INFRASTRUCTURE,DEMAND FOR OFFICE SPACE

CREATE POTENTIAL RESIDENTIAL HUBS 

NORTH

Various road development projects,ambitious ventures such as Metro rail connectivity to the international airport and large parcels of land that is available to till the airport,make Bangalore North a most sought-after residential and commercial space 

Infrastructure 

The elevated road to the international airport is a project that is sure to reduce the commute time to the airport.There are plans to extend the Metro rail link to the airport too.

Commercial development 

"The investment grade office market in India has become one of the fastest growing real estate destinations in the world.With more than 265 million square feet of operational space in 2010,this number is slated to almost double by 2015,"says Ashutosh Limaye,Head - Research and Real Estate Intelligence Service,Jones Lang LaSalle India.

In Cushman and Wakefield's and Global Real Estate Institute's (GRI) annual report "Embracing Change - Scripting the future of Indian Real Estate" estimates a total commercial office space demand to be approximately 200 million sq ft in top seven cities in the country as against a marginally higher supply of 243 million sq ft.

Bangalore which topped the ranks in demand for office space at approximately 57.3 million sq ft by the end of 2015,will witness supply of only approximately 26 million sq ft.This makes it the only city in the country that will see demand exceed the planned supply in the forthcoming years,indicating the potential for developments.Scarcity of options and lesser availability of space is likely to prevail in the city unless second generation supply increases.This may put an upward pressure on rentals in select micro markets.

Even though there are land parcels earmarked for the aerospace SEZ,ITIR region,KIADB's Hardware park,the demand for commercial spaces remains largely unfulfilled.

Demand for residential property 

"The airport road is under construction yet it has begun to attract many residential as well as commercial sectors.Owing to the better road and connectivity,it's expected to witness rise in demand for the rentals by 10-15 percent.Residential catchment areas around the airport are Yelahanka,Hebbal,etc where we can see the market value increasing and many new projects have been launched in Yelahanka and Hebbal,"says Ganesh Vasudevan,Business Head and Vice President of India-property.

The Doddaballapur road has emerged as a destination for residential clusters.The Greater Peenya industrial project along with the National Highways of India's elevated expressway,have resulted in many residential projects emerging in the Jalahalli belt and with Metro connectivity reaching till Hesarghatta cross,this region will be well-connected.There will be a demand for affordable housing projects too from the industrial workforce here.

EAST

This part of the city has witnessed a metamorphosis like never before.From being a typically manufacturing region,it is now a bustling micro market with gated communities,high-end apartments,malls,multiplexes,international schools and high-tech hospitals.

Infrastructure 

The widening of Old Madras Road,along with the existing IT development,upcoming SEZ areas and large facilities and campuses coupled with retail clusters and good social infrastructure make this area a sought-after one.

Demand for residential property 

"Old Madras road CMH Road etc witness an increase in interest as key commercial and retail areas for development as well as investment in the near future.A number of real estate developers in Bangalore are concentrating on the areas adjacent to Old Madras Road for key residential projects (varying from topend residential apartments to the mid- level segments),retail malls,etc.Demand for real estate would continue to be high and may result in an increase in rentals.Availability of large land tracks for development along the metro line though is limited,"explains Anshuman Magazine,Chairman and Managing Director,CB Richard Ellis South Asia Pvt Ltd."It is believed that in the coming span of 5 to 10 years,Old Madras Road and the surrounding areas,would be a major commercial and residential hub as it is one of the roads linking Central Bangalore (Central Business District-M.G Road,Kasturba Road,Lavelle Road Etc) and the East Bangalore (PBD- Whitefield,Outer Ring Road).The Metro connectivity just adds as a perfect finishing touch to the scheme of things projecting a high growth sector in the real estate markets,"adds Anshuman.

The focus for residential development will be in Whitefield,Off Old Madras Road and Hoskote.

SOUTH

An IT stronghold,the South of the city has many residential clusters coming here and the demand for property along this belt has further given impetus to the infrastructure growth.The most ambitious project was the recent project of the elevated toll road to Electronic city.Another long-term connectivity project will be the Metro Reach Four and the seamless Outer Ring Road (ORR) project.

Demand for residential property 

Anurag Mathur,Managing Director,Cushman and Wakefield,India says,"The present economic situation may be viewed as a transitory point for the real estate dynamics in India.Although,the market looks positive in the medium term with considerable demand across sectors,the industry seems to be affected by the rising interest rates,rise in construction costs and inflation.However the long term perspective suggests that the sector will continue to witness demand in all as."

