Bangalore Residential Market Report April 2012 PDF

Bangalore: Residential Market Report
April 2012
A REPORT BY STRATEGIC ADVISORY GROUP

W O R K P L A C E S E R V I C E S
BANGALORE RESIDENTIAL MARKET STATISTICS: 2012 AND BEYOND
14 Million
Bangalore metropolitan population by 2021.1
13%
average annual price appreciation rate in residential sector for last 4 years.
20,600
residential units absorbed in 2011.
4.5%
average annual residential yield rate.
100,000+
average annual addition in IT/ITeS workforce for past 2 years; expected to grow at least at this rate for next 3 years.
44,000
residential units launched in 2011 [38,700 and 5,300 in apartment and villa/row houses category respectively].
55,400
residential units available.
15%
CAGR for residential sector during 2008-11.
1 Source: Census of India population in Bangalore of 9.6 million is projected assuming CAGR of 4.3% to arrive at a population of 14 million for 2021.
EXECUTIVE SUMMARY
For the past two decades, Bangalore has been the fastest growing city of India. Bangalore is termed as World City being established Silicon Valley of Asia; in addition it has multi-cultural population, good education & social infrastructure, and improving physical infrastructure. Bangalores residential market interests all stakeholders developers, landowners and investors on account of large, educated, young, double income household and growing migrant population. Many prominent national and international developers have entered Bangalore residential market and more are expected to join in the coming years. Currently, the most promising residential micro-markets in Bangalore are Outer Ring Road (ORR), Whitefield and Bangalore North. Old Madras Road and Mysore Road micro-markets have untapped potential for residential development. Old Madras Road is gaining traction faster due to its proximity to IT hubs Whitefield & ORR, Bangalore International Airport and City Center. In Apartment market, except budget category (less than INR 25L), residential products across other segments are under downward pressure owing to high activity levels. Even in the mid category (INR 25L 50L), developers have launched oversized apartment projects. Bangalore is one of the most promising markets for Villa projects in India. However, as per current statistics, the market has very high expectation from this product. Many under construction projects may take a longer timelines for completion. As per absorption analysis, Bangalores buyers are more sensitive compared to other southern Indian cities towards quality of the project, amenities and unit sizes.
Bangalore cannot afford to witness same number of project launches this year as 2011. If the activity level does not drop to half of 2011 then, Bangalore residential market is likely to face an oversupply situation. Last year, Bangalore witnessed entry of new residential products namely Villament and Branded Homes. Villament projects have been launched in Off Central and suburban locations by developers like Habitat Ventures, LGCL and Salarpuria. An international company Westcourt has launched a Branded Home project near Mekhri Circle, Bellary Road. Bangalores residential segment is likely to grow annually at 15% for next 3 years. In 2012, Bangalore is pegged to absorb 23,000 residential units. The capital value would appreciate between 12% to 20% across different micro-markets on account of rising construction cost and land price. South East (SE) quadrant micro-markets Whitefield, ORR and Sarjapur Road will remain active in short to medium term owing to proximity to established IT economic hubs. However, next growth direction would be North East (NE) quadrant Old Madras Road & Bangalore North (Hennur Road, Thanisandra Road and Bellary Road). Although, Bangalore North may face over supply situation in short term owing to over enthusiasm of developers towards this micro-market, the long term potential of this micro-market is very high. Economic outlook for the city remains strong in coming years as many large IT/ITeS, Engineering and Automobile MNCs have aggressive growth plans for the city. This would ensure healthy growth rate in residential segment.
BANGALORE: RESIDENTIAL MARKET REPORT
Bangalore boasts of the highest growth rate among all Indian cities, with double digit annual growth rate of IT/ITeS sector. Currently population of the Bangalore Urban District is 9.6 million and is expected to grow to 14 million by 2021.
Bangalore owes its multi-fold economic growth since 1990s to IT/ITeS industry. The wealth created by the new industry has had a multiplier effect leading to a real estate boom, a flourishing retail and leisure industry. The knowledge economy of Bangalore has transformed it from a small town, peaceful, pensioners paradise to a global technology hub. Post 1991, economic liberalization led to the growth of knowledge economy thereby leading to migration of educated middle class to the city; exposure of the young urban population to global standard of living; availability of housing finance and private participation in real estate sector set the tone of social infrastructure residential, retail, education and others in the city. Bangalore is expected to continue to follow upward prosperity trajectory in coming decades as well. As per Mckinsey 2, by 2030 among all Indian cities Bangalore would have highest per capita GDP.
Bangalore Key Facts

Key Facts
Area (sq.km) Population as of 2011 Decadal Population Growth Rate 1,306
3
9.6 million 4 47%

5
2 Source: McKinsey Global Institute India's Urban Awakening: Building Inclusive Cities, Sustaining Economic Growth, published in April 2010. 3 Bruhat Bangalore Mahanagara Palike (BBMP) was formed in 2007 and it includes 100 wards of the erstwhile Bangalore Mahanagara Palike, with seven neighboring City Municipal Councils, one Town Municipal Council and 110 villages around the city. 4 Census of India 2011, Provisional Population for States 2011. 5 With urban population of 9.6 million in the year 2011, Bangalore is the third most populous city and fifth largest urban agglomerations in India. Population in the city grew at an annual growth rate of 4.7% during 2001 2011; population for the year 2021 assuming the same growth rate could be pegged at 14 million.
Bangalores emergence as a world city is closely tied with growth of IT sector. Currently, City has over 800,000 IT/ITeS workforce and adding over 100,000 workforces every year.
As of now, 2,840 IT/ITeS companies including more than 100 Fortune 500 companies have established their operations in Bangalore. Key reasons of Bangalores emergence as an IT hub of India are: Access to Talent Pool on account of : a) Availability of education institutions, during early 20th Century British Government developed excellent education infrastructure in Bangalore City. This resulted high penetration of English language in local population. b) Today Bangalore has over 5400 schools and 620 colleges. Colleges offering general degree are about 350, engineering colleges account for 80, medical seven, Law - 72 and Management-120. c) Karnataka was the first Indian State to recognize the importance of technical and engineering education and therefore encouraged the setting-up of privately-owned engineering colleges. d) Bangalore has nationally renowned professional institutes such as IISc, ISI, IIMB, NLSUI, NID, IIITB and many more. e) Presence of PSU and Research institutions. Until 1990s growth of Bangalore was largely driven by public sector companies and research organizations. Post-independence, the city evolved as an engineering hub with establishments of large Public Sector Undertakings (PSUs) namely HAL, ITI, ISRO, HMT, BEML, BEL and more. Multi-Cultural Environment: Bangalore is home to diverse groups of people. Bangalore attracts a large number of immigrants from across the state and country. As per Bangalore City Development Plan for JNNURM (2006), immigrants from other parts of Karnataka constitute 53%, Tamil Nadu 19%, Andhra Pradesh 9%, Kerala 7% and Others 19% of the population. In addition, the city also attracts a large number of expats from other nations. Good Social Infrastructure: Bangalore has well developed business and social infrastructure including renowned health institutes, modern format retail malls, entertainment options and star category hotels. Moderate Climate: Due to its high elevation, Bangalore enjoys a more moderate climate throughout the year. Bangalore experiences a tropical wet and dry climate with summer temperatures ranging between 34C35C and winter temperatures between 15 C 18 C.
GROWTH OF BANGALORE METROPOLITAN CITY

