East, West, North, South Bangalore Real estate: Potential | Development

Why real estate prices are sky rocketting

Ever wondered a flat which was just 40 lacs few years back is now being sold at 70 lacs. Specially in cities like Bangalore which is expanding 360 degree wise why real estate prices have increased at alarming rate. Well there is demand & supply curve which plays an important role to control real estate prices. But these days this is also controlled/manipulated to some extent thereby leading to atrocious price rise.

Going for 2^nd/3^rd… home
Right from the beginning of his career an IT guy dreamed of owning a beautiful house(villa/flat). After few initial years of his job he somehow managed to accumulate the down payment and finally he was able to fulfill his dream. But soon he realizes his 2^nd dream… another house may be a bigger one. And then another house… the 3^rd one .. may be purely for an investment purpose. If his bank balances would have permitted he might have materialized his 4^th dream and who knows a 5^th dream as well. Given that rupee, wrt dollars, has already depreciated by 20-25% in last few quarters NRIs are finding hard time not to buy any property. Believe me, if situation is favorable then Indians are too good in that.

Builder tied-ups with agents
These days you might have noticed that project is in pre-launch state and you won't get flats of your choice. At least not in one go. Builder might try to sell you ground floor/non-vastu compliant units. When a project is launched they generally get into tie up modes with big real estate agents. These guys in-turn block some of the flat units at launch price which will pretend some manipulated hyped demand. Further with ongoing bookings these guys keep on raising prices.

Builder-landowner joint development
These days places like Sarjapur, Electronic City, Whitfield(towards Old Madras Road), Kanakpura Road are witnessing new real estate projects which are basically joined venture of builder and land lords/owners. Builder mostly doesn't pay any money to landowners. Rather they are offered number of flats like 5/10/15 or may be more depending on how big their land was. Post construction these landowners will simply put all these flats on rent and will happily wait for 2/3 years or even more if its recession. Unlike builders they usually don't need immediate money to kick start another real estate project.

Inflation & land scarcity
Investing in a plot and buying a flat are 2 different things which will have their prices going up but the driving force will be different in both the cases. A plot price appreciates because of land scarcity and not because of inflation. Until you've a house constructed on a plot, inflation will never come into picture as you have nothing in place like steel, bricks, cements, etc whose cost will increase due to inflation. But a flat price appreciates mostly because of inflation and to a lower side because of land scarcity as well.
If you have an independent house that too in a gated society then push will be from both inflation as well as land scarcity and put together it'll fetch you very decent price in coming time.

IT and infrastructure development
Both of these things goes hand-to-hand. Well just for name sake I mentioned it as "IT" industry. It can be any other industries like pharmaceutical, banking, retail, etc. These days cities are witnessing their expansion and what used to be suburb few years back are considered main downtown areas. Specially cities like Bangalore which doesn't have any geographical limitation is really getting pushed to expand its city limit.

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Bangalore Intermediate Ring Roads(IRRs) to push residential growth

Looks like Karnataka government is really keen in decongesting the traffic woes in the state capital. This is evident from the fact that they along with Bangalore Metropolitan Regional Development Authority (BMRDA) has plans to step up and start the development of two new IRRs(Intermediate Ring Roads).

Initially in 2006 government had restrictions which now seems to be taken back thereby allowing the construction and development activities to happen in Ramanagaram, Nandagudi, Sathanur and Solur.

With the plans in place to procure land for the IRRs will definitely act as a catalyst to boost the real estate demand in and around ORR (Outer Ring Road) and IRRs. BMRDA has plans to take this road infrastructure development activity in four stages.

Devanahalli to Attibele

This is going to be a 80-km stretch of the IRR construction activity starting from Devanahalli and going till Attibele. This 80 km long stretch will be connecting BIAL (Bangalore International Airport) and the Electronic city and the vicinity. This IRR will run through Hoskote and the already developed Whitefield. Also road leading to Hoskote has many residential options(to know more about Hoskote/Old Madras Road development refer link1 and link2). This area will push towards social and commercial infrastructure development. This whole construction is expected to cost around Rs1000 crores.

Attibele to Ramanagar

So far this is going to be the longest stretch of 128 km which will join Ramanagaram with Attibele. This IRR is supposed to link Mysore Road and Electronic City and in between it'll pass through Kanakapura, Anekal, Jakkasandra and some other hubs as well. It's worth to note that Ramanagaram being a textile hub and has over Rs.1500 crores as investments will be benefited a lot because of this move. Even the Kanakpura Road and its vicinity like Uttarahalli and Bidadi will be seeing the real estate catchments. This stretch will also enhance the connectivity between NICE road and Satellite towns. Estimated project costs Rs.1600 crores.

