FOREWORD

Mild tapering of inflation and a normal monsoon finally paved the way for lowering of REPO rate by 25 basis points, taking it to its lowest level in the last 5 years. The continued fall in both imports and exports, coupled with tepid investment demand has led RBI to pass on the cut. The Y-o-Y GDP growth rate also slowed down from 7.9% in the JFM quarter to 7.1% this quarter. The expected rise in oil prices from next year is also a major concern for the economy, which imports most of the oil it needs. High NPAs in the banking sector and construction delays in infrastructure and real estate also remain as major concerns. However, the economy remains strong despite headwinds facing the world economy and geopolitical turmoil across Asia and Europe. The Manufacturing Purchasing Managers’ Index (PMI) is still above 52 level and GDP growth forecasts till 2020 by various multilateral agencies, remain above 7%. The lowering of Repo rate is expected to bring down both project finance as well as home loan costs, lowering the overall cost of buying a house. The inevitable implementation of Real Estate Regulation and Development (RERA) Act, 2016 has led developers to hasten the delivery of their projects. This trend was clearly evident in the quarterly average prices data of Under Construction (UC) vs Ready-to- Move-in (RM) stock, where the premium commanded by RM properties came down due to increase in RM stock, as a portion of UC projects were delivered over the quarter. RERA is a step in the right direction but will bear fruit only in 2-3 years, and till then the Indian real estate sector remains in turbulent waters, and its health can only be gauged through inferential means like pricing and inflation in the sector. Price, as an end-product of interaction between the underlying demand and supply elements, incorporates all the sector related imperfections like delays and surge/dearth of transactions. Its trend also serves as a guidance to fiscal decision making by the government and RBI and investment decision making by private equity funds and retail home buyers. Real estate in every city is heterogeneous and each locality and project can be mapped to different budget segments and geographies. Each budget segment and geography corresponds to a certain share of supply and consumer preference in the market. Towards this end, Magicbricks presents a holistic price Index for each of the 14 major cities in . The City Index reflects the price movement across localities, geographies and budget segments in the city. This bottom-up approach helps to identify factors affecting demand-supply dynamics of the city. Analysis of City Indices over a 3-year period shows that Navi Mumbai had the highest gain of 18%, while New Delhi continued to face tough market with a 21% decline. Regionally, Western India performed the best with 8.9% average gain, followed by South with 7.6% increment. North India saw an average decline of 7.4%, while Kolkata had the same average price as eleven quarters ago. It is important to note that any gains made are eroded when benchmarked against inflation in economy, in the study period. Another important sign of our times is the 8% premium commanded by the Ready-to- Move-in (RM) properties over the Under Construction (UC) properties at a pan-India level. This ratio was at 5.1% eleven quarters ago and is a reflection of the falling consumer confidence in timely delivery of projects.

These are changing times and we would love to hear from you. Do write to us at Sudhir Pai [email protected] and share yours views on this report and how we could make CEO, Magicbricks.com PropIndex even better. METHODOLOGY Realistic price discovery has been the pricing. If, on the other hand, you are The Interquartile Range technique biggest problem area in the Indian a seller looking for benchmark pricing, works through measuring variability real estate market. As consumers you will effect the fastest sale if your of each data set, while dividing the and industry struggle to arrive at a asking values are close to the buyer’s data set into quartiles. The technique realistic benchmark pricing to assess paying power. measures the value of data points on the first and third quartiles of the data the true value of their individual units, There are various co-relations of and calculates the difference between Magicbricks, as the largest repository demand and the overall real estate the two. of residential property listings, brings market as well as its future potential. you the trusted Indian Apartment Not only is demand a preceding This range, called ‘IQR’, gives the Price Index in a new and easy to indicator to supply, it is also a fairly effective extent of data set, while use format. Mirroring the Indian good indicator of actual transaction removing the first 25% and the last Real Estate scenario, this price index activity in the region. 25%. Subsequently, a test is applied presents an animated representation to each of the values in the data set. If We have aggregated the 14 cities of the real estate market. a particular data lies within an IQR of covered under the report into various the first and third quartile values, then Magicbricks publishes the quarter-on- localities. While calculating the city that data is considered part of the data quarter inflation and deflation trends level property pricing indicator, we set, otherwise not. The set of listing of the residential real estate prices in have applied demand as weight to values of each locality are statistically India. It collects real estate demand- each locality. This weight is equal to cleaned. supply data on a daily basis for more the locality’s share of the demand than 100 cities in India, of which, the being contributed to the city’s total Magicbricks, on an average, covers fourteen top cities are selected for demand. As a consequence, the more than 500 localities for Tier-I cities computing the National Property Price locality receiving higher demand for of India. Yet for the sake of analysis, Index. residential units will be given a higher we take only those localities where the The National Property Price Index and weightage. Following that, each recipient demand is at least 0.05% of its constituent indices are subjected to city’s price movement is calculated by the city’s total demand. Only localities a series of stringent steps. aggregating the price movements of with at least 50 actively traded individual localities, according to their properties have been included in the Each quarter, Magicbricks measures individual weightages. analysis. Following that process, we the individual property level price shortlisted various localities which changes, which are then aggregated at In terms of checks and balances in some sense, impact the pricing the locality level. While comparing the towards making the data and dynamics of the city. average pricing figures for the current analysis more robust and objective, quarter and comparing with the we have made sure that superfluous We then calculate the average prices of previous one, quarterly price changes information does not deviate the the city for the quarter, while applying are calculated. These price changes are desired results. Hence, we have demand weights to the average prices further aggregated at the city level applied checks and balances at the of each locality. These average prices and even further at an all-India level. locality level listing data collection and at the city level are further aggregated aggregation. to the final outcome of the ‘National As the top receiver and aggregator Price Index’. of residential demand, Magicbricks’ A statistical technique called “Inter- data provides consumers with Quartile Range” (IQR) has been used The difference in Under Construction realistic benchmarks to the assess to ensure that unintentional input and Ready-to-Move-in property has true property pricing. Where demand deviations of house size and price been assessed and included in the exceeds supply, consumers have no figures, which may distort the actual report. Rental yield and affordability chance of negotiating values. value of the house and corrupt the too has been addressed for the top 10 analysis, are addressed. The technique localities by supply in every city. These However, where demand is far lower aims to remove the outlier data sets, are critical tools which well used can than supply, buyers can look for more while securing the correct values. help with realistic price discovery. options and therefore, negotiate GLOSSARY & DEFINITIONS

1. City Property Index :This is a composite index which is a function of supply of properties as well as the average capital appreciation/drop in various localities of the city in the quarter. The City Index is the weighted average of the average rate per square foot in that locality and the supply of properties from that locality. Localities with higher supply of properties will have a bigger impact on the Index. 2. Price trend basis budget segments: To better understand the city’s price trend, the localities have been divided into budget segments basis their capital value (Rs/sq ft). We have tracked the weighted average price for each budget segment for a 2+ year period from quarter ending September 2013 to quarter ending September 2016. Subsequently, the movement of the localities in each price segment is mapped to derive respective short term and long term price change trends. The number of budget segments vary according to the city characteristics. 3. Zone wise distribution of localities: The various localities in the cities are all geographically divided into five key regions: Northern, Southern, Eastern, Western and Central. The localities are analyzed at the local zonal level to better understand the effect of the various drivers of price and demand, which are active mostly at the zonal level rather than at the city level. 4. Zone wise distribution of property budget segments: To better understand how each of the city zones contribute to the city’s supply, and how they are able to provide housing at various price points, the supply is distributed into budget segments across various geographic zones. For instance, if a zone has most of its supply in the premium budget segment, then it naturally becomes a premium destination within the city. The price changes within the various budget segments are also analyzed at the zonal level to go to the depths of the price changes across the city and to easily contribute the price changes to local factors. 5. Capital Value Tables (given in Annexures): This shows the actual range of prices within which properties are available in each locality in the quarter. Prices are shown in Rupees per square foot basis, these are the prevailing rates for properties in each locality. 6. Price trend – Top 10 localities by consumer preference: This section presents the price trend of the Top 10 localities in the city by consumer preference. These localities have the highest consumer focus and assessment of price trend in these localities assists in understanding the prevalent and future price trend in the city. 7. Price trend basis construction status: This Index looks at the movement in prices of Under Construction (UC) and Ready-to-Move-in (RM) properties across localities in the city. It is a weighted price index where weight is assigned to each locality basis its share in the consumer preference in the city. HOW TO USE THE PROPINDEX

base number, the index is said to have fallen. When it is more than that number, the index is said to have gone up. This gives users like you, who are interested in property markets, an idea of how the property market in your city has performed vis-à-vis other cities. When the economic conditions are good and the builder is actively developing and the consumer is actively buying, the index value rises above 100. When markets are flat due to lack of economic activity and therefore developer and consumer disinterest, the index values remain at 100 or drop below that. Very high index values shows a lot of investor activity and therefore severe peaking of property values. As an end user you should avoid buying when there is intense buying and speculative activity. That however, is a good time for you to sell as high property prices will give you good returns on your investment. When the index value comes down dramatically, the chances are that you will not get good returns as a seller. But if you find the property that you like in this cycle, it is a good time to negotiate the best values and buy as the chances are that there will be fewer buyers in the market. Since the PropIndex is now 5-years old, a look at how the index values have moved over the years gives you a good idea of how the market has performed in different quarters. If you are interested in how property markets have performed across a period of time, the PropIndex values give you a fair idea of Jayashree Kurup, Head content the movement. Do I get any specific Advice that helps my property decisions? What is the PropIndex? Magicbricks has a team of data scientists and researchers who are constantly studying the property markets and values to get the trends. In the past two The PropIndex gives you locality-wise property values in two forms – as locality quarters, for instance, they have noticed that ready-to-move-in property has been price ranges for sale and rent in the annexure to every city with additional significantly more expensive than under construction property. This probably information on whether it has gone up or down in the quarter, and what is the indicates that consumers do not want to buy property that is not complete and has rental yield in that locality. These prices are based on the listed prices of properties chances of delayed delivery and prefer to spend more to buy property that they can for sale or rent on the website www.magicbricks.com. This helps you to understand purchase and move into. This is useful to you as a buyer and alerts you to general the average locality price ranges and to assess whether the price of the property trends of other buyers. for sale or rent that you are assessing, lies within the average price ranges in the locality. In a market where data or information is hard to come by, this data helps What is the editorial and how is it useful to me? you to assess whether you are being quoted rational values for the property you are The editorial team of Magicbricks constantly assesses the property market considering. developments and factors such as infrastructure announcements and transport Why do I get locality sale and rent prices and how do I use them? corridor development, to figure out how they can impact values of residential real estate in your city. In each edition of PropIndex they assess what all has happened When you buy a property you must know what the average locality prices are. in the quarter and how it will impact the value of the property that you are When you buy property directly from the developer, the price per sq ft is the value interested in. This analysis gives you an idea of the issues you should consider when you pay. Then there are additional preferred location charges (PLC) such as vastu buying property in that city. related, view related or floor related. When you buy from the secondary market or from an individual seller, the price is determined basis a notional value of the How do I use the different sections of the PropIndex? property. The sale values in the PropIndex help you to establish the price you The key takeaways are useful in getting an overview of the property market in your should demand if you are a seller or what you should pay if you are a buyer. Rental city. The geographical distribution of localities allows you to assess in which areas values, similarly, are the average values that are listed on the website. They serve as property is available for sale. The distribution of properties by capital value allows benchmarks of the expected rental prices in the locality. you to freeze the price segment where you are likely to get the type of property What is rental yield and why is it significant? you are looking for. The budget wise price change helps to compute how the price range that you are looking for has been performing. If values have been rising in If you pay a certain price for a property, there is an amount you earn per annum as your budget of interest you may have to hurry up with your property decision if you rent. When the rental income is expressed as a percentage of the property value, it are an end user. If it has dropped, figure out if there is a problem in that category. is rental yield. It is a good yardstick to compute which property to select as a Buy to This exercise has been done for each part of the city. The price trend by construction Let investment. basis tells you which the best stage is at which you should enter the property Why is it called a Property Index and not Property values? market. The price changes basis construction status takes this analysis a step forward. Read it carefully and you will be able to assess exactly when you should Magicbricks has a very large number of listings. The number per locality depends enter the market as a buyer and as an investor. on market conditions and how many consumers or brokers or developers choose to post their properties for sale or rent. When we are computing values at the locality What is the Corridor of Growth? or city levels we do not want any one locality to skew the index value of the city. Magicbricks has figured that the bulk of new property in any city is developed As a result when any one or more localities have more than usual or less than usual along a few transport corridors leading out of the city. These have been identified number of listings, using the ratio of price to number of listings helps to even and studied for stock, price rise, current status, future potential and its physical out unusual spikes or troughs in the data. This gives you unbiased city or locality and social infrastructure such as water, power, sewerage and drainage facilities, averages. transport links, schools, colleges, hospitals and entertainment centres in the How do I use an index number? vicinity. Advice has been given on the basis of rental and buyer’s demand, the best configurations to buy – 2, 3 and 4BHK, past and future estimated price trends and Magicbricks Index was computed first in 2011. The values in the year 2011 have also how it figures in the master plan of the city. News updates of each corridor been used as the base value and is assumed to be 100. When the value is below that allows you to understand the drivers of those corridors. VOL 6, ISSUE 2; JUL-SEP, FY 2016-17 propindex.magicbricks.com