TIME LINE 1537 1807
Bangalore founded by Kempe Gowda
British established Bangalore Cantonment
Bangalore also called Bengaluru, is the capital of the Indian state of Karnataka. Located on the Deccan Plateau in the south-eastern part of Karnataka, Bangalore is India's third most populous city and fifthmost populous urban agglomeration. Bangalore is well known as a hub for India's information technology sector. It is among the top 10 preferred entrepreneurial locations in the world. A succession of South Indian dynasties ruled the region of Bangalore until in 1537 AD Kempe Gowdaa feudatory ruler under the Vijayanagara Empireestablished a mud fort considered to be the foundation of modern Bangalore. Following transitory occupation by Maratha and Mughal, the city remained under the Mysore kingdom. Bangalore continued to be a cantonment of the British and a major city of the Princely State of Mysore which existed as a nominally sovereign entity of the British Raj. Following the independence of India in 1947, Bangalore became the capital of Mysore state, and later Karnataka. Today as a large city and growing metropolis, Bangalore is home to numerous public sector heavy industries, software companies, aerospace, telecommunications, and defence organisations. Bangalore is known as the Silicon Valley of India because of its position as the nation's leading IT exporter. A demographically diverse city, Bangalore is a major economic and cultural hub and the second fastest growing major metropolis in India.
DEVELOPMENT OF THE CITY
LEGISLATION STRUCTURE
1889-1945
1945-1976
1976-1991
1991-2007
2011 - PRESENT
Bangalore had two regions: Pette (a native settlement) and Cantonment (army settlement) with their respective administrative bodies namely Bangalore City Municipality and Civil & Military Station Municipality Constitution of Town Planning Committee in 1889 City Improvement Trust Board (CITB) was constituted in 1945
City Improvement Trust Board (CITB) was constituted in 1945 and in1949 Bangalore City Municipality and Civil & Military Station Municipality merged under Bangalore City Corporation (BCC) Constitution of Metropolitan Planning Board in 1961 Town and Planning Act in 1964 Constitution of City Planning Authority to prepare Outline Development Plan (ODP) The first ODP, master plan for the city was prepared & approved in 1972
In 1976, CITB and other planning bodies were transformed in to Bangalore Development Authority (BDA) Publication of first Comprehensive Development Plan (CDP) for Bangalore in 1985 Government established Bangalore Metropolitan Region Development Authority (BMRDA) in 1985
In 1991, Economic liberalization in India In 1994, 74th Constitutional Amendment came into existence Revised Bangalore CDP in 1995 In 2005, FDI permission in real estate sector
BDA released CDP 2015
for Bangalore in July 2007
Bangalore developed as two different settlements: - Pette was an organic development, with narrow streets and mixed land use. Between 1898 and 1920, Bangalore City Municipality developed new extensions Chamrajpet, Malleshwaram and Basavanagudi - The cantonment witnessed the adoption of the British model broader streets with avenue tress, sidewalks for pedestrians and zoning regulations that segregated residences and workplaces. Towns like Richmond Town, Cleveland Town, Frazer Town, Cox Town, Langford Town were developed in this part of the development
Integration of Pette and Cantonment regions While BCC concentrated its efforts on maintaining the city clean and beautiful, the CITB paid attention to develop new extensions to meet the housing demand. Between 1945 and 1976, CITB acquired 1,411 hectares of land and distributed 68,300 sites. It developed new locations including Jayanagar, Indiranagar, Rajajinagar and Koramangala The Metropolitan Planning Board and Town & Country Planning Act gave institutional framework for city development The ODP provided the vision for planned growth of the city
BDA led allotment of residential sites to individuals. Key BDA layouts include BTM and HSR layout towards south-east, HRBR and OMBR Layout towards north-east of the city and RMV and Sadashivnagar towards north-west BMRDA provided framework for the organized growth of towns surrounding Bangalore City
74th Constitutional Amendment transformed the role of BDA from provider to enabler. This amendment also encouraged participation of private developers in real estate developments Rise of IT/ITeS sector created new economic magnets Electronics City, Whitefield and ORR led growth of large scale residential development across different regions of Bangalore especially along South and Eastern suburban and peripheral regions FDI in real estate paved way for entry of international developers and investors
In 2008, Bangalore
International Airport commenced its services thereby strengthening real estate activities
Responsive zoning
regulations by promoting mixed land uses along the commercial axes and mutation corridors which have led to the development of selfsustaining neighbourhoods
Integrating urban
infrastructure and transportation networks by developing a multimodal public transport system in order to control sprawl
INFRASTRUCTURE PROJECTS - METRO RAIL
Bangalore has 31 industrial hubs across the city. It houses different PSUs and private companies across IT/ITeS, Bio-technology, Engineering, Aviation, Textile and others sectors.
Key IT/ITeS Hubs Whitefield l Electronics City, l Hosur Road l Outer Ring Road l Bannerghatta Road l Old Airport Road.
l
Under construction and planned infrastructure projects will ensure that Bangalore continues to grow at current levels and establishes itself as one of the finest world cities.
Over the last 5 years, Bangalore has witnessed substantial improvements on the infrastructure front. A few initiatives include commissioning of Bangalore International Airport in 2008, Electronics City Elevated Expressway in 2009, Phase 1 of NICE corridor in 2009, Tumkur road elevated expressway in 2010 and Reach 1 of Bangalore Metro Rail in 2011. The table below lists on-going and proposed infrastructure projects (physical) in Bangalore. Completion of these projects will not only enhance connectivity, but will also lead to availability of land parcels for development of real estate.
Key Industrial Hubs l Bidadi Industrial Area l Mysore Road l Peenya Industrial Area l Tumkur Road l Harohalli l Kanakapura Road and Others
Bangalore - Ongoing and Proposed Infrastructure Projects

Project Signal free Outer Ring Road (ORR) Expansion of Bangalore International Airport Elevated Expressways Bellary Road Project Details Existing stretch of ORR between Hebbal to Silk Board Jn. will be made signal free with the construction of flyovers and under-passes. Expansion of Terminal 1 to double its capacity. To be increased to over 17 million passengers a year. Completion timeline of 18 months. Under-construction six lane elevated expressway connecting Hebbal to Yelahanka. The entire stretch between Hebbal and the BIA will be an 18 lane highway. Phase 1: N-S corridor connecting Hesaraghatta to Puttenahalli in South and East-West corridor connecting Byappanahalli to Vijayanagar. Reach 1 of Phase 1 Byappanhalli to MG Road was operational in October 2011. Phase II: Extension of Phase 1 lines connecting Whitefield (in the East), JP Nagar (in the South), Kengeri (to the west) and Nelamangala (to the North). In addition, two new lines, one connecting Nagawara to Gottigere and the other connecting BTM Layout to Bommasandra has been proposed. Project will act as a feeder network to Metro Rail. Four corridors, covering 60 km. Formal approval for the project is awaited. Proposed PRR is being executed by Bangalore Development Authority (BDA) on Public Private Partnership (PPP) basis. The 110 km ring road will circumnavigate the city connecting all major highways and is currently at land acquisition stage. High Speed Rail Link connecting Hebbal to BIA to the east of Bellary Road. A 5 m corridor has been identified between the carriageway of NH-44 and the service roads for the HSRL. Timelines not yet announced. The 4 lane expressway of approximately 111 km connecting Bangalore to Mysore is currently on hold on account of land acquisition issues. Completion Timeline 2012(E)
December 13
2014
Phase 1 Bangalore Metro Rail Phase 2
Entire Phase 1 in 2015
Proposed
Mono Rail
Proposed
Peripheral Ring Road
Proposed
High Speed Rail Link Bangalore - Mysore Express Way
Proposed
Proposed
In 2011, Bangalore residential market witnessed high activity levels in terms of project launches and absorption rate; but, in 2012, developers need to be cautious with new project launches in order to safeguard balance in the market.
Bangalore cannot afford to witness same number of project launches this year as that of 2011. If the activity level does not drop to half of 2011 then, Bangalore residential market will face over supply situation. Except Budget category (less than INR 25L), product across other segments are under pressure with high activity. Even in Mid category (INR 25L 50L), developers have launched sizeable projects which may take longer time for completion. In 2011, Bangalore remained one of the favored real estate markets for Private Equity Funds resulting in their sizeable participation in self-liquidating residential asset class.
In recent past, Bangalore witnessed entry of large national and international developers namely Pashmina Developers, Peninsula, Pruska, Westcourt Real Estate, Unitech, Essar and many more. Integrated Funds (development arms of Private Equity Fund) have also acquired land across Bangalore region Jayanagar, Sarjapur Road, Whitefield and other micro-markets. Super Luxury projects have been redefined through launches of Embassy Boulevard, RMZ Latitude, Prestige White Meadows, Godrej Platinum and serviced apartments by Westcourt. Prior to 2011, Bangalore never witnessed such high activity levels for products priced over INR 5CR. Most of the developers such as Prestige, Brigade, TATA, Puravankara and others are enthusiastic with their experience in Budget category (less than INR 25 L).
15%
CAGR for the period 2008 - 2011
13%
Average Annual Price Appreciation
20,600 Units
Total Absorbtion in 2011 20,031 Apartment Units 568 Villa/Row House Units
232 Projects ~44,000 Units