Dabaspet to Devanahalli

This will be a 89-km IRR starting from Dabaspet till Devanahalli. This will cover Doddaballapur, which is indeed a lucrative real estate option for buyers and investors. Adjoining is the road leading to Nandi Hills which is also witnessing residential development.

Dabaspet area is an upcoming industrial hub given that KIADB (Karnataka Industrial Areas Development Board) is aiming to make this area as a industrial zone in four different phases. Think about a road connecting this BIAL and a industrial hub( with most of the current industries being only export-oriented). Given this demand in place a huge potential of development is being sensed over there. This area is bound tol attract real estate drifts. Fact that this area is still affordable will boost the demand of villas and plots. Estimated project costs Rs.1100 crores.

Ramanagar to Dabaspet

This will be last phase of the IRR and it'll be 70 km long stretch from Ramanagar to Dabaspet. With this in place Ramanagaram, a textile hub, will be connected to the Dabaspet(industrial area) and further this will lead to the international airport. Estimated project costs Rs.1078 crores.

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Hoskote to be developed as Satellite Town

One after other many Bangalore suburbs are falling into Karnataka state government approval list which later on need to be developed as Satellite Town. After Anekal, Kanakpura, Ramanagara, Magadi, Nelamangala and Devanahalli being declared to be Satellite town now comes the turn of Hoskote. Bangalore city areas are already been congested and to decongest the state capital need is being felt to move towards developing towns around Bangalore. And Hoskote is another such destination. Also this will allow common people to leverage the fact that satellite town areas are yet to develop thus they are still very much under common people's affordability limit.

Most of these satellite towns have agricultural lands and earlier state government has opposed the notion of residential and commercial development here. But now they have realized the need of the hour and have decided to let real estate development for residential as well as for commercial purpose to happen in these areas.

State government this approval will enable developers to go for government permit to develop gated as well as non-gated layouts in these upcoming satellite towns thereby paving the way for another possible real estate boom. Off course this is a long term development plan and will definitely take 5-10 years of time from now to get things in place.

State government has already laid the foundation stone for around 17 projects worth around Rs.200 crores.

Connectivity with Bangalore city and other townships

Along with Hoskote other satellite townships in-turn will be connected by two ring roads:

Bangalore Metropolitan Region Satellite Townships Ring Road (BMR-STRR)

Bangalore Metropolitan Region Intermediate Ring Road (BMR-IRR)

The BMR-STRR not only connects satellite townships but also links areas like Magadi, Kanakapura, Attibele, Dobspet, Anekal, Sarjapura, Ramanagaram, Hoskote, Devanahalli and Doddaballapur. Total stretch of BMR-STRR will be around 283 kms.

Real estate buzz in this area

Hoskote is already known for the presence of many warehouse industries. Already many real estate movement have started in this area. Confident developer have planned township projects like Canopus, Cygnus phase II, Auriga, Auriga phase II, Auriga phase III, Auriga phase IX, Auriga phase XII, Auriga phase XV, Auriga NRI and Auriga NRI III in and around this area.

To know more about Hoskote development refer this link.

Traffic decongestion
State chief minister has instructed the officials to clear traffic jam at Krishna Raja Puram within 3 months from now in order to have free traffic flow towards Hoskote.

Water issue being addressed

To address the water issue around 5 TMC ft amount of water needs to be supplied to southern parts of the state from Yettinahole (Sakleshpur in Hasan) which is a stream of Netravathi river.

Yettinahole project will be targeted to fill-up the lakes located in rural parts of Bangalore.

Government is also seeking the need to shift the Bangalore Rural Districts Deputy Commissioner's office from Bangalore to Hoskote (and other districts) which should facilitate the infrastructure development of these areas.

New BMTC bus depot

To facilitate the development towards Hoskote, state government has inaugurated a BMTC bus depot which is spread on 3 acres of land built at a cost of Rs.4.7 crores.

This new bus depot at Hoskote is capable of handling more than 150 bus being planned to schedule to various parts of Bangalore city.
To explore more on Bangalore Hoskote Bus Stop connectivity/route refer this link.

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Sarjapur town/village Real Estate: Scope and development

Sarjapur Town/Village location

As of now Sarjapur is a village(town to an extent) which is around:
- 25kms from Electronic city phase 1
- 19kms from Electronic city phase 2
- 15kms from Outer Ring Road
- 20kms from ITPL/Whitefield.
- 10kms from Attibelle

Driving factor for the development of this area

Since last year it has got the real estate catch mostly because of:

· Proposed Infosys campus which is within the vicinity of 5kms.

