Why this Bangalore suburb is calling itself the new Gurgaon.?

V Shoba Tags : Bangalore city, Yelahanka, new Gurgaon, Doddaballapur Road Posted: Sun Jul 18 2010, 04:40 hrs Bangalore:

Where the six-lane highway from Bangalore city to the international airport in Devanahalli branches off to the left into Doddaballapur Road, a hoarding proclaims: “Yelahanka is the new Gurgaon”.
Put up by a residential builder, it is a defining marker in the growth curve of Yelahanka, a suburb 15 km north of the city that was envisaged as a satellite town but is now under the Bruhat Bengaluru Mahanagara Palike (BBMP). Proximity to the new airport — 20 km away — has given wings to aspirations in the once sleepy town that has seen a property boom in the last five-six years.
With the Karnataka Assembly passing a Bill last Thursday to set up a 10,000-acre Information Technology Investment Region (ITIR) north of Devanahalli, analysts say real estate in Yelahanka is all set to rain returns in a few years.
V Madhu, Principal Secretary, Infrastructure Development Department of Karnataka, says the entire Hebbal-Yelahanka-Devanahalli stretch will see “substantial development” in the coming years, fuelled by a mega project around the airport encompassing an aerospace park, a financial district and the IT park, where, among others, Infosys has proposed to invest Rs 710 crore in a 12,000-seat development centre and Wipro is set to develop a Rs 477-crore centre employing 15,000.

“I call it the airport city. We have prepared an integrated traffic plan for the region. A high-speed rail link will connect Bangalore city to the airport, with a station at Yelahanka. Besides, the monorail project connecting north Bangalore to the city is in the procurement stage,” Madhu says, adding, “In five years, all these projects would have been completed.”

In Yelahanka New Town, residential highrises by the Prestige Group, Puravankara, Nagarjuna, Sobha Developers —the ones who dared to compare Yelahanka to Gurgaon — and others soar above the monsoon clouds, lining newly-widened and landscaped streets.
“When I came here in 1988, Bangalore was an STD call away and there were no booths, only a petrol pump to call from. I bought a 30 x 40ft plot for Rs 40,000, which is worth over Rs 40 lakh today. In the last seven-eight years, along with the development of the airport, premium residential projects have sprouted,” says TR Jagdish, whose son Chetan Dikshit is a student at the Nitte Meenakshi Institute of Technology, one of the dozen-odd colleges and international schools that have recently come up in Yelahanka.
According to sitting MLA S R Vishwanath, Yelahanka’s population is on the rise, up by 12-15 per cent in the last two-three years to about 3 lakh now.

Says Ram Chandnani, Deputy Managing Director-South India, CB Richard Ellis, a real estate consulting firm, “Yelahanka has always been an industrial suburb and the demand for housing here has come from people employed in north Bangalore, also from employees at business parks like Kirloskar Business Park and Manyata Tech Park. Over the last few years, developers have taken advantage of improving infrastructure and availability of large land banks for quality housing to cater to this demand. Also, people are buying property in the Yelahanka-Devanahalli stretch for long-term investment as prices are expected to appreciate.”

Says Sanjay Khosla, Executive Vice-President, Sobha Developers, “If one were to analyse the reasons for the growth of Gurgaon, two things stand out—availability of land and its proximity to the airport. The world over, where the airport leads, the city follows. Corporate offices, which suffered a drawback in terms of space in Delhi, were quick to capitalise on this advantage. In Yelahanka, we see similar potential. On the one side, Bangalore has its issues with infrastructure and is getting a little too crowded for some people. On the other side, the vast open spaces of north Bangalore and Yelahanka in particular are very inviting for many. Add to that the close proximity of the airport and you have a winning proposition.”
Sobha’s eight-acre, “super luxury” residential project Althea, which is nearing completion, is priced upwards of Rs 3,150 per sq ft, with over 120 of the 176 three-bedroom, four-bedroom and penthouse units sold.

Yelahanka is only the tip of the iceberg. According to a June 2010 report on the development potential around Bangalore International Airport by the Infrastructure Development Corporation (Karnataka), or iDeCK, multiple premium residential complexes coming up in and around Devanahalli are expected to bring in an investment of Rs 1,500 crore. With the ITIR expected to employ 12 lakh people, tony residential projects by developers like QVC Realty and the Prestige Group are afoot all the way up to the Nandi foothills, near Chikballapur, and luxury hotels by the Oberoi Group, Taj and Hyatt are coming up along the way.