New Project Launches in 2011 38,663 Apartment Units 5,297 Villa & Row House Units
55,400 Units
Total Availability 49,568 Apartment Units 5,768 Villa/Row House Units
3% - 6%
Average Rental Yield Rate for Class A Apartment Projects
4% - 7%
Average Rental Yield Rate for Class A Villa Projects
Till now, the most vibrant residential micromarkets were located in SE quadrant; but now micro-markets of NE quadrant are also witnessing high residential activity.
Currently, Bangalore's most promising residential micro markets are ORR, Sarjapur Road, Whitefield and Bangalore North. Bangalore North, like any emerging micro-market during nascent phase is witnessing high activity level. Bangalore's Central and Off-Central locations have high potential but availability of land at reasonable price remains a challenge. However, many sizeable mixed-use developments along Old Airport Road, Vivek Nagar and Koramangala are expected in next few years on account of relocation of large corporate houses and availability of land through slum redevelopment programs. Old Madras Road & Mysore Road micro-markets have untapped potential available for residential developments. Old Madras Road would gain traction faster due to its strategic location [proximity to IT hubs Whitefield & ORR, Bangalore International Airport and City Center]. Hosur Road is showing signs of oversupply in residential segment on account of large developments and maturing economic hub in this region.
Bangalore's cosmopolitan culture has space for different formats in residential developments Apartment, Villa and Row Houses. Bangalore buyers have shown strong liking for lifestyle amenities, theme based and good quality in residential developments.
Bangalore is one of the most promising markets for Villa projects in India. However, as per current statistics, the market has an over expectation from this product. Many under construction projects may take longer timeline for completion. Most active micro-markets for Villa & Row Houses developments are Bangalore North, Sarjapur Road, Whitefield and Hosur Road. As per absorption analysis, Bangalore's buyers are more sensitive compared to other southern Indian cities towards quality of the project, amenities and unit sizes. In this city, endusers are ready to pay reasonable premium across different categories towards these aspects of the project.
10
In 2011, Bangalore Residential Market witnessed entry of new products - Villament and Branded Homes.
Villament is a new type of development that is gaining prominence in Bangalore. This type of development offers people the best of both worlds, the villa lifestyle at affordable prices. A typical villament has about 4-8 units in each block with the ground floor enjoying garden space, the center floors enjoying balcony space and the upper floors enjoying their own terrace space. Some of the projects launched on this concept are Habitat Crest (Whitefield), LGCL Luminaire (off Old Airport Road) and Sattvas villament project along Sarjapur Road. Westcourt has launched Branded Home - Four Seasons Private Residences located near Mekhri Circle, Bellary Road. This is part of an upcoming mixed-use development named City View. Branded homes come with bespoke design features and have an array of services including 24-hour concierge, valet parking, inroom dining service and many more. In summary, the homes, although owned by individuals, will be maintained by the hospitality brand. These branded private residences promise a lifestyle statement in the home segment offering 5-star luxury standards.
Bangalore Residential Micro-Markets
Bangalore has been divided in following eleven micro-markets based on geography, type of customers, capital values and type of residential development: 1. Central 2. Off-Central 3. ORR (Marathahalli Silk Board Jn.) and Sarjapur Road 4. Whitefield 5. Old Madras Road 6. Bangalore North (Hebbal, Yelahanka, Thanisandra Road and Hennur Road); ORR (KR Puram to Hebbal) 7. Hosur Road 8. Bannerghatta Road 9. Kanakapura Road 10. Mysore Road 11. Tumkur Road
11
RESIDENTIAL MICRO-MARKET ANALYSIS: POTENTIAL V/S ACTIVITY

Potential Index has been established on existing and future scenario for economic hubs, physical infrastructure, social infrastructure and availability of land for development; whereas, Activity Index is gauged through ratio of availability to annual absorption rate. Findings from this analysis are: 1. Hosur Road is on over supply status as the current availability level is high and potential of this region is not likely to improve in short term. 2. Bangalore North can also fall under over supply status for some duration unless planned economic activities kick-off in this location in the near future. 3. Whitefield, Outer Ring Road, Tumkur Road, Old Madras Road
Mysore Road
Very High High Moderate Stable Low SM ML AV OL Very Low P A SM ML AV OL Very High High Moderate Stable Low Very Low P A SM ML AV OL
and Kanakpura Road are in balanced state because potential, activity level and inventory are proportionate to each other in these micro-markets. 4. Mysore Road has opportunity for residential sector but its future depends on growth of occupancy levels in Global Village and Bidadi Industrial Area. 5. Bannerghatta Road has affinity for new developments but availability of land parcel is the critical constraint for future growth. 6. Central and Off-Central will always have potential for residential development in luxury category but land availability is the bottle-neck in these micro-markets as well.
Off Central
Very High High Moderate Stable Low Very Low P A
Whitefield
Outer Ring Road

Very High High Moderate Stable Low Very Low P A SM ML AV OL
Bangalore North
Very High High Moderate Stable Low Very Low P A AV SM ML OL
10
OPPORTUNITY BALANCED
9 8 7
Potential
Hosur Road
Very High High Moderate Stable Low Very Low SM ML OL
6 5 4 3 2 1 0 0.00
BALANCED OVER SUPPLY
AV
1.00
2.00
3.00 Activity
4.00
5.00
6.00
Central
Bannerghatta Road
Old Madras Road

Kanakapura Road
Tumkur Road
Very High High Moderate Stable Low Very Low P A AV SM ML OL
LEGEND
P: Potential A: Activity AV: Availability OL: Outlook SM: Short to Medium Term ML: Medium to Long Term
12
CONSUMER PREFERENCE SURVEY

End-user survey was conducted at CREDAI Bengaluru Realty Expo 2011 during 17th and 18th September 2011. Over 1,200 responses were collected [51% - IT/ITeS employed professionals, 13% selfemployed & entrepreneurs and 36% included employees working in other sectors]. Key findings include: Strong preference for apartment units: Overall, 52% respondents preferred an apartment unit. High preference for Bangalore North, Whitefield, ORR and Old Madras Road locations: 50% of the total respondents preferred Bangalore North, Whitefield & Old Madras Road and 25% of the total respondents preferred ORR and Sarjapur Road. Most preferred locations include Hebbal, Thanisandra Main Road, Sarjapur Road, Hennur Main Road, Whitefield and Old Madras Road mainly owing to proximity to IT hubs including Whitefield, Electronics City and ORR. 71% of the total respondents intended to invest in a residential unit for self-use as compared to 29% for investment purpose. Respondents preferred products in the price range of 25L 50L and 50L 1CR budget and in terms of unit sizes, 2 BHK, 2 BHK+ Study and 3 BHK were the most preferred.
27%
52% 21%
Apartments
Villas
Residential Plots
60%
40%
20%
0%
South West
North West
North East
South East
Central Off Central
13% 4%
40%
43%
< 25L
25L - 50L
50L - 1CR
> 1CR
13
BANGALORE CITY : RESIDENTIAL MICRO-MARKETS

NH 7 To Hyderabad
N
Doddaballapur Industrial Area
Bangalore International Airport
Rajanukunte
Pro po sed
op Pr
os
ed
rip Pe
he
l ra
n Ri
oa gR
BANGALORE NORTH
Baglur Yelahanka
Hig h
Sp ee dR ail
Lin
Pr op
os
ed
Pe r
iph
Hoskote Industrial Area
NH 4
: To M
umba
TUMKUR ROAD
i
Hesaraghatta Cross
NICE Ring Road
Jalahalli HMT Township
Sahakara Nagar
er al
Thannisandra Manyata Embassy Business Park Hebbal Hennur
Rin
gR oa
Budigere
BIEC
OLD MADRAS 4 nai n H ROAD N To Che

Avalahalli
Nagawara
HBR Layout
Out er R ing
Ou ter Rin gR oa d
Peenya Industrial Area
IISc RMV Extension Malleshwaram Rajaji Nagar Frazer Town Palace Grounds
Roa d
Seegehalli ITI
Banaswadi
Krishnarajapuram
To Ma gadi
Bangalore City Railway Station
Byappanahalli C.V. Raman Nagar Indira Nagar ITPB
Whitefield
MG Road
CDB
Richmond Town
WHITEFIELD
Bagmane Tech Park Brookefield Varathur Marathahalli
MYSORE ROAD
Vijaya Nagar Mysore Road Jaya Nagar
Jeevan Bhima Nagar
OFF-CENTRAL
Koramangala Cessna Business Park Bellandur
Proposed Peripheral Ring Road
SH 17: To Magadi
Kengeri
NI CE
Banashankari J.P. Nagar Puttenahalli B.T.M. Layout IIMB

Ri ng Ro a
HSR Layout Wipro Hosa Road Begur Haralur
Kumbalgodu Industrial Area
Jagaranahalli
d
Arkere
OUTER RING ROAD

Kudlu Dommasandra
Kothnur Thalagattapura Gottigere
BMIC Expressway
NICE Ring Road
KANAKAPURA ROAD
BANNERGHATTA ROAD
Prop osed Perip h
Electronic City Bommasandra
Bommasandra & Jigani Industrial Area

eral R ing R oad
HOSUR ROAD
NH 7: To Salem
NH 209: To Coimbatore
Metro Rail Operational
Proposed Mono Rail Proposed High Speed Rail Link Proposed Peripheral Ring Road
LEGEND
Metro Rail Phase 1 Under Construction Proposed Metro Rail Phase 2
14
CENTRAL
15
This micro-market is set to witness development of luxury residential projects. Limited availability of land for development is the only deterrent for this micro-market.
The micro-market has colonies/towns existing since British period. Therefore, this region predominantly comprises of old residential developments mainly villas and individual bungalows. Today it is a preferred location by HNIs and NRIs. Due to lack of availability of large land parcels and high capital values, this quadrant witnessed limited fresh residential supply; most of the upcoming residential projects are small scaled luxury apartment developments. Key under construction projects include Prestige Edwardian, Brigade Sonata, Total Environment's Van Gogh's Garden, Skyline Villa Maria, HM Grandeur and Vaishnavi Prime. Key developments planned in this zone include Prestige Kingfisher Tower, Century Renata, Nitesh Park Avenue, Embassy Oasis and others. Size of typical development ranges between 30,000 sqft to 80,000 sqft; residential units are sized between 2,000 3,500 sqft (Class A); 1200 - 2600 sqft (Class B). This micro-market will continue to perform good owing to limited supply and high demand. The capital values are expected to appreciate at 12% 15% per annum. In future, the redevelopment of old properties is likely to gain traction on account of availability of higher Floor Space Index (FSI) and rising capital rate.
Micro-Market Fact File

