Real Insights: Locality Report

SARJAPUR ROAD

A CommonFloor Report

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Contents Executive Summary ...... 3

Introduction ...... 4

SWOT analysis of Sarjapur Road ...... 4

Connectivity: Existing and Upcoming ...... 5

Real Estate Snapshot ...... 6

Price Trend ...... 6

Supply Trend ...... 7

Supply along Sarjapur Road: A Snapshot ...... 8

BHK-wise prices and unit areas ...... 14

Conclusion ...... 15

Figure 1 Connectivity of Sarjapur Road ...... 5

Figure 2: Price trend of residential real estate: Sarjapur Road ...... 6

Figure 3 Yearly supply trend according to launches ...... 7

Figure 4: Zone-wise distribution of projects in different unit categories ...... 8

Figure 5: Distribution of Projects based on Sizes ...... 8

Figure 6: Zone-wise distribution of launched units in different price categories ...... 9

Figure 7: Distribution of properties based on Price Segments ...... 10

Figure 8: Zone-wise distribution of units based on possession date ...... 11

Figure 9: Distribution of properties according to typology ...... 11

Figure 10: Distribution of properties based on Typology ...... 12

Figure 11: Distribution of properties based on market segmentation ...... 13

Figure 12: Zone-wise weighted average prices ...... 13

Figure 13 Prices per sq. ft. for different bhk configurations ...... 14

Figure 14 Sizes for different bhk configurations ...... 14

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Executive Summary With plenty of vacant lands on both its sides, Sarjapur Road continues to offer vast opportunities in residential real estate.

Originating near St. Anthony’s Friary Church in Koramangala, Sarjapur Road goes all the way up to Sarjapur town of Anekal taluk. But the property developments have mostly been taking place in the stretch between HSR Layout and Sarjapur town, a distance of about 18 kilometres. While covering this length, Sarjapur Road touches many bustling localities which offer a blend of properties in the affordable, mid and luxury categories.

Several big companies have invested along the areas in Sarjapur Road to set up their business centres. Having understood the growth prospects, a lot of developers have been cashing on the opportunities sprouting along Sarjapur Road.

In order to ease out traffic on Sarjapur Road, the Chief Minister of recently announced an expansion of the road in the State Budget of 2015-16. The stretch between Outer Ring Road junction and Dommasandra will be widened on priority basis.

In the following report, we have analysed the real estate scenario in Sarjapur Road using CommonFloor’s exhaustive database. We have also put into several sub-headings, maps, graphs, tables to make the report handier for our readers.

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Introduction Once a farmland, Sarjapur Road is now dotted with several skyscrapers! Moreover, easy access to ORR and the IT hubs of (19 kms) and Whitefield (15 kms) has given a major boost to the real estate growth along Sarjapur Road. With a slew of realty development, Sarjapur Road, over the years, has shaped itself into a popular residential area, boasting of prominent residential communities like Springfield, Rainbow Drive Layout, Purva Sunshine, Ittina Soupernika, and Greenwood Regency, among others. Besides several IT giants, the advent of SEZ has further boosted the potential for capital value appreciation. Experts say, the proximity to employee catchment areas makes this road a preferred residential destination.

The 18 km stretch, from ORR junction to Sarjapur town, is just a stone’s throw away from the office spaces at ORR which experts cite is estimated to employ more than 2 lakh employees in IT or IT- related jobs. From this one-liner, anybody can understand the growing importance of this area as far as the real estate sector is concerned.

SWOT analysis of Sarjapur Road S W  Easy access to the IT clusters of  Cauvery water is not available Whitefield and Electronic City  BBMP is unable to deal with the  Access to the commercial centres proper disposal of garbage as the of Outer Ring Road and population here are growing too Koramangala fast  Residential projects are a stone’s  Traffic snarls during peak hours throw away from the IT hubs in Sarjapur Road  Several schools of international standards have come up  Availability of hospitals and super markets  A number of flyovers have boosted the connectivity quotient in this area

O T  The stretch between Outer Ring  The level of ground water is Road junctions and Dommasandra depleting fast to be widened very soon to boost the traffic flow  Sarjapur Road to be connected by the Phase-III project of Namma Metro  Proposed PRR (Peripheral Ring Road) to enhance the connectivity quotient

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For better understanding of our readers, we have divided Sarjapur Road into three parts:

1. Sarjapur Road 1: Ring Road to SEZ 2. Sarjaur Road 2: Wipro SEZ to Dommasandra Circle 3. Sarjaur Road 3: Dommasandra Circle to Sarjapur Village

Figure 1 Connectivity of Sarjapur Road

Source: Real Insights by CommonFloor.com

Connectivity: Existing and Upcoming Sarjapur Road has become one of the arterial roads of in the course of time. It is well connected at both ends. Starting from Road at one end, it goes all the way up to Sarjapur Sarjapur town intersecting ORR near Bellandur Lake. The bustling localities along the road include Bellandur, Doddakannelli, Ambedkar Nagar, Gunjur Palya, among others. All these areas are dotted with either residential projects in Sarjapur Road or commercial ones.

