The erstwhile “Garden City” and “Pensioner’s Paradise” and today’s “Silicon Valley of India” due to its supremacy as the Information Technology hub has made Bangalore a hot spot real estate destination.

Now officially renamed as Bengalooru, the city is a metropolitan with a population of 6.5 million making it the third most populous city and fifth largest metropolitan area. Information technology undoubtedly has been the forerunner in setting the stage for development, however, textile exports, automobile component manufacturing and government initiatives for infrastructure development too have added to the growth saga.

Growing pockets of Bangalore

On analysis of the growth pattern of Bangalore, we witness a push for developments in the North of Bangalore comprising of Banaswadi, Peenya Industrial estate, Yashwantpur and Yelahanka. The growth shift has been attributed to the development of International airport in Devanahalli. The road from Bellary road to Yelahanka is witnessing rapid residential development. Prices have raised sharply ranging between Rs 3000-10000 per square feet for residential and Rs 2000-7000 per square feet for commercial purpose. The trend is expected to remain positive in the area with International airport acting as a catalyst for growth.

The South of Bangalore has been growing due to Electronic City- a hub of IT/ITes offices in the city. Electronic city is located in the outskirts of Bangalore in an area of 332acres and is home for the IT behemoths including Hewlett Packard, Infosys, Siemens and Wipro. Sarjapur road is another promising area in the south of the city. Jaynagar, J.P Nagar, BTM layout are the areas adjoining to Electronic city developed primarily as residential areas. Prices in the South have witnessed an increase in 2007 of approximately 5.6% with prices ranging between 2800-7000 per square feet for residential and Rs3500-7000 per square feet for commercial.

East of Bangalore has grown till Whitefield, rapidly developing as a commercial area. Though the connectivity to this part is not au courant, initiatives of government are underway in form of metro rail and improved road connectivity. Kormangala, Indiranagar and Hosur road are the prime areas. Prices in the East have remained stable with price ranging between Rs 2500-7700 per square feet for residential and Rs 3000-8000 for commercial.

West of Bangalore has predominantly been the residential focus with prime areas being Malleshwaram, Rajaji nagar and Chord Road. Being a residential area the prices have comparatively been stable hovering between Rs 2000-6500 per square feet for residential and Rs 3000-6000 per square feet for commercial.


GOVERNMENT INITIATIVES

Bangalore International Airport

The airport is spread over an area of 4050acres and is located in Devanahalli, 30 kilometer from the city. The airport will open with a capacity for 11 million passengers per year and able to handle 27 aircraft per hour.

Outer Ring Road

Bangalore Development Authority (BDA) is executing Outer Ring Road work between Mysore -Magadi Road for a length of 5.7 Kilometer at a cost of Rs.9.2 million. The Internediate ring road will connect intermediate towns like Nelamanala, Bidiadi, Sarjapura, Hoskote covering a distance of 185 Km.

City Master Plan

The approval of City Master Plan 2015 will give a structure to the growth pattern of the city which at present is growing in pockets. The Master Plan for Bangalore proposes a compact city and has relaxed restrictions on setback, coverage, Floor Area Ratio and height of a building.

Greater Bangalore

The area from 226 square kilometer has been increased to 696 square kilometer by combining 7 City Municipal Council, 1 Town Municipal Council and 111 villages in April 2007.


Sectoral Growth-Bright Future ahead

Residential Sector:

The residential real estate market is positive with Whitefield, Sarjapur road, Bellary road, Yelahanka topping the list. A number of townships are coming up in the city with emphasis on ‘walk to work culture’.

The demand for premium housing is buoyant as the city is home to over 10,000 individual dollar millionaires and around 60,000 super-rich people who have investable surplus of Rs 40 million and Rs 5 million, respectively.

The most awaited project currently is the “New Bangalore project” awarded to DLF at Bidadi spread in an area of 9178 acres. This project is undertaken as a pilot project for the other five townships planned on the peripheral ring road.

Commercial Sector:

The commercial sector in India is expected to require space of 15 million square feet in 2008 as against 13 million square feet in 2007. The demand for commercial space all over India and especially in Bangalore is driven by the IT/ITes sector.


North Bangalore heads the charts with approximately 8,75000 square feet of commercial space coming up by 2007 followed by approximately 7,00000 square feet in C.V Raman Nagar and 4,00000 square feet in Whitefield in 2007. The increased floor area ratio permitted as per the Master plan will see additional spaces in the hitherto saturated CBD’s.


Special Economic zones are also expected to contribute significantly to the growing commercial market. The list of SEZs in Bangalore notified after the SEZ Act came into force includes: Wipro for IT (at two places on Sarjapur Road 6.48 hectares, and Electronic City 5.17 hectares), Vrindavan tech village (106 acre), Textile and Apparel SEZ (400 acre) at Kanakpura road and Azletech SEZ(3.15 acres) in Whitefield.

Retail:

In 2007, retail sector grew at 25 – 28 per cent reaching the market size of US$300 billion which is likely to increase to US$365 billion by 2008. The contribution of this sector is also likely to increase to 12 per cent from the present level of 8-10 per cent. Associated Chambers of Commerce and Industry of India expects 150 new malls to be added in India by 2008.


The Bangalore Commercial market comprises of Central Business District (CBD) Brigade Road, Richmond Road and Secondary Business District (SBD)/Peripherals - Whitefield, Electronic City, Hosur Road, Airport Road and Bannerghatta Road and Outer Ring Road (ORR).


With the growing income levels the retail market in Bangalore is growing on an average at 35-38 percent per annum. Though the major malls are in the vicinity of the old CBD’s, scarcity of space is leading to new CBD areas like Kormangala, Jaynagar and Indiranagar. The metro rail route will also create new opportunities for the retailers creating high density shopping locations.


An innovative Film city is coming up in 50 acres land ( 14 lac square feet) in Bidadi comprising of a Film city, IT park, Retail mall spread over three lac square feet as well as residential area. .

Outlook

Overall the air of confidence about the city is tangible. Favorable demographic and economic parameters, expanding IT and textile industry leaves no denying that the city has huge potential for real estate development. The Bangalore property market will get a footing to move up the ladder as the infrastructure projects near completion and international airport becomes operational.

By:
Pallavi Samadani
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  • IS this Growth is Proportionally to the Infrustructure ...

    It is nice to say that what Good is Happening. But did you ever said the other Growing Stuff :::
    1. Traffic
    2. Criminal
    3. Heat
    4. Political Drama
    ....
    Some other stuff :
    1. 2-3 Hrs to reach Airport.
    2. No proper infrusture like road and lights in the Good Residential area. Politician dont wanna a improve the existing place. They just concentrate the place where they have land.
    3. Highly Political influenced.
    4. Worst traffic managment.
    5. See the area like Rammurthynagar/WhiteField/Kagadaspura. Still many places dont have road/lights/water...
    6. In between ring road area you dont have Basic Bsnl Phone connection.
    7. See the Driving sense of the CAB driver....

    Whom will you Blame for this ....

    Dont say its a Growth now.... Growth is Over... Now it is starting of the Dooms day

    -- arindam --
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  • hi there

    Pallavi, i would advice and suggest to write about the critiques so that we all can change BENGALURU.
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