Key Locations
MG Road, Kasturba Road, Brunton Road, Lavelle Road, Richmond Road, Residency Road, Frazer Town, Cox Town and Hanes Road
Key Economic Magnets

Central Business District (CBD) and Secondary Business District (SBD)
Key Retail Locations

MG Road, Brigade Road and Commercial Street
Malls: Operational, UC & Planned (In million sqft)

Garuda Mall (0.3), Sigma Mall (0.12), Victoria Embassy (0.16), UB City (0.13), 1 MG Road (0.18), Embassy Galaxy Mall (0.19)
Key Educational Institutes

University of Vishweshwaraiah College of Engineering (UVCE), Mount Carmel College, St. Joseph's College
Health Care Facilities

Hospital for Orthopaedics, Sports Medicine, Arthritis & Trauma (HOSMAT), Mallya Hospital, Fortis Hospital, Seventh Day Adventists Hospital, Lakeside Hospital
Average Annual Absorption
135 Units
138 Units
Total Availability
INR 7,500 - 25,000

Apartments Particulars Premium 50L-1Cr Availability* Total Supply** 0 18 Luxury 1Cr-3Cr 22 53 3Cr-5Cr 29 91 Super Luxury >5Cr 87 127 138 289 138 289
Sub-Total
Total
per sqft Capital Values for Class A Apartment Projects
INR 6,000 - 14,000

per sqft Capital Values for Class B Apartment Projects
15%
Average Rental Yield Rate
4% - 7%
* Includes unsold stock of completed, under-construction and planned projects available with the developer. ** Supply from under-construction and planned projects (Planned projects include developments at pre-launch phase)
16
OFF-CENTRAL
17
This is one of the most desired micro-market by end-users, institutional investors and developers. In next 3 to 5 years, this micromarket is likely to witness development of mixed-use projects in luxury category.
This micro-market comprises of sub markets located around the city center. This location also has high demand but quality space supply is limited. It has access to high quality social infrastructure and improved urban infrastructure. Residential developments in this zone are marked by spacious units with one unit in each floor or duplex; concept based development and world-class amenities. Four Seasons Private Residences would be Bangalores first branded home. This is part of an upcoming mixed-use development named City View by an international player Westcourt, located near Mekhri Circle, Bellary Road. This micro-market will witness many more mixed-use developments in coming years. As per market information, large sized land parcels in Old Airport Road, Vivek Nagar and Koramangala are in planning stage for mixed-use developments in luxury category. In recent past this micro-market has witnessed large scaled developments including Brigade Gateway, L&T South City, Elita Promenade and others. Prominent under construction residential developments include Pride Picassa, K. Rahejas Vivarea Brigade Crescent, ETA Beau Monde, LGCL Luminaire, Pride Pavillion, Sobha Dew Flower, Purva Atria, Four Season Residences, Vaishnavi Terraces and others. Key planned projects: Divyasree 77 East, Embassy Grove, Jain Heights East Parade and others. National developers & integrated funds including V Raheja, Phenoix Market City, Peninsula, Azure Capital and others have plans to launch their projects in this micro-market in 2012. Availability of matured social infrastructure and limited quality space supply are the key reasons for good performance of this micro-market; during next 3 years, this region is expected to witness capital appreciation of 15% - 18% per annum.
Apartments Particulars Budget < 25L Availability* Total Supply** 518 1,101 Mid-Range 25L-50L 695 1,094 Premium 50L-1Cr 23 80 Luxury > 1Cr 0 13 1,236 2,288 Sub-Total

Key Locations
Indiranagar, Koramangala, Jayanagar, JP Nagar, Malleshwaram, RMV Extension, Sanjay Nagar, RT Nagar, Pottery Road, Rajajinagar

Koramangala, Malleshwaram, Indiranagar, Jayanagar

Indiranagar (100 & 80 Feet Road), CMH Road, Koramangala (100 & 80 Feet Road), Jayanagar (4th & 9th Block), Malleshwaram (Sampige Road & Margosa Road), New BEL Road, JP Nagar (ORR)

Mantri Square (1.7), Total Mall (0.22), Mantri Junction (0.28), Sigma Mall (0.25), Salarpuria Oasis Mall (0.55), The Forum (0.65), Brigade Orion Mall (1.1), Nitesh Mall (1.2), G Corp Mall (0.3)

Christ University, MES College of Arts Commerce & Science, BMS Institute of Technology, KIMS, BIT

Columbia Asia Hospital, St. Johns Medical Hospital, Nimhans Hospital, Fortis Hospital, MS Ramaiah Memorial Hospital, ESI Hospital
1,500 Units
1,372 Units
Total Availability
INR 4,000 - 18,000

INR 8,500 - 10,000

per sqft Capital Values for Class A Villa Projects
INR 3,500 - 8,000

17%
4% - 7%
Villas Premium 50L-1Cr 0 0 Luxury 1Cr-3Cr 0 0 3Cr-5Cr 32 72 Super Luxury > 5Cr 104 0 136 72 1,372 2,360 Sub-Total Total
18
ORR [Marathahalli Jn - Silk Board Jn] & Sarjapur Rd
19
Currently, ORR is the most active IT hub of India. This is driving residential demand in this micromarket. In addition on-going physical & social infrastructure developments are supporting the demand environment. This micro-market is likely to remain strong for at least next 3 to 5 years.
This micro-market can be subdivided into 3 sub-markets: - ORR (Silk Board Jn. Bellandur Jn.), - ORR (Bellandur Jn. to Marathahalli Jn.) - Sarjapur Rd (ORR Bellandur Jn. to Sarjapur Village). Key residential development along ORR (Silk Board Jn. Bellandur Jn.) is BDA promoted HSR Layout. In HSR layout few private developers have apartment projects. Whereas, ORR (Bellandur Jn. to Marathahalli Jn.) and Sarjapur Rd (ORR Bellandur Jn. to Sarjapur Village) are dominated by private developers projects housing mainly IT population working in ORR, Electronics City and Whitefield. There are many international schools/education institutions located Off Sarjapur Road. However, other social infrastructure is just adequate; but completion of under construction retail & entertainment developments will improve this aspect in coming years. Also, completion of ongoing fly-overs along ORR will ease accessibility. Urban infrastructure is good in HSR Layout but many parts of other sub-markets of this region do not have quality roads, footpaths, street lights and other basic urban infrastructure. Currently, outside BDA promoted layouts, municipal water connections are not available and population is dependent on bore wells for water. The water table is depleting at alarming rate in this micro-market on account of high residential activity. This micro-market has witnessed residential development across different segments and pricing points. Prominent residential developments which are under construction include Assetz Homes 27 Park Avenue, Nitesh Cape Cod, Prestige Sunnyside, Vaswani Reserve, Sobha Cinnamon, Purva Skywood, Mantri Espana, Adarsh Palm Retreat, Embassy Pristine and others.
Major upcoming developments include Assetz Homes Loft, Assetz Homes Clover Greens and others Currently, this micro-market is in stable status; prices are likely to appreciate at 12% -14% per annum. Micro-Market Fact File
Key Locations
HSR Layout, ORR (Marathahalli Jn. - Silk Board Jn.), Sarjapur Road, Haralur Main Road, Hosa Road, Kasavanahalli Main Road

ORR IT Hub, Whitefield IT Hub, Electronics City IT Hub, Hosur Road

ORR (Marathahalli Jn. - Silk Board Jn.), Sarjapur Main Road, HSR Layout

Soul Space Arena (0.48), Soul Space Spirit (0.45), Total Mall (0.24)

New Horizon College of Engineering, Inventure Academy, Amrita School of Engineering

VIMS Hospital, Greenview Medical Center, Sri Sai Multi speciality Hospital, Lakeview Hospital, Greenview Medical Centre, Star Hospital & Research Centre
2,100 Units
7,709 Units
Total Availability
INR 2,000 - 8,800