[Jul-Sep 2016] n line with general lack of activity in the The worst performer was the North region, 2016 quarter, as three years ago. Only two residential market, the National Property where prices fell by more than 7% in the of the top 14 cities considered for PropIndex IIndex remained stagnant at the same level last three years. The second best gains were saw a price decline in the last three years and as in the last quarter, with prices falling by a witnessed in Southern India, where prices both belonged to Delhi-NCR. While prices in marginal 0.12%. This is in continuation of the moved up by 7.6% over the same period. Ghaziabad fell by 6%, New Delhi performed inactivity seen in the last many quarters. the worst, with a whopping 21% fall in prices. In terms of historical price change, Navi NPI is the weighted average of consumer Mumbai was the best performer with a In terms of quarterly change, Hyderabad preference share of 14 cities and their significant 18% increment over the last three performed the best with a 2.8% increase over individual City Index value. years, followed by Hyderabad and Pune, which the last quarter, followed by Bengaluru at had a 10% gain each. Thane stood fourth with 2.0% and Navi Mumbai at 1.2%. Overall, the On a quarterly level, South was the only region a 9% gain, while Bengaluru and Ahmedabad Southern region was the best performer, with which inched up substantially in terms of had a 7% gain each. Next were Mumbai and Chennai also giving a 0.7% price increment prices from the last quarter while North fell Chennai with a 5% gain each. and standing fourth in the top 14 cities. the most. Although it cannot be said with certainty that prices have hit rock bottom Gains of lower than 5% were witnessed only In terms of worst performers, four cities saw and will not fall any further, any downward in the North and Eastern regions, with Noida price drop, with the highest drop in Greater movement, going forward, will be restricted. and Greater Noida showing the maximum gain Noida of 1.7%, followed by Noida witnessing in Delhi-NCR of just 4% each. Both, Gurgaon a drop of 1.2%. Mumbai and New Delhi were On a three year scale, Western India has done from Delhi-NCR and Kolkata from the Eastern the other two cities noting a price drop, better than all other regions, with its cities region, had the same price in the Jul-Sep amounting to 0.8% and 0.7%, respectively. having 8.9% price increment, on an average. propindex.magicbricks.com 02 VOL6, ISSUE 2; JUL-SEP, FY 2016-17

[Buyers looking for an exit] he realty sector in India has been tepid for This is reflected in the price differential India level, 69% of RM properties are in the the past few years with low transaction between Under Construction (UC) and Ready- resale bracket while balance 31% are offers of Tvolumes and stagnant price level. Weak to-Move-in (RM) properties. Magicbricks fresh booking or ‘New Properties’. The graph economic scenario, perceived high price tracks the weighted average price for UC and gives the share of resale and new properties level and lack of consumer confidence in the RM properties on a pan-India basis covering for each of the 14 cities analysed. developers with respect to project completion 14 cities. It compares the 3 year trend from Sep The predominance of resale options under led to transaction volumes reducing 2013 to Sep 2016 where Sept 2013 has been RM properties category indicates that many drastically. taken as the base. It also shows the premium buyers who had made purchase from an (discount) of RM properties over UC properties. Magicbricks research shows that consumers investment perspective are looking to exit are willing to pay more for Ready-to-Move- Our national level index for tracking prices their investment. With end-users looking for in (RM) options as compared to under- of RM and UC properties shows that at a RM options to protect themselves from project construction (UC) properties. They’re willing pan India level, RM properties command an completion risk, it is likely that many investors to pay a premium on completed projects average 8% premium over UC properties. This with RM properties see this as the best rather than expose themselves to delivery level of premium for RM properties has held opportunity to liquidate their asset(s). risk. Project delay leads to consumers having for the last three quarters. Most of the investors looking to exit at this to bear additional financial burden of paying Analysis of actively traded properties on point are unlikely to make any gains. In many rent over and above applicable home loan Magicbricks shows that when it comes to cases, when the return is indexed to inflation, instalments for an extended period. All this RM properties, an overwhelming number of the return might actually be negative. This is has made consumers wary of putting money options are in the resale segment. At a pan- because the prices have either been stagnant in Under-Construction projects. or have seen insignificant increment over the last few years. The following graph shows percentage change in the City Price Index for 14 cities from Sep 2013 to Sep 2016. As is evident from the graph, the weighted average price across most cities has seen marginal increment over the last three years. In case of cities like Delhi and Ghaziabad, the price levels have declined. In all other cases, when the price increment is indexed to inflation, there is an implicit price decline. Regional wise analysis of the ratio of ‘New’ and ‘Resale’ options under RM segment shows that VOL6, ISSUE 2; JUL-SEP, FY 2016-17 03 propindex.magicbricks.com

from Under-Construction projects. One set of inventory is getting sold multiple times while another set with the developers remains unsold. This is adding to delay in completion of projects as developers are not keen to complete projects where unsold inventory is on a higher side

l In the prevailing market scenario, large resale inventory also impacts the price level in a project as well as overall market. Price quote in the resale market is lower than the builder’s price and this impacts saleability of the unsold inventory with the developer. Further, the developer cannot increase the price and out-price his inventory vis-à-vis markets which historically had high investor resale options to end-user ratio have corresponding higher l New project launches also have to be percentage of ‘Resale’ options in this segment. sensitive to the prevailing price in the resale Major North Indian markets like Gurgaon and segment in their price segment Noida, which have seen large scale residential development, have 80% or higher ‘resale’ Conclusion options in the RM segment. Similarly, all Ideally, transaction activity in the resale Western Indian cities have a high share of segment gives depth to the primary segment. such options in the RM category. Opposite It allows investors to book profit and unlock phenomenon was seen in case of all South their capital. However, in the present Indian cities – Bengaluru, Chennai and scenario where transaction activity is low and Hyderabad. These markets have had high consumers are looking for Ready-to-Move-in end-user participation and this reflects in the Market Impact options, the resale segment is likely to do Presence of a large number of resale options ratio of ‘New’ and ‘Resale’ options. Both these better than the primary market and continue puts pressure on the market in multiple ways: options have almost equal share in the RM to put pressure on the primary market. segment in these cities. l First, these resale options add to the unsold Given the large percentage of resale properties inventory available with developers, thereby These statistics also indicate that supply in available in the market, this situation is likely exacerbating an already difficult scenario markets with high ‘resale’ versus ‘new’ options to persist in short to medium term. in the RM category was in excess to demand at l Large number of resale options in Ready- the given price points. to-Move-in projects take the demand away BENGALURU propindex.magicbricks.com 04 VOL6, ISSUE 2; JUL-SEP, FY 2016-17

[PROPINDEX - BENGALURU] [Key Takeaways] The City Index saw a rise of 2% over consumer preference localities While West zone also saw marginal the last quarter. More localities saw like Whitefield, Sarjapur Road, price increment, the overall level in price increase than price decline and Bannerghatta the Central zone remained stagnant In the Jul-Sep 2016 quarter 68% Main Road Analysis across 94 localities in localities saw an average price Eastern zone, which accounts for Bengaluru shows that on an increase of 3.2% while balance 38% more than 40% share of consumer average, RM properties were 4.9% localities saw 3.7% price decline preference and supply in the more expensive than UC properties Price movement across all but one secondary market, saw a marginal in the Jul-Sep 2016 period budget segment has been positive price increment of 0.7%. This zone The average difference in prices has with price movement ranging from consists of important localities like increased from the Apr-Jun 2016 -1.1% in the Rs 3,000-4,000 per sq ft Whitefield and Sarjapur Road quarter. While the weighted average segment to 4.2% in the above The North zone, which is centred price of RM properties was Rs 5,266 Rs 9,000 per sq ft budget segment. on Hebbal Junction, had a per sq ft, the same for UC properties This shows an overall gain in the marginal increment. The South was Rs 5,020 per sqft Jul-Sep 2016 quarter zone consisting of localities such The average price of both RM and Positive price movement across as also witnessed a UC properties has increased over the city was on account of price marginal average price increment the last quarter by 1.1% and 1.8%, increment across all the major high of 1.6% in the quarter respectively

Maintaining real estate symmetry EDITORIAL engaluru market is trying hard to balance limits for buildings near feeder canals. The with STP norms following rap from pollution its real estate equilibrium. On one hand, ’s Environment Impact Assessment control board and courts over pollution of Bthe authorities are undertaking strict Authority has put on hold the environmental and Lakes, both bearing the measures to streamline practices. These include clearance for 10 mega construction projects, brunt of sewage inflow. restriction on new construction projects, including large residential projects, for alleged The state govt has revised the Karnataka demolition drives, mandate for sewage plants, encroachment of lakes and drains. Land Revenue Rules (1966) which regularizes etc. On the other hand, easing out of STP This move might lead to an increase in constructions up to a distance of 18-km norms, addition of new Karnataka cities, etc property prices. According to some builders from the periphery of BBMP limits. Illegal have till now maintained the balance. and consultants, project cost will go up by constructions which have not followed rules can The High Court told BBMP and BDA to not allow around 30% as developers will have to redesign now pay Rs 10,000 for an illegal structure and new construction projects near . the projects and also keep paying interest on get a ‘legal’ tag. The move was undertaken as This came into spotlight when some builders bank loan. Further, builders will also pay govt demolition wasn’t a prudent option. The only tried to flout rules by seeking consent for charges for re-approval of their project plans. issue was its timing - now or next year in the establishment without attaining approvals from run up to the assembly polls. The government On to the good spate of events, BWSSB relaxed civic agencies like BBMP, BMRDA and BDA. expects crores of rupees through this move. STP norms and focussed buildings on larger In a similar transgression, NGT and state govt sites. All sites measuring 21,527 sq ft housing Government policies are important in shaping barred construction activity within 75 metres flats or apartments and non-domestic buildings the future of any sector. Hopefully, Bengaluru is of the periphery of water bodies and also set should have STPs. The water board came up on the right track. Magicbricks Bureau VOL6, ISSUE 2; JUL-SEP, FY 2016-17 05 propindex.magicbricks.com BENGALURU

Geographical distribution of localities City has grown in a radial manner The map shows the geographical spread of localities considered for calculating the City Price Index. These localities have been grouped together to understand the zone wise price trend in the city