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  • negatives

    avinash, you seem to be pretty gung-ho about yelahanka and the peripheral areas. Isn't the water level in the area a concern to you?
  • Beware

    Beware of the marketing gimmics by the agents in this forum
  • Originally Posted by mnprashanth
    Beware of the marketing gimmics by the agents in this forum

    well i have not promoted any property i have just posted an article and even posted it's link ,and it's a topic of discussion not marketing
  • Originally Posted by nandshah
    avinash, you seem to be pretty gung-ho about yelahanka and the peripheral areas. Isn't the water level in the area a concern to you?
    yes water is an issue ,i personally feel That high speed rail link would change dynamics of north bangalore,Water till yelahana new town is not an issue but beyond there's no portable water,even ground water has high fluoride content .An Airport is an Epicenter of Development and roads are the pathway to development
  • YELAHANKA NEW TOWN IS THE NEW PREMIUM ADDRESS ,Realty prices in Bangalore are headed

    Realty prices in Bangalore are headed north. Literally. Sites in the once remote extension are sold at Rs 16,500 per sq ft, bringing it on par with the posh central business district


    Yelahanka New Town stunned Bangalore by matching up to the city’s swankiest neighbourhoods in property prices on Friday. At an auction, a square foot fetched Karnataka Housing Board an unbelievable Rs 16,500. Yelahanka New Town is close to the Bangalore airport, but the property sector is still debating how prices could have skyrocketed.
    The nine commercial plots that went under the hammer measured 385 feet each —- just half the size of a single-bedroom flat! The transaction has not only changed price-dynamics in Bangalore’s realty sector, but also left KHB upbeat about its other auctions. While the going rate in the central business district is between Rs 15,000 and Rs 16,000, it is between Rs 7,000 and Rs 10,000 in the more densely populated Gandhinagar area near Majestic. “In fact, the base price fixed for the auction in Yelahanka New Town was Rs 3,000 to Rs 5,000, but what we got was much, much more,” a KHB official said. After KHB Commissioner M B Dyaberi and Minister Katta Subramanya Naidu gave KHB the go-ahead, its officials went ahead and cleaned up the plots and fenced them.
    When bidding began, the first quote was Rs 10,000 per sq ft. It scaled up gradually. By the end of the day, the KHB had managed to earn more than Rs 11 crore from the auction.
    In fact, the lowest price quoted was Rs 12,400 per sq ft, and the highest Rs 16,500. C N Shiva Prakash, Deputy General Manager of KHB, told Bangalore Mirror: “It is an all-time record for us. There was a time when our properties didn’t have many takers, but the jinx has been broken and we have passed the recession test.”
    But why have the prices gone up so much? Officials and realty watchers are unanimous in attributing it to the changing profile of Yelahanka New Town.
    “The roads are have been widened, the parks beautified, and the civic amenities are wellplanned. The upper middle class loves this extension. Since their spending power is good, commercial establishments see great potential here,” an official said.
    The bidders weren’t complaining about the rising prices either. Y K Puttaraju and Y K Rangaswamy paid Rs 16,500 per sq ft and bought a plot for Rs 2.91 crore.
    Businessman Y R Ravikumar, who bought a site, said: “I had expected to buy it for Rs 10,000 per sq ft, but it went up to Rs 13,000. I had purchased a similar site in 1987 from KHB for just Rs 42 per square feet.”
    Bhagvat Gupta, who had come ready to bid, was gasping for breath after hearing the prices. “For Rs 10,000, we get sites around Menaka theatre in Majestic. And here, the going rate is more than Rs 16,000,” he said. He went back without making a purchase.
    “As far as I can remember, the KHB bought lands for Rs 2,000 an acre when I was a kid. It is heartening to see how land value has shot up,” exulted P V Nagappa, executive director for LNR Builders from Yelahanka.
    N Devarajaiah, a Yelahanka New Town resident, explained that the KHB had acquired 17.5 acres of his land in 1978 for Rs 8,000 an acre. “Today, I wouldn’t be able to buy even a small site here,” he rued.
    Devarajaiah was, however, thrilled that houses in the Yelahanka New Town area were as posh as those in Sadashivanagar, where ministers and rich businessmen live.
    Yelahanka New Town is spread across 648 acres and was built in 1983-84. It is regarded as the only upmarket hotspot in Bangalore North.
    Buoyed by the response to its auction here, KHB is all set to auction sites in Suryanagar and Bandemutt on Saturday.

