Bangalore Residential Report

Bangalore: Residential Market Report
April 2012

A REPORT BY STRATEGIC ADVISORY GROUP
W O R K P L A C E S E R V I C E S

BANGALORE RESIDENTIAL MARKET STATISTICS: 2012 AND BEYOND

14 Million 13%
Bangalore metropolitan population average annual price appreciation
by 2021.1 rate in residential sector for last 4
years.

20,600 4.5%
residential units absorbed in 2011. average annual residential yield rate.

100,000+ 44,000
average annual addition in IT/ITeS residential units launched in 2011
workforce for past 2 years; [38,700 and 5,300 in apartment
expected to grow at least at this and villa/row houses category
rate for next 3 years. respectively].

55,400 15%
residential units available. CAGR for residential sector during
2008-11.

1 Source: Census of India population in Bangalore of 9.6 million is projected assuming CAGR of 4.3% to arrive at a population of 14 million for 2021.

1

EXECUTIVE SUMMARY

• For the past two decades, Bangalore has been the fastest • Bangalore cannot afford to witness same number of project
growing city of India. Bangalore is termed as ‘World City’ being launches this year as 2011. If the activity level does not drop to
established Silicon Valley of Asia; in addition it has multi-cultural half of 2011 then, Bangalore residential market is likely to face
population, good education & social infrastructure, and an oversupply situation.
improving physical infrastructure.
• Last year, Bangalore witnessed entry of new residential
• Bangalore’s residential market interests all stakeholders – products namely Villament and Branded Homes. Villament
developers, landowners and investors on account of large, projects have been launched in Off Central and suburban
educated, young, double income household and growing locations by developers like Habitat Ventures, LGCL and
migrant population. Many prominent national and international Salarpuria. An international company – Westcourt has launched
developers have entered Bangalore residential market and more a Branded Home project near Mekhri Circle, Bellary Road.
are expected to join in the coming years.
• Bangalore’s residential segment is likely to grow annually at
• Currently, the most promising residential micro-markets in 15% for next 3 years. In 2012, Bangalore is pegged to absorb
Bangalore are Outer Ring Road (ORR), Whitefield and Bangalore 23,000 residential units. The capital value would appreciate
North. between 12% to 20% across different micro-markets on account
of rising construction cost and land price.
• Old Madras Road and Mysore Road micro-markets have
untapped potential for residential development. Old Madras • South East (SE) quadrant micro-markets – Whitefield, ORR and
Road is gaining traction faster due to its proximity to IT hubs – Sarjapur Road will remain active in short to medium term owing
Whitefield & ORR, Bangalore International Airport and City to proximity to established IT economic hubs. However, next
Center. growth direction would be North East (NE) quadrant – Old
Madras Road & Bangalore North (Hennur Road, Thanisandra
• In Apartment market, except budget category (less than INR Road and Bellary Road). Although, Bangalore North may face
25L), residential products across other segments are under over supply situation in short term owing to over enthusiasm of
downward pressure owing to high activity levels. Even in the mid developers towards this micro-market, the long term potential
category (INR 25L – 50L), developers have launched oversized of this micro-market is very high.
apartment projects.
• Economic outlook for the city remains strong in coming years
• Bangalore is one of the most promising markets for Villa as many large IT/ITeS, Engineering and Automobile MNCs have
projects in India. However, as per current statistics, the market aggressive growth plans for the city. This would ensure healthy
has very high expectation from this product. Many under growth rate in residential segment.
construction projects may take a longer timelines for
completion.

• As per absorption analysis, Bangalore’s buyers are more
sensitive compared to other southern Indian cities towards
quality of the project, amenities and unit sizes.

BANGALORE: RESIDENTIAL MARKET REPORT 2

Bangalore boasts of the highest growth rate
among all Indian cities, with double digit annual
growth rate of IT/ITeS sector. Currently
population of the Bangalore Urban District is 9.6
million and is expected to grow to 14 million by
2021.

• Bangalore owes its multi-fold economic growth since 1990s to
IT/ITeS industry. The wealth created by the new industry has had
a multiplier effect leading to a real estate boom, a flourishing
retail and leisure industry. The knowledge economy of
Bangalore has transformed it from a small town, peaceful,
pensioners’ paradise to a global technology hub.
• Post 1991, economic liberalization led to the growth of
knowledge economy thereby leading to migration of educated
middle class to the city; exposure of the young urban population
to global standard of living; availability of housing finance and
private participation in real estate sector set the tone of social
infrastructure residential, retail, education and others in the city.
• Bangalore is expected to continue to follow upward prosperity
trajectory in coming decades as well. As per Mckinsey 2, by 2030
among all Indian cities Bangalore would have highest per capita
GDP.

Bangalore Key Facts
Key Facts
3
Area (sq.km) 1,306

Population as of 2011 9.6 million 4
5
Decadal Population Growth Rate 47%

2 Source: McKinsey Global Institute – India's Urban Awakening: Building Inclusive Cities, Sustaining
Economic Growth, published in April 2010. 3 Bruhat Bangalore Mahanagara Palike (BBMP) was
formed in 2007 and it includes 100 wards of the erstwhile Bangalore Mahanagara Palike, with seven
neighboring City Municipal Councils, one Town Municipal Council and 110 villages around the city.
4 Census of India 2011, Provisional Population for States 2011. 5 With urban population of 9.6
million in the year 2011, Bangalore is the third most populous city and fifth largest urban
agglomerations in India. Population in the city grew at an annual growth rate of 4.7% during 2001 –
2011; population for the year 2021 assuming the same growth rate could be pegged at 14 million.