· Six lane proposed STRR: It is very near to proposed 6 lane STRR(Satelite Town Ring Road) highway which in turns connect bangalore upcoming suburbs like Attibelle, Sarjapur, Bidadi, etc.

· Presence of good schools : Lots of good schools, national as well as international ones have their presence in this area. To name a few Indus International, DPS, Primus and many more schools are present in this area.

Real estate buzz in the area

Confident have many projects(plot/apartment/Villas) in and around this area. You'll find plenty of its projects in this area like Confident Orion, Althena, Atik, Amber,Aquila, Antlia-I/III, Rigel, Bellatrix I/II/III, IV, Atria, etc. Empyrean is another mass level project in this area by Fire Luxur developers. However this project is on Bagalur Road and aroung 14kms from Sarjapur town. Pentagon Passiflora and Peninsula Parkville are other two big real estate project where builder is selling the constructed villa on plots of size starting from 30' by 40' dimensions.

Current livability Vs Future development and appreciation

In the current scenario this area is not livable because of poor transport facilities and lack of shopping complexes(though small grocery shops does exist).
Property prices are very cheap over there. No doubt it is bound to develop and appreciate but one has to wait for atleast 5 years of time frame to reap of the profit.

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Things to consider while buying a property in metro cities

Lot of investors have questions like where to invest in real estate specially in metro cities. But before that one should look for some important criteria which will help them a lot to find a property suitable to individual's need and requirement.

Set your goals/requirements clear

When you have finally made your mind to buy a real estate property then this should be your starting point. Do some homework and try to identify what you expect from the property in coming future, what is the tenure of your investment, etc.

To start, one can think on the following lines:

· Outline your budget and how much you can stretch it?

· Are you buying property for investment or for living purpose or both?

If it is purely investment then what is the time frame you are OK to wait? In this case upcoming areas should be your point of interest. Again how long you are willing to wait should be the filter to narrow down which upcoming area.
If property purchase is only for living purpose then what is the construction time? If it's more then you lose rentals every month in-case you don't have plans to occupy and start living there immediately.
Purchase is for living as well for investment? This is where you need to draw a line between a developed area(like Koramangala/Indiranagar) and an upcoming area(Chandapura-Anekal belt, Old Madras road between KR Puram and Hoskote, etc).

Investment in an upcoming area

Lots of indeed benefits are associated with upcoming area.

Lesser and affordable cost: Though construction cost will be same but you can definitely save on land value which will be lesser with respect to main city areas.
Design and planning will be better: Lessons learnt from the past mistake will be used for better planning of upcoming areas. Roads will be broader, good number of flyovers presence will improve the connectivity, better master layouts, etc.
Government supporting push will be always there: Government will encourage newer Industries, hospitals, shopping malls in upcoming areas to improve the infrastructure and livability of the place.
Builders will be more inclined: In main city areas their profit margin is already sinking as the cost of land is phenomenally high. However, upcoming areas have lesser land price which they will be aiming to take advantage of.

But before investing in an upcoming area one should do research if any other real estate development is happening in that area or not. If the one you are interested is the first or second one then you should be little careful before investing in that area as it may take a very long time(may be around 5-10 years depending on its potentials) before you reap off the profit. But if 4-5 projects are already happening from good builders (if not from class A builders) then it is obvious that area has got the needed thrust to take it to the further level. One such example is stretch of Old Madras Road between KR Puram and Hoskote where around 10 big projects have kicked off and couple of them are in good shape.

Investment in a property which lies in a very well developed area

Buying in a developed residential area always comes with one big advantage which you can always bank on is rental income (in-case you are not planning to stay immediately).

These days a 3BHK flat from a decent builder may fetch you the rent between 20k-25k depending on flat size and apartment locality. A villa of 3/4 bedroom in the same area can get you the rentals between 20k-40k. Some flat owners provide all the interiors, furniture and electrical appliances to increase the rental value of their flat. Such fully furnished flat can get them very good rental deals anywhere between 25k-30k for a 3BHK flat.

But the dark side of putting your money in a developed area is that you may not get much appreciation because generally properties in such areas from a good builder will be costly and over a period of last few years it's price would already have got much appreciation. It'ld be unfair to say that it won't appreciate but it may not appreciate the way it'ld have appreciated during last few years. Also one has to accept the fact that with time flat's value will not get you the deal as per the prevailing market standards. But yes, you will definitely get the rental based on market rates in such developed localities.

Whether to buy bigger flat or smaller flat?