    Bangalore Mirror
  • Karnataka to be the first to set up IT investment region

    Mahesh Kulkarni & Bibhu Ranjan Mishra / Bangalore July 16, 2010, 17:13 IST

    Karnataka has gone ahead of its immediate neighbours — Andhra Pradesh and Tamil Nadu — in realising the dream of setting up an Information Technology Investment Region (ITIR).

    The state is set to become the first state in the country to establish ITIR to promote investment, augment exports and generate employment.

    The state legislative assembly has passed a Bill to facilitate setting up of the ITIR here on Thursday. The Act will be called the Karnataka Information Technology Investment Regions Act, 2010.

    The ITIR will be a self-sustainable integrated investment region, housing IT, ITeS and hardware parks, supported by residential townships, a mini airport, high-speed railway network, shopping malls, hospitals and educational institutions, among others.

    The ITIR, to be developed in two phases and spread over 10,000 acres near Bangalore international airport at Devanahalli, about 40 kms from here, is expected to attract an investment of over Rs 2 lakh crore. The state government would involve the private sector for developing the infrastructure

    Ashok Kumar Manoli, principal secretary, Department of IT/BT, Science and Technology, Karnataka, told Business Standard: “Over 55 and hardware companies, including leading ones like Infosys, TCS and Wipro, have shown interest in establishing their presence at the ITIR. It will be spread over 2,200 acres in the first phase. We have issued preliminary notification for acquiring 2,080 acres near Devananhalli. A management board will govern the ITIR and the apex body on all matters related to the project would be the State Empowered Committee, under the chairmanship of the chief minister.”

    The Government of India had published a policy resolution for setting up information technology investment regions on May 28, 2008, to promote investment in the IT, ITeS, electronic hardware manufacturing units, which have proved to be significant economic growth engines.

    Apart from Karnataka, other states like Andhra Pradesh, Tamil Nadu and Orissa have also proposed to come out with an ITIR and have approached the Centre for approval.

    “The setting up of an ITIR by the Karnataka government in Bangalore is a welcome move and I am sure it will bring further development to Bangalore. It will definitely help attract good IT companies to set up base and expand their operations in Bangalore. We will certainly explore opportunities to set up operations in the ITIR when it is ready,” said Infosys Technologies CEO and MD Kris Gopalakrishnan.

    Manoli said the ITIR, once fully developed, was expected to provide employment — both direct and indirect — to three million people. The companies setting up shops in ITIR would enjoy similar kind of tax concessions as they enjoy at IT SEZs, he said.

    Global consulting firm, Deloitte, has prepared the detailed project report for the ITIR and the proposal is awaiting the approval of the central government.

    The ITIR would be an integrated township with modern amenities like the roads, railway network, metro rail and mini airport, to facilitate investors’ faster approach to the location.

    Meanwhile, the Andhra Pradesh government is not looking at bringing out any legislation in this regard, as it plans to develop an ITIR under the existing Andhra Pradesh Urban Area Development Act. “The ITIR in Andhra Pradesh will be both greenfield and brownfield. Initially, it aims to expand its Cyberabad area and declare it as ITIR,” Andhra Pradesh IT Secretary Ratnaprabha said.

    She added the Andhra government proposed to attract an investment of Rs 2.19 lakh crore and provide direct employment to 1.5 million people and indirect employment to 5.3 million people over a period of 15 years. It also expected to generate Rs 30,170 crore of indirect revenue to the state exchequer. she further said.

  • Originally Posted by mnprashanth
    Beware of the marketing gimmics by the agents in this forum

    I second your thoughts!! ;) I have checked the posts from a user are always promoting some or other project in North Bangalore.. I doubt if its a bot :bab (3):
  • Originally Posted by duffyhair
    I second your thoughts!! ;) I have checked the posts from a user are always promoting some or other project in North Bangalore.. I doubt if its a bot :bab (3):

    well u cover the south-eastern part (projects) ,i do cover northen parts well if u want a change in region i have no issues
  • Originally Posted by avinash2060
    well u cover the south-eastern part (projects) ,i do cover northen parts well if u want a change in region i have no issues

    wish, I could ; bro..
    did you happen to check my post https://www.indianrealestateforum.com/forum/city-forums/bangalore-real-estate/9788-how-re-firms-loot-u?t=12157
    I would bring light on pricing aspects of such projects n alleged irregularities .. i m more interested in busting real estate nexus rather than promoting projects.. :)
  • great job duffy. Dear readers be carefull of not getting carried away by the posts on promoting northern bangalore by the agents.
  • devanhalli bussiness park (9800 cr)