Flats in North Blore see highest capital value rise

Hebbal Tops The Chart,Followed By Horamavu
 

 A once far-flung slice of the city is buzzing with realty action.North Bangalore is pipping southern and eastern parts as the preferred residential hotspot,according to Magic-Bricks.com.

Micro markets in the northern areas have seen a spurt in capital value,thanks to infrastructure projects catalyzing growth there.Hebbal,with a well-knit social infrastructure,has seen the highest capital value appreciation (apartments ),followed by Horamavu and Sahakar Nagar.

Capital values in Hebbal rose 33.94% to Rs 3,650 per sqft in the January-March 2012 compared to the same period last year.Horamavu came a distant second,recording a 25.51% increase at Rs 3,075 per sqft.Close on its heels was Sahakar Nagar with a 23.80% increase in capital value to Rs 3,900 per sqft.

Hebbal has seen commercial activity catalyzing residential development.Sobha Developers Sobha City,launched at Rs 3,700 per sqft,has shot up to Rs 4,200 in less than a year,says company MD JC Sharma.Other prominent developers who have announced projects in north Bangalore include Hiranandani,Prestige,Puravankara,Century and Brigade Enterprises.

Karun Varma,MD-Bangalore at real estate consultancy Jones Lang LaSalle India,says over-supply in the south and east is adding to pressure on pricing.But the inventory in the north is comparatively lower with a good offtake.Were seeing many new launches by Grade A developers. 

In comparison,Electronics City witnessed a negative growth in capital values to Rs 2,350 per sqft,a 9.61% dip in Jan-March compared to same period last year,the PropIndex report of MagicBricks said.Whitefield and Sarjapur grew 14% and 16% respectively in the same period.The scope for capital value appreciation is higher with infrastructure projects aiding growth in the northern corridor, says Sudhir Pai,business head at MagicBricks.com.

Developers are betting their money banking on infrastructure development expected to invigorate residential development in the northern corridor.The government has planned a six-lane carriageway that will form a ring between Outer Ring Road and Satellite Town Ring Road in Devanahalli.

The closest node to this site will be Kogilu junction on NH-7.This will improve connectivity between NH-7 and the non-CBD commercial areas like Whitefield and Hosur, says Avinash Rao,regional director-south at real estate consultancy Knight Frank India.

PropIndex benchmarks capital values,rental yields and captures realty trends across 11 metros.