INR 2,000 - 7,500

INR 2,000 - 3,500

13%
3% - 6%
Apartments Particulars Budget < 25L Availability* Total Supply** 1,067 1,817 Mid-Range 25L-50L 1,895 4,515 Premium 50L-1Cr 2,721 6,410 Luxury > 1Cr 740 1,989 6,423 14,731 Sub-Total Premium 50L-1Cr 899 1,621
Villas Luxury 1Cr-3Cr 262 346 3Cr-5Cr 125 167 Super Luxury > 5Cr 0 0 1,286 2,134 7,709 16,865 Sub-Total Total
20
WHITEFIELD
21
This is a well-developed suburb of Bangalore. It has required physical & social infrastructure to support future growth.
Whitefield emerged as an IT Hub in late 1990s and the initial impetus was provided with formulation of Karnataka Industrial Areas Development Board (KIADB) promoted the Export Promotion Industrial Park (EPIP) in 1994. Further, development of International Technology Park Bangalore (ITPB) catalyzed IT development in this micro-market. Sizeable IT/ITeS population, availability of land and connectivity to other parts of the city are the primary reasons driving residential development in this micro-market. Over the last one decade, the micro-market has developed as a selfsustaining suburban area with development of residential (Apartment & Villa), retail projects and other social infrastructure. Developments in this micro-market are characterized by Premium category (Rs 50L 1CR) & Luxury category (>Rs 1CR) apartment projects in Brookefields, Whitefield Main Road & Varthur Main Road; Villa developments in the Luxury category (Rs 1CR3 CR) & Super Luxury (Rs 3CR5CR) mostly located along Varthur &Whitefield Main Roads. The micro-market also houses two large integrated development projects, namely Brigade Metropolis and Prestige Shantiniketan. This micro-market has witnessed residential development mainly in mid and premium segments of apartment type. Prominent residential developments which are under construction include UKN Esperanza, Prestige Silver Oak, Prestige White Meadows, Prestige Park View, Nitesh Flushing Meadows, SJR Legacy, Akme Encore and others. Major upcoming developments include NCC Ivory Heights, Sobha Dreams One, SJR Vogue, Samruddhi White Pebbles and others. Currently, this market has sizeable supply especially in Class B category. This micro-market is a promising suburb but developers need to be very careful in pricing & sizing of projects. As per market sources, many regional, national & international developers are planning their projects in this region. If projects are launched at current pace this market may face over supply situation.
Apartments Particulars Budget < 25L Availability* Total Supply** 0 0 Mid-Range 25L-50L 4,692 8,396 Premium 50L-1Cr 2,129 5,362 Luxury > 1Cr 634 1,134 7,455 14,892 Sub-Total

Key Locations
Whitefield, Brookefields, Mahadevapura, ORR (KR Puram Jn. Marathahalli Jn.), Varthur Road

Whitefield IT Hub, ORR IT Hub and Industrial units located in the EPIP Zone

Whitefield Main Road, Brookefields, ORR (KR Puram Jn. Marathahalli Jn.), Varthur Road

The Forum Value Mall (0.47), The Cosmos Mall (0.14), Ascendas Park Square (0.6), Brigade -The Arcade (0.08), Phoenix Market City (1.15), Raheja Inorbit Mall (0.5), Forum Mall (1.1), Virtuous Whitefield Xander Mall (0.42), Total Mall (~0.15)

MVJ College of Engineering, CMRIT, International Schools, Vydehi Medical College

Sri Sathya Sai Super Speciality Hospital, Vydehi Institute of Medical Sciences & Hospital, Sankara Eye Hospital, Sathya Sai General Hospital
2,250 Units
7,923 Units
Total Availability
INR 3,000 - 7,100

INR 3,750 - 10,700

INR 2,400 - 4,200

13%
4% - 6%
22
OLD MADRAS ROAD (KR Puram - Hoskote)
23
This is one of the most promising emerging micro-markets for residential segment. In this region, residential development activity levels have increased post widening of the highway and commencement of Bangalore International Airport (BIAL) in 2008. In medium term, planned Peripheral Ring Road will further improve connectivity of this micro-market to other regions of the city.
This micro-market has gained traction as a residential hub post widening of this Highway in 2009. Other key reasons for gain in residential development activity are: -This micro market is located between IT Hub - Whitefield and Bangalore International Airport. - The proposed Peripheral Ring Road would improve its connectivity to existing and upcoming IT hubs - Whitefield, Electronics City, ORR and International Airport. - Availability of large land parcels - Proximity to Bangalore City Center (KR Puram is only 5 Kms from MG Road) - Expected IT developments in this region: Bearys Group has already developed an IT Park in this region -Growth of industrial development in Hoskote Industrial Area and proposed logistic infrastructure would intensify further growth in this region. Currently, social infrastructure is not adequate in this micromarket. It is dependent on Off- Central locations (CV Raman Nagar, Indiranagar) and Whitefield for the same. This market has witnessed residential development mainly in mid category for apartment type development and premium/luxury category in Villa/Row House developments. The key reasons for cost sensitive development in this region are comparatively low land price & abundant land availability. Prominent under construction residential developments include Prestige Tranquility, Pashmina Waterfront, Brigade Exotica, Sattva Magnificia, Pruska Silvana Houses, Purva Mid Town, Samruddhi Lake Drive, Samruddhi Mystic Wind and etc Major Upcoming development include Manyata Greenbay, Hebron Enclave and others
Apartments Particulars Budget < 25L Availability* Total Supply** 35 140 Mid-Range 25L-50L 882 2,817 Premium 50L-1Cr 1,094 1,609 Luxury > 1Cr 530 708 2,541 5,274 Sub-Total
Demand is set to remain strong in this region. The residential activity will increase in coming years. This market will attract developers for projects especially in mid-category on account of large land parcels at comparatively lower price. The capital value will appreciate at 12% - 14% per annum Micro-Market Fact File
Key Locations
Pai Layout, KR Puram, Ramamurthy Nagar, Krishnarajapuram, Battarahalli, Sonnenahalli, Hirandahalli, Budigere, Devanahalli -Hoskote Road.

Hoskote Industrial Area, Whitefield & ORR IT Hub

OMR Road (until KR Puram bridge), Krishnarajapuram

Gopalan Signature Mall (0.3), OMR Platinum Mall (0.7)

Garden City College, Kristu Jyoti College, Cambridge Institute of Technology

Koshy's Hospital, Epidemic Diseases Hospital, BEML Hospital
950 Units
3,111 Units
Total Availability
INR 2,400 - 5,200

INR 2,500 - 9,300

INR 2,400 - 4,000

14%
3% - 5%
24
NORTH BANGALORE
25
In future, development of large scale integrated theme based townships will characterize real estate development in Bangalore North.
This micro-market gained traction post commencement of Bangalore International Airport in 2008. The key drivers for residential activity in this region are improving physical infrastructure, emerging economic hubs of Bangalore and availability of land for development. Government is aggressively promoting this region for future economic activities. This micromarket is poised to be next economic epicenter of Bangalore. This micro-market is also attracting retail investors (HNIs and NRIs) for investments in upcoming residential developments on account of expected high growth rate. Most of the residential developments located in New Town Yelahanka, Thanisandra Road and Hennur Main Road are apartment projects in mid and premium categories. Projects located along Bellary Road & Hebbal are in the luxury segment. Also, a few national developers are planning to launch large scale budget segment projects in this micro-market. Social infrastructure is good in Yelahanka but other submarkets lack adequate social infrastructure. However, developers have plans to develop required social infrastructure in coming years. Non-availability of water is the key deterrent for development in this micro-market. Government needs to step-up its effort in this direction in order to develop planned economic hubs. Many developers like Prestige, Sobha, Brigade, Hiranandani and others have launched Villa projects near Devanahalli region. Prominent under construction residential projects in this region include RMZ Latitude, Godrej Crest, Godrej Platinum, RMZ Galleria, Prestige Oasis, Sobha City, RMZ Sawaan, Brigade Orchids,Embassy Boulevard, Ozone Urbana and others. Key upcoming projects include Nitesh Malibu, Divyasree Valley of the Wing and others. Currently, this micro-market is set for an oversupply situation unless key planned economic activities kick-off. This region is likely to be in in-balance state for some time on account of high expectation. The annual capital appreciation rate is likely to drop from current levels on account of excessive activity. However, in the mid to long term, this micro-market is one of the most promising growth corridors of Bangalore. This micro-market is likely to gain momentum in coming years as it has very high potential for growth. This micro-market is set to develop as a next key suburb of Bangalore and traction is only likely to improve in coming years.
Apartments Particulars Budget < 25L Availability* Total Supply** 2,210 4,469 Mid-Range 25L-50L 5,235 9,251 Premium 50L-1Cr 3,466 6,856 Luxury > 1Cr 986 1,539 11,897 21,115 Sub-Total

Key Locations
Banaswadi, HRBR Layout, Hennur Road, Thanisandra Main Road, Bellary Road, Yelahanka, Kogilu, Chokkanahalli, Bagalur Road, Doddabalapur Road, New Town Yelahanka, Jakkur

ORR IT Hub, Doddabalapur Industrial Area, BIAL

Hebbal, New Town Yelahanka, Bellary Road, Sahakarnagar

Esteem Mall(~ 0.2), Century Corbel (0.13), RMZ Galleria (0.45), MSR The Elements Mall (0.55), Brigade Orion Mall (0.35), GMR Mall, Sattva Mall (0.55), Century Mall (1.2)

MVIT, BMSIT, Reva Institute of Technology, KNSIT, Nitte College of Engineering, Nagarjuna College of Engineering, Brindavan College of Engineering, Kristu Jayanti College, Presidency College, Government Flying Training School

Columbia Asia, Bangalore Baptist Hospital, Dhanvantri Hospital, Krishna Devaraya Dental Hospital
1,680 Units
13,456 Units
Total Availability
INR 2,900 - 9,200 #