With the exception of Whitefield, Bengaluru has grown radially along and off all the main arterial roads emanating from the city. Major growth axis includes Sarjapur Road in the East, Old Madras Road in the North-East, NH-7 and New Airport Road in the North, Tumkur Road in the North-West, Mysore Road in the South- West, Banerghatta Road in the South and Electronic City in the South-East along

Localities in the East zone shown on the map account for 50% share of consumer preference in the city. Whitefield and Sarjapur Road are the two leading localities in this zone

This graph shows the distribution of Properties distribution by capital value (Rs/sq ft) actively traded properties by their capital Apr-Jun 2016 to Jul-Sep 2016 values. Bengaluru is a price sensitive market with most of the supply (65%) in the Rs 3,000–5,000 per sq ft category The higher mid-segment of Rs 5,000- 6,000 per sq ft category comes second and has a healthy share of 28%. The premium and luxury segments in the Rs 6,000-9,000 per sq ft and above Rs 9,000 per sq ft form a small share Price movement in the Bengaluru market is predominantly defined by the lower and mid budget segments. The geographical spread of budget segments show that East zone has more even spread of budget segments while in the South zone, the lower budget segments are seen to dominate In the Northern part of Bengaluru city it was noted that properties were in the mid to higher budget segments. BENGALURU propindex.magicbricks.com 06 VOL6, ISSUE 2; JUL-SEP, FY 2016-17

The western zone saw property distribution in the lower and higher budget segments. This was because the higher budget segment comprises of established prime localities, while the lower budget segments were found in localities further West and South-West of these prime localities Analysis of budget wise distribution of properties within a zone shows that properties in the Rs 4,000-5,000 per sq ft budget segment forms a substantial component across all zones. East zone has the highest concentration of this budget segment followed by the South and North zones. The second highest budget segment of Rs 5,000-6,000 per sq ft is concentrated in the East and South Bengaluru North Bengaluru leads in concentration of properties in the premium Rs 6,000- 9,000 per sq ft bracket. This can be on account of large number of premium villas and independent housing projects launched in the area

[CITY INDEX] The City Index saw a 2% increment over the previous quarter. The Jul-Sep 2016 Jul-Sep 2013 to Jul-Sep 2016 quarter had more localities with price increment as compared to price decline. At least 68% localities saw an average price increase of 3.2%, pushing the Apr-Jun 2016 Index value up by 2.7%. The balance 32% localities saw price drop of 3.7%, pushing down the Apr-Jun 2016 Index by 0.7% leading to no net increment in the City Index

The City Index for Bengaluru reflects the assigned to each is its share of consumer price movement across 94 prominent preference in the city. This makes for localities. These have been chosen using a comprehensive Index which covers the twin criterion of share in overall localities with high consumer preference consumer preference as well as share of as well as high number of actively traded actively traded properties. The weight properties in the secondary market VOL6, ISSUE 2; JUL-SEP, FY 2016-17 07 propindex.magicbricks.com BENGALURU

To understand the contribution of various budget segments and localities in the Budget wise price change Index movement, we have grouped 94 Apr-Jun 2016 to Jul-Sep 2016 localities under the Index, into budget segments on the basis of their capital values. A further micro picture of price movement is presented by looking at price change across different geographies and their constituent budget segments Price movement across all but one budget segment has been positive with price movement ranging from -1.1% in Rs 3,000-4,000 per sq ft segment to 4.2% in the above Rs 9,000 per sq ft budget segment. This shows that Bengaluru overall gained in prices in the Jul-Sep 2016 quarter The price trend in a given budget segment was more or less mirrored across different geographical zones Price movement across zones: South Price increment was witnessed across all Geographic and budget wise price change budget segments in the zone Apr-Jun 2016 to Jul-Sep 2016 The highest price increment was in the less than Rs 3,000 per sq ft segment with 5% increase. This was followed by 2.3% increment in the Rs 5,000-6,000 per sq ft and 1.5% increment in the Rs 3,000- 4,000 per sq ft price brackets High consumer preference localities across different budget segments such as Electronic City and Bannerghatta Road saw price increment East There was a price increment in four out of the five budget segments in the zone In the largest budget segment in the zone by share of supply (Rs 5,000-6,000 per sq ft), there was a price increment of 1.8%. This was on account of price increment noted in high demand localities like Whitefield The next highest supply segment of Rs 4,000-5,000 per sq ft also saw a marginal gain of 1.6%. Prominent BENGALURU propindex.magicbricks.com 08 VOL6, ISSUE 2; JUL-SEP, FY 2016-17

localities like Sarjapur Road and Varthur in this segment saw price increment Price change – Top localities by consumer preference The premium segment witnessed the Apr-Jun 2016 to Jul-Sep 2016 highest movement. Both and in the Rs 6,000-9,000 per sq ft bracket saw increment North Of the five budget segments present in North Bengaluru, three saw price rise Most localities in the important Rs 4,000-5,000 per sq ft segment saw a price increase leading to overall 1.6% rise in this budget segment. Next highest supply segment of Rs 6,000-9,000 per sq ft saw a price decline of 1.9% as important localities like Sanjay Nagar and Yashwantpur saw a price decline Another prominent locality in the zone, Hebbal, saw a price increment of 2.5% in this quarter Centre Localities in the Central zone saw price increment across all prominent budget segments

Price trend basis construction status Jul-Sep 2013 to Jul-Sep 2016 VOL6, ISSUE 2; JUL-SEP, FY 2016-17 09 propindex.magicbricks.com BENGALURU

The graph shows the trend in the prices properties was Rs 5,266 per sq ft, the to Sep 2016 period, while the price of of ‘Ready-to-Move-in’ properties (RM) average price for UC properties was Ready-to-Move-in properties declined and Under Construction (UC) properties. Rs 5,020 per sq ft by 1%. The price decline in case of RM Analysis across 94 localities in Bengaluru properties decreased due to slight price shows that on an average, RM properties The average price of both RM and UC increase over the last quarter were 4.9% more expensive than UC properties has increased over the last properties in the Jul-Sep 2016 period quarter by 1.1% and 1.8%, respectively As the graph below shows, the price of both RM and UC properties has increased The average difference in prices has In terms of price increase, Under in the Jul-Sep 2016 quarter across most increased from the Apr-Jun 2016 quarter. Construction properties posted a price of the top 10 localities by consumer While the weighted average price of RM increment of 11% over the Sep 2013 preference in the zone

Price change basis construction status Top localities by consumer preference in Jul-Sep 2016 period BENGALURU propindex.magicbricks.com 10 VOL6, ISSUE 2; JUL-SEP, FY 2016-17

Capital values LOCALITY CAPITAL RENTAL YIELD

Banashankari 4274-6863 12000-19000 3.3% 3434-5723 13000-20000 4.3% Bannerghatta Main Road 3464-5949 12000-20000 4.00% Basaveshvara Nagar 8698-15632 12000-19000 1.4% Bellandur 4365-7104 15000-22000 4.2% 3341-4790 12000-20000 4.6% 4327-6601 14000-21000 4.1% BTM Layout 3799-6652 14000-21000 3.8% BTM Layout Stage 2 3893-6985 15000-21000 3.8% C V Raman Nagar 3376-6358 13000-20000 4.6% Electronic City 2810-4937 10000-17000 4.3% Electronic City Phase 1 3309-5491 11000-17000 4.2% Electronic City Phase 2 2573-4298 9000-15000 4.00% Frazer Town 5750-9953 18000-26000 3.2% Hebbal 4509-7819 12000-20000 3.1% Hennur Main Road 4188-6516 12000-21000 3.8% 3197-5250 13000-20000 4.4% 3197-5270 11000-16000 4.1% HRBR Layout 7540-13146 13000-24000 2.1% Indira Nagar 5058-9595 18000-30000 4.4% ITPL 3829-6306 13000-21000 4.1% Jayanagar 5476-9753 16000-25000 3.3% JP Nagar 3679-6592 13000-21000 3.9% JP Nagar Phase 7 3602-6858 14000-21000 4.2% K R Puram 3125-5176 11000-17000 4.1% 3494-5080 10000-16000 3.8% 3194-4908 12000-18000 4.5% Kanakapura Road 3760-6183 9000-15000 2.9% Kasavanahalli 3717-5917 14000-21000 4.2% Kasturi Nagar 7174-11301 14000-22000 2.2% Koramangala 6860-11457 19000-31000 3.3% 3854-6156 14000-21000 4.5% Mahadevapura 3654-6116 14000-22000 4.6% Malleshwaram 9809-13807 20000-31000 2.7% Marathahalli 4002-6704 15000-23000 4.2% Marathahalli-Sarjapur ORR 5396-7353 17000-24000 4.00% Old Airport Road 4838-8542 16000-26000 4.00% Panathur 3952-5874 13000-20000 4.5% Rajaji Nagar 9007-14526 19000-34000 2.6% Rajarajeshwari Nagar 3219-5149 10000-14000 3.6% 3217-5023 11000-16000 4.4% RT Nagar 3681-6396 11000-18000 3.5% 4351-7091 11000-18000 3.2% Sanjay Nagar 4476-8069 13000-21000 3.7% Sarjapur Road 4026-6875 15000-24000 4.4% 3961-6031 11000-18000 3.5% Varthur 3209-5351 12000-18000 4.5% 2859-4676 9000-14000 3.8% Whitefield 3677-6259 13000-21000 4.2% 3672-5662 10000-16000 3.1% Yeshwantpur 5500-8345 15000-24000 3.2%

ELECTRONIC CITY

Corridor Description and Rating Areas Included: Electronics City, Hosur Road, Huskur, , , Kudlu, Bommanahalli and Hosa Road

Fig 1: Map of the corridor 13 Corridor of growth (COG)

About the Corridor lectronics City Corridor, located in South per current estimates should be completed by corridors that are mostly under BBMP Bengaluru, is the largest electronics park 2020. Heavy traffic logging on the Central Silk jurisdiction, here different parts of the corridor Ein India spread across an area of 350 acre Board Circle has now prompted the authorities are under different authorities such as BBMP, in Taluk. Unlike other corridors which to also include this corridor as part of the Gram Panchayats, ELCITA and BMRDA-Anekal are radial, this is a linear growth corridor with Phase-III Metro work and RITES (a design Planning Authority. residential and commercial hubs on either side consultancy firm) has been entrusted the work Although the area boasts of a good of Hosur Road. to conduct feasibility studies to link the metro expressway and a NICE corridor to connect through this corridor to connect to North to the rest of Bengaluru, Central Silk Board Currently the corridor is connected to rest of Bengaluru. The Central Silk Board to Hebbal which is the most nodal point connecting this Bengaluru through the 4-lane tolled elevated Line will be parallel to the ORR and cover corridor to the Peripheral Business District expressway opened in 2010 from Madivala areas such as Sarjapur Road, Marathahalli and (PBD) and the Central Business District (CBD), (Central Silk Board) to Electronics City and the Mahadevpura. BMIC-NICE Corridor which connects Electronics still faces lot of traffic congestion throughout City to Bannerghatta Road, Kanakapura Road, The proposed PRR which starts from Hosur the day. Mysore Road and Tumkur Road. The corridor Road, an 8-lane expressway, will provide an This has been a key factor for investors holding can also be accessed from the Sarjapur Road arterial connection to Tumkur Road and will back from investing in this corridor. Social Corridor through the Outer Ring Road (ORR) allow heavy traffic coming from Mumbai, infrastructure is yet to catch up as well as there or Haralur Road which connects at Jail Road Pune, Chennai etc to bypass the city. are no good malls or shopping centers in this (Naganathapura) or through the SH-35, also The proposed Neo Mall and the Hiranandani corridor currently. Problems with maintenance known as Sarjapur- Road. Mall are currently progressing at a slow pace. of the localities are attributed to the fact As part of Metro Phase-II a new line will be Although the area has a floating population that most of them are under the ambit of the added to the existing green line which will of almost 1.5 lakh professionals, the social Gram Panchayats which are not well equipped connect from Jayadeva Hospital Junction to infrastructure is yet to catch up as residential to handle the issues of large communities Bommasandra. This will cover most of the communities have just started functioning coming up in this corridor. areas on the Electronics City Corridor and as in most parts of the corridor. Unlike other

Overall Connectivity Social Infrastructure Security/Water

Properties available in the corridor he corridor offers a wide range of the demand is highest (63%) for 2BHK units. ready-to-move-in inventory. The corridor properties with majority of them Interestingly Fig 3 shows that 53% of the has an almost uniform rate throughout Tin the Rs 20-40 lakh price segment. property in this corridor is ready-to-move-in. until Electronics City but a few premium Considering the corridor has a high population This means it is a buyer’s market as many apartments close to Central Silk Board are of employees working in the IT/ITES sector, developers would be ready to dispose the quoting upwards of Rs 1 crore for a 2BHK unit.

Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration 14 Corridor of growth (COG)

Table 1: Sizes and prices of flats available for As explained, prices in the corridor move north closer to Bommasandra or Chandapura. As one various room configurations as one moves towards the Central Silk Board. moves south of Attibele, it is observed that Sales Price Covered Area So an investor will get better value for money the floor area/built-up area of apartments are ( Lacs) (Sq.ft) in areas beyond Chandapura where prices are larger and there are 2BHK units with super 1 BHK 13-98 500-1000 affordable and developers are offering good built-up area of even 1600 sq ft. The corridor is 2 BHK 13-200 500-1977 area for the money invested. Typically Rs 40 affordable as one moves to interior areas such 3 BHK 17-300 650-3800 lakh which will buy a 1BHK unit near the start as Iggalur on Chandapura-Anekal Road where of Hosur Road will be able to buy a 2BHK unit a 1BHK unit costs about Rs 14 lakh. 4 BHK and Above 52-226 1872-3735 Best sectors to invest in a home Based on rental demand in sectors

Fig 5: Top 10 localities by consumer for renting a house ithin the corridor, the locality City Phase-I, Velankanni Tech Park, Infosys Electronics City Corridor has almost constant with the highest rental demand is and Wipro campus. Hosa Road commands the average rental yields in all localities, which Wsurrounding Electronics City. The area highest rental, as of now, with an average is around 4%. As one moves away from the has the highest demand of about 46% as it is rental value of Rs 24,000 per month for a corridor towards Hosur, property prices and close to work locations such as the Electronics 2BHK house. rental demand starts reducing. Based on home buying demand in sectors

Fig 6: Top 10 localities by consumer for buying a house 15 Corridor of growth (COG)

n the case of demand for home buying, and it is also a sought-after location by Layout and to Bannerghatta Road through Electronics City has the highest share. investors who can expect good rental commands the highest IThe next highest demand is in Electronics returns of 4-5%. Bommanahalli which is price. Since it is close to Central Silk Board City Phase-1. Most of the people working close to both Electronics City as well as and is located before the elevated expressway in Electronics City prefer to stay here Sarjapur Road Corridor through the HSR there is good demand from people. Best bedroom configurations to buy Preferred buying and renting options

Table 2: Demand distribution for buying and renting t is observed from the given tables that people looking to rent are considering 2BHK Buying Renting for rent 2BHK apartments are the most units. In fact, the 3BHK units are the second Total (BHKs) Total (BHKs) Ipreferred. The buying is also prefrerred most preferered localities in the corridor. Here, 1 BHK 3% 2% for 2BHK segment. According to the table, 47% people prefer 3BHK segment currently. 2 BHK 48% 52% 48% consumers are preferring to buy 2BHK The demand for ultra-luxury apartments category as the demnd is high there. From a and villas above 4BHK is only about 2-3% for 3 BHK 47% 43% sale perspective, both 2 and 3BHK units have renting and buying. 4 BHK and Above 2% 3% the same demand in this corridor. About 52% Price changes and future prospects Historic Price movement Corridor Average Price Rs/sqft Table 3: Historical Price changes

6 monthly change Yearly change 6% 14% lectronic City has seen that property prices have risen over the last one year Eat a steady rate. It is also one of the few corridors that have actually seen a price rise over the last one year in Bengaluru. It is also seen that price rise has been higher in areas closer to Central Silk board where new projects have been launched in the affordable and mid segment budget category. The trend is in confirmation to what has been seen in other areas of Bengaluru as well where prices have remained stagnant in the luxury and premium segment and the mid segment has seen highest consumer demand as well as price appreciation. Most of the people looking for property in these areas are typically employees in the IT/ITES companies in this corridor and are keener to purchase 2-3 BHKs Fig 7: Historical Price changes of corridor in the mid segment price range 16 Corridor of growth (COG)

Price movement for top localities by Consumer Preference he last quarter has witnessed the prices moving up for three of the five localities with high consumer demand. Bommanahalli and TElectronic City which have seen maximum number of new launches in the locality has also seen a steady appreciation of greater than 4% in the last quarter. Also over the last quarter about 1600+ units were completed and ready for possession in this corridor which has contributed to the increase in the price. Although significant number of top localities witnessed price increases this quarter, this has been against the continual drop in the average prices of localities in the last two years and the current rise in prices does not follow a long term trend.

Fig 8: Price changes in top localities by consumer demand

Master Plan

t is observed that large tracts of the corridor are designated for industrial and high technology Isegments. Closer to Central Silk Board, on either side of Hosur Road there are large areas earmarked for residential and mixed residential use. The corridor is guided by three different planning agencies such as ELCITA (Electronics City Industrial Township Association), BBMP and BMRDA - Anekal. In South Bengaluru, the corridor has acute water shortage, but projects such as KSWN (Karnataka State Water Network) in partnership with IT companies in the vicinity aiming at de-sludging the lakes in Doddathoguru and efficient ground water management have shown good results.

Fig 9: Land use of various localities in the corridor 17 Corridor of growth (COG)

Infrastructure Updates l As part of Metro Phase-II, a new line will l The 8-lane PRR - Peripheral Ring Road - and all plans to ease traffic at this junction be added to the existing green line which connects Hosur Road to Tumkur Road and have proved futile. Other than Hosur Main will connect Jayadeva Hospital Junction to passes through the Old Madras Road, KR Road, other roads are not well maintained as Bommasandra. This will cover most of the Puram and Bellary Road. This will provide the three agenices responsible for maintaining areas on the Electronics City Corridor and as seamless connectivity and allow vehicles the roads are always at loggerheads with per current estimates should be completed from plying to Mumbai, Pune etc from each other. by 2020. Heavy traffic logging on the Chennai and South Tamil Nadu to byepass There are a few malls which have been Central Silk Board Circle has now prompted the city. in the construction stage for a long time the authorities to include this corridor also A recent visit to the corridor revealed that but the progress has been very slow and as part of the Phase-III Metro work and there is a lot of activity happening in terms there is no sign of completion in the next RITES (a design consultancy firm) has been of residential spaces coming up. Electronics 3-4 years. Water scarcity has been a major entrusted the work to conduct feasibility City has traditionally been an area with a problem in this corridor and there are many studies to link the metro through this high concentration of office spaces. So, most apartment complexes that are ready-to- corridor to connect to North Bengaluru. people working there prefer to stay in BTM move-in but people are not occupying as the The Central Silk Board to Hebbal Line will Layout, Begur Road and other localities in the monthly maintenance charges are very high, be parallel to the ORR and cover areas Bannerghatta Road Corridor although these considering that most of them are serviced such as Sarjapur Road, Marathahalli and areas are far from Electronics City. Central Silk only by tanker supplied water. Mahadevpura Board continues to be a major traffic bottleneck IN NEWS Why you should invest on Hosur Road? Bengaluru demands more apartments Hosur Road, one of the main roads in Bengaluru, is known for its Electronic City is a fast emerging locality in Bengaluru. In fact, it is connectivity within the city, to the established suburbs and also to the preferred by the home buyers immensely. The area has majority of other cities in Tamil Nadu. Several factors make this location a highly young buyers looking for investible options. Whitefield, Sarjapur Road, active area for realestate development and investment. One of the Bannerghatta Road, Rajarajeshwari Nagar, KR Puram, Marathahalli primary reasons to live in Hosur Road is its emergence as the centre for and Kanakapura Road are some of the other preferred choices among residential, commercial and retail establishments. Living in proximity city buyers. But, the home buyers are showing keen interests for to the retail spaces such as hyper-markets, malls and convenience investing in the locality. Further, the reason for growth in demand in stores, has been constantly garnering attention of buyers. The demand the electronic city is enhanced metro network and improving social for housing is growing in Hosur Road and buyers are getting healthy infrastructure such as there are schools, restaurants, and other basic returns. It might be a good time to invest in the area to earn good amenities. returns and enjoy a high-end lifestyle. n Source: Magicbricks Bureau n Source: Magicbricks Bureau Hosur Road - An emerging retail hub Cyient sets up SMEC’s global design center in Bengaluru The primary driver for the emergence of Hosur Road as a commercial, Cyient has announced that it has inaugurated a new global design residential and retail centre is its efficient connectivity to Electronics center at Cyient’s Electronic City campus in for an Australian City as well as established suburbs of the city. Hosur Road connects consultancy firm, SMEC. It is an IT firm already operating in the city. the Outer Ring Road (ORR) to the NICE Ring Road, which provides The center will commence operations from July 2016. The facility that easy connectivity to other IT hubs, such as Whitefield, and also to is built and operated by Cyient is SMEC’s first offshore design center. the airport. Hosur Road, one of the first IT belts in the city, has, over The centre will support SMEC’s global design work primarily around time, turned into one such micro-market with retail growth pacing civil and structural, including building information modelling (BIM). up to match the requirements of the people. Moreover, the area has SMEC caters to varied sectors including transport, energy, water, sufficient land at competitive rates, civic infrastructure and favourable environment, health, education, and government advisory. government initiatives. n Source: The Times of India n Source: The Times of India BANNERGHATTA ROAD

Corridor Description and Rating Areas Included: Bannerghatta Road, , , , Koppa, Begur, Begur-Koppa Road, Kalkere, and JP Nagar 9th Phase

Fig 1: Map of the corridor 19 Corridor of growth (COG)

About the Corridor annerghatta Road, which extends and is close to work locations on Sarjapur realignment in process. The corridor is close from Jayadeva Hospital Circle to Road, Hosur Road and Electronics City. to the existing green metro line which passes Bannerghatta National Park is located through . B The corridor is well connected to rest of in South Bengaluru. This is a completely Bengaluru by the Bannerghatta Road which The corridor has equal supply of 2 and 3BHK residential corridor that has a lot of demand connects to the CBD. The NICE Road connects formats and a supply which matches the from residents looking to live close to Central the corridor to Tumkur Road, Mysore Road, demand. There are a few luxury villa projects Bengaluru. A linear corridor which stretches Kanakapura Road and Hosur Road. The corridor as one moves towards Jigani but the demand for a length of about 28-km and has localities is strategically located between the Hosur is generally low for luxury villas. Luxury and on both sides of the Bannerghatta Road. It is Road on the east and Kanakapura Road on the ultra-premium 3 and 4BHK units have good close to some of the costliest residential areas west, thus, providing best access to both these demand at the start of the corridor close to the in Bengaluru such as Jayanagar, JP Nagar and roads for people living here. IT offices and near BTM Layout and JP Nagar. BTM Layout. The corridor has the widest range of properties Bannerghatta Road on the corridor has the The corridor witnessed an influx of people available in terms of affordable plots as one highest traffic density during peak hours wanting to reside here during the initial IT moves towards Jigani and Koppa to high-end and since there is no other parallel road, boom in the city. The area had a good talent ultra-luxury apartments close to JP Nagar and this is a major bottleneck. Since most of the pool as many engineering colleges are in Jayanagar near Bannerghatta Road. development was during the IT boom and was and around this corridor and that led to done hastily, the infrastructure has not kept concentration of IT firms here. Most of the big Currently the road is not covered in the pace and most approach roads are narrow IT companies have had their first offices on network, but the red line that and choked at many intersections. Although this road and many of them continue to hold will be added soon will connect Gottigere to there are large forest areas towards the onto these smaller spaces even though they Nagawara. This is a 21.25-km long line that Bannerghatta National Park, the road is mostly have large office spaces in other corridors of passes through Bannerghatta Main Road devoid of green spaces in all other areas. Bengaluru. Currently the corridor is in demand all the way until the Jayadeva Hospital. The as it has a well-developed social infrastructure project has been delayed as there is some

