Future growth in Bangalore for Real Estate in 2024
- Bagaluru
- Chagalahatti
- Sathanur
- Budigere
- Singahalli
Expereince of Prashanth Shankar Narayan
I had the same question in my mind when I planned to invest on a plot few months back. I spent nearly 2 months understanding the different regions of the Bangalore. I have visited many areas of Bangalore. I would like to share my experience here.
I was looking for a plot to construct a house in 5 years. The location preference is sub-urbs (between 20 kms –to 30 kms form city center) due to my budget constraint.
Today, most IT Tech companies and Tech parks are concentrated on ORR (Belandur-Marathalli-K R Puram belt), Whitefield and Electronic City except for Manyata Tech Park (near Hebbal).
Because I brought up in Bangalore I was able notice the growth of Electronic City. Electronic City was the fastest growing IT hub of Bangalore before it overtook by ORR and Whitefield. Now, Whitefield and ORR (Belandur-Marathalli-K R Puram belt) have the maximum IT parks and companies. However, future speculation is that North Bangalore might be the best for real-estate investments because of good roads and close to Airport.
Now the dilemma: North Bangalore versus East Bangalore. Which one is better in terms of investment and living (residential) there?
I work for an IT company. I felt East Bangalore is more appropriate for me because both ORR belt which I have mentioned above and the Whitefield are located in East Bangalore.
Major Tech parks on ORR (Bellandur-Marathalli-K R Puram belt):
RMZ Ecospace
Prestige Tech Park
Bagamane World Technology Center
Bagamane Tech Park (C V Raman Nagar)
Embassy Golf Link (EGL)
Global Technology Park
IT Companies: Intel, Cisco, Aricent, Samsung, and many more
Whitefield too has a very long list.
Because of my North versus East Bangalore dilemma I planned to visit sub-urbs of both North and East Bangalore.
My experience of North Bangalore:
I visited many layouts near IVC Road. First, I impressed with very good road connectivity of North Bangalore from Hebbal/ORR. We can find wide and almost single-free roads from Hebbal. It took hardly 35 mins from Hebbal to reach IVC Road and telecom layouts near Airport.
Layouts on Telecom Layout road
Telecom layout phase-1 was quoting 1400/sq ft. There was litigation about the approach road to this layout from Telecom Layout road. Telecom layout phase-2 was really good. Good open space (CA area) and big roads can be found here. Also, we can find rain water harvesting facility in the layout. Next layout I found is Telecom Layout phase-3 which is similar to Phase-2. I found few more layouts on the telecom road but I felt Telecom Layouts are better than others. One thing I was disappointed was there was not even a single house constructed in any of these layouts.
Layouts on IVC road
Sobha Canvas and Sobha landscape are very close to Airport. These are well maintained gated community layouts but not provide value for money. Also, do not fit in my budget. Just a few kilometers away from here you can find another similar luxurious layout, Orchid Nirvana. Orchid Nirvana costs only 60% of Sobha plots. One strange thing I noticed in the layout is that the layout construction itself was dependent on tanker water supply. From Airport road till the telecom layout road on IVC road you can find many other layouts. Here too, I could not find even a single house was constructed except for Sobha. Some of the layouts look like they have been formed long time without anyone lives there. One example layout is Aishwarya Enclave where the roads are already torn before anyone using it.
Just after the Thindlu Junction (where IVC road meets Telecom Layout road) on IVC road you can find MaxWorth layout. He was quoting 1200/sq ft. One positive thing about this layout is that it has a lake close by with good amount water. I spoke to a MaxWorth executive there. I found that the lake received good amount of water this year. Also, the rain water of the layout is directed to the lake with good planning. I am confused with his statement. Should the people who own the plots here are to be happy that the lake got full this year? Or they have to worry about rainfall of future years? He also said, there is one more phase of the layout coming up next to this layout. Work on the new phase is yet to be started and conversion for layout formation is still pending. The pre-launch price of the plots is 600/sqft with EMI scheme.
Close to MaxWorth layout you can find another layout, Health City. Health City IVC Road
640/SqFt, looks very attractive but there was no development of this layout from past 1 year.