3

Bangalore’s emergence as a world city is closely
tied with growth of IT sector. Currently, City has
over 800,000 IT/ITeS workforce and adding over
100,000 workforces every year.

As of now, 2,840 IT/ITeS companies including more than 100
Fortune 500 companies have established their operations in
Bangalore. Key reasons of Bangalore’s emergence as an IT hub of
India are:
• Access to Talent Pool on account of :
a) Availability of education institutions, during early 20th
Century British Government developed excellent education
infrastructure in Bangalore City. This resulted high penetration
of English language in local population.
b) Today Bangalore has over 5400 schools and 620 colleges.
Colleges offering general degree are about 350, engineering
colleges account for 80, medical seven, Law - 72 and
Management-120.
c) Karnataka was the first Indian State to recognize the
importance of technical and engineering education and
therefore encouraged the setting-up of privately-owned
engineering colleges.
d) Bangalore has nationally renowned professional institutes
such as IISc, ISI, IIMB, NLSUI, NID, IIITB and many more.
e) Presence of PSU and Research institutions. Until 1990s growth
of Bangalore was largely driven by public sector companies and
research organizations. Post-independence, the city evolved as
an engineering hub with establishments of large Public Sector
Undertakings (PSUs) namely HAL, ITI, ISRO, HMT, BEML, BEL and
more.
• Multi-Cultural Environment: Bangalore is home to diverse
groups of people. Bangalore attracts a large number of
immigrants from across the state and country. As per Bangalore
City Development Plan for JNNURM (2006), immigrants from
other parts of Karnataka constitute 53%, Tamil Nadu 19%,
Andhra Pradesh 9%, Kerala 7% and Others 19% of the
population. In addition, the city also attracts a large number of
expats from other nations.
• Good Social Infrastructure: Bangalore has well developed
business and social infrastructure including renowned health
institutes, modern format retail malls, entertainment options
and star category hotels.
• Moderate Climate: Due to its high elevation, Bangalore enjoys
a more moderate climate throughout the year. Bangalore
experiences a tropical wet and dry climate with summer
temperatures ranging between 34°C–35°C and winter
temperatures between 15 °C– 18 °C.


GROWTH OF BANGALORE METROPOLITAN CITY

TIME LINE
1537 1807

• Bangalore founded by • British established
Kempe Gowda Bangalore Cantonment

LEGISLATION STRUCTURE

Bangalore also called Bengaluru, is the capital of the
Indian state of Karnataka. Located on the Deccan
Plateau in the south-eastern part of Karnataka,
Bangalore is India's third most populous city and fifth-
most populous urban agglomeration. Bangalore is well
known as a hub for India's information technology
sector. It is among the top 10 preferred entrepreneurial
locations in the world.

A succession of South Indian dynasties ruled the region
of Bangalore until in 1537 AD Kempe Gowda—a
feudatory ruler under the Vijayanagara
DEVELOPMENT OF THE CITY

Empire—established a mud fort considered to be the
foundation of modern Bangalore. Following transitory
occupation by Maratha and Mughal, the city remained
under the Mysore kingdom. Bangalore continued to be
a cantonment of the British and a major city of the
Princely State of Mysore which existed as a nominally
sovereign entity of the British Raj. Following the
independence of India in 1947, Bangalore became the
capital of Mysore state, and later Karnataka.

Today as a large city and growing metropolis, Bangalore
is home to numerous public sector heavy industries,
software companies, aerospace, telecommunications,
and defence organisations. Bangalore is known as the
Silicon Valley of India because of its position as the
nation's leading IT exporter. A demographically diverse
city, Bangalore is a major economic and cultural hub
and the second fastest growing major metropolis in
India.

5

1889-1945 1945-1976 1976-1991 1991-2007 2011 - PRESENT

• Bangalore had two • City Improvement • In 1976, CITB and • In 1991, Economic • BDA released CDP 2015
regions: Pette (a native Trust Board (CITB) was ? other planning bodies liberalization in India for Bangalore in July
settlement) and constituted in 1945 and ? were transformed in to 2007
Cantonment (army in1949 Bangalore City ? Bangalore Development • In 1994, 74th
settlement) with their Municipality and Civil & ? Authority (BDA) Constitutional
respective Military Station Amendment came into
administrative bodies Municipality merged • Publication of first existence
namely Bangalore City under Bangalore City Comprehensive
Municipality and Civil Corporation (BCC) Development Plan (CDP) • Revised Bangalore
& Military Station for Bangalore in 1985 CDP in 1995
Municipality • Constitution of
Metropolitan Planning • Government established • In 2005, FDI
• Constitution of Town Board in 1961 Bangalore Metropolitan permission in real
Planning Committee in Region Development estate sector
1889 • Town and Planning Act Authority (BMRDA) in
in 1964 1985
• City Improvement
Trust Board (CITB) was • Constitution of City
constituted in 1945 Planning Authority to
prepare Outline
Development Plan (ODP)