Overall Connectivity Social Infrastructure Security/Water

Properties available in the corridor he corridor offers a wide range of the premium and luxury segments. This is due shows that 52% properties in the corridor are properties in price segments from to the fact that most of the people buying 2BHK units and 43% are 3BHK units. Most of Taffordable to premium. Although 40% property in this corridor are those who want to the available supply in this corridor is catering properties fall in the category of Rs 40-60 lakh, stay close to the CBD areas but want properties to both these segments. Interestingly Fig 3 almost 44% properties in the corridor are in at more affordable prices than CBD prices. Fig 4 shows that 60% of the property in this corridor

Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration 20 Corridor of growth (COG)

Table 1: Sizes and prices of flats available for is in the ready-to-move-in category. In fact, good area for the money invested. So, typically various room configurations many developers would be ready to dispose Rs 40 lakh which will buy a 1BHK unit near Sales Price Covered Area the ready-to-move-in inventory at the earliest. the start of Bannerghatta Road will be able to ( Lacs) (Sq.ft) buy a 2BHK unit closer to Jigani. As one moves As explained above prices in the corridor move 1 BHK 12-48 515-1000 south of Kalkere, it is observed that the floor north as one moves towards the CBD. So an area/built-up area of apartments is larger and 2 BHK 17-200 600-2760 investor will get better value for money at there are 2BHK units with super built-up area 3 BHK 24-350 900-4185 areas beyond Gottigere where prices are much of even 1600 sq ft. 4BHK and Above 51-475 1815-5000 more affordable and developers are offering Best sectors to invest in a home Based on rental demand in sectors

Fig 5: Top 10 localities by consumer for renting a house ithin the corridor, the locality with accommodation. Rental yield shows the From the graph, it is evident that properties the highest rental demand is on the amount of rent that can be generated from closer to Begur, Hosur Road and Gottigere, WBannerghatta Main Road. Overall a property in a year in terms of sale price. which is nearby to NICE Road, command better this is the most sought-after destination Bannerghatta Road Corridor has an average rental yields. with almost 70% demand for rental rental yield ranging from 3-4% in all localities. Based on home buying demand in sectors

Fig 6: Top 10 localities by consumer for buying a house 21 Corridor of growth (COG)

n the case of demand for home buying, prefer to stay here as it is very close and also facility as compared to other corridors. Most Bannerghatta Main Road has the highest has an alternate link road to Electronics City. parts of the road are serviced by BWSSB Ishare. The next highest demand is in Begur In Bannerghatta Main Road, 2BHK properties (Bangalore Water and Sewerage Supply Board) Road which provides good connectivity to fetch good rental returns and have limited and in other areas the ground water level is Electronics City. People working in this area availability. The road also has better water not too below the ground level. Best bedroom configurations to buy Preferred buying and renting options

Table 2: Demand distribution for buying and renting t is observed from the given tables that category. About 61% of the consumers are Buying Renting for rent 2BHK apartments are the most interested in the 2BHK units for rent and the Total (BHKs) Total (BHKs) Ipreferred, but from a buy perspective, both 2 3BHK demand distribution for rent is 34%. The 1 BHK 3% 2% and 3BHK units have the same demand in this demand for ultra-luxury apartments and villas 2 BHK 48% 52% corridor. About 48% of the people looking to above 4BHK is only about 2-3% for buying and buy and 52% looking to rent are considering renting. The home buyers are preferring to buy 3 BHK 47% 43% 2BHK units. Moreover, the demand for rent and rent in this corridor. 4 and Above 2% 3% in the 2BHK segment is more than 3BHK Price changes and future prospects Historic Price movement Corridor Average Price Rs/sqft Table 3: Historical Price changes

6 monthly change Yearly change 3% 6% annerghatta Main road corridor has seen an average appreciation over the last one Byear. It is observed property prices have been stable in the first half of 2015 and that prices have appreciated after the 2nd quarter mainly due to the launch of two large multi storey apartment projects by Tier 1 developers in the corridor. Overall the corridor has seen a price rise of 6% over the last one year. The demand is mostly by employees in the IT/ITES companies working in the Electronic City corridor who prefer to live in and around this corridor which has good social infrastructure.

Fig 7: Historical Price changes of corridor 22 Corridor of growth (COG)

Price movement for top localities by Consumer Preference he last quarter has witnessed the prices moving up for three out of the top localities by consumer demand. Areas such as Hulimavu and TBannerghatta, which have significant consumer interest has seen that the prices have increased by 3-6%. In Hulimavu the price change is mainly due to a new project launched here with about 900 units in the mid segment budget and in Bannerghatta which is close to the and Jigani, due to a constant demand for affordable plots approved under the Anekal planning authority. Begur and Gottigere are other two areas where a large number of properties are ready for possession and lot of investor units are up for sale. This has dragged down the prices although there is still significant

Fig 8: Price changes in top localities by consumer demand consumer demand in these localities.

Master Plan

t is observed that large tracts of the corridor are designated as primary residential areas. IBoth sides of Bannerghatta Road has areas earmarked for commercial development due to which prices are high on this road. Beyond Gottigere, where the NICE corridor intersects the Bannerghatta Main Road, vast areas are marked for forest and a green belt region. There are no large areas earmaked for High tech or other industrial areas. Due to this the area has seen most of the initial IT/ITES companies that setup offices here, moving to other corridors such as Electronics City and Sarjapur Road. These have large SEZ and high tech industrial areas which provide better sops to companies than operating from independent office spaces.

Fig 9: Land use of various localities in the corridor 23 Corridor of growth (COG)

Infrastructure Updates l As part of Metro Phase II, the Nagawara- already started to get water supply as well there are no alternate parallel roads and people Gottigere line will link metro to this although a tad irregular. will have bear with the traffic issues. Alternate corridor. The work on this stretch has modes of transport such as metro has been A recent visit to the corridor has revealed slowed down as there is some realignment going very slow and with the latest plan to that there is a lot of activity happening in at the Jayadeva hospital junction. reallign the metro in order to avoid disturbing terms of residential spaces coming up. But the Jayadeva hospital area has added more l There is a plan to widen the existing four there is a general doubt in the investor if delays to the much awaited Nagawara- lane Bannerghatta road into a six lane road the infrastructure in the area will keep pace Gottigere line. but the plan has been stalled many times with all the development in the corridor. The due to protest from residents on both sides corridor will witness the completion of almost All these factors combined with the movement of this stretch. close to 12000 units by the end of 2016 which of the IT/ITES offices to much affordable areas are main multi storey buildings. This will put such as North Bengaluru and Electronic City l As part of the Cauvery phase IV plan the more strain on the already poor infrastructure have further reduced the attractiveness of the corridor has been connected by Cauvery and Bannerghatta main road will be the single corridor from investment perspective. pipeline in most of the areas until Gottigere point of roadblock and traffic jam. Currently and many houses and apartments have IN NEWS IT, retail hubs drive growth on Bannerghatta Road in the south such as Koramangala, JP Nagar, BTM Layout, and through NICE Road to other arterial roads and the peripheral locations. Bengaluru South witnessed the beginnings of the IT sector, with the Infrastructure projects are being planned to boost development of the first IT cluster at Electronics City. The Outer Ring Road (ORR) played a area. The government has invested money to widen Bannerghatta major role in making areas considered peripheral in early 2000 easily Road. accessible for corporate to set up business. Bannerghatta Road, linked to the city centre through Hosur Road beginning at Vellara junction, n Source: The Times of India is the main link to the IT hubs dotting the road from the Dairy Circle Affordable housing market grows in Bangalore flyover. It also connects to Koramangala and BTM Layout, the key residential and retail belts. This has led to its turning into one of the Infrastructure has been the most significant determinant of growth in earliest key routes of the city. This kind of development is driving the peripheral areas of the city. Good connectivity as well as allocation growth of the area. of land by the government for commercial and industrial growth led to development around 15 km away from the city centre. The next n Source: The Times of India phase of development is now taking place 30 km and beyond with Metro rail will open up new areas improvement of national highways, road widening projects and elevated expressways. It has led to the rise of the affordable housing The Metro corridor has undoubtedly created a positive impact on the market in the city. realty growth in its periphery. The presence of metro is making the area quite convenient to commute. The metro is well-connected to the n Source: Magicbricks Bureau new and upcoming areas, which is helping to attract home buyers. What makes Bannerghatta Road attractive for buyers The impact of metro will be more visible only when the entire stretch is operational. The realty growth in these regions is witnessing more Bannerghatta Road has wide variety of residential offerings which vertical development, mixed land use as well as integrated township support the extensive growth of the office space market. Efficient developments. The Metro connectivity will add advantage to this connectivity is set to fuel further growth in this belt. With its start at connectivity from the railways and roadways. Hosur Main Road, Bannerghatta Road branches off and runs parallel to it. It is one of the first IT belts to develop into a flourishing catchment n Source: The Times of India area with commercial, residential and social infrastructure retail, Infrastructure push for Bannerghatta Road localities options in schooling and healthcare. Locations on Bannerghatta Road will benefit from a swift commute thanks to a new Metro line that will The projects on the anvil to enhance connectivity will lead to more link Nagavara to Gottigere in Phase II. development in the vicinity. Bannerghatta Road, one of the busiest roads in the city, connects the core city areas to prominent locations n Source: Magicbricks Bureau NORTH BENGALURU

Corridor Description and Rating Areas Included: Thanisandra, , Sahakara Nagar, Hebbal, Hennur Main Road, Yelahanka New Town, Kogilu, Nagawara and Bagalur Main Road

Fig 1: Map of the corridor 25 Corridor of growth (COG)

About the Corridor orth Bengaluru Corridor extends from part of Phase-III planning by RITES, a design The corridor has the widest range of properties Hebbal Junction to Yelahanka in the consultancy agency that is tasked with making available in terms of affordable plots as one Nnorth and from Thanisandra Main Road the detailed project report. moves towards Bagalur and Sathanur to to Bagalur Main Road. This is a radial corridor high-end ultra-luxury apartments close to Another line which runs from Hebbal to that runs along the Bellary Road but also Hebbal and Nagawara near the ORR. It is a Central Silk Board will provide access to all includes areas beyond the Jakkur Military unique corridor as it is the only one where the points on the ORR until Hosur Road. These Airport, Sahakara Nagar, Hennur Main Road supply of 3BHK units at 49% is higher than the routes are still in the planning stages and it and Yelahanka New town. number of 2BHK units at 41%. This is mainly might take a few years to even start the actual due to the fact that the corridor was developed The corridor is commonly known as North groundwork. recently and vast tracts of land are available Bengaluru and is closest to the Kempegowda The proposed PRR starting from Hosur Road for development. The demand is also high for International Airport (KIAL). Hebbal, about is an 8-lane expressway which will provide apartments with larger floor spaces and more 28-km away, takes about 30 minutes to reach an arterial connection to Tumkur Road and open areas. the airport. Since it was setup recently, it allow heavy traffic coming from Mumbai, has very broad, well laid out roads. Bellary Although the corridor has good infrastructure Pune, and Chennai to bypass the city. This Road itself is a 6-lane highway with service in terms of wide roads, drainage and water road will pass through the corridor at Bellary roads and connects Hebbal to the airport. pipelines, it has an acute water crisis and is Road (NH-7). The KIADB Industrial Park is The corridor can also be accessed through the mostly dependent on tanker water supply currently operational while, Shell India has Outer Ring Road (ORR) at the intersection of for daily needs. There are a lot of residential started its set-up on a 52-acre plot and will NH-7 at Hebbal and Thanisandra Main Road at projects that are ready-to-move-in, but be operational soon. European Aerospace and HBR Layout. currently there are not many people living Defence and Jupiter Aviation are other big here. It might take a few more years for all the Although the corridor is not part of the companies that will soon be setting up their social infrastructure to be set-up and make Namma Metro-Phase II work, it will get a new India operations center here. KIADB has also this corridor completely liveable. metro route – the Nagawara-Kempegowda earmarked about 60-acre land for residential International Airport which is a 25-km line as purpose in the proposed industrial park.

