Is North Bangalore becoming the Next Big Real Estate Investment Hub?

Jitu Virwani, Chairman and Managing director of the Embassy Group who has started buying land in North Bangalore from the year 1995, had said that this area holds a great potential for future growth.

Indeed, Bangalore is now witnessing a new reformation and it has started in North Bangalore region. This region is the focus of attention ever since the operation of the Kempegowda International Airport in the year 2008. It is the fastest growing region in the city and is becoming the next residential and commercial destination. Proximity to the Airport, Availability of Space, Upcoming Tech Parks, Improved Connectivity and Real Estate Development are the major factors of increasing demand in this region. The prominent locations of North Bangalore are Devanahalli, Hebbal, Doddaballapur Thanisandra, Hennur and Yelahanka. Bangalore, housing more than 900 IT firms, currently employs about 35% of India’s IT professionals and fortunately, this scenario is also soon going to change. Experts have predicted that it is the right time to invest in North Bangalore for gaining maximum returns.

Key Highlights in North Bangalore

1. Bangalore Aerospace SEZ: 950-acre Bangalore Aerospace Park including 250-acre special economic zone (SEZ) has attracted investments from 56 large and mid-sized companies.

2. Devanahalli Business Park: 413-acre Devanahalli Business Park expects to attract an investment of $2.2 billion over the next three to five years.

3. BIAL IT Investment Region (ITIR): 12,000-acres dedicated land for BIAL ITIR has generated interest from over 55 multinational IT companies including Infosys, Wipro, TCS, and Cognizant

4. International Convention Centre: Bangalore International Convention Centre will be built on 35 acres of land next to the Bangalore International Airport through a public-private-partnership (PPP) model.

5. Bellary Road: Bellary Road ( NH‐7) from existing 6‐lanes getting widened to 8‐lanes, which would sustain higher traffic due to airport expansion and expected real estate developments on either sides of the NH‐7.

6. Disney Land Theme Park: Department of Tourism determines to boost Karnataka Tourism Industry by initiating over 1000-acres of land for a large, multi-attraction, integrated theme park on the lines of Disneyland through a public-private-partnership (PPP) model.

7. Nano Park: Government of Karnataka is planning to set up India’s first Nano Park with a 15 acre plot for the park containing Nano Incubation Centre along with necessary physical infrastructure and support systems.

Only a few cities in India have the ability to attract and encourage people to settle down permanently. Bangalore is one such city which has inspired visitors from all over the world to relocate themselves here. Popularly recognized for its excellent weather, now it is known as the “Silicon Valley of India”. The areas of Bangalore are known distinctly as Central Bangalore- the commercial and business hub; North Bangalore- the government establishment centre; South Bangalore — the residential zone and Eastern Bangalore — the torch bearer of the IT revolution. But, this classification is soon changing through the rise of North Bangalore.

The advantages of North Bangalore divided into 5 most potential area of growth:

1. HEBBAL

Hebbal is one of the prominent localities in North Bangalore and the Hebbal Lake is a key landmark here. The establishment of L&T factory in the 1970s has boosted this area and has been growing ever since. The popular flyover linking to the Bellary Road and Outer Ring Road has significantly improved the development here. Real Estate market is growing due to the connectivity and potentiality of Hebbal.

Reasons to Invest:-

• 20 Kms distance to Kempegowda International Airport through NH7.
• Well connected to other parts of the city through Outer Ring Road and Railway Station with proper BMTC bus networks.
• The 8 lane Bellary Road likely to decongest the heavy traffic.
• 10 Kms distance to Majestic
• 4 Kms distance to Embassy Manyata Business Park.
• The phase 2 of the Namma Metro is likely through Hebbal from Silk Board.
• Employment hubs nearby: Manyata Tech Park, Manyata Embassy Business Park and Kirloskar Business Park.
• Social Infrastructure nearby: Leading hospitals like Bangalore Baptist Hospital and Columbia Asia Hospital; Esteem Mall; reputed education institutes like Air Force School and Vidya Niketan School. Upcoming Hotel Projects include Hyatt Residency and Oberoi Luxury Hotel in the Hebbal lake area
• Real Estate: Property values range between Rs.4500 to Rs 8000 per sq ft. There are several prominent real estate properties in Hebbal including Godrej Platinum, Century Ethos, Sobha City, and many others.

2. DEVANAHALLI

Famously known as the birthplace of Tipu Sultan and the site of Kempegowda International Airport, Devanahalli is now the next big commercial hub of Bangalore. It is gaining a lot of attention due to multi-billion dollar investment proposals and reasonable property pricing points. Additionally, companies and families are shifting their base to this area as it is free from the chaos and congestion, not at all like Bangalore City.