INR 3,700 - 10,000

INR 2,300 - 5,000

17%
3% - 6%
Villas Premium 50L-1Cr 0 0 Luxury 1Cr-3Cr 863 1,719 3Cr-5Cr 414 486 Super Luxury > 5Cr 282 412 1,559 2,617 13,456 23,732 Sub-Total Total
* Includes unsold stock of completed, under-construction and planned projects available with the developer. ** Supply from under-construction and planned projects (Planned projects include developments at pre-launch phase) # Includes capital values of Affordable Housing
26
HOSUR ROAD
27
This micro-market has witnessed growth of large scale residential and integrated township projects. However, in the recent past, absorption levels have remained low compared to availability.
Till 1991, this micro-market was driven by industrial developments in Hosur, Bommasandra and Jigani. Post 1991, Electronics City established itself as an IT Hub and housing requirement for working population increased manifold resulting in high residential activity in this region. However, this region did not develop as a suburban area owing to poor urban infrastructure, absence of integrated planning and fractured social infrastructure. This micro-market is one of the most active regions of Bangalore for budget category residential development. Budget category projects are mainly around ChandapuraAnekal region whereas a few locations have projects in mid and luxury category. Size of typical development ranges between 250 and 1000 units. However, Patel Neo Town is an integrated Township spread across 2500 acres. In 2009, completion of elevated expressway between Silk Board Junction and Electronics City improved the connectivity in this region. Key ongoing projects include Salarpuria Greenage, Ajmera Infinity, Patel New Town, Pride Crosswinds, SJR Primecorp Trillium, Uniworld Resorts and VBHC Vaibhava. Key planned developments are SJR Primecorps Fiesta Homes and expansion of existing projects. Currently, this micro-market is in oversupply situation and demand is likely to flatten/drop owing to saturation of economic hubs in this region. Prices are likely to be under downward pressure in short term. In medium term, attractiveness of this micro-market can improve with implementation of planned Metro Rail Phase 2 and growth of economic activities in Electronics City Phase 3 & in Hosur.
Apartments Particulars Budget < 25L Availability* Total Supply** 2,703 4,402 Mid-Range 25L-50L 2,320 3,848 Premium 50L-1Cr 1,435 2,009 Luxury > 1Cr 0 0 6,458 10,259 Sub-Total

Key Locations
Hosur Main Road, Electronics City, Neeladri, Chandapura Circle and Anekal

Electronics City, Jigani and Bommasandra Industrial Areas

Bannerghatta Road, BTM Layout

Total Mall (0.18), Neo Mall (1.7)

Oxford College of Engineering, PES College of Engineering, Symbiosis College, International Institute of Information Technology (IIIT)

Live 100, Oxford Hospitals, Narayana Hrudayalaya, Blossom Hospital
1,500 Units
7,278 Units
Total Availability
INR 2,500 - 4,500

INR 2,300 - 5,000

INR 1,500 - 3,000

8%
3.5% - 4%
Villas Premium 50L-1Cr 397 1,107 Luxury 1Cr-3Cr 420 505 3Cr-5Cr 3 0 Super Luxury > 5Cr 0 0 820 1,612 7,278 11,871 Sub-Total Total
28
BANNERGHATTA ROAD
29
This micro-market is progressing towards saturation state with limited land availability and flattening growth in southern Bangalore economic hubs. It is still one of the most preferred micro-markets of IT/ITeS professionals and population of Bangalore South owing to availability of good and improving social infrastructure.
Since early 1990s, this micro-market emerged as a residential hub housing IT/ITeS population working in IT Parks located in Bannerghatta Road and Electronics City. This micro-market is also a preferred location for senior and middle management working in manufacturing plants located in Jigani and Bommasandra. In addition, this region is a natural choice for growing resident population of Jayanagar and JP Nagar . Currently, in Bannerghatta Road residential activity is flattening because of limited availability of clear titled land parcels and restricted land use zoning. Moreover, IT growth is shifting from this quadrant towards East and North of Bangalore thereby softening the residential demand. In this quadrant, residential activity is increasing in Kanakapura Road due to lower land prices and enhanced connectivity through under construction Metro Rail Phase 1 project. This micro-market has matured social infrastructure retail malls, entertainment centers, hospitals and education institutions .Two more mixed use developments (retail, entertainment and hotel) are under construction. Apartment projects in premium category dominate this location; however, mid and luxury category residential developments also have share in this market. Prominent under construction residential developments include Hiranandani Upscale, DLF Westend Heights, Nitesh Hyde Park, Currently, this micro-market is stable; capital rates will appreciate at 12% -14% per annum. Mantri Pinnacle and SJR Primecorp Luxuria. Planned Projects include Mahaveer Riviera, Maangalya Ashirvad, SNN Raj Lakeview Phase 2 and others.
Apartments Particulars Budget < 25L Availability* Total Supply** 102 0 Mid-Range 25L-50L 2,345 4,307 Premium 50L-1Cr 738 1,664 Luxury > 1Cr 207 364 3,392 6,335 Sub-Total

Key Locations
Bannerghatta Main Road, Begur Road, BTM Layout

Bannerghatta Road, Koramangala, Outer Ring Road (Silk Board Jn. to Sarjapur Road)

Bannerghatta Road, BTM Layout

Gopalan Innovation Mall (0.18), Royal Meenakshi Mall (0.3), SJR Spectrum (0.5), Vega City (0.7)

IIM Bangalore, Alliance Business School, Jayadeva Institute of Cardiology

Fortis Group of Hospitals, Sagar Hospitals, Apollo Hospitals, Jayadeva Hospital
1,400 Units
3,628 Units
Total Availability
INR 3,500 - 6,600

INR 5,000 - 7,000

INR 2,500 - 3,850

12%
4% - 5%
30
MYSORE ROAD
31
This micro-market has witnessed growth in residential segment only in the recent past and future depends on growth of occupancy levels in Global Village (an IT Park) and Bidadi industrial area.
Till 2008, this micro-market has attracted limited interest from real estate developers as residential activity in Bangalore remained largely confined to southern and eastern regions of the city. This micro-market is dominated by industrial developments and educational institutions. Since late 1980s Kumbalgodu & Bidadi industrial areas attracted key domestic & global manufacturing plants in the region. In 2001, commencement of Global Village, an IT Park located Off Mysore Road, also could not provide sufficient traction for Class A residential development in this region owing to slow growth rate of IT development. However, post 2009, this micro-market attracted few developers namely Salarpuria, Century, Good Earth, Era Group owing to: - Development of Global Village Special Economic Zone - Increased activity in Bidadi Industrial region - Enhanced social infrastructure - Gopalan Mall - Improved connectivity via NICE Ring Road & ORR. The residential activity is set to increase in this micro-market in near future on account of ongoing Metro Rail Phase 1 & key IT companies expansion in this micro-market. This micro-market has witnessed residential activity largely in mid & budget categories. Ongoing projects include Salarpuria Melody, Good Earths Malhar Footprints, Century Indus, The Arena and others. Key planned residential developments in this zone include ETA Star Jardine Residences and projects by Kumar Properties and Kumar Urban Development Limited.
Currently, the availability of residential units is not high in this micro-market. Therefore, this location is likely to witness new launches & expansion of existing projects. In next 3 years, expected annual appreciation rate is between 8% and 10%.
Apartments Particulars Budget < 25L Availability* Total Supply** 154 476 Mid-Range 25L-50L 619 1,893 Premium 50L-1Cr 340 1,285 Luxury > 1Cr 0 0 1,113 3,654 Sub-Total

Key Locations
Mysore Road, Kengeri Satellite Town, Vijaynagar, Magadi Road, Rajarajeshwari Nagar

Global Village IT Park, Harohalli Industrial Area, Bidadi and Kumbalgodu Industrial Area

Rajajeshwari Nagar, Mysore Road and Gandhi Bazaar

Gopalan Arcade Mall (0.1), Gopalan Legacy Mall (0.17), Aga Mall (0.1)

RV College of Engineering, Bangalore University Mall, Indian Statistical Institute, RNS IT, National Law School

Rajarajeshwari Hospital, Manipal Speciality Hospital
450 Units
1,206 Units
Total Availability
INR 2,500 - 3,600

INR 6,000
INR 1,500 - 2,900

8%
3% - 3.5%
32
KANAKAPURA ROAD & BANASHANKARI EXTN.
33
In this micro-market, residential activities have increased in recent past with completion of Nandi Infrastructure Corridor Enterprises (NICE) Ring Road, under-construction Metro Rail Phase 1 and saturation of Bannerghatta micro-market.
This micro-market grew as an extension of Bangalore South locations Jayanagar, JP Nagar and Banashankari. Like Bannerghatta Road, residents of this zone are IT professionals working in Bannerghatta Road and Electronics City; also this location houses people working in industries located along Kanakapura Road & Harohalli industrial area. Currently, this micro-market is dependent on JP Nagar and Jayanagar for entertainment and other social infrastructure. However, completion of under construction retail mall Unitech Garden Galleria will improve the situation. Condition of urban infrastructure foot paths and road is average in this region. Key ongoing projects include Sobha Forest View, Brigade Meadows, Brigade Omega, Total Environment Magic Far Away Tree, TATA Promont and others Key upcoming projects include Century Central, Golden Gate Properties Panorama, Skyline Constructions Exaltus and others Currently, this micro-market is in stable status; capital values are expected to appreciate at 14% - 15% per annum. In short term this region would witness more residential project launches owing to land availability and commencement of under construction Metro Rail project.