Overall Connectivity Social Infrastructure Security/Water

Properties available in the corridor his is a unique corridor which offers is developing, Fig 3 shows that almost 63% higher than the number of 2BHK units at 41%. a good number of properties in all of the property in the corridor is still under- This is due to the fact that since the area has Tthe segments, although the share of construction and will take a few more years large open spaces available for development, property in the price range of Rs 40-60 lakh for possession. Fig 4 shows that the number property seekers look at larger floor plans is slightly higher at 25%. Since the corridor of 3BHK units in the corridor is 49% which is than what is offered in properties closer to the

Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration 26 Corridor of growth (COG)

Table 1: Sizes and prices of flats available for CBD. It is also seen that at 3%, the number of and Nagawara, which are closer to BDA layouts various room configurations 1BHK units is very less as the corridor is not such as HBR and HRBR. As one moves North Sales Price Covered Area much preferred by bachelors since there are of Bagalur, it is observed that the floor area/ ( Lacs) (Sq.ft) not many work locations here other than the built-up area of apartments are larger and 1 BHK 15-146 520-1200 Manyata Tech Park at Nagawara. There are a there are 2BHK units with super built-up area 2 BHK 19-225 575-1800 lot of luxury villa projects available here. As of even 1600 sq ft. The corridor also has a good 3 BHK 22-400 900-5347 explained, prices in the corridor move north supply of luxury villas with sizes in the range as one moves towards the CBD around Hebbal of 2500-11000 sq ft. 4 BHK and Above 100-650 2000-6300 Best sectors to invest in a home Based on rental demand in sectors

Fig 5: Top localities by consumer for renting a house ithin the corridor, the locality Rental yield shows the amount of rent that properties which are towards North of Bellary with the highest rental demand is can be generated from a property in a year Road such as Kogilu, have lower rental yield. WHebbal, which is a well-developed in terms of sale price. The corridor has low to Thanisandra, on the other hand, has properties locality and close to some of the premium average rental yields in all localities, ranging which are priced high although there is not areas such as RT Nagar and Sadashivnagar. from 2-5%. From the graph it is evident that much social infrastructure here. Based on home buying demand in sectors

Fig 6: Top localities by consumer for buying a house 27 Corridor of growth (COG)

n the case of demand for home buying, good rental yield. Property prices are also the it has all social infrastructure and is close to again Hebbal has the highest share at 49% highest at Hebbal at Rs 6,300 per sq ft. the airport. The next highest demand is on of the entire demand. It is preferred by end Thanisandra Main Road which has a lot of big I The area is mostly preferred by pilots and users due to good social infrastructure and townships launched by Tier-1 developers. airline staff who find it the best to live in as connectivity and by investors as it fetches Best bedroom configurations to buy Preferred buying and renting options

Table 2: Demand distribution for buying and renting t is observed from the given tables that for both 2 and 3BHK units have the same demand. Buying Renting rent 2BHK apartments are most preferred About 43% of the people looking to buy Total (BHKs) Total (BHKs) Ibut from a buying perspective 3BHK and 50% of the people looking to rent are 1 BHK 5% 7% configurations at 47% have a higher demand. considering 2BHK units. The demand for ultra- 2 BHK 42% 52% This is due to the fact that prices were luxury apartments and villas above 4BHK is generally lower in this corridor and hence, about 5% and people are looking to buy such 3 BHK 49% 39% buyers looked for large floor areas while configuration closer to the airport. 4 and Above 4% 2% buying property here. From a sale perspective, Price changes and future prospects

Historic Price movement Corridor Average Price Rs/sqft Table 3: Historical Price changes

6 monthly change Yearly change 3% 7%

orth Bengaluru corridor has seen a steady appreciation over the last one Nyear. It is also one of the few corridors in which all the top 5 localities that are in demand have seen a rise in price over the last one year. It is observed that prices have appreciated across the last 3 quarters of 2015 but the increase in price has reduced in the first quarter of 2016. Property prices have increased mainly in the Thanisandra region which has had the highest consumer demand as well. Most of the tier 1 builders have launched properties on this road and some of them will be ready for possession by end of 2016 which could be another trigger for rising prices. In line with the price trends observed over all the corridors in Bengaluru, here too it is seen that areas which have higher concentration of Fig 7: Historical Price changes of corridor properties in the mid segment category have seen the highest demand from consumers and the highest price rise as well. 28 Corridor of growth (COG)

Price movement for top localities by Consumer Preference he last quarter has witnessed the prices moving up for all of the top 5 localities by consumer demand. Areas such as Jakkur and Hebbal Twhich have high number of luxury and premium properties have seen appreciation less than 1% as compared to areas such as Thanisandra and Thanisandra main road where appreciation of 2% is observed. Both these localities have a high number of under construction properties in the mid segment budget category which has high consumer demand. Another factor contributing to high prices is the many number of pre launches in this corridor over the last two years. In general property prices are generally lower during the pre-launch stage and climb steadily as the project goes into launch which also has contributed to the price appreciation in these two localities. Fig 8: Price changes in top localities by consumer demand

Master Plan

Fig 9: Land use of various localities in the corridor

t is observed that large tracts of the corridor permission of the Deputy Commissioner of are designated as a mix of primary residential Town Planning. This provides scope for future Iand high tech commercialsegments. Areas development where vast tracts of land will lying on the east of Thanisandra Main Road be available for development of residential or are mostly High tech and industrial. This commercial properties Although there are a means that restricted land is available for few lakes in this corridor such as the Hebbal, development for residential purposes. Areas Nagawara and Rachenahalli lakes, there are a beyond Bagalur and Sathanur are earmarked few more lakes which have now become dry as agricultural land which can be converted and much of the area has been encroached by after changing the land use pattern with the illegal settlements. 29 Corridor of growth (COG)

Infrastructure Updates l As part of the Metro Phase-II, the Karnataka State Industrial Investment and factoring future projected appreciation in the Nagawara-Gottigere Line will link the Development Corporation (KSIIDC) current prices. So ideally a developing corridor metro to this corridor. Work on this that is yet to get all the social infrastructure in l The government has proposed to divert stretch has slowed down as there is some place which should be priced affordably, has the Yettinahole River from Sakleshpura to realignment at the Jayadeva Hospital now been priced aggressively and this has cater to water demand from Chikkabalapur Junction put off end users from buying here. and Kolar which will eventually also reach l There is a proposed PRR - Peripheral Ring Devenahalli, but there have been massive The inventory of ready-to-move-in units is Road - on which BDA has recently started protests against this project and as of now, higher than the average for the rest of the the land acquisition process. PRR is an there is no clear roadmap on when this will city. This has prompted developers to slow 8-lane expressway that will cross Bellary be implemented. down construction and thus, some projects Road and connect to Tumkur Road on one have been under construction for almost A recent visit to the corridor has revealed end and to Hosur Road on the other 8-years. With some proactive measures from that there is a lot of speculation. Three new the government to arrange good drinking l The Devanhalli Business Park is a 415- projects from the government regarding the water supply and quick set-up of the proposed acre business park to be developed on a Aerospace SEZ, ITIR (IT Investment Region) and buisness and IT parks, the area can see faster Public Private Partnership (PPP) model Devenahalli Business Park have been proposed growth than expected. and a consultant has been appointed in this corridor. This has led to developers to do the PPP process on behalf of the increasing the prices of properties and IN NEWS Commercial development picks up in North Bengaluru Jakkur, emerging as a potential residential hub Over the last five years, North Bangalore has emerged as a destination Jakkur, located after Hebbal in north Bengaluru on Bellary Road to reckon with. Smooth connectivity to the airport has unlocked the (NH7), holds prominence because of the Jakkur airfield which value of land parcels, paving the way for commercial and residential houses government and private flying schools and clubs. Jakkur has development in this region. The stretch from Hebbal along the Bellary government and private industrial establishments, workshops for Road up to the airport and beyond has witnessed the emergence of research and development projects etc. The growth of Jakkur surged micro-markets, which are in demand due to proximity to the airport further when the airport started operations. Connectivity to Jakkur and to tech parks, lower land costs and accessibility. Moreover, the improved significantly, attracting more investments. The availability industrial areas of Chikkaballapur and Doddaballapur are to the north of social infrastructure with reputed schools and hospitals made of this micromarket. it a destination for luxury homes. The commercial development and upgradation of infrastructure around Hebbal, Yelahanka and n Source: The Times of India Thanisandra Road have contributed significantly to the emergence of Demand for residential projects on the rise Jakkur. The north of the city was predominantly dependent on residential n Source: The Times of India growth but restricted to certain pockets. When the international Bengaluru’s high-end properties attract NRIs airport at Devanahalli became operational, the property market growth and infrastructure projects started taking shape. The region There are several old premium neighbourhoods that continue to is today one of the fastest-growing property markets with prices retain their high-end tag, offering a lifestyle comparable to the skyrocketing and a large number of premium projects coming up. ones experienced abroad with established social infrastructure. These residential areas are well-serviced with the ORR and other Older upscale neighbourhoods in the North include areas such as arterial roads. Social infrastructure such as retail spaces, schools, Jayamahal, , RMV IInd Stage, Dollars Colony, RT Nagar, colleges and hospitals too are around making these locations quite to some extent HBR and HRBR Layouts, along with new layouts in self-sufficient. Jakkur, Bellary Road and Hennur Road are fairly good areas targeted by NRIs. These areas continue to remain preferred premium locations n Source: The Times of India primarily due to the lifestyle and conveniences that they provide. n Source: Magicbricks Bureau SARJAPUR ROAD

Corridor Description and Rating Areas Included: Sarjapur Road, Bellandur, Haralur Road, Kadubeesanahalli, Kaikondanahalli, HSR Layout, Carmelaram, Dommasandra, Bagalur, Panathur and Doddanekkundi

Fig 1: Map of the corridor 31 Corridor of growth (COG)