To further enhance the connectivity of the Sarjapur Road, three major infra projects are coming up in the area:

1. Road Expansion from ORR to Dommasandra: The Karnataka Government in its state budget for FY 2015-16 has allocated money for the expansion of Sarjapur Road. Under the Revised Master Plan, 2015, the stretch between ORR and Dommasandra is to be widened up to 45 metres. BBMP would be executing this plan once the DPR (Detailed Project Reports) gets ready. 2. Phase III of Namma Metro: As per BMRC (Bangalore Metro Rail Corporation), the work for Phase-III of Namma Metro will begin soon. Under this project, the Silk Board-Hebbal 33-km line will cover vast stretches of ORR as well as Sarjapur Road. 3. Clearance for PRR: The first phase of the much awaited PRR (Peripheral Ring Road) has recently got environmental clearance. This will connect Tumkur Road with via Bellary Road and Sarjapur Road.

The upcoming road will intersect Sarjapur Road near Doddakannelli.

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Real Estate Snapshot Price Trend CommonFloor data suggests that the prices per sq. ft. have moved northwards at Sarjapur Road. If we take into account the statistics for the last four years, then it is quite clear that 2013 was the costliest year! The average price was around ₹ 4500. Although it slipped a little in 2014, but still the average price was much higher than 2011 and 2012.

Figure 2: Price trend of residential real estate: Sarjapur Road Source: Real Insights by CommonFloor.com

 Realty demand in Sarjapur Road is mostly driven by IT/ITeS professionals. And with the global economy showing signs of revival post 2011, the demand started to soar up in this area as well. Prices witnessed good appreciation hereon.  Figure 2 suggests that there was a very marginal dip in prices in 2014. It was seen that from 2011 onwards, developers launched several units for the home seekers. And the deficit between the demand-supply ratio decreased. With increased supply, prices did not go further up.

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Supply Trend CommonFloor data suggests that maximum number of projects in Sarjapur Road were launched in 2014. From 2011 onwards, the supply trend grew rapidly.

Figure 3 Yearly supply trend according to launches

Source: Real Insights by CommonFloor.com

 As per data, due to the rising demand developers began to launch several property in Sarjapur Road since 2011 onwards. Figure 3 suggests that maximum new supply came in the year 2014 on Sarjapur Road. As per data, more than 16,000 units were launched in Sarjapur Road.  Besides the rising demand from home seekers owing to the region’s proximity to the other IT hubs, Sarjapur Road also has ample vacant land for further development unlike in the CBD or SBD. Most builders, therefore, acquired lands at lower prices and planned to build residential projects on them.  New launches in the third part of the stretch (from Dommasandra Circle to Sarjapur Village) have increased from 2012 to 2014 at a rate of 30-40 per cent.  In 2013 and 2014, approximately 8000 units were launched each year in the first part of the Sarjapur Road (Ring Road to Wipro SEZ).

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Supply along Sarjapur Road: A Snapshot

Figure 4: Zone-wise distribution of projects in different unit categories

Source: Real Insights by CommonFloor.com

Figure 5: Distribution of Projects based on Sizes

Source: Real Insights by CommonFloor.com

 A total of approximately 30,000 units have been launched along Sarjapur Road from the year 2012 to 2015.  More than 85 per cent of the projects are small-size with each having 100-300 units.

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 Few large-size projects were also launched in the area that had more than 500 units. Some prominent developers included SJR Prime Corp, Shriram Properties, Adarsh Developers, Bren Corp, Klassik Enterprises, SNN Builders and Prestige Group.  As per data, more than 65 per cent of the total new supply from 2012 to 2015 came up in the first part of the Sarjapur Road (from Ring Road to Wipro SEZ).

Figure 6: Zone-wise distribution of launched units in different price categories

Source: Real Insights by CommonFloor.com

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Figure 7: Distribution of properties based on Price Segments

Source: Real Insights by CommonFloor.com

 More than 30 per cent of the total units launched in the entire stretch between 2012 and 2015 and more than 50 per cent of units launched in the first part of the stretch (Ring Road to Wipro SEZ) are in the price range of Rs 4,000 – 6,000 per sq. ft.  Approximately 5000 units were launched in the price range of Rs 6,000 – 8,000 per sq. ft. by developers such as Shriram Properties, Mantri Realty, Bren Corp, Prestige Group, Adarsh Developers, Sobha Developers, Vaishnavi Group, Puravankara Builders, Nitesh Estates, LGCL, among others.  Similarly, around 5000 units were also launched in the price range of Rs 2,500 – 4,000 per sq. ft. in the third part of the Sarjapur Road stretch from Dommasandra Circle to Sarjapur Village contributing to more than 50 per cent of the total units in that part of the stretch.