Key Locations
Kanakapura Main Road, Banashankari and Uttrahalli

Suburban IT/ITeS locations of Koramangala and Bannerghatta Road

JP Nagar and Jayanagar

Unitech Gardens Galleria (0.45)

Skanda Central School and College, PES College of Pharmacy and Dayanand Sagar College

Sri Sai Ram Hospitals, CB Group of Hospitals, Sri Sri Wellness Centre
1,500 Units
5,415 Units
Total Availability
INR 3,000 - 6,000

INR 3,800
INR 2,000 - 3,600

14%
3% - 4%
Apartments Particulars Budget < 25L Availability* Total Supply** 98 1,542 Mid-Range 25L-50L 1,058 2,145 Premium 50L-1Cr 3,250 6,030 Luxury > 1Cr 409 472 4,815 10,189 Sub-Total Premium 50L-1Cr 0 0
Villas Luxury 1Cr-3Cr 600 1,000 3Cr-5Cr 0 0 Super Luxury > 5Cr 0 0 600 1,000 5,415 11,189 Sub-Total Total
34
TUMKUR ROAD
35
Rise of this micro-market is due to availability of land parcels, large and growing industrial hub, densely populated region, improvised connectivity through NICE Ring Road & Elevated Expressway and presence of Bangalore International Exhibition Center. This micromarket has immense potential for residential development especially in budget and mid categories.
The micro-market of Tumkur Road is primarily an industrial destination with traditional and established industrial clusters of Bangalore namely Peenya and Yeshwantpur industrial areas. Tumkur road being an industrial corridor houses various engineering and manufacturing industries along its stretch. In addition, Hindustan Machine Tools (HMT) township, spread across 475 acres is also located in this micro-market. In early 2000s saturation in city center locations, steady growth in real estate, and availability of land for redevelopment led to spill over of activity in locations such as Yeshwantpur and HMT layout. In 2008, completion of Bangalore International Airport in Devanahalli further strengthened this region as a preferred destination for development of real estate. Under construction Metro Rail project and availability of large industrial land for development are adding further impetus to development in this region. Brigade Gateway an integrated township is a success story of this micro-market. Many Grade A developments are located along Tumkur Road from Yeshwantpur till ORR. Key ongoing projects include Vaishnavi Nakshatra, Golden Grand, Sobha Aspire, Salarpuria Luxuria, Golden Grand and others Key planned projects from Phoenix Mills Group and Tata Realty Group. This micro-market is currently in stable state. In this region, prices are likely to appreciate between 10% 12% per annum in short term. The scenario will further improve with commissioning of under construction Metro Rail Phase 1 project in next few years.
Apartments Particulars Budget < 25L Availability* Total Supply** 1,372 1,677 Mid-Range 25L-50L 1,300 2,655 Premium 50L-1Cr 1,423 2,772 Luxury > 1Cr 5 360 4,100 7,464 Sub-Total

Key Locations
Tumkur Road, Rajajinagar, Hesaraghatta, Jallahalli, HMT Township, Yeshwantpur

Industrial locations of Peenya, Nelamangala and Dobbaspet

JP Nagar and Jayanagar

Mantri Square (0.93), Rockline Garuda Mall (0.98), Golden Heights (0.14), Brigade Orion (0.8), Vaishnavi Sapphire (0.28)

National Institute of Design, Indian Institute of Science, MS Ramaiah Institute of Technology

Columbia Asia
1,200 Units
4,100 Units
Total Availability
INR 3,500 - 6,500

INR 2,000 - 4,000

12%
3% - 4%
36
OUTLOOK
Bangalores residential segment is likely to grow annually at 15% for next 3 years. The most active micro-markets are ORR, Whitefield and Bangalore North.
In 2012, Bangalore is pegged to absorb 23,000 residential units. The capital value will appreciate on account of rising construction cost and land price between 8% and 18% across different micro-markets. South East micro-markets - Whitefield and ORR will remain highly active in short to medium term owing to proximity to established IT economic hubs. However, next growth direction would be North East Old Madras Road & Bangalore North (Hennur Road, Thanisandra Road and Bellary Road). Even though, Bangalore North may face over supply situation in short term owing to over enthusiasm of developers, long term potential of this micro-market continues to remain very high. Economic outlook for the city continues to remain strong in coming years with many large IT/ITeS, engineering and automobile MNCs having aggressive growth plans for the city. This would ensure healthy growth rate in residential segment. Basic requirement like availability of water is posing a serious threat to development scenario in Bangalore. Availability of higher FSI along key growth corridors and Metro Rail project will result in development of mixed use projects. Under construction and planned Infrastructure projects Metro Rail, Peripheral Ring Road will flatten capital values across different micro-markets and unlock many peripheral locations for further development.
37
GLOSSARY
Projects are classified into Class A & Class B developments on the basis of the following attributes:
Attributes Developer Reputation Type of Ownership Maintenance Quality of Construction
Class A Developments International/National/ Regional Public/ Private
Class B Developments
Largely city based Private/ Partnership/ Individual Inexperienced
Professional Superior (as per price segment) Security system, DG back-up, Club House, Swimming pool etc. depending on the price band and location of the property Typical size include 50 500 units (in each phase) depending on the location of the properties
Moderate
Amenities
Resticted/Limited Amenities Typical size include 20 200 units (in each phase) depending on the location of the property
Scale of Development
Terminologies of Supply, Availability, Absorption, Rental Yield Rate and Planned projects used in the report are provided below: Supply: Includes stock from developers in under-construction and planned projects. Resale units are not considered in the supply computation. Total Availability: Includes unsold stock of completed, underconstruction and planned projects available with the developer. Average Annual Absorption: Defined as the average number of residential units (from completed, under-construction and planned projects) absorbed/sold in a particular micro-location. Average Rental Yield Rate: Defined as the expected percentage of rental income for the purchase price of the residential unit. Computed using the below formula: Rental Yield Rate = [Net Operating Income (NOI) 6 of a particular property/Capital Value of that property]. Planned Projects: Includes stock of developments at pre-launch phase.
6 NOI is the income derived after deducting operating expenses (insurance, building maintenance, property taxes) and Vacancy losses for a property
38
STRATEGIC ADVISORY GROUP
35
OUTLOOK ACRONYMS
IT ITeS ORR INR CAGR SE NE MNC GDP FDI BCC CITB BDA CDP BMRDA PSU JNNURM HSRL HNI NRI FSI KIADB EPIP ITPB BIAL SEZ NICE Information Technology Information Technology enabled Services Outer Ring Road Indian Rupee Compound Annual Growth Rate South East North East Multinational Corporation Gross Domestic Product Foreign Direct Investment Bangalore City Corporation City Improvement Trust Board Bangalore Development Authority City Development Plan Bangalore Metropolitan Region Development Authority Public Sector Undertaking Jawaharlal Nehru National Urban Renewal Mission High Speed Rail Link High Net Worth Individual Non Resident Indian Floor Space Index Karnataka Industrial Areas Development Board Export Promotion Industrial Park International Tech Park Bangalore Bangalore International Airport Limited Special Economic Zone Nandi Infrastructure Corridor Enterprises
Acknowledgment
The Vestian Strategic Advisory team would like to take this opportunity to extend our gratitude towards all those who have helped us in our endeavor to produce this report. We would like to especially thank the developers in Bangalore who have extended their valuable support and market information which has helped us in ensuring authenticity of the report. We would alsolike to give a special mention to our Corporate Communications Team and Workplace Support Team members in particular Chandra Mohan Reddy and Manoj Joseph for their support.
39
GLOBAL MANAGEMENT
AUTHORS
Gorakh Jhunjhunwala MRICS Shrinivas Rao MRICS

CEO, Vestian Shrinivas serves as Chief Executive Officer for Asia Pacific. With 20 years of experience in working with global clients throughout India, he is well-versed in delivering solutions that work in India's very challenging workplace services markets. Amongst the pioneers of professional workplace consulting services in India, he successfully established and led operations of three multinational corporations in India. He is widely recognized as a change leader and known for his keen insights into workplace services trends and innovative structuring services. Assistant Vice-President, Vestian Strategic Advisory Group Gorakh heads Vestian Globals Strategic Advisory Group. With over 10 years of experience in Real Estate research and consulting domain, Gorakh has led real estate focused consulting assignments for leading multinational corporations, global and national developers and investment corporations across India and Asia Pacific region. His previous associations include UGL Equis and Chandavarkar and Thacker Architects Private Limited. He is a Fellow of Indian Institution of Valuers India. Gorakh received his Bachelors degree in Architecture from RV College of Engineering, Bangalore and Masters of Technology from Indian Institute of Technology, Delhi.
Dhara Dalal Michael Silver