About the Corridor Introduction and Connectivity: Sarjapur Existing Infrastructure: The corridor lakes during monsoon and maintain a Road is situated in South-East Bengaluru has risen to prominence due to lack of balanced water supply to avoid flooding. starting from St. Anthony’s Friary Church to residential options in the Whitefield Corridor. Upcoming Infrastructure: The proposed Sarjapur Town in Anekal Taluk. Most of the real The emergence of new IT parks and office Namma Metro Phase-3 from Hebbal to Silk estate activity is seen from HSR Layout upto spaces of IT giants such as Wipro and Infosys, Board will pass through the corridor and Sarjapur Town. There are numerous large scale has given a tremendous boost to real estate improve accessibility. The proposed PRR will developers and several big companies which activity. Barring a few villages the corridor also make it easy to commute to Whitefield have invested in real estate and business parks has well planned roads and is well connected and other localities in East Bengaluru. in and around this locality. Accessibility to IT to Hosur Road in the South through multiple hubs in Electronics City and Whitefield has points such as Haralur Road, Attibele Road and Issues in the Corridor: The corridor generally been a reason for the realty demand here. Whitefield through the Varthur-Dommasandra gets flooded during heavy monsoons as (SH-35) Link Road. it is in the valley area of lakes that existed One of the main reasons for Sarjapur Road to previously. The interior roads connecting the emerge as a premier residential destination The ORR on the western side provides villages within the corridor have not been well is its accessibility. Sarjapur Road has good connectivity to Marathahalli and other maintained, leading to long traffic jams during connectivity through ORR and NICE Ring Road. localities in North-East Bengaluru. The corridor peak hours. Several localities such as BTM, HSR Layout, has a number of lakes in the vicinity but Bannerghatta Road, Bellandur, etc are located encroachment and unauthorised dumping Pricing along the corridor: This corridor in proximity to the area. Due to availability of has led to reduction in the size of the lakes. offers properties from affordable to ultra- land and affordable prices, many office spaces The National Green Tribunal (NGT) has dealt luxury. There are many projects with modern have also developed in the vicinity. Currently with this very strictly and has recently ordered amenities. Most properties are in the range the only mode of public transport is the to stop such construction. The proposed of Rs 4,000-6,000 per sq ft. But the upcoming BMTC bus service, which is efficient in terms Master Plan has also ear marked a large green localities such as Sarjapur-Attibele Road and of frequency. The upcoming PRR will boost space, the valley area, that allows water from Dommasandra offer properties in the price connectivity to Whitefield. upstream lakes to feed into the downstream range of Rs 2,500-4,000 per sq ft.

Overall Connectivity Social Infrastructure Security/Water

Properties available in the corridor he corridor offers a wide range of by around 20% properties each in the price evident that numerous 2BHK apartments are properties in all price segments from segments of Rs 60-80 lakh and Rs 20-40 lakh. available in the price segment of Rs 20-40 lakh Taffordable, luxury, premium to ultra- From Fig 4 it can be seen that about 55% of here. Fig 2 also shows that there are double luxury. More than 30% of properties fall under properties are 2BHK and around 40% are 3BHK the number of properties in the price segment the price category of Rs 40-60 lakh followed within the corridor. From Fig 2 and Fig 4 it is of over Rs 1.20 crore compared to those in the

Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration 32 Corridor of growth (COG)

Table 1: Sizes and prices of flats available for range of Rs 1-1.20 crore. This signifies that has good social infrastructure compared to the various room configurations there are more properties in the ultra-luxury other two localities. Sales Price Covered Area segment with high-end amenities than in Properties in these localities may not be as ( Lacs) (Sq.ft) the luxury segment. Demand in this sector is spacious as the ones in Whitefield or Hosur 1 BHK 11-65 500-1000 from the mid and senior level management Road, but they are available in varied price professionals working in the IT parks on ORR 2 BHK 18-150 580-3028 ranges starting from Rs 18 lakh to Rs 2.15 and Electronics City as this corridor is almost 3 BHK 24-370 900-3690 crore. There are very few properties in the half-way between both these locations and 4 BHK & above 47-550 1550-10500 4BHK and higher segment. Best sectors to invest in a home Based on rental demand in sectors

Fig 5: Top localities by consumer for renting a house arjapur Road and HSR Layout are and Whitefield. HSR Layout has the highest Road and Bellandur. With the development high demand localities in South-East (42%) rental demand in comparison to other of Electronics city and other IT Parks in and SBengaluru. The demand is generated by localities around Sarjapur Road. It is highest around Sarjapur Road, the demand will likely professionals in ORR, Sarjapur Road, Bellandur for localities closer to Sarjapur Road, Haralur increase in the interior along Sarjapur Road. Based on home buying demand in sectors

Fig 6: Top 10 localities by consumer for buying a house 33 Corridor of growth (COG)

n terms of demand for buying a house, the under-construction supply is more than to the demand. It is also observed that more Sarjapur Road and HSR Layout both the ready-to-move-in supply at Sarjapur villas and row house projects are being built Icontribute to over 30% each. Sarjapur Road. Panathur and Sarjapur Village are also in the localities closer to Sarjapur Village Road is an upcoming residential locality with upcoming localities which have increasing and more apartments are being built in the many new launches every quarter. Currently, number of new launches and are contributing localities near ORR. Best bedroom configurations to buy Preferred buying and renting options

Table 2: Demand distribution for buying and renting ccording to the tables given, demand lower than that of buyer demand. But, the Buying Renting for 2BHK properties is more than 50% demand for buying properties are reasonable Total (BHKs) Total (BHKs) Aof the total demand. Similar to buying, in the 3BHK segment. It is observed that 11% 1 BHK 5% 11% there are more properties available in the of the total rental supply is of 1BHK properties 2 BHK 52% 57% 2BHK segment than it is available in the 3BHK which consists mostly of properties in HSR segment. In case of rental supply, the demand Layout. There is less demand among the home 3 BHK 40% 31% is high in the 2BHK segment. The share of buyers for 1BHKs. The properties avialable in 4 and Above 2% 2% 3BHK properties in rental demand is 10% the 4BHK segment is minimal. Price changes and future prospects

Historic Price movement Corridor Average Price Rs/sqft Table 3: Historical Price changes

6 monthly change Yearly change 3% 8% arjapur road corridor has seen an average appreciation over the last one year. It is Sobserved that prices have appreciated highly in the last quarter of 2015, when the expansion of 2 new tech parks was announced in the corridor. Before that the price rise has been low at about 1-2% per quarter. Other than the main roads and areas surrounding the Tech parks on the Outer Ring road, property prices have reduced in all other areas. This has been mainly on account that the social infrastructure in the corridor has not kept pace and most of the arterial roads are not well developed. Most of the people looking for property in these areas are typically employees in the IT/ITES companies. Although significant number of top localities witnessed price increases this quarter, this has been against the continual drop in the average Fig 7: Historical Price changes of corridor prices of localities in the last two years and the current rise in prices does not reflect the long term price trend. 34 Corridor of growth (COG)

Price movement for top localities by Consumer Preference he last quarter has witnessed the prices moving up for three out of the top 5 sectors by consumer demand. Areas such as Haralur road, Twhich have significant consumer interest has seen that the prices have actually reduced by almost 4% due to infrastructure issues. The road has witnessed the highest number of new launches but most of them being builder floor apartments, the developers have given price discounts to clear inventory quickly. There is also a lack of social infrastructure in this area that has led to a reduction of prices. It has been observed that within the corridor the highest price increase has been in areas such as Sarjapur road and HSR Layout that have very good social infrastructure compared to other areas

Fig 8: Price changes in top localities by consumer demand in the corridor.

Master Plan

Fig 9: Land use of various localities in the corridor

l From the map it is understood that the city from residential development. This whole of Sarjapur Road is divided into part stretches from Doddanekundi to various residential and industrial zones. It Dommasandra. This is one stretch that starts with land allocated to the IT Industry will have abundant greenery as most from the start of ORR up to Kaikondrahalli parts are marked as Valley or Lake Zones. With the NGT issuing strict guidelines on l The second part is allocated to residential construction near lakes, this will ensure development on both sides of the road with large open spaces commercial development proposed along the road. This starts from Kaikondrahalli l At Sarjapur Village, the land-use proposed and stretches up to Doddanekundi in the Master Plan includes both industrial and residential development l The third part mostly consists of a green belt which acts as a buffer to the outer 35 Corridor of growth (COG)

Infrastructure Updates l The Karnataka Government in its state l The 65 km proposed Peripheral Ring Road from the ORR as there is very limited land budget for FY 2015-16 has allocated money (PRR) will connect four highways - Tumkur available for expansion there. With the setting- for the expansion of Sarjapur Road. Under Road, Ballari Road, Old Madras Road and up of the Metro connectivity, this corridor the Revised Master Plan-2015, the stretch Hosur Road - stretching from Tumkur Road to will become self-sufficient and resemble the between ORR and Dommasandra is to be Hosur Road. The estimated land acquisition Whitefield Corridor, with integrated townships, widened up to 45 metres. The detailed cost is Rs 8,100 crore while the construction malls, schools and hospitals. Actually, project report for the same is being prepared is expected to cost Rs 3,850 crore. The Central everything is present within the corridor. currently by the state government and government has agreed to bear the land cost Since this is a low lying area, there have been further information on the development is in for the project concerns during monsoons when some of the the process localities are badly flooded. Currently, the Sarjapur Road Corridor is in l As per BMRC (Bangalore Metro Rail a developing phase and most of the social This has also prompted the NGT to pitch in Corporation), the work for Phase-III of the infrastructure is being setup. Due to availability and stop the construction. Currently the area Namma Metro will begin soon. Under this of large land parcels, large residential schools has some of the best villa projects at more project, the 33 km long Silk Board-Hebbal have come up here. affordable prices as compared to the Line will cover vast stretches of ORR and Whitefield Corridor. A lot of extension IT parks have also been Sarjapur Road. Once the metro line is in planned in this area which will be extended operation, it will be quite helpful. IN NEWS Sarjapur Road is an emerging growth hub Should you buy property in ? The real estate development in the Sarjapur Road micro-market Sarjapura Road has slowly climbed up the ladder to become a began with the setting up of a prominent IT major’s campus there. sought-after destination with mid-priced to high-end properties The development of the Sarjapur micro-market happened on account attracting buyers from far and wide. Many residential projects in of its proximity to the IT clusters around the Outer Ring Road (ORR), Sarjapura have Cauvery water connection (a water supply project) Whitefield and Electronics City. The Sarjapur Road micro-market which means water resource would be sufficient for the next 15 years is witnessing improvement in demand for office space, mainly for and the groundwater level is maintained. Moreover, one has to turn buildings with large floor plates, due to the lack of options on the ORR. to selective residential pockets along Sarjapura because there are few This is likely to create upward pressure on rental values on Sarjapur properties within your budget. Usually developers are launching their Road in the near future. projects at this price and the dimensions may be smaller. n Source: The Times of India n Source: Magicbricks Bureau Emerging locations hold potential in south-east HSR Layout-Marathahalli belt: A prime residential hub There are two road connecting Sarjapur due to which the area is in The Marathahalli-HSR Layout stretch of the Outer Ring Road (ORR) growth path. With the growth and expansion of the city, several roads, is turning into one of the most prominent residential belts in earlier in one of the City Municipal Corporations (CMCs) and Town the city. It is surrounded by prominent economic hubs as well as Municipal Corporation (TMC), have grown alongside the arterial roads residential neighbourhoods. Kundalahalli, Brookfields, Varthur and they serve. Haralur Road and Hosa Road are two such roads opening Whitefield are in proximity to Marathahalli which is itself developing up for development thanks to the focus on Sarjapur Road. Located into a prime residential hub. The development of this layout can in south-east Bengaluru these two roads run almost parallel to each be primarily attributed to the presence of employment hubs, other, connecting Sarjapur Road at one end and Hosur Road on the efficient infrastructure and easy access to retail outlets, educational other. Connectivity is the main factor that is attracting the home institutions, healthcare facilities and entertainment options. The area buyers and pushing up real estate activity. is currently witnessing real estate growth. n Source: The Times of India n Source: The Times of India WHITEFIELD

Corridor Description and Rating Areas Included: Whitefield, Hoodi Junction, ITPL, Varthur/Gunjur Area, Mahadevpura, Marathahalli, KR Puram and Kundalahalli

Fig 1: Map of the corridor 37 Corridor of growth (COG)

