Posted on Feb 13, 2013 by admin

Infrastructure coupled with better connectivity will give this region an edge, says Deepti Ganapathy

The north of the city is a prime belt thanks to the critical infrastructure project it hosts - the international airport. The airport has driven realty development here - both commercial and residential - and has made this region a much sought-after one. The appreciation in value of property in this sector is a given thanks to the airport.

Soon after the airport became operational, the government announced plans to make the region a commercial hub. Some 3,000 acres of land was earmarked for the IT hardware sector and aerospace parks to come up near the international airport, with a provision to develop residential facilities for people working in those industrial plants over about 250-300 acres.

The proposed Peripheral Ring Road (PRR) and signalfree Outer Ring Road (ORR) will be the other major factors driving demand in this region. The elevated road over the Bellary Road developed by the National Highways Authority of India (NHAI) is also adding value here. "The overall office real estate market in Bangalore is likely to grow further in 2013, on the back of an expected recovery in GDP growth rate, declining interest rates and a stabilising global economy. This will mean growth in office real estate in north Bangalore too. This locality is an emerging office destination in the city," says Anshul Jain, Chief Executive, DTZ.

Commenting on the outlook for this year, Zahed Mahmood, Director, Silverline Realty Pvt Ltd, says last year was good as the existing supply was absorbed owing to the fact that builders did not add much additional inventory. "The north has potential for office space development due to its proximity to the airport and the elevated road," says Zahed.

"Currently, the size of the office market in north Bangalore is around eight million sqft, well under 10 percent of the total office stock across the city, with only one operational IT/ITeS special economic zone (SEZ) on the Hebbal-Nagwara ORR. In 2013, new supply of over one million sqft is scheduled in this market, with a substantial portion already being preleased. Rents in this market are likely to grow too," adds Anshul.

The upcoming Union Budget too will have something to look forward to. According to Anshuman Magazine, Chairman and MD, CBRE, South Asia Pvt Ltd, "The expectation from the Budget is to reduce the interest rates on home loans, especially for mid-segment housing loans as well as give further tax incentives for investments in housing. The budget should continue to allocate a larger share of funds for infrastructure development."

The prospects for the north of the city look good due to availability of space and infrastructure. "With a second IT/ITeS SEZ under construction and more such projects being planned, the supply is likely to grow substantially in north Bangalore over the next few years. There are a number of commercial office projects being developed along Bellary Road and in Yelahanka which will add to the office space stock beginning 2014-15. Also, the social infrastructure in the area is getting a boost with the development of malls and a number of hotel projects under development in the region. The region already boasts of a number of good schools," adds Anshul.

Source: The Times of India, Bangalore on 8th february 2013