North Bangalore Vs East Bangalore: Which one to choose?
Real estate as a commodity has garnered much attention from all over the nation, and the developer fraternity in Bangalore has been the centre of attraction for both the real estate investors and end-users alike. The city houses a host of public sector heavy industries, aerospace companies, software industries and telecommunication organizations. This has upped the residential real estate market of the city several notches up. North Bangalore and East Bangalore’s residential micro-markets in the city that are in the spotlight and have registered much real estate activity recently.
Bangalore has developed beyond imagination in the last few years, much of it can be attributed to its northern and eastern counterparts. Where Bangalore east had a lion’s share of 45-50% out of the total net absorption of 33988 units in 2012, north Bangalore has certainly upped its ante with the establishment of the Bangalore International Airport and the proposed ITIR. As per property consultants, with Whitefield and ORR-Sarjapur count in Bangalore east emerging as one of the potential residential destinations in the city, areas such as Yeshwantpur and Hennur have also come under the radar of major IT players and gated communities, trying to capitalize over it.
Why to select North Bangalore over East Bangalore?
Deduction on finding out the best-performing micro-market that can offer higher returns can be based on three parameters:
Infrastructure Development:
A slew of proposed infrastructural projects in north Bangalore such as the High Speed Rail Link, BDA Peripheral Ring Road, the broadening of the Bellary Road and the elevated expressway pave the way for the micro-market to become one of the most sought after self-sustained real estate destinations. With good schools like Canadian International, DPS and engineering colleges like VIT, MS Ramaiah etc. north Bangalore is all set to become ‘Greater Bangalore’ in the coming days. The ITIR [Information Technology Investment Region] and the The Karnataka Industrial Areas Development Board- Bengaluru Aerospace Park all contribute to rank this region in the list of preferred investment destinations.
With the signal-free ORR that runs from Silk Board to Hebbal, connecting Electronic City to Whitefield, east Bangalore has increased its pace in the race of best micro-markets in Bangalore. This 8.5 km extension, which is inclusive of underpass and flyovers, has been a real help for the working professionals dwelling in BTM Madivala, HSR-Layout and Marathahalli. Another flyover in east Bangalore which has gained prominence is the one that runs from Madivala-Electronics City. Albeit, east Bangalore has showcased significant infrastructural developments, it failed to match up the speedy growth rate of north Bangalore.
Connectivity
The price for plots, villas and apartments have been on a rise in Yelahanka and Doddaballapur road. Since 2011, the Hebbal locality has registered a 59% hike in real estate property appreciation. Much of it can be attributed to its close proximity to the International Airport, Majestic Railway Station, ISKCON, Marathahalli, Palace Grounds and MG road. Close proximity to the Bangalore International Airport and the proposed Hebbal to BIA road project (that will ease the traffic flow significantly) has raised the bar for North Bangalore. The proposed-monorail connecting JP Nagar with Hebbal, the 24 km north-south metro corridor and the High Speed Rail Link connecting Cubbon road with the BIA are expected to do wonders for North Bangalore, transferring connectivity at its best.
In comparison to North, the benefits of East Bangalore cannot go unnoticed. The Bangalore Metro Phase 1 and the proposed 15.5 km metro rail for phase-II will immensely aid the working professionals of the region to opt for a sprawling enclave in the lush vicinities of East Bangalore. With a host of reputed hospitals and international schools, Bangalore east has created a niche for itself. The Peripheral Ring Road that connects all the major highways (Hosur road to Tumkur road via Bellary road, Sarjapur road and Old Madras road) will ease the congestion on the ORR, is the much talked about element of east Bangalore.
Price and trends
Unlike east Bangalore, north Bangalore targets the mixed segment of buyers that includes-affordable, middle class and luxury category. Riding on the back of infrastructure developments and availability of large land parcels, the area has witnessed an average annual price appreciation of 11%-18%. With more than 14000 units available as on H1 2013, the micro-market boasts of good average annual rentals of 4%-7%. Class A apartments are available within the price bracket Rs 3800-Rs 11500 per sq ft in the region. The Yelahanka-Doddaballapur Road has witnessed a number of new launches in the last 12 months. Furthermore, Devanahalli continues to experience development of premium projects that fall in the price range Rs 2.5crore-Rs 5 crore.
East Bangalore, however, targets predominantly the IT/ITes professionals exclusively. KR Puram is coming up as an alternate residential destination for buyers in east Bangalore. Owing to a spree of infrastructural developments in the region, the micro-market has an average annual price appreciation ranging between 11%-21%. With more than 9886 units available as on H1 2013, the micro-market offers an average annual rental yield in the range of 4-6%. Class A apartments are available within the price bracket Rs 4200- Rs 8000 per sq ft in the region.
Growth of the IT industry, rapidly growing High Net-Worth Individuals and proposed SEZ and IT parks in North Bangalore sets it apart from the East. The onus of integrated townships and entry of new residential products into the Bangalore’s residential markets will go a long way, following the untapped potential of North Bangalore. Furthermore, with the functioning of the proposed infrastructure in North, residential real estate in the region will win the race in of the ideal residential real estate destination in Bangalore.