• The first ODP, master
plan for the city was
prepared & approved in
1972

• Bangalore developed • Integration of Pette • BDA led allotment of • 74th Constitutional • In 2008, Bangalore
as two different and Cantonment regions residential sites to Amendment International Airport
settlements: individuals. Key BDA transformed the role of commenced its services
• While BCC layouts include BTM and BDA from provider to thereby strengthening
- Pette was an organic concentrated its efforts HSR layout towards enabler. This real estate activities
development, with on maintaining the city south-east, HRBR and amendment also
narrow streets and clean and beautiful, the OMBR Layout towards encouraged • Responsive zoning
mixed land use.
CITB paid attention to north-east of the city participation of private regulations by
Between 1898 and
develop new extensions and RMV and developers in real estate promoting mixed land
1920, Bangalore City
to meet the housing Sadashivnagar towards developments uses along the
Municipality developed
new extensions - demand. Between 1945 north-west commercial axes and
Chamrajpet, and 1976, CITB acquired • Rise of IT/ITeS sector mutation corridors
Malleshwaram and 1,411 hectares of land • BMRDA provided created new economic which have led to the
Basavanagudi and distributed 68,300 framework for the magnets – Electronics development of self-
sites. It developed new organized growth of City, Whitefield and ORR sustaining
- The cantonment locations including towns surrounding led growth of large scale neighbourhoods
witnessed the adoption Jayanagar, Indiranagar, Bangalore City residential development
of the British model – Rajajinagar and across different regions • Integrating urban
broader streets with Koramangala of Bangalore especially infrastructure and
avenue tress, sidewalks along South and Eastern transportation networks
for pedestrians and • The Metropolitan suburban and peripheral by developing a multi-
zoning regulations that Planning Board and regions modal public transport
segregated residences Town & Country system in order to
and workplaces. Towns
Planning Act gave • FDI in real estate control sprawl
like Richmond Town,
institutional framework paved way for entry of
Cleveland Town, Frazer
Town, Cox Town, for city development international developers
Langford Town were and investors
developed in this part of • The ODP provided the
the development vision for planned
growth of the city


INFRASTRUCTURE PROJECTS - METRO RAIL

7

Bangalore has 31 industrial hubs across the city. It Under construction and planned infrastructure
houses different PSUs and private companies projects will ensure that Bangalore continues to
across IT/ITeS, Bio-technology, Engineering, grow at current levels and establishes itself as
Aviation, Textile and others sectors. one of the finest world cities.

Key IT/ITeS Hubs Over the last 5 years, Bangalore has witnessed substantial
Whitefield Electronics City, improvements on the infrastructure front. A few initiatives
Hosur Road Outer Ring Road include commissioning of Bangalore International Airport in
Bannerghatta Road 2008, Electronics City Elevated Expressway in 2009, Phase 1 of
Old Airport Road. NICE corridor in 2009, Tumkur road elevated expressway in 2010
and Reach 1 of Bangalore Metro Rail in 2011.
Key Industrial Hubs
Bidadi Industrial Area Mysore Road The table below lists on-going and proposed infrastructure
Peenya Industrial Area projects (physical) in Bangalore. Completion of these projects
Tumkur Road Harohalli will not only enhance connectivity, but will also lead to
Kanakapura Road and Others availability of land parcels for development of real estate.

Bangalore - Ongoing and Proposed Infrastructure Projects
Completion
Project Project Details
Timeline

Signal free Existing stretch of ORR between Hebbal to Silk Board Jn. will be made
2012(E)
Outer Ring Road (ORR) signal free with the construction of flyovers and under-passes.

Expansion of Terminal 1 to double its capacity. To be increased to over
Expansion of Bangalore
17 million passengers a year. December ‘13
International Airport
Completion timeline of 18 months.
Under-construction six lane elevated expressway connecting Hebbal to
Elevated Bellary Yelahanka. The entire stretch between Hebbal and the BIA will be 2014
Expressways Road an 18 lane highway.
Phase 1: N-S corridor – connecting Hesaraghatta to Puttenahalli in
South and East-West corridor – connecting Byappanahalli to Vijayanagar. Entire Phase 1
Phase 1
Reach 1 of Phase 1 – Byappanhalli to MG Road was operational in in 2015
October 2011.
Bangalore
Metro Rail Phase II: Extension of Phase 1 lines connecting Whitefield (in the East),
JP Nagar (in the South), Kengeri (to the west) and Nelamangala
Phase 2 (to the North). Proposed
In addition, two new lines, one connecting Nagawara to Gottigere and
the other connecting BTM Layout to Bommasandra has been proposed.

Project will act as a feeder network to Metro Rail. Four corridors,
Mono Rail Proposed
covering 60 km. Formal approval for the project is awaited.

Proposed PRR is being executed by Bangalore Development Authority
Peripheral (BDA) on Public Private Partnership (PPP) basis. The 110 km ring road
Proposed
Ring Road will circumnavigate the city connecting all major highways and is
currently at land acquisition stage.

High Speed Rail Link connecting Hebbal to BIA to the east of Bellary Road.
High Speed A 5 m corridor has been identified between the carriageway of NH-44 Proposed
Rail Link and the service roads for the HSRL. Timelines not yet announced.

