIAL ROADS IS A MAJOR FACTOR
DRIVING COMMERCIAL AND RESIDENTIAL
PROPERTY DEVELOPMENT IN THESE
SUBURNS
LARGE LAND PARCELS AT RELATIVELY
LOWER COSTS ARE LEADING TO THE
DEVELOPMENT OF BUDGET HOUSING
THESE HUBS HOLD POTENTIAL FOR
PROPERTY INVESTORS GIVEN THE
RELATIVELY LOWER COST OF LAND, AND
HIGHER POTENTIAL IN CAPITAL GAINS WITH
THE LOCALITIES HOLDING HIGH GROWTH
PROSPECTS IN THE MEDIUM TERM
MORE PROPERTY DEVELOPMENT IS ON
THE CARDS IN THESE BELTS
EMERGING HOTSPOT
R Rajgopal
R Rajgopal