Reason to Invest:-

• 5 Kms distance to Kempegowda International Airport via NH7.
• A new satellite ring road will connect the city with Doddaballapur road.
• A Multibillion-Dollar Devanahalli Business Park initiated by State Government coming up on nearly 413 acres next to the airport which will include : IT & ITes parks/SEZs, three multi-specialty hospitals, a finance district, an aviation academy and Bengaluru International Convention Centre (BICC)
• The BICC will be ready soon.
• Devanahalli is situated near the upcoming 12,000-acre BIAL IT Investment Region (ITIR) and is expected to be the largest IT region in India housing big shots like StarragHeckert, Wipro, Shell, Tata Elxi, IFCI and TCS which would create nearly 4 million jobs.
• Shell and IFCI campuses will be completed soon.
• 950-acre Bangalore Aerospace Park including 250-acre special economic zone (SEZ) with Boeing, Airbus and Bombardie will be creating nearly 2.5 Lakh jobs
• Social Infrastructure nearby: Popular hospitals and Malls like Columbia Asia Hospital and Phoenix Market City Mall. Upcoming Hotel projects include Oberoi at Bangalore International Airport and Taj Airport Hotel and Holiday Inn at Devanahalli.
• Infosys Technologies has acquired 10 acres of land in the Devanahalli area.

3. THANISANDRA

Thanisandra is yet another growing locality in Bangalore which enjoys proximity to the International Airport and well connectivity with areas like Jakkur, Hebbal, HBR Layout and Hennur. It has easy access to the other important areas in the city through the Outer Ring Road (ORR).

Reason to Invest:-

• 25 Kms distance to Kempegowda International Airport.
• On-going expansion of the main road as an alternative road to the Airport.
• Easy access to central Bangalore through BMTC services
• Employment zone: 2 km from Manyata Tech Pak and 8 km from Kirloskar Business Park.
• Social Infrastructure nearby: Popular infrastructure include Hilton and Shangri-La; HKBK College of Engineering; Bangalore Baptist Hospital. Also, the luxurious Leela Hotel is coming up in Bhartiya City.

4. YELAHANKA

Yelahanka, a residential suburb of Bangalore, can be described as an ideal place to live in, as it is quiet, peaceful and lush green. It is also one of the fastest growing localities due to the availability of vast undeveloped land. There are lots of properties coming up in this area which will cater the needs of the community. It is emerging as an important residential destination for affordable to luxury developments which will lead to a good Return On Investment in the future.

Reason to Invest:-

• 20 Kms distance to Kempegowda International Airport.
• Education Institutions: BMS Institute of Technology, Ryan International School, Delhi Public School and SB College of Nursing
• Two lakes in the area — Allalasandra Lake and Puttenhalli Lake enhancing the independent ecosystem of this region.
• Infrastructural upgrades like the High Speed Rail Link (HSRL) to the airport, Metro Line and the Peripheral Ring Road will benefit the connectivity to this area.
• The Commuter Rail System will connect Devanahalli with Yeshwantpur via Yelahanka due to the development of Devanahalli Business Park
• Real Estate: Property values range between Rs 2,500–5,000 per sq ft. Over 20 new projects are launching soon at various prices in Yelahanka.

5. HENNUR ROAD

Hennur Main Road enjoys proximity to the airport as well as to the city. Like Yelahanka, this is another peaceful and greenery region in Bangalore. This area is now becoming an attractive destination for consumers due to its connectivity, important residential projects and developing infrastructures.

Reason to Invest:-

• 30 Kms distance to Kempegowda International Airport.
• 15 Kms distance to Majestic
• Real Estate: This luxurious residential project consisting of all the necessary amenities is ready to move in. Experts say Bangalore has a stable Real Estate market as it has not seen extreme fluctuations and has steady prices. The North Bangalore is considered as the future of Bangalore realty market since it is blessed with the good connectivity, green surroundings, available land for developments and range of properties (from plots to integrated townships) available for all income groups. The key drivers of the residential growth are: — proposed Devanahalli Business Park, Information Technology Investment Region (ITIR) near Devanahalli, Planned Aerospace SEZ near the International Airport, Elevated Expressway (Bellary Road), Bangalore Metro Rail, High-Speed Rail Link and Peripheral Ring Road.

In conclusion, the arrival of the International Airport has flourished North Bangalore in the last decade and this region is bound to develop more in the coming days, thus making it a fantastic investment destination.