Chairman, Vestian Michael serves as Chairman and is responsible for strategic oversight. He is a recognized leader in the field of real estate services, having established and led the growth of a large occupier focused services corporation. In 2006, he received the Ernst and Young Entrepreneur of the Year Award. He is also an active member of the YPO (Young Presidents' Organization) and WPO (World Presidents' Manager, Vestian Strategic Advisory Group As a part of the Strategic Advisory Group, Dhara contributes to Property Market reports, research papers as well as client assignments. She has over 6 years of experience and has worked on consultancy assignments across commercial, residential, industrial, hospitality and retail sectors. A few of the assignments executed by her include development feasibility studies, business location study, market research & assessment and opinion of value. She holds an Engineering Degree in Civil with M.Tech in Planning from CEPT University, Ahmedabad.
Shailendra Chandrashekhar
Manager, Vestian Strategic Advisory Group Shailendra contributes to property market reports, research papers as well as client assignments. He has over 6 years of experience in real estate and has worked on consultancy assignments across varied sectors like commercial, residential , hospitality, retail and industrial. Shailendra is an Engineer and holds an MBA from Ohio University, USA.
40
ABOUT US
Vestian Global Workplace Services, a contemporary workplace services firm, specializes in providing occupier-focused solutions for commercial, industrial, retail and hospitality sectors. Our service portfolio includes Strategic Advisory, Transaction Advisory, Integrated Service Delivery, Project Services, and Retail Business Solutions. We measure key deliverables of our business and align it to the clients business goals. Our commitment to achieve excellence and consistency in our service delivery models has helped us attain high standards of quality and raised the bar for the industry. Our experienced team has the required expertise and exposure in different sectors. Combining global best practices and local knowledge, the team provides an integrated solution for all real estate requirements. Moreover, the belief in our corporate philosophy - Delivering Measurable Results - helps us in providing solutions in keeping with global delivery standard. Strategic Advisory Vestian Global Workplace Services Strategic Advisory Group is the Research arm of Vestian. They align business strategies of corporate clients with their real estate portfolio strategy. Property market intelligence, economic, urban & space planning principles and analytical methods all come together to provide strategic insights to real estate occupiers. This approach guarantees recommendations that are thorough and meets not only the needs of today, but of the future as well. We primarily cater to Developers, Builders, Investors and Occupiers. Our studies span a spectrum of sectors:
l l
Transaction Advisory Vestians competent Transaction team provides an array of services focused on optimizing workplace solutions that enhance the clients workplace services portfolio. We handle varied workplace related transactions such as purchase, lease, disposal, lease management, lease renegotiations and restructuring. We provide solutions that are aligned to the business objectives of our clients. Project Services The Vestian Project Services team is a one-stop solution for clients opting for Project Management solutions. We are focused on delivering functional facilities that meet the clients space requirements. We provides supervisory & co-ordination services to the client. We deliver consistent, reliable and viable solutions for local and international markets. Our delivery process involves Preparation of design documents, coordination with architects & consultants for design, finalization of vendors, supervision of the project, Project closure. Retail Business Solutions Vestian Retail Business Solutions is the full-service retail arm of Vestian Global. We work with each client to understand their objectives and associated risks, establish achievable goals, develop and implement effective solutions. Vestian Retail Business Solutions provide end to end services which include Retailer Expansion Strategy ,Real Estate Services ,Occupier Representation, Retail Concept Development & Consulting, Retail Project Management.
Commercial Hospitality
Residential
Industrial
Institutional
41
CONTACTS
India Management
Shrinivas Rao MRICS CEO - Asia Pacific shrini@vestianglobal.com +91 80 40620102
Offices
INDIA (Corporate Office) First Floor, West Wing, DuParc Trinty, #17, MG Road, Bangalore 560 001 Telephone: +91 80 4062 0100 Mumbai Acme Plaza Unit No.501, 5th floor Andheri Kurla Road Andheri (East) Mumbai - 400059 Chennai Suite No # 403 MLS Business Center Kuppu Arcade 4, Venkatanarayana Road T. Nagar, Chennai- 600017 T: +91 44 39159351/ 66659351 Hyderabad 2nd Floor, N.N.R Arcade, Plot 13, Road No. 10, Banjara Hills Hyderabad - 500034 Telephone: +91 77 02214448 Gurgaon AmSoft Systems Pvt. Ltd. Unitech Trade Centre Sector-43, Sushant Lok-1 (Near Huda City Metro Station) Gurgaon, Haryana 122002 USA (Head Office) 300 N. LaSalle Street Suite 1850 Chicago, IL 60654 Telephone: +1 312 920 0290 CHINA (Regional Office) Unit 1207, No.546 Changning Road, Changning District, Shanghai 200 042 Telephone: +86 21 3255 6366 42
Strategic Advisory Group

Gorakh Jhunjhunwala MRICS AVP - Strategic Advisory Group gorakh@vestianglobal.com +91 80 40620100
Transaction Advisory
Anthony Ravindran DMD - Transaction Advisory Bangalore Operations tony@vestianglobal.com +91 80 40620106 Sanjay Purbey AVP - Business Development sanjay@vestianglobal.com +91 80 40620100
Project Services
Praveen Singh Director - Project Services praveen@vestianglobal.com +91 40 33782100
Retail Business Solutions

Vivek Nair VP & Business Head - Retail vivek@vestianglobal.com +91 80 40620100
Operations
Capt. Kunal Asirvadam VP - Operations kunal@vestianglobal.com +91 80 40620100 BANGALORE: RESIDENTIAL MARKET REPORT
W O R K P L A C E
S E R V I C E S
www.vestianglobal.com
Disclaimer: This report contains information available to the public and has been relied upon by Vestian Workplace Services on the basis that it is accurate. Vestian accepts no responsibility if this should prove not to be the case. No warranty or representation, expressed or implied is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions and withdrawal without notice.

Bangalore Residential Market Report April 2012 PDF

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Bangalore Residential Market Report April 2012 PDF

Transféré par

Droits d'auteur :

Formats disponibles

Bangalore: Residential Market Report

A REPORT BY STRATEGIC ADVISORY GROUP

BANGALORE RESIDENTIAL MARKET STATISTICS: 2012 AND BEYOND

BANGALORE: RESIDENTIAL MARKET REPORT

Bangalore Key Facts

9.6 million 4 47%

BANGALORE: RESIDENTIAL MARKET REPORT

GROWTH OF BANGALORE METROPOLITAN CITY

Bangalore founded by Kempe Gowda

British established Bangalore Cantonment

DEVELOPMENT OF THE CITY

BDA released CDP 2015

for Bangalore in July 2007

BANGALORE: RESIDENTIAL MARKET REPORT

INFRASTRUCTURE PROJECTS - METRO RAIL

Bangalore - Ongoing and Proposed Infrastructure Projects

Phase 1 Bangalore Metro Rail Phase 2

Entire Phase 1 in 2015

Peripheral Ring Road

High Speed Rail Link Bangalore - Mysore Express Way

BANGALORE: RESIDENTIAL MARKET REPORT

232 Projects ~44,000 Units

BANGALORE: RESIDENTIAL MARKET REPORT

Bangalore Residential Micro-Markets

RESIDENTIAL MICRO-MARKET ANALYSIS: POTENTIAL V/S ACTIVITY

Outer Ring Road

Old Madras Road

BANGALORE: RESIDENTIAL MARKET REPORT

CONSUMER PREFERENCE SURVEY

Central Off Central

BANGALORE CITY : RESIDENTIAL MICRO-MARKETS

Hoskote Industrial Area

Jalahalli HMT Township

Thannisandra Manyata Embassy Business Park Hebbal Hennur

OLD MADRAS 4 nai n H ROAD N To Che

Peenya Industrial Area

Byappanahalli C.V. Raman Nagar Indira Nagar ITPB

Vijaya Nagar Mysore Road Jaya Nagar

Jeevan Bhima Nagar

Banashankari J.P. Nagar Puttenahalli B.T.M. Layout IIMB

HSR Layout Wipro Hosa Road Begur Haralur

Kumbalgodu Industrial Area

OUTER RING ROAD

Kothnur Thalagattapura Gottigere

NICE Ring Road

Electronic City Bommasandra

Bommasandra & Jigani Industrial Area

Metro Rail Operational

Metro Rail Phase 1 Under Construction Proposed Metro Rail Phase 2

BANGALORE: RESIDENTIAL MARKET REPORT

Micro-Market Fact File

Key Economic Magnets

Key Retail Locations

Malls: Operational, UC & Planned (In million sqft)

Key Educational Institutes

Health Care Facilities

Average Annual Absorption

INR 7,500 - 25,000

per sqft Capital Values for Class A Apartment Projects

INR 6,000 - 14,000

Average Rental Yield Rate

BANGALORE: RESIDENTIAL MARKET REPORT

Micro-Market Fact File