Having moved into eastern Bengaluru's Whitefield 18 months ago, an IT employee, Arvind Srivastava, is now looking for a 2 BHK apartment in the northern part of the city.
Less water-logging, well-maintained roads and a lot of greenery are what make the north attractive, he added.
Post-pandemic, north Bengaluru has emerged as one of the fastest-growing real estate micro markets. Growing faster than the eastern IT corridor, infrastructural boost and its strategic location have doubled the investments from NRIs and domestic investors, brokers say.
This has slowly led to a gradual migration of the IT crowd from the eastern parts of the city towards the north, with a surge in inquiries for rentals or for buying homes.
According to Prashant Thakur, Senior Director and Head – Research, ANAROCK Group, the pre-COVID sales in north Bengaluru occupied the third spot ,while post-COVID, the region saw the second-best sales after the east.
Areas to look out for
North Bengaluru is closest to the international airport, with Hebbal being just a 34-minute drive away.
Local brokers say that the key micro-markets, like Hennur Road, Jakkur, Yelahanka, and Hebbal, are the most promising locations for real-estate investments.
Currently, land price in the north starts at Rs 6,000-8,000 per sq ft, while apartment costs lie between Rs 10,850 and Rs 17,870 per sq ft, as of Q1FY2023.
Micro Markets like Bagalur and Hennur are located close to IT hubs such as Manyata and Kirloskar Tech Parks, which are less than 5-6 km away from major educational institutes and hospitals in the north.
NH 44, located close to Devanahalli, which connects Bengaluru with Hyderabad and Mumbai, made it an attractive destination for businesses and investors.
Kiran Kumar, Vice-President of Hanu Reddy Realty, added that among the residential suburbs, places like Thanisandra and Hennur have already seen a price hike by 20 percent. Commercial inquiries mainly come for Airport Road (towards Devanahalli) and Doddaballapur, commanding about Rs 7,000-10,000 per sq ft.
Currently, a 2BHK is rented out at Rs 27,000 per month in the north, almost 15 percent lesser than in prime locations like Indiranagar and Whitefield.
"Hebbal connects three major locations -- the airport, KR Puram in the east and Tumkur Road in the west, thus commanding strategic investments,” he said.
Infrastructural boost to appreciate real estate
North Bengaluru started as an industrial area about two decades back. However, the construction of Bengaluru international airport and the Manyata Tech Park were game changers that led to the development of several micro markets like Hebbal, Yelahanka, and Thanisandra Main Road.
Today, several parts of north Bengaluru form a key part of the launch portfolio of prominent developers like MAIA Estates, Shriram Properties and Vaishnavi Group.
Kumar added that, already, real-estate prices in northern Bengaluru have appreciated at least 20-30 percent, compared to the east.
However, the upcoming Peripheral Ring Road (PRR) that will connect Tumkur and Hosur Road, Satellite Town Ring Road (STRR) and the under-construction metro line will push up real-estate prices 10-15 percent further.
Additionally, an ANAROCK report points out that a startup park being planned at Rs 30 crore is expected to boost the growth of at least 25,000 startups in the coming years, thus pushing the real-estate sector further.
Last-mile connectivity and flood
With the August 2022 flood in Bengaluru which saw several billionaires' villas also being inundated, the eastern market has taken a hit. Since then, every recurring rainfall leads to severe waterlogging in areas close to Whitefield.
Certain places in the north, like Hebbal, also witnessed a similar problem, which showed a 2 percent drop in new launches, compared to pre-pandemic levels, the ANAROCK report showed.
The floods caused a ‘makeover’ of the Manyata Tech Park to a water park as several employees were left stranded inside.
Last-mile connectivity is another problem in the north. While the east is well-connected to the city centre with the recently launched metro, the metro connecting the international airport in the north is set to come up by the end of 2023, while experts say there is a six-month delay.
Mehak Patra, a designer, used to switch two buses to reach her office in Hebbal from HSR Layout in the southeast. "Autorickshaws become more expensive. Thus, I had to take this route," she added.
Places north of Hebbal, and even close to areas like Devanahalli, lack an integrated connectivity of public transport, thus discouraging several homebuyers to invest in the area.
Additionally, the major traffic snarl at Hebbal junction involves a wait time of about 15 minutes during peak hours on weekdays, thus forcing employees to look for homes around their offices.
"Right now, the only modes of transport to the north of Hebbal and Devanahali are buses, cabs and private vehicles. Most people who invest in the north can afford their own commute," Kiran added.
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