Bangalore - Mysore The 4 lane expressway of approximately 111 km connecting Bangalore to
Proposed
Express Way Mysore is currently on hold on account of land acquisition issues.


• In recent past, Bangalore witnessed entry of large national and
In 2011, Bangalore residential market witnessed international developers namely Pashmina Developers,
high activity levels in terms of project launches Peninsula, Pruska, Westcourt Real Estate, Unitech, Essar and
and absorption rate; but, in 2012, developers many more. Integrated Funds (development arms of Private
need to be cautious with new project launches in Equity Fund) have also acquired land across Bangalore region –
Jayanagar, Sarjapur Road, Whitefield and other micro-markets.
order to safeguard balance in the market.
• Super Luxury projects have been redefined through launches
• Bangalore cannot afford to witness same number of project of Embassy Boulevard, RMZ Latitude, Prestige White Meadows,
launches this year as that of 2011. If the activity level does not Godrej Platinum and serviced apartments by Westcourt. Prior to
drop to half of 2011 then, Bangalore residential market will face 2011, Bangalore never witnessed such high activity levels for
over supply situation. products priced over INR 5CR.

• Except Budget category (less than INR 25L), product across • Most of the developers such as Prestige, Brigade, TATA,
other segments are under pressure with high activity. Even in Puravankara and others are enthusiastic with their experience in
Mid category (INR 25L – 50L), developers have launched sizeable Budget category (less than INR 25 L).
projects which may take longer time for completion.

• In 2011, Bangalore remained one of the favored real estate
markets for Private Equity Funds resulting in their sizeable
participation in self-liquidating residential asset class.

15% 13%
CAGR for the period Average Annual
2008 - 2011 Price Appreciation

232 Projects
20,600 Units ~44,000 Units 55,400 Units
Total Absorbtion in 2011 New Project Launches in 2011 Total Availability
20,031 Apartment Units 49,568 Apartment Units
38,663 Apartment Units 5,768 Villa/Row House Units
568 Villa/Row House Units 5,297 Villa & Row
House Units

3% - 6% 4% - 7%
Average Rental Yield Average Rental Yield
Rate for Class A Rate for Class A
Apartment Projects Villa Projects

9

Till now, the most vibrant residential micro- Bangalore's cosmopolitan culture has space for
markets were located in SE quadrant; but now different formats in residential developments –
micro-markets of NE quadrant are also witnessing Apartment, Villa and Row Houses. Bangalore
high residential activity. buyers have shown strong liking for lifestyle
amenities, theme based and good quality in
• Currently, Bangalore's most promising residential micro
residential developments.
markets are ORR, Sarjapur Road, Whitefield and Bangalore
North. Bangalore North, like any emerging micro-market during
• Bangalore is one of the most promising markets for Villa
nascent phase is witnessing high activity level.
projects in India. However, as per current statistics, the market
• Bangalore's Central and Off-Central locations have high has an over expectation from this product. Many under
potential but availability of land at reasonable price remains a construction projects may take longer timeline for completion.
challenge. However, many sizeable mixed-use developments
• Most active micro-markets for Villa & Row Houses
along Old Airport Road, Vivek Nagar and Koramangala are
developments are Bangalore North, Sarjapur Road, Whitefield
expected in next few years on account of relocation of large
and Hosur Road.
corporate houses and availability of land through slum
redevelopment programs. • As per absorption analysis, Bangalore's buyers are more
sensitive compared to other southern Indian cities towards
• Old Madras Road & Mysore Road micro-markets have
quality of the project, amenities and unit sizes. In this city, end-
untapped potential available for residential developments. Old
users are ready to pay reasonable premium across different
Madras Road would gain traction faster due to its strategic
categories towards these aspects of the project.
location [proximity to IT hubs – Whitefield & ORR, Bangalore
International Airport and City Center].
• Hosur Road is showing signs of oversupply in residential
segment on account of large developments and maturing
economic hub in this region.


In 2011, Bangalore Residential Market witnessed
entry of new products - Villament and Branded
Homes.

• Villament is a new type of development that is gaining • Westcourt has launched Branded Home - ‘Four Seasons Private
prominence in Bangalore. This type of development offers Residences’ located near Mekhri Circle, Bellary Road. This is part
people the best of both worlds, the villa lifestyle at affordable of an upcoming mixed-use development named City View.
prices. A typical villament has about 4-8 units in each block with Branded homes come with bespoke design features and have an
the ground floor enjoying garden space, the center floors array of services including 24-hour concierge, valet parking, in-
enjoying balcony space and the upper floors enjoying their own room dining service and many more. In summary, the homes,
terrace space. Some of the projects launched on this concept are although owned by individuals, will be maintained by the
Habitat Crest (Whitefield), LGCL Luminaire (off Old Airport Road) hospitality brand. These branded private residences promise a
and Sattva’s villament project along Sarjapur Road. lifestyle statement in the home segment offering 5-star luxury
standards.