About the Corridor hitefield in Bengaluru has emerged In terms of connectivity, currently, BMTC is The proposed metro blue line extension to as one of the most preferred the only public transport facility but soon the Whitefield and Hoodi Circle will also be a Wdestinations for residential and office metro extension from Baiyappanahalli will major growth factor for the locality. spaces. It has grown into a self-sustaining act as another major public transport mode. The Whitefield corridor has always maintained region with ample number of residential It is also situated at a one hour distance from a good demand for different configuration projects, office spaces, retail spaces and Kempegowda International Airport (KIA) in of properties. But over the last few quarters shopping malls. Devanahalli. The KR Puram Railway Station, due to high traffic and bad infrastructure right next to the locality, serves as the railway it was observed that the ready-to-move-in The first IT industry was started in 1998 in transit point here. Whitefield, located along properties are available at a discount of Whitefield which created residential demand the ORR and adjacent to the Old Madras Road, around 3-4% over the previous year. On for a large number of IT professionals. connects it to the rest of Bengaluru. Though initially meant for IT professionals, the contrary, under-construction property the affordability and land availability also The establishment of ITPB (International prices have risen on an average of 4-5%. This generated interest from people in other Technology Park of Bangalore) and EPIP anomaly can be explained by the fact that at professions as well. Since then Whitefield (Export Promotion Industrial Park) has present there is a lack of infrastructure in this has been the hub of affordable residential transformed the locality into a self-sustaining corridor to support the high demand raised by market with projects having better amenities suburb. There are many educational the growing population. Future infrastructure and bigger unit sizes. Gradually, the demand institutions such as CMR Institute of upgrades such as the proposed PRR, widening increased many-fold due to which the prices Technology, Gopalan International School, of the Kundalahalli Road and the extension have also increased. Forest Technical and Administrative training of the existing metro connectivity from Institute and Ryan International School among Byappanahalli to Whitefield will ease the Marathahalli and Kundalahalli are affordable others, present in the locality. Whitefield has pressure and increase connectivity options to residential destinations catering mainly to some of the largest shopping malls such as this corridor. It will likely take about 3-4 years the IT employees working at Outer Ring Road Phoenix Market City, Prestige Shantiniketan, time to complete under constrtuction projects (ORR) or Whitefield. VR Mall, Inorbit, The Forum Value etc. in the corridor.

Overall Connectivity Social Infrastructure Security/Water

Properties available in the corridor he corridor offers a wide range of lakh and 18% in the Rs 20- 40 lakh segments. in this corridor. It is also observed that both properties in all price segments from Fig 4 shows that 55% properties are 2BHK ready-to-move-in and under-construction Taffordable to ultra-luxury. Over 30% units and 40% are 3BHK units. Fig 2 and Fig 4 flats are amply available here. It is also noted properties fall in the category of Rs 40 - 60 show that numerous 2BHK apartments in the that over 6% properties are available with lakh followed by around 19% in the Rs 60- 80 price segment of Rs 20- 60 lakh are available price of more than Rs 1 crore, which shows

Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration 38 Corridor of growth (COG)

Table 1: Sizes and prices of flats available for that there are significant number of ultra- ranging from affordable to luxury apartments various room configurations luxury projects in the locality. with sizes of more than 1800 sq ft for 2 and 3 Sales Price Covered Area BHK segments available in the corridor. There Whitefield corridor offers properties in all ( Lacs) (Sq.ft) are many villa projects by A grade developers price segments, while Hoodi Circle and Varthur 1 BHK 11-65 517-1135 with world-class amenities and infrastructure offer affordable properties; Marathahalli, in the price range of Rs 1.5 – 5.5 crore are 2 BHK 18-150 600-2882 Kundanahalli and Whitefield localities offer being offered. In fact, the home buyers are 3 BHK 24-370 925-9300 properties in the mid and Luxury segments. also showing potential interests here. 4 and Above 47-550 1630-6652 There are a wide variety of sizes available Best sectors to invest in a home Based on rental demand in sectors

Fig 5: Top 10 localities by consumer for renting a house ithin the corridor, the locality second best rental destination with more than the proposed PRR is built. Whitefield corridor with the highest rental demand is 20% of the total demand. As the IT industry has high rental yields ranging from 3-6%. WWhitefield, where the Metro Phase-2 grew in Whitefield and ORR, the demand for From the graph, it is evident that properties at is proposed. The corridor is considered the best properties in Marathahalli increased. Hoodi Hoodi Circle have the highest rental yield and rental destination. In fact, Marathahalli is the Circle and Varthur are upcoming localities if Varthur has the lowest rental yield. Based on home buying demand in sectors

Fig 6: Top 10 localities by consumer for buying a house 39 Corridor of growth (COG)

n the case of demand for home buying, there are more number of ready-to-move-in buying. All other six localities contribute to Marathahalli has the highest share. This is apartments in Marathahalli in comparison to 15% of the total demand for home buying. Imainly due to its connectivity to both South other localities within this corridor. Whitefield However, Mahadevpura has limited demand and North Bengaluru. It is observed that has the second highest demand for home among home buyers.

Best bedroom configurations to buy Preferred buying and renting options

Table 2: Demand distribution for buying and renting t is observed from the given tables that 2BHK units.The rental properties of 3BHK Buying Renting either for rent or sale, the number of 2BHK are observed to be high in this locality due Total (BHKs) Total (BHKs) Iapartments and villas are highest with to heavy demand generated by the IT/ITeS 1 BHK 1% 3% around 50% of the total supply. The localities industry in and around Whitefield. Also, the 2 BHK 56% 49% in and around Whitefield have more of 2BHK home buyers are showing immense interests properties. According to the Table 2, the to buy 3 BHK units in the corridor. The 3 BHK 39% 43% corridor is preferred have for both buying requirement for 1BHK units in the corridor 4 and Above 4% 5% and renting option. And, the demand is for is limited. Price changes and future prospects Historic Price movement Corridor Average Price Rs/sqft Table 3: Historical Price changes

6 monthly change Yearly change 5% 10% hitefield corridor has seen a good appreciation over the last one year. It Wis also one of the few corridors that have actually seen a price rise over the last one year. The prices have appreciated across the last 3 quarters of 2015 but the increase in price has reduced in the first quarter of 2016. Property prices have increased in the outskirts of the corridor than in areas such as Whitefield and ITPL where there are new properties that are available and most of them are in the premium and luxury segment. The trend is in confirmation to what has been seen in other areas of Bengaluru as well where prices have remained stagnant in the luxury and premium segment and the mid segment has seen highest consumer demand as well as price appreciation. Most of the people looking for Fig 7: Historical Price changes of corridor property in these areas are typically employees in the IT/ITES companies and are keener to purchase 2-3 BHKs in the mid segment range. 40 Corridor of growth (COG)

Price movement for top localities by Consumer Preference he last quarter has witnessed the prices moving up for four out of the top 5 sectors by consumer demand. Areas such as Varthur, which Thave significant consumer interest has seen that the prices have actually reduced due to infrastructure issues and the Varthur Gunjur road being the only access point from Whitefield side. There is also a lack of social infrastructure in this area that has led to a reduction of prices. It has been observed that within the corridor the highest price increase has been in areas such as Marathahalli and KR Puram which offer property in the mid segment budget class. Although significant number of top localities witnessed price increases this quarter, this has been against the continual drop in the average prices of localities in the last two years and the current rise in prices does not follow a long term trend. Fig 8: Price changes in top localities by consumer demand

Master Plan

t is observed that the whole of Whitefield and Kundalahali localities are designated for Ithe pupose of High Tech development which includes spaces for IT industry. Localities such as Marathahalli, Varthur and Mahadevpura are designated only for residential pupose with commercial facilities along the major roads. A lot of spaces are also designated for Industrial purpose in the locality. Existing public/semi public spaces are also marked on the map. Large tracts of area are identified near Sadarmangala Industrial Area and Kadugodi Colony as a green belt to preserve the open Fig 9: Land use of various localities in the corridor space in this corridor. 41 Corridor of growth (COG)

Infrastructure Updates l The 65 km proposed Peripheral Ring Road - KR Puram to Yeshwantpur properties. But over the last few quarters (PRR) connects four highways - Tumkur - Varthur Kodi to Jnana Bharti due to high traffic and bad infrastructure, the Road, Ballari Road, Old Madras Road and ready-to-move-in properties are available at Hosur Road - stretching from Tumkur l Infosys is going to develop two new a discount of around 3-4% over the last year’s Road to Hosur Road. The estimated land campuses at Whitefield and two new rates. On the contrary, under construction acquisition cost is Rs 8,100 crore while the campuses at with a property prices have risen by about 4-5%. construction is expected to cost Rs 3,850 total investment of Rs 1,918 crore creating Lack of infratsructure is failing to support crore. The Central government has agreed 27,000 job opportunities high demand. Future infrastructure upgrades to bear the land cost for the project. such as the proposed PRR, widening of the l The Embassy Group in agreement with Cornerstone Group will develop a business Kundalahalli road and extension of metro l The government has proposed to construct connectivity from Byappanahalli to Whitefield, three elevated roads to decongest long park over 100 acre of land at Varthur which will generate 12 million sq ft of space will ease connectivity to this corridor. This is distance travels. The proposed elevated expected to take about 3-4 years to complete roads are: The Whitefield corridor has always maintained the under construction projects. - Silk Board to Chalukya Circle a good demand for its configuration of IN NEWS Bengaluru’s Whitefield is the most preferred area markets in their own right, with Whitefield emerging as the nodal hub. Old Airport Road connecting to Varthur, and the Outer Ring Road Whitefield was a nondescript settlement till the late 1990s when the (ORR) linking the HSR-Bellandur belt and Marathahalli to Whitefield IT boom reshaped it as an important suburb and it is now a major have led to exponential growth in these areas. part of Greater Bengaluru. Whitefield receives a healthy demand for residential properties due to the availability of quality housing n Source: The Times of India in all budget categories. Investors get a host of options from gated Whitefield is considered among the top 5 localities communities to villas to high-end apartments. The area is surrounded with IT companies such as HCL, Accenture, IBM, Tesco, TCS, Society If you are looking for a property to buy or rent in Bengaluru, it always General, GE, SAP and many more. Employees working here generate makes sense to go for the preferred localities. Whitefield is considered the housing demand in the area. to be among the preferred localities in the city. Life as a home owner or tenant is easy when you live in a locality that is one of the preferred n Source: Magicbricks Bureau ones in a city. The localities have affordable and luxurious housing Demand for homes up in Whitefield road belt options available. It also means that the liveability quotient is better due to the presence of sound social and physical infrastructure. The Outer Ring Road (ORR) and Whitefield have, together, led to the development of several pockets in the east and south. The K R Puram n Source: Magicbricks Bureau to Hope Farm belt is one such stretch. The link towards the airport Where are buyers looking for property in Bengaluru? on one end, IT hubs in the south on the other end and the IT hub at Whitefield have led to the mushrooming of residential options in Currently, the buyers are looking for properties available in Whitefield, this belt. Retail, with large-format malls, caters to the shopping and Electronic City, Sarjapur Road etc. Malls, schools, clubhouses, nursing entertainment needs of residents. Connectivity via Old Madras Road homes and café hangouts have changed the skyline of Sarjapur Road towards Whitefield and Cross is also spurring development over the years. Many residential projects in Sarjapura have Cauvery and property demand in this belt. water connection which means water resource would be sufficient for the next 15 years and the groundwater level is maintained. Sarjapura n Source: The Times of India benefits because it already has a transport link and there is transit- Whitefield - Development hub for micro markets oriented development. In fact, Whitefield and Electronic City have scope for 2BHK and 3BHK units. Connectivity was one of the key factors that led to Whitefield development as an IT hub. Good civic infrastructure provided a link n Source: Magicbricks Bureau to important commercial centres as well as to upcoming areas in the vicinity. Several of these areas have now developed into micro-

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