Advantages of North Bangalore:
· Wide roads with good connectivity to Hebbal/ORR.
· Airport hype. Airport has not added much value but still a major force behind the hike in the price of real estate of this region.
Disadvantages of North Bangalore
· Devanahalli IT Park is not picked up yet:
Infosys pulls out of software development centre near Bengaluru International airport
In the same week, another news:
Govt clears Honeywell Tech Lab’s Rs. 1,373 crore investment proposal
Looks like IT companies still prefer established regions.
· Severe water problems:
You can easily make out the water problems when you see the dry lands of North Bangalore region. You cannot see greenery and agricultural cultivation as much you can see in South and East Bangalore suburbs. I have talked to few farmers near IVC road. Most of them are not interested in agriculture and waiting for good price to sell their land.
There is lot of future speculations and hype about North Bangalore. Except for the Airport there is nothing great about this region today. Except for Manyata, no big Tech parks can be found close to this region. SEZs like Apparel Park, Aero Parks will take decades to come up. However, with the expansion of Bangalore city and push from real estate big players, the prices of the real estate may remain high in this region.
Apparel and Aero Park employment opportunities are no way comparison to IT and BPO employment opportunities in terms of size. We have already seen, Biotech field, an another over-hyped with out much significance. Only the Devanahalli IT Park has the potential to generate large employment opportunities and may have large significance if it pick up in future.
After many trips to North Bangalore suburbs I felt that it will take another 8 to 10 more years for people to live there. I am not convinced to invest in North Bangalore because I was looking to construct a house in 5 years and proximity to work place. (I work for an IT company). Neither of my needs fulfilled.
My experience on East Bangalore:
We can find hub of layouts near Kamanahalli Junction (5 kms from Sarjapur). Another hub of layouts is near Dommasandra (between Dommasandra-Chandapur road). Both these hubs are close to ORR and Whitefield. We can find plenty of layouts in these two areas. However, most of them are not developed yet. Campan Valley appears to be impressive in amenities but expensive compared to other layouts.
Two impressive layouts are Sai Metro City and Escon Aditya Homes. Both of them are quoting 1300-1600/SqFt and feels value for money. Urban Habitat layout is developed well but not maintained well. There are no houses yet and the layout has steep ups and downs (not having flat surface area).
Shriram Malhar is another interesting layout near Sarjapur. I heard that they are quoting 1450/sqft for their 2nd phase. Amphitheatre of phase-1 will go away because of a proposed road. We can make out this in CDP too. Looks like amenities and price quoted are good.
PRR (Peripheral Ring Road) a much delayed half-ring road project will improve connectivity of this region with other regions of Bangalore. If PRR project completes on-time I feel areas near Varthur, Gunjur, and Sarjapur will be much better than North Bangalore.
Advantages of East Bangalore:
· Close to Whitefiled and ORR (Bellandur-Marathalli-K R Puram belt).
· Surely greener than North Bangalore. Full scale agriculture cultivation gives the confidence of water availability of the region.
· Close to Varthur lake. 40% Bangalore sewage is released to this lake. The lake is contaminated but not the water table of the area. Here is the IISc report: Page on iisc.ernet.in
High water table in the region is a plus. Feels like water quality might be good enough for all use except for drinking.
· Prices of developed plots varies from 1200/SqFt to 1600/SqFt. I felt the price is reasonable.
· PRR: High Court cleared all the litigations:
HC boost to PRR project
Project Approved for Environmental Clearance: Project Approved for Environmental Clearance
After 9 years on paper, finally, work on PRR will start very soon and we can start counting on progress.
Disadvantages of East Bangalore:
· Only few small SEZs planned for future. May be 15 to 20 years down the line, new industrial setups may move to North Bangalore when it saturates here if no big high tech zones declared here.
I am not sure will this ever happen: BDA plans hi-tech zone to recover PRR costs
· Green belt from Gunjur/Varthur till Kammanahalli junction. This may isolate the Kammanahalli junction hub from Varthur/Whitefiled by ~5 kms. Please see the CDP of Anekal and Varthur for more detail:
BDA & BMRDA Bangalore CDP Maps