Bangalore Residential Micro-Markets

Bangalore has been divided in following eleven micro-markets
based on geography, type of customers, capital values and
type of residential development:
1. Central
2. Off-Central
3. ORR (Marathahalli – Silk Board Jn.) and Sarjapur Road
4. Whitefield
5. Old Madras Road
6. Bangalore North (Hebbal, Yelahanka, Thanisandra Road and
Hennur Road); ORR (KR Puram to Hebbal)
7. Hosur Road
8. Bannerghatta Road
9. Kanakapura Road
10. Mysore Road
11. Tumkur Road

11

RESIDENTIAL MICRO-MARKET ANALYSIS: POTENTIAL V/S ACTIVITY

Potential Index has been established on existing and future and Kanakpura Road are in balanced state because potential,
scenario for economic hubs, physical infrastructure, social activity level and inventory are proportionate to each other in
infrastructure and availability of land for development; whereas, these micro-markets.
Activity Index is gauged through ratio of availability to annual
4. Mysore Road has opportunity for residential sector but its
absorption rate.
future depends on growth of occupancy levels in Global Village
Findings from this analysis are: and Bidadi Industrial Area.
1. Hosur Road is on over supply status as the current availability 5. Bannerghatta Road has affinity for new developments but
level is high and potential of this region is not likely to improve in availability of land parcel is the critical constraint for future
short term. growth.
2. Bangalore North can also fall under over supply status for 6. Central and Off-Central will always have potential for
some duration unless planned economic activities kick-off in this residential development in luxury category but land availability
location in the near future. is the bottle-neck in these micro-markets as well.
3. Whitefield, Outer Ring Road, Tumkur Road, Old Madras Road

Off Central Mysore Road Whitefield Outer Ring Road Bangalore North
Very High Very High Very High Very High Very High

High High High High High

Moderate Moderate Moderate Moderate Moderate
Stable Stable Stable Stable Stable

Low Low Low Low Low
Very Low Very Low Very Low Very Low Very Low
SM ML SM ML SM ML SM ML SM ML
P A AV OL P A AV OL P A AV OL P A AV OL P A AV OL

10
OPPORTUNITY BALANCED
9
8

7 Hosur Road
Very High
6
High
Potential

Moderate
5
Stable

4 Low
Very Low
SM ML
P A AV OL
3

2

1
BALANCED OVER SUPPLY
0
0.00 1.00 2.00 3.00 4.00 5.00 6.00
Activity

Central Bannerghatta Road Old Madras Road Kanakapura Road Tumkur Road
Very High Very High Very High Very High Very High

High High High High High

Moderate Moderate Moderate Moderate Moderate
Stable Stable Stable Stable Stable

Low Low Low Low Low
Very Low Very Low Very Low Very Low Very Low
SM ML SM ML SM ML SM ML SM ML
P A AV OL P A AV OL P A AV OL P A AV OL P A AV OL

LEGEND P: Potential A: Activity AV: Availability OL: Outlook SM: Short to Medium Term ML: Medium to Long Term


CONSUMER PREFERENCE SURVEY
End-user survey was conducted at CREDAI Bengaluru Realty Expo
2011 during 17th and 18th September 2011. Over 1,200 responses
were collected [51% - IT/ITeS employed professionals, 13% self-
employed & entrepreneurs and 36% included employees working in
other sectors]. Key findings include:
• Strong preference for apartment units: Overall, 52% respondents
preferred an apartment unit.
• High preference for Bangalore North, Whitefield, ORR and Old
Madras Road locations: 50% of the total respondents preferred
Bangalore North, Whitefield & Old Madras Road and 25% of the
total respondents preferred ORR and Sarjapur Road.
Most preferred locations include Hebbal, Thanisandra Main Road,
Sarjapur Road, Hennur Main Road, Whitefield and Old Madras Road
mainly owing to proximity to IT hubs including Whitefield,
Electronics City and ORR.
• 71% of the total respondents intended to invest in a residential
unit for self-use as compared to 29% for investment purpose.
• Respondents preferred products in the price range of 25L – 50L
and 50L – 1CR budget and in terms of unit sizes, 2 BHK, 2 BHK+ Study
and 3 BHK were the most preferred.

27%

52%

21%

Apartments Villas Residential Plots

60%

40%

20%

0%
South North North South Central
West West East East Off Central

13%
4%

40%

43%

< 25L 25L - 50L 50L - 1CR > 1CR

13

BANGALORE CITY : RESIDENTIAL MICRO-MARKETS
NH 7
To Hyderabad

N
Bangalore International Airport
Doddaballapur

k
Lin
Industrial Area

ail
dR
ee
Rajanukunte

Sp
igh
dH
ose
p
Pro
Ro
a d BANGALORE NORTH
ng
Ri
al Baglur
h er
ip
er Yelahanka
P
ed
os
op
Pr
Pr
op
os Hoskote Industrial
ed
Pe Area
rip
h er
al
Rin
NH 4
: To M TUMKUR ROAD Jalahalli
Sahakara
Nagar Thannisandra gR
oa
umbai d Budigere
HMT Township
Manyata Embassy
Business Park
OLD MADRAS 4 nai
BIEC H n
Hesaraghatta
Cross Hebbal
Hennur ROAD N To Che
Avalahalli
HBR Layout
NICE Rid Roa