Have you seen 3BHK flats of size 1800-2000 SFT in projects which are getting kicked-off these days. Yes you'ld have but question is how many. These days builder as well as buyers are preferring to go for smaller 3BHKs of size ranging between 1400 - 1600 SFT. In India where inflation is around 10% cost of construction (materials as well as labour charges) are getting dearer every year. 5 years back what used to be the cost of bigger 3BHK is now the cost of smaller 2BHK. Prices have almost doubled and even more in some areas. If you purchase a bigger 3BHK now then it'll be little difficult for you to sell it after 5 years because inflation will add extra feathers to its cost for which there may not be good number of potentials buyers. 1800 SFT 3BHK flat which now costs around 80-85 lacs will cost over 1Cr after few years. Question is will there be any potential taker of it? If yes how many?

So if you want to either sell it or rent it, it's always advisable to go for medium size 3BHKs (1400 SFT to 1600 SFT). At any given point of time you'ld be able to find either a good number of lessee or potential buyers of your property.

Consider inflation and land scarcity in future

Investing in a plot and buying a flat are two different things which will push property prices up but the driving force will be different in both the cases. A plot price appreciates for the fact of land scarcity and not because of inflation. Until you've a house constructed on a plot inflation never comes into picture as you have nothing in place like steel, bricks, cements, etc whose cost will increase due to inflation. But a flat price appreciates mostly because of inflation and to a lower side because of land scarcity as well.

If you have a independent house that too in a gated society then push will be from both inflation as well as land scarcity and put together it'll fetch you very decent return in coming time.

Cost of maintenance now and in near future

Though this is a small aspect but it's worth to consider this specially when you are living in a gated society. Maintenance costs are decided on various parameters like electricity backup, salaries of workers and security staffs, water expenditure, maintaining common amenities, etc. While most of it we may not control and are bound to increase with inflation but the thing we can look at is water availability. Most of the downtown areas (if you talk about Gurgaon or Bangalore) suffers from this problem and in order to feed their water need, gated societies banks on external water supply (water tankers). Water may be affordable now but going further this will get dearer and we need to shell out more from our pocket to meet water expenses. But there are few areas (specially upcoming and suburb areas) which don't suffer from water problem and they can have their own water borowells. So consider this maintenance aspect as well while searching for a property.

Technology used in the construction

Traditionally a house is constructed in India with bricks(walls) and RCC. It's not only time consuming but also lots of money goes towards hiring labors. But times are changing fast and house construction technology being used in developed countries are gradually getting adopted in India as well. Some of the advanced technologies are so fast that entire dublex/triplex house structure can be constructed in 2-3 weeks of time. Lots of labor costs are saved there and benefits are passed to buyers from builders. One such technology is Mivan where everthing(walls, roofs, slabs) are RCC. Salarpuria Geenage and Pruksa Silvana(click here to know more about this project) are two such projects who have deployed this Mivan technology for construction.To know more about this refer this link and search for "Technology used for construction". Other such technology is using precasted slabs.

Check out these well researched links if you are interested to Gurgaon or Mumbai real-estate.

Pruksa Silvana Videos

Alternatively you can find these videos at youtube as well:
Entrance view video
Villa & Row Houses front view video

To see Pruksa Silvana model villa pictures click here: Pruksa Silvana model villa pictures.

To know more about Pruksa Silvana (Price/Floor plans/amenities/reviews/etc.) click here: Pruksa Silvana details.

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Pruksa Silvana Villa Pictures

Master Bedroom on 1st floor

Cabinet attached to Master Bedroom... you can also see the door(left side) of attached bathroom

Child room on 1st floor / View 1

Child room on 1st floor / View 2

Living room on 1st floor

Guest room on ground floor

Kitchen on ground floor

Dining area on ground floor

Drawing room on ground floor/ View 1

Drawing room on ground floor/ View 2

Drawing room on ground floor/ View 3

Staircase from ground to 1st floor

Staircase terminating at the terrace

View from terrace door

Terrace view towards row houses side

Terrace view

Syntax on the terrace

West & East facing villas

Villas side view

To watch Pruksa Silvana videos refer below mentioned links:
Pruksa Silvana Entrance view video
Pruksa Silvana Villa & Row Houses front view video

To know more about Pruksa Silvana (Price/Floor plans/amenities/reviews/etc.) click here: Pruksa Silvana details.

Read out similar blogs related to Bangalore real estate:

East, West, North, South Bangalore Real estate: Potential | Development | Investment guide

Why real estate prices are sky rocketting

Bangalore Intermediate Ring Roads(IRRs) to push residential growth

Hoskote to be developed as Satellite Town

Sarjapur town/village Real Estate: Scope and development

Things to consider while buying a property in metro cities

Pruksa Silvana Videos

Pruksa Silvana Villa Pictures

5 Smart Tips That'll Make Your Property Buying Experience Breezy

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