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Figure 8: Zone-wise distribution of units based on possession date

Source: Real Insights by CommonFloor.com

 Interestingly, more than 75 per cent units launched (approx. 6500 units) in the third part of the Sarjapur Road are expected to be ready for possession by 2015 and 2016.  It is expected that approx. 6000 units will be completed by 2015 and 5000 units each in the years 2016 and 2017 in the first part of the stretch (Ring Road to Wipro SEZ).  Data indicates that around 9500 units will be completed in the years 2015 and 2016 in Sarjapur Road contributing to 70 per cent of the total launched units here.

Figure 9: Distribution of properties according to typology

Source: Real Insights by CommonFloor.com

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Figure 10: Distribution of properties based on Typology

Source: Real Insights by CommonFloor.com

 As per data, about 60 per cent of the properties launched in Sarjapaur Road comprise of apartments. This is followed by layouts & plots and villas & row houses with 28 and 12 per cent respectively.  More than 90 per cent of the total units launched in the first part of the stretch comprise of apartments in Sarjapur Road. Layouts and Villas contribute only about 5 per cent each.  Interestingly, in the third part of the stretch, apartments, layouts and villas in Sarjapur Road comprise of around 30 per cent of the units launched.

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Figure 11: Distribution of properties based on market segmentation

Source: Real Insights by CommonFloor.com

 As per CommonFloor data, about 58 per cent of the properties launched in Sarjapur Road are in the affordable and mid-range category. While 28 per cent are in the luxury segment, followed by 14 per cent in the ultra-luxury category.  Around 40 per cent of the projects in the first part of the stretch fall under mid-segment category followed by Luxury and Ultra Luxury with 25 per cent each.  Around 50 per cent of the projects in the third part of the stretch fall under the affordable segment followed by mid-segment with 25 per cent.  Overall, more than 40 per cent of the projects in the entire road fall under the mid-segment, followed by 25 per cent in the affordable category of which 70 per cent are from the third part of the stretch alone.

Figure 12: Zone-wise weighted average prices

Source: Real Insights by CommonFloor.com

 Properties in the third part of the stretch (from Dommasandra Circle to Sarjapur Village) are 30 per cent cheaper when compared to the first part of the stretch (Ring Road to Wipro SEZ).

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BHK-wise prices and unit areas From our data, we can say that the minimum per sq. ft. prices for 1BHK, 2BHK and 3BHK are same i.e. ₹ 2000. For 4BHK, it stands at slightly higher, ₹ 2400. The maximum prices vary, though.

Figure 13 Prices per sq. ft. for different bhk configurations

Source: Real Insights by CommonFloor.com

Figure 14 Sizes for different bhk configurations

Source: Real Insights by CommonFloor.com

 There are some projects with large size luxurious 3bhk apartments by developers such as Sobha Developers, Assetz Homes, Nishant Group, Vaishnavi Group, Prestige Group and Klassik Enterprises.

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Conclusion  The upcoming infrastructure projects including the widening of Sarjapur Road, clearance of PRR and Phase 3 Metro are likely to have a huge positive impact on the real estate market of Sarjapur Road in the coming years.  There has been a steady increase in prices from 2011 onwards, but due to market sluggishness in 2014, property prices have been more or less hovering around Rs 4,500 per sq. ft.  There are approximately 16000 units launched in the years 2013 and 2014 which will be ready-to-move-in by the years 2016 and 2017.  It is observed that more than 85 per cent of the projects are small–size comprising of 100- 300 units each.  More than 30 per cent of the units launched between 2012 to 2015 have prices in the range of Rs 4,000-6,000 per sq. ft.  There are approx. 5000 units launched in the affordable segment with a price range of Rs 2,500-4,000 per sq. ft.  More than 75 per cent (about 6500 units) of the units launched in the 3rd part of the road are expected to be completed by 2015-2016.  More than 40 per cent of the projects fall under the mid-segment category followed by 25 per cent in the affordable category.

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---- Authors Priyanka Kapoor Tunuguntla N Sannihith Meha Singla Research Associate Sr Research Analyst Manager Research

[email protected] [email protected] [email protected] Bangalore Bangalore Bangalore

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