With major industrial development planned here and projects such as the Bangalore-Chennai Industrial Corridor, this micro-market is set for an uptrend in realty prices.
THE TIMES OF INDIA BANGALORE SATURDAY OCTOBER 11, 2014 With major industrial development planned here and projects such as the Bangalore-Chennai Industrial Corridor, this micro-market is set for an uptrend in realty prices Sai.Prasanna[email protected]L ocated towards south-east Ban- galore on NH7, Bommasandra is one of the oldest and most prominent industrial areas of the city. It is located approximately 26 km from M G Road, with primary access through Hosur Road, and secondary access through Sarjapur Road and Bannerghatta Road. The State gov- ernment acquired land and allotted it to industries. Ram Chandnani, Deputy Manag- ing Director - South India, CBRE South Asia, outlines the real estate landscape here. "The land was ini- tially allotted to biotech, chemicals, printing press, garment industries and construction companies. The government improved connectivity to the area by building a link road between Bommasandra and Jigani, another industrial estate towards south Bangalore, and promoted in- dustrial development along this road. Apart from industrial devel- opment, the setting up of a large, multi-specialty hospital in Bom- masandra has created opportunity for small scale, unorganised retail- ers too." Hub of large developments A biotech major is a large occupi- er of Bommasandra Industrial Es- tate with a 100 plus acres campus. In addition to this facility, an IT/ITeS major has acquired 25 acres and built an IT SEZ here, among other large industrial developments. Completion of the flyover from Bommanahalli to Electronics City, as well as the NICE Ring Road, have improved connec- tivity to Bommasandra from other parts of Bangalore. Ram explains, "Robust commercial and residential development in and around Electronic city is pushing re- development opportunities in Bom- masandra. In terms of outlook, Bom- masandra is expected to witness re- development of industries to small- scale commercial development and also small budget residential devel- opments from Tier II and III devel- opers." Future growth corridor Shrinivas Rao, CEO - Asia Pacific, Vestian Global Workplace Solutions, traces the emergence of this location into prominence. "Bommasandra was earlier an indistinct location enroute to the Jigani Industrial Area. Prox- imity to Jigani and the IT/ITeS hub of Electronics city has played a piv- otal role in the transformation of this location into a thriving space for both commercial and resi- dential real estate. Com- ing in the automobile, auto-components belt, 684 acres of land has al- ready been developed by the Karnataka Industri- al Areas Development Board (KI- ADB), while 712 acres have been ac- quired for future growth. Post com- missioning of the Chennai-Banga- lore Industrial Corridor, this region is anticipated to observe heightened growth in the medium to long terms." According to Vestian Global's re- search analysis, a workforce of over 75,000 employees is engaged in vari- ous facilities in Bommasandra In- dustrial Layout. These operational units are an extension of the com- mercial offices in Electronics City and Hosur Road. The monthly rentals here currently range between Rs 28- 35 per sqft while an escalation be- tween five to six percent is expect- edly annually. Emerging localities According to Ram, emerging lo- cations in and around Bommasan- dra include parts of Hosur Road, the Jigani-Bommasandra Link Road and initial parts of Chandapura Road. "A few residential layouts/devel- opments are proposed and some are under construction on multiple pri- vate land parcels, located at the pe- riphery of Bommasandra (non-KI- ADB land), Hosur Road and Chan- dapura. Karnataka Housing Board has promoted and is in the process of building low-cost apartments and layouts on Chandapura Road," he says. Affordably-priced housing options Idirees Chenakkal, Head - Re- search & Consulting, L J Hooker In- dia, adds, "It is close to the hi-tech zone of Electronics City and the growth in industrial development on this stretch till Hosur will gen- erate a good amount of demand for residential developments, especial- ly for budget homes, in this region. Housing options around Electronics City and Jigani-Bommasandra Road include one-bedroom apartments in an average size of 663 sqft at a price of around Rs 19 lakhs, two-bedroom flats in an average size of 1,097 sqft at a price of around Rs 31.50 lakhs. Three-bedroom apartments are in an average size of 1,541 sqft at a price of around Rs 54.20 lakhs while four- bedroom apartments in an average size of 3,384 sqft are available for around Rs 1.19 crores." According to Shrinivas Rao, "Res- idential choices, although plenty in number and priced lower in com- parison to Sarjapur Road and Ban- nerghatta Road, comprise apartment blocks on Hosur Road or Electron- ics City, while plot developments and villas are gradually gaining traction. High commercial activity antici- pated here will support good resi- dential development in the short to medium terms." Vestian Global's research indicates that capital values for Grade-A apart- ments are in the range of Rs 3,000- 5,200 per sqft. Capital values for Grade-A villas/row houses are be- tween Rs 3,000-3,500 per sqft. Capi- tal values for plot developments range between Rs 1,500-2,500 per sqft. Vestian's quarterly research re- veals the average monthly rentals for apartments range between Rs 10- 15 per sqft while the average annu- al capital value appreciation is be- tween 12-15 percent. EMERGING HOTSPOT BOMMASANDRA A GROWTH CORRIDOR WITH POTENTIAL HOUSING OPTIONS FIND MORE DEMAND ALONG THE BOMMASANDRA MAIN ROAD R Rajgopal
Transcript
16THE TIMES OF INDIA BANGALORE SATURDAY OCTOBER 11, 2014
With major industrial development
planned here andprojects such as theBangalore-ChennaiIndustrial Corridor,this micro-market isset for an uptrend in
Located towards south-east Ban-galore on NH7, Bommasandrais one of the oldest and most
prominent industrial areas of thecity. It is located approximately 26 kmfrom M G Road, with primary accessthrough Hosur Road, and secondaryaccess through Sarjapur Road andBannerghatta Road. The State gov-ernment acquired land and allottedit to industries.
Ram