Nagawara
Peenya Industrial Ou t
ng

IISc er R Seegehalli
Area in g Ro
ad
od d
a

RMV Extension
ITI
gR

Banaswadi
Rin

Palace Krishnarajapuram
Malleshwaram
ter

Grounds
Ou

Rajaji Nagar
Frazer Town Whitefield
To Ma Byappanahalli
gadi MG Road
ITPB
Bangalore City C.V. Raman Nagar
Railway Station
CDB
Indira Nagar WHITEFIELD
Bagmane
Richmond Town Jeevan Bhima Brookefield
MYSORE ROAD Vijaya Nagar
Nagar
Tech Park

Marathahalli Varathur
Mysore Road
OFF-CENTRAL
Jaya Nagar
Cessna
P oposed Peripheral r

Koramangala
Business Park
Ring Road

Banashankari Bellandur
SH 17:
To Magadi J.P. Nagar HSR Layout

Kengeri Puttenahalli B.T.M. Layout Wipro
IIMB Hosa Road
NI Begur
C ER Haralur
in Jagaranahalli Arkere
Kumbalgodu gR
oa OUTER RING ROAD
Industrial Area d
Kothnur
Kudlu Dommasandra
Thalagattapura Gottigere
BMIC Expressway

NICE Ring Road

KANAKAPURA ROAD BANNERGHATTA ROAD Electronic City
Bommasandra
Bommasandra & Jigani
Prop Industrial Area
os ed Pe
riphe
ral Ring
Roa d HOSUR ROAD
NH 209: NH 7:
To Coimbatore To Salem

Metro Rail Operational Proposed Mono Rail
LEGEND Metro Rail Phase 1 Under Construction Proposed High Speed Rail Link
Proposed Metro Rail Phase 2 Proposed Peripheral Ring Road


This micro-market is set to witness development of Micro-Market Fact File
luxury residential projects. Limited availability of
Key Locations
land for development is the only deterrent for this
micro-market. MG Road, Kasturba Road, Brunton Road, Lavelle Road, Richmond
Road, Residency Road, Frazer Town, Cox Town and Hanes Road

• The micro-market has colonies/towns existing since British Key Economic Magnets
period. Therefore, this region predominantly comprises of old
Central Business District (CBD) and Secondary Business
residential developments mainly villas and individual District (SBD)
bungalows. Today it is a preferred location by HNIs and NRIs.
Key Retail Locations
• Due to lack of availability of large land parcels and high capital
values, this quadrant witnessed limited fresh residential supply;
most of the upcoming residential projects are small scaled MG Road, Brigade Road and Commercial Street
luxury apartment developments.
Malls: Operational, UC & Planned (In million sqft)
• Key under construction projects include Prestige Edwardian,
Brigade Sonata, Total Environment's Van Gogh's Garden, Skyline Garuda Mall (0.3), Sigma Mall (0.12), Victoria Embassy (0.16),
Villa Maria, HM Grandeur and Vaishnavi Prime. UB City (0.13), 1 MG Road (0.18), Embassy Galaxy Mall (0.19)

• Key developments planned in this zone include Prestige Key Educational Institutes
Kingfisher Tower, Century Renata, Nitesh Park Avenue, Embassy
Oasis and others. University of Vishweshwaraiah College of Engineering (UVCE),
Mount Carmel College, St. Joseph's College
• Size of typical development ranges between 30,000 sqft to
80,000 sqft; residential units are sized between 2,000 – 3,500 Health Care Facilities
sqft (Class A); 1200 - 2600 sqft (Class B). Hospital for Orthopaedics, Sports Medicine, Arthritis & Trauma
(HOSMAT), Mallya Hospital, Fortis Hospital, Seventh Day
• This micro-market will continue to perform good owing to
Adventists Hospital, Lakeside Hospital
limited supply and high demand. The capital values are expected
to appreciate at 12% – 15% per annum. In future, the
redevelopment of old properties is likely to gain traction on
135 Units 138 Units
account of availability of higher Floor Space Index (FSI) and rising Average Annual Total
capital rate. Absorption Availability

INR 7,500 - 25,000 INR 6,000 - 14,000
per sqft per sqft
Apartments Capital Values for Capital Values for
Super Class A Apartment Class B Apartment
Particulars Premium Luxury Luxury Sub-Total Total Projects Projects

50L-1Cr 1Cr-3Cr 3Cr-5Cr >5Cr

Availability* 0 22 29 87 138 138 15% 4% - 7%
Average Annual Average Rental
Total Supply** 18 53 91 127 289 289 Price Appreciation Yield Rate

* Includes unsold stock of completed, under-construction and planned projects available with the developer.
** Supply from under-construction and planned projects (Planned projects include developments at pre-launch phase)


This is one of the most desired micro-market by Micro-Market Fact File
end-users, institutional investors and
Key Locations
developers. In next 3 to 5 years, this micro-
market is likely to witness development of Indiranagar, Koramangala, Jayanagar, JP Nagar, Malleshwaram,
RMV Extension, Sanjay Nagar, RT Nagar, Pottery Road, Rajajinagar
mixed-use projects in luxury category.
Key Economic Magnets

• This micro-market comprises of sub markets located around
Koramangala, Malleshwaram, Indiranagar, Jayanagar
the city center. This location also has high demand but quality
space supply is limited.
Key Retail Locations
• It has access to high quality social infrastructure and improved
Indiranagar (100 & 80 Feet Road), CMH Road, Koramangala
urban infrastructure. (100 & 80 Feet Road), Jayanagar (4th & 9th Block), Malleshwaram
• Residential developments in this zone are marked by spacious (Sampige Road & Margosa Road), New BEL Road, JP Nagar (ORR)

units with one unit in each floor or duplex; concept based Malls: Operational, UC & Planned (In million sqft)
development and world-class amenities. Mantri Square (1.7), Total Mall (0.22), Mantri Junction (0.28),
• ‘Four Seasons Private Residences’ would be Bangalore’s first Sigma Mall (0.25), Salarpuria Oasis Mall (0.55), The Forum (0.65),
Brigade Orion Mall (1.1), Nitesh Mall (1.2), G Corp Mall (0.3)
branded home. This is part of an upcoming mixed-use
development named City View by an international player – Key Educational Institutes
Westcourt, located near Mekhri Circle, Bellary Road.
Christ University, MES College of Arts Commerce & Science,
• This micro-market will witness many more mixed-use BMS Institute of Technology, KIMS, BIT
developments in coming years. As per market information, large
Health Care Facilities
sized land parcels in Old Airport Road, Vivek Nagar and
Koramangala are in planning stage for mixed-use developments Columbia Asia Hospital, St. Johns Medical Hospital, Nimhans
in luxury category. Hospital, Fortis Hospital, MS Ramaiah Memorial Hospital,
ESI Hospital
• In recent past this micro-market has witnessed large scaled
developments including Brigade Gateway, L&T South City, Elita
Promenade and others.
• Prominent under construction residential developments 1,500 Units 1,372 Units
include Pride Picassa, K. Raheja’s Vivarea Brigade Crescent, ETA Average Annual
Absorption
Total
Availability
Beau Monde, LGCL Luminaire, Pride Pavillion, Sobha Dew
Flower, Purva Atria, Four Season Residences, Vaishnavi Terraces
and others.
INR 4,000 - 18,000 INR 8,500 - 10,000 INR 3,500 - 8,000
per sqft per sqft per sqft
• Key planned projects: Divyasree 77° East, Embassy Grove, Jain Capital Values for Capital Values for Capital Values for
Heights – East Parade and others. National developers & Class A Apartment Class A Villa Class B Apartment
Projects Projects Projects
integrated funds including V Raheja, Phenoix Market City,
Peninsula, Azure Capital and others have plans to launch their
projects in this micro-market in 2012. 17% 4% - 7%
• Availability of matured social infrastructure and limited quality Price Appreciation Yield Rate
space supply are the key reasons for good performance of this
micro-market; during next 3 years, this region is expected to
witness capital appreciation of 15% - 18% per annum.

Apartments Villas

Particulars Budget Mid-Range Premium Luxury Sub-Total Premium Luxury Super Luxury Sub-Total Total

< 25L 25L-50L 50L-1Cr > 1Cr 50L-1Cr 1Cr-3Cr 3Cr-5Cr > 5Cr

Availability* 518 695 23 0 1,236 0 0 32 104 136 1,372

Total Supply** 1,101 1,094 80 13 2,288 0 0 72 0 72 2,360


ORR [Marathahalli Jn - Silk Board Jn] & Sarjapur Rd

19

• Major upcoming developments include Assetz Homes’ Loft,
Currently, ORR is the most active IT hub of India. Assetz Homes’ Clover Greens and others
This is driving residential demand in this micro- • Currently, this micro-market is in stable status; prices are likely
market. In addition on-going physical & social to appreciate at 12% -14% per annum.
infrastructure developments are supporting the
demand environment. This micro-market is likely Micro-Market Fact File
to remain strong for at least next 3 to 5 years. Key Locations

HSR Layout, ORR (Marathahalli Jn. - Silk Board Jn.), Sarjapur Road,
• This micro-market can be subdivided into 3 sub-markets: Haralur Main Road, Hosa Road, Kasavanahalli Main Road

- ORR (Silk Board Jn. – Bellandur Jn.), Key Economic Magnets
- ORR (Bellandur Jn. to Marathahalli Jn.)
ORR IT Hub, Whitefield IT Hub, Electronics City IT Hub, Hosur Road
- Sarjapur Rd (ORR Bellandur Jn. to Sarjapur Village).
• Key residential development along ORR (Silk Board Jn. – Key Retail Locations
Bellandur Jn.) is BDA promoted HSR Layout. In HSR layout few
private developers have apartment projects. Whereas, ORR ORR (Marathahalli Jn. - Silk Board Jn.), Sarjapur Main Road,
HSR Layout
(Bellandur Jn. to Marathahalli Jn.) and Sarjapur Rd (ORR
Bellandur Jn. to Sarjapur Village) are dominated by private Malls: Operational, UC & Planned (In million sqft)
developers’ projects housing mainly IT population working in
ORR, Electronics City and Whitefield. Soul Space Arena (0.48), Soul Space Spirit (0.45),
Total Mall (0.24)
• There are many international schools/education institutions
located Off Sarjapur Road. However, other social infrastructure Key Educational Institutes
is just adequate; but completion of under construction retail &
entertainment developments will improve this aspect in coming New Horizon College of Engineering, Inventure Academy,
Amrita School of Engineering
years. Also, completion of ongoing fly-overs along ORR will ease
accessibility. Health Care Facilities
• Urban infrastructure is good in HSR Layout but many parts of VIMS Hospital, Greenview Medical Center, Sri Sai Multi speciality
other sub-markets of this region do not have quality roads, Hospital, Lakeview Hospital, Greenview Medical Centre,
footpaths, street lights and other basic urban infrastructure. Star Hospital & Research Centre

• Currently, outside BDA promoted layouts, municipal water
connections are not available and population is dependent on 2,100 Units 7,709 Units
bore wells for water. The water table is depleting at alarming rate Average Annual Total
Absorption Availability
in this micro-market on account of high residential activity.
• This micro-market has witnessed residential development
across different segments and pricing points. INR 2,000 - 8,800 INR 2,000 - 7,500 INR 2,000 - 3,500
Capital Values for Capital Values for Capital Values for
• Prominent residential developments which are under Class A Apartment Class A Villa Class B Apartment
Projects Projects Projects
construction include Assetz Homes’ 27 Park Avenue, Nitesh
Cape Cod, Prestige Sunnyside, Vaswani Reserve, Sobha
Cinnamon, Purva Skywood, Mantri Espana, Adarsh Palm
Retreat, Embassy Pristine and others. 13% 3% - 6%
Price Appreciation Yield Rate

Apartments Villas



Availability* 1,067 1,895 2,721 740 6,423 899 262 125 0 1,286 7,709

Total Supply** 1,817 4,515 6,410 1,989 14,731 1,621 346 167 0 2,134 16,865



This is a well-developed suburb of Bangalore. It Micro-Market Fact File
has required physical & social infrastructure to Key Locations
support future growth.
Whitefield, Brookefields, Mahadevapura, ORR (KR Puram Jn. -
Marathahalli Jn.), Varthur Road
• Whitefield emerged as an IT Hub in late 1990s and the initial
Key Economic Magnets
impetus was provided with formulation of Karnataka Industrial
Areas Development Board (KIADB) promoted the Export Whitefield IT Hub, ORR IT Hub and Industrial units located in
Promotion Industrial Park (EPIP) in 1994. Further, development the EPIP Zone
of International Technology Park Bangalore (ITPB) catalyzed IT
development in this micro-market. Key Retail Locations

• Sizeable IT/ITeS population, availability of land and Whitefield Main Road, Brookefields, ORR (KR Puram Jn. -
connectivity to other parts of the city are the primary reasons Marathahalli Jn.), Varthur Road
driving residential development in this micro-market. Over the
last one decade, the micro-market has developed as a self- Malls: Operational, UC & Planned (In million sqft)
sustaining suburban area with development of residential The Forum Value Mall (0.47), The Cosmos Mall (0.14), Ascendas
(Apartment & Villa), retail projects and other social Park Square (0.6), Brigade -The Arcade (0.08), Phoenix Market City
infrastructure. (1.15), Raheja Inorbit Mall (0.5), Forum Mall (1.1), Virtuous
Whitefield Xander Mall (0.42), Total Mall (~0.15)
• Developments in this micro-market are characterized by
Premium category (Rs 50L – 1CR) & Luxury category (>Rs 1CR) Key Educational Institutes
apartment projects in Brookefields, Whitefield Main Road & MVJ College of Engineering, CMRIT, International Schools,
Varthur Main Road; Villa developments in the Luxury category Vydehi Medical College
(Rs 1CR–3 CR) & Super Luxury (Rs 3CR–5CR) mostly located along
Varthur &Whitefield Main Roads. Health Care Facilities
• The micro-market also houses two large integrated Sri Sathya Sai Super Speciality Hospital, Vydehi Institute of
development projects, namely Brigade Metropolis and Prestige Medical Sciences & Hospital, Sankara Eye Hospital, Sathya Sai
General Hospital
Shantiniketan.
• This micro-market has witnessed residential development
mainly in mid and premium segments of apartment type.
• Prominent residential developments which are under 2,250 Units 7,923 Units
construction include UKN Esperanza, Prestige Silver Oak, Average Annual
Absorption
Total
Availability
Prestige White Meadows, Prestige Park View, Nitesh Flushing
Meadows, SJR Legacy, Akme Encore and others.
• Major upcoming developments include NCC Ivory Heights, INR 3,000 - 7,100 INR 3,750 - 10,700 INR 2,400 - 4,200
Sobha Dreams One, SJR Vogue, Samruddhi White Pebbles and Capital Values for Capital Values for Capital Values for
others. Class A Apartment
Projects
Class A Villa
Projects
Class B Apartment
Projects
• Currently, this market has sizeable supply especially in Class B
category. This micro-market is a promising suburb but
developers need to be very careful in pricing & sizing of projects. 13% 4% - 6%
As per market sources, many regional, national & international Price Appreciation Yield Rate
developers are planning their projects in this region. If projects
are launched at current pace this market may face over supply
situation.

Apartments Villas



Availability* 0 4,692 2,129 634 7,455 0 458 10 0 468 7,923

Total Supply** 0 8,396 5,362 1,134 14,892 0 867 35 66 968 15,860



OLD MADRAS ROAD (KR Puram - Hoskote)

23

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