According to a report by Cushman and Wakefield,India is expected to experience a demand of 3.94 million housing units,growing at a steady pace of 11 percent Compounded Annual Growth Rate (CAGR).Of this 2.3 million units will be the demand from the top seven cities alone.Bangalore is expected to see a demand of approximately 2,87,000 units in this period.As a result of significant population migrating into the Tier I cities,these locations are likely to witness highest demand.

According to the report,the anticipated demand is likely to exert an upward pressure on property prices especially in markets like NCR,Mumbai and Bangalore where the demand supply gap is high.Says Akshay Kulkarni,Executive Director,Cushman and Wakefield,India "The housing demand supply scenario and the resulting gap is likely to reduce in the next five years.However,the upcoming supply needs to be priced judiciously along with appropriate location,infrastructure,connectivity,relevant features and amenities to ensure absorption."

New residential developments along Sarjapur Road,Bannerghatta Road and Kanakapura Road outline the demand from the IT workforce in this area.

WEST

The widened Mysore Road,recent move by the State Government to free up farm land for realty development are some of the factors that will have a bearing on development in this direction of the city.

Demand for residential property 

"The demand for mid- segment homes in Bangalore is strong,particularly from the working professionals who are starting a family or have a family with young children.A variety of options in the form of 2-3 bedroom apartments ranging between 1,300-1,600 sq ft is available to choose from.In a recent survey conducted by IndiaProperty,nearly 67 percent of new property buyers in Bangalore are looking for 2 bedroom apartments in the 750 to 1,000 sq ft size bracket.More demand is visible in and around established neighbourhoods of Jayanagar,J P Nagar,R V Road,Sarjapur Road,Koramangala,Bannerghatta Road,BTM Layout and also in Electronic city,"says Ganesh Vasudevan,Business Head and Vice President of Indiaproperty.

Upcoming areas such as Uttharahalli and Kengeri have emerged as residential hubs,with good social infrastructure and connectivity.

CITY TOPS IN DEMAND FOR OFFICE SPACE 

According to a recent report by Cushman and Wakefield,a firm specialising in real estate,Bangalore tops in demand for office space over the next 5 years,while all other cities in India will see an oversupply.There are several ongoing infrastructure projects which will get completed during 2012,adding to the attractiveness of office markets in the city.Bangalore occupies around 55-65 percent of IT office space.Another firm Jones Lang LaSalle India stresses that the leasing in the Indian office space is dominated by three industries- Informationa Technology (IT/ITeS),Banking Financial Services and Insurance (BFSI) and Manufacturing.Nearly 70 percent of this leasing transaction volume is contributed by foreign-based firms,the report adds.

PROPERTY CLOSE TO METRO STATIONS COMMANDS PREMIUM 

These are the stations that will be along the entire route.A map providing these details has been displayed right above the door of the Metro coach,with LED lights flashing the progress of the Metro as it passes each station.This will enable commuters to head to the doors when they see flashing light approach their destination,since the door is kept open for 40 seconds (This door opening time will be flexible depending on commuter density).

East-West corridor 

Baiyappanahalli,Swami Vivekananda Road,Indiranagar,Halasuru,Trinity,M G Road,Cubbon Park,Vidhana Soudha,Sir.M.Visveshwaraya,Kempegowda,CityRailwayStation,MagadiRoad,Hosahalli,Vijayanagar,Attiguppe,Deepanjali Nagar,Mysore Road.

North-South corridor 

Puttenahalli,JayaPrakashNagar,Banashankari,RashtreeyaVidyalayaRoad,Jayanagar,SouthEndCircle,Lalbagh,NationalCollege,KrishnaRajendraMarket,Chickpete,Kempegowda,SampigeRoad,Srirampura,KuvempuRoad,Rajajinagar,Mahalakshmi,SandalSoapFactory,Yeshwanthpur,YeshwanthpurIndustry,Peenya,Peenya Industry,Dasarahalli,Nagasandra 

SEVEN SIGNAL-FREE CORRIDORS TO BE TAKEN UP BY BBMP 

Chord Road-Magadi road Dr Rajkumar Road-Yashwantpur Okalipura junction Vellara junction-Central silk board Jayadeva junction-Hulimavu.Mekhri circle Old Madras Road-Hope Farm junction Old Airport Road from Vellara junction-Kundalahalli gate Mysore Road- Central Silk Board junction.

BBMP in its recent budget has also proposed construction of five flyovers 

Banashankari temple,Koramangala Sony World junction,Malleswaram Maramma circle,Chord road,Rajajinagar and Vattal Nagaraj road.These flyovers,will act as grade separators,easing the traffic bottlenecks that these junctions have become.Seven underpasses at Jayanagar V Block,J P Nagar III and IV Phase,Bashyam circle in Sadashivanagar,Shivananda circle,Fountain circle in Okalipuram,Rani Chennamma circle and Hosur-Begur junction have also been planned.