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Bengaluru’s affordable housing segment has been witnessing steady demand on the outskirts. Expansion of the city in all directions and infrastructure developments, such as the planned metro rail and Peripheral Ring Road, have played a part in creating affordable emerging areas that are attractive and viable.
The influx of global corporate occupiers, infrastructure deployment in the peripheral areas, improving connectivity and unleashing of large land parcels by the government for commercial and industrial growth, have helped in the rapid emergence of newer nodes in the peripheral districts of Bengaluru.
Land in these areas comes at a lower cost; this has attracted developers of affordable housing projects, which are in demand from the workforce employed in the numerous automotive, engineering and other industries located on the outskirts of Bengaluru.
The top 10 regions
Located towards the south of Bengaluru, Kanakapura Road benefits from excellent connectivity with the key city centres. The Nice Road (Bengaluru-Mysore infrastructure corridor) connects Kanakapura to Bengaluru, Mysore Road and Bannerghatta Road. The ongoing Peripheral Ring Road (PRR) will connect all the major highways – Tumkur Road, Mysore Road, Old Madras Road and Hosur Road. Extension of the metro line and widening of roads have also improved the real estate profile of this market, which is close to prominent educational institutions. With property prices below Rs 4,900 per sq ft, Kanakapura Road is certainly an area for both, end-users and investors to watch.
2. Sarjapur Road
This area has witnessed stable demand from middle-class buyers looking for 1 and 2-BHK flats, as well as from high-end buyers focused on villas and row houses. Its proximity to the large IT/ITeS campuses of Outer Ring Road (ORR), Whitefield and Electronics City, has strengthened investor sentiment in this location. The property prices at Sarjapur Road range between Rs 4,700 and Rs 4,850 per sq ft, with a quarterly appreciation of around 4.7%.
An upcoming location in Whitefield, Nallurhalli benefits from generous green cover, as well as the presence of a lake. It is home to Sigma Tech Park, Forum Value Mall and ITPL, and also enjoys good accessibility from the Old Airport Road and Old Madras Road. This location is seeing a lot of villa and bungalow-type developments. Nallurhalli offers affordable residential options, for home buyers seeking to live close to Whitefield. Property prices range between Rs 4,500 and Rs 4,700 per sq ft, with a quarterly appreciation of 2%.
Kengeri is an established satellite township where property demand is driven by the industrial and IT developments along Mysore Road. Kengeri benefits from excellent connectivity with Mysore Road, Nice Road and the ORR, and the western extension of Namma Metro from the Mysore Road terminal to Kengeri. It is currently a mid to affordable residential market, with property prices averaging at Rs 3,815 per sq ft and witnessing a quarterly appreciation of 3.7%.
Budigere on Old Madras Road is an emerging residential destination, where IT/ITeS influence from the neighbouring areas and rapid infrastructure development, have resulted in considerable growth in a short time. Budigere also receives strong demand for residential units from the manufacturing industries present in the region. Many reputed developers are active here with a wide range of housing projects. Prices range between Rs 4,500 and Rs 4,700 per sq ft, with the last quarter bringing a surge in property values by 2-3%.
6. Magadi Road
Magadi Road in the western part of Bengaluru, is easily accessible from the centre of the city. As most of the development in Bengaluru is focused towards the east and south of the city, the western corridor remains relatively green and serene. Also, good connectivity through Nice Road, ORR and the Purple Line of Namma Metro, give Magadi Road easy accessibility to other parts of the city. This has led to many leading developers launching mid to high-end apartment projects along Magadi Road. These projects are priced in the range of Rs 8,000-12,000 per sq ft for high-end units and Rs 3,300-5,000 per sq ft for mid-end projects.
7. Hosur Road
Hosur Road in south Bengaluru covers locations such as Begur, Kudlu Gate, Singasandra and Electronic City. Locations along Hosur Road close to Electronic City and Begur Road, cater to the affordable and mid-segment housing, with prices less than Rs 4,500 per sq ft. Prices in both these locations have appreciated by about 5%-10% in the last year.
8. Yelahanka and Doddaballapur Road
The development of the Kempegowda International Airport opened the floodgates for office and mixed-use developments along NH-7 connecting Yelahanka and the airport. The availability of large land parcels and good rail and road connectivity with the core city, have been driving investment sentiment at Yelahanka. Apartment projects are currently priced between Rs 4,000 and Rs 5,500 per sq ft in this locality, which also has several plotted developments. This location is in its initial stages of development. However, as the SEZ and mixed-use developments along the NH-7 start operations within the next year, this location is likely to witness greater demand, development and appreciation.
Horamavu in the north-east part of Bengaluru, is developing into a fully-loaded residential destination. This location currently caters to the residential requirements of employees from the office projects in the northern part of Whitefield. Some of Bengaluru’s leading local developers and a couple of national players are now active in Horamavu. It is still primarily a mid-segment residential destination, with capital values ranging between Rs 3,000 and Rs 4,800 per sq ft.
10. Mysore Road
A major portion of Mysore Road is still dense with old developments, built on small parcels of land. However, the development of the Global Tech Village, has led to the launch of many residential apartments in this location, which is now seeing added traction on account of its proximity to various educational institutions and industrial developments, and good connectivity from the ORR and Nice Road. The residential sector on Mysore Road is mostly dominated by low and mid-segment projects, with capital values ranging from Rs 3,000-4,000 per sq ft. The typical buyers for homes in this area are employed in the government services, small-scale industries and to some extent in the IT/ITeS sector.
As Bengaluru expands, more such affordable corridors will be developed. Among many other things, the city is a leading destination for back-office and other support areas of the IT/ITeS and other services sectors. Affordable housing will, therefore, remain the backbone that supports the real estate market of this thriving city.
(The writer is chairman and country head, JLL India)
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