North Bangalore-A perfect setting for real estate development

Over the years, Bangalore, the IT/ITes hub of the nation, has emerged as one of the matured residential markets, offering attractive choices for investors. North of Bangalore, in this regard, is highly appreciated and has precedence over other major areas of the city in terms of residential and commercial developments.

Upsurge in employment opportunities, prominent IT parks and favorable demographics are the key drivers in molding North Bangalore into an ideal destination for real estate investment. The region has emerged as a micro-market with a huge extension of retail and residential growth and is being highly preferred by value seeking buyers.

The attractiveness of North Bangalore can be attributed to its proposed proximity to Metro ride to nearby localities, International airport and upgraded accessibility. One of the key drivers for the growth of real estate value in North Bangalore is the  Hebbal-Yelahanka elevated expressway.

Connectivity transforms the landscape of North Bangalore

Hebbal-Yelahanka elevated expressway is an important part of the (22 km) highway enhancement project and holds the key to the real estate growth in North Bangalore. The northern locations of Bangalore came into prominence with the setting up of Bangalore International Airport (BIA) in Devanahalli.

According to JLL reports, the upcoming six-lane Hebbal-Yelahanka elevated expressway is likely to reduce the time taken to reach the airport. At present, the time taken to reach the airport from Hebbal is nearly 45 minutes, however, with the completion of elevated expressway, the time will be cut short to 20 minutes. The upgradation of the 6 lane elevated stretch is being handed by National Highways Authority of India(NHAI) under the National Highways Development Project-Phase VII.

Consequently, due to ease in accessibility, the region is likely to experience a plethora of residential and commercial developments because of its access-controlled traffic. Other infrastructure developments including six flyovers, pedestrian underpasses and cattle crossings will promote North Bangalore as the major upmarket.

Hike in property prices

The rate of villas, apartments and plots have seen a steady hike near the Hebbal-Yelahanka stretch and Doddaballapur road in recent times. According to Cushman and Wakefield reports, Hebbal, one of the prime locations in Bangalore, has seen an appreciation of 59% in real estate, since 2011. This is due to its proximity to a number of areas including:

• Majestic Railway Station

• Palace Grounds

• International Airport

• Commercial Street

Completion of the Namma Metro in its given time frame, would serve as an added advantage for the North Bangalore. Property rates will rise due to better connectivity after metro starts functioning and Nagawara to rest of the city. Some of the upcoming projects in this region include  RMZ Galleria in Yelahanka, Brigade Caladium in Hebbal, NCC in Yelahanka and RMZ Galleria in Yelahanka.

Reasons for the growth in real estate

Due to improved connectivity, northeastern micro markets are likely to experience an increasing number of residential property transactions. The nodal points of North Bangalore, such as Hebbal, Yelahanka and Devanahalli have witnessed the launch of major projects in recent times. To add to it, government focus in this area has given it an extra edge. Declaring of the establishment of Aerospace SEZ, Information Technology Investment Region and Hardware Park by the government, the region is set to become the economic epicentre of Bangalore.

Moreover, government’s effort to enhance the infrastructure by introducing High Speed Rail Link, Peripheral ring road and Metro have added to the list of benefits offered by the region.Such developments will curb the higher traffic issues due to airport expansion and trigger real estate growths.

Price Appreciationre

The key benefits for residential catchments because of such infrastructure projects is improved connectivity. To add to it, investors can ensured of better price appreciation in a short span of time. At present, the price per sq ft for a multistorey apartment in North Bangalore ranges between Rs 4500 to Rs 5300. According to property consultants, capital appreciation in the region ranges between 15-18 percent annually. Rental returns will boost up when economic activity grows in terms of industries and office spaces.

Easy availability of land at convenient rates and major infrastructure growths have spurred the builders to launch premium projects in the region. Hence, investing in the region is likely to yield fruitful returns for an investor.