Property Buyers Are Honing in On East Bengaluru
What once used to be a mid-level market full of estates, green stretches of land, fields and farms, East Bengaluru has grown from a stretch of land with 33 wards into a phenomenally developed IT area in its own right, thanks to giants like Wipro and Accenture who have offices there. There have been huge strides that have been taken in terms of infrastructure, development and commercial activity and these developments have attracted many real estate developers and players to explore East Bengaluru and its many opportunities. The whole stretch of East Bengaluru consists of fantastic localities that are satellite areas in themselves and have their own distinct positive aspects – Sarjapur Road, Whitefield, Old Madras Road and Marathahalli. All these areas have access to Koramangala, HSR Layout, Central Bengaluru and North Bengaluru through the remarkable Outer Ring Road, which extends great connectivity to the area.
There are many reasons why property developers are eyeing East Bengaluru. Typically, East Bengaluru displays all the signs of price appreciation and phenomenal returns that a developer or an investor looks for – excellent growth prospects, huge opportunities from sectors like IT and ITeS, infrastructure and more. Here are some of the key reasons why developers and investors are looking at East Bengaluru:
Employment and Technical hub
Whitefield and Sarjapur Road are becoming important IT centers in the city and the technology permeates to everything else, as people here consistently demand more cutting-edge infrastructure and facilities. Mahadevpura, Sarjapur Road and Whitefield have many tech parks and special economic zones. There are huge companies such as Wipro, Capgemini, Accenture, HP, Tesco, AOL, Nokia and more. East Bengaluru has many IT companies that are fitted in with wonderful adjoining living spaces and apartment complexes and this trend is gaining popularity in the area. Bengaluru is the IT hub of the country and about 40-50 per cent of the market share of IT in the city resides in East Bengaluru. It is no wonder then that the net absorption of units in the area, the employment boom and the development have ensured that everyone wants to move here.
In December 2014, huge IT companies from the US have bought real estate in East Bengaluru. These companies include Adobe, SanDisk and Oracle. The Silicon Valley-based [24]7 is setting up 4 lakh sq. ft. of office space at Prestige Tech Park.
Affordability
The rates of property in East Bengaluru are affordable and very reasonable when you consider the amount of space and greenery that you get access to, in this area, unlike the congested central Bengaluru areas. Apart from houses that are aimed at the luxury market and premium end-users in the area, East Bengaluru has also seen many 1BHK apartments and smaller units of affordable flats in different and affordable ticket sizes. In fact, East Bengaluru has witnessed a 6 per cent rise in demand for high-end property and a 5 per cent rise in demand for mid-sized apartments and projects targeted at mid-income groups, with this market being especially huge in Sarjapur Road and Whitefield. There has also been a 9 per cent rise in terms of villas and luxury apartments and even these start at a fairly affordable rate of Rs 1.4 crore a unit.
Added to this, the return on investments in terms of real estate in East Bengaluru are impressive. The average capital appreciation in East Bengaluru is about 13 per cent and the average yield on rental income is 4-5 per cent
Infrastructure and connectivity
East Bengaluru boasts of fantastic connectivity that has contributed to its enormous growth and makes it accessible to the central business districts in the city. The signal-free Outer Ring Road is a major arterial road that links Silk Board, Hebbal, Electronic City and Whitefield – quite literally, all corners of the city. The ORR is a boon for all the IT professionals and people from other industries who commute back and forth to work every day. There is also the elevated expressway and the Electronic City flyover. The Phase 2 of the Bengaluru Namma Metro is expected to join Whitefield with Byappanahalli and will be the icing on the cake in terms of the huge promise that this area holds. Apart from this, there are other flyovers, underpasses and highways that make commuting easier.
Apart from connectivity, East Bengaluru boasts of fantastic social and physical infrastructures. There are six major shopping malls here, including the world-class Phoenix City Mall with its international brands. There are multiplexes, entertainment parks, hospitals, restaurants and more. Sarjapur Road is also emerging as the Mecca of Education in Bengaluru, with a majority of the reputable schools shifting here and many new ones coming up.
The Kempegowda International Airport is 52 kms from Sarjapur Road thanks to ORR and the Bengaluru-Hyderabad Highway.
Emerging areas of interest in East Bengaluru
Apart from the givens like Sarjapur Road and Marathahalli, some of the emerging areas of high value in East Bengaluru are Brookfield, ITPL, Mahadevpura, KR Puram, and CV Raman Nagar. Brookefield is connected to the city by BMTC via Varthur Road and has witnessed a price appreciation of 38% to 40% in two years. ITPL has seen an appreciation of 30-33 per cent in two years. Mahadevpura has witnessed 25 per cent appreciation. CV Raman Nagar has seen a 23 per cent rise in property. KR Puram has seen a 11 per cent rise in property rates.
East Bangalore, Infrastructure in East Bengaluru, Property Buyers, property in east bengaluru, special economic zones
