<b>Hotspot:</b> Bellary Road, Bengaluru

Offers wide choice in residential space

Over the last few years, North Bengaluru has emerged as a prime residential hub in the city, and has become the venue of a maximum number of affordable residential projects, with a  slight blend of luxury housing. When compared to the established market of East Bengaluru, affordable housing launches are greater in North Bengaluru — primarily due to the availability of large land parcels at relatively lower acquisition costs.

However, it was the advent of International Airport that changed the entire scenario for North Bengaluru. The entire stretch from Hebbal to Thanisandra Road is witnessing a high scale of real estate development, and is attracting many reputed developers to launch a wide spectrum of residential products here. Interestingly, all these areas have now turned into the most preferred residential choices for home buyers in Bengaluru.

One such area that is witnessing exceptional growth in its real estate story is Bellary Road. This growth node and the surrounding micro-market along the stretch seems to be an area that is clearly beating most other locations in Bengaluru. The government-set guidance value of areas adjoining Bellary Road on the national highway was proposed to be hiked to Rs5,483/sq.ft in September 2015. However, in February 2016, the same property has been pegged at Rs12,081/sq.ft, fetching a double growth in just a matter of six months.

The realty prospects within the proximity to the Bengaluru airport have always looked good. The Aerospace and IT/ITeS Special Economic Zones have no doubt fuelled the growth story here. However, it’s the infrastructure projects that have bolstered the prospects in this area. 

Rapid enhancement of social and physical infrastructure such as the Elevated Expressway — Bellary Road, Monorail, high-speed rail link, the Metro rail project and overall excellent connectivity to prime locations and central business districts have changed the game for this section of the city.  

The major demand for housing comes from the workforce employed in North Bangalore — primarily professionals working at Kirloskar Business Park, Manyata Tech Park and various multinational companies that have their base here. 

Though the area is heavily inclined mostly towards the affordable housing segment, this market is now also exploring different configurations in residential spaces, including luxury villas and apartments and duplexes apart from regular apartment schemes. The residential real estate prices here currently range between Rs5,300-6,500/sq.ft., with a y-o-y appreciation to the tune of 7-12 per cent depending on the project and amenities offered.  The rental market is also very strong, offering rental yields of 3.2-3.5 per cent. 

Surrounded by various economic touch points, the hospitality industry in this vicinity is also growing rapidly due to its proximity to the international airport. All in all, with an increased demand for affordable housing projects, the real estate market in the North Bengaluru is expected to grow massively in the future. 

The constantly escalating price trend has created a positive market sentiment, giving investors high confidence to enter this thriving real estate market.

The writer is Managing Director - Bangalore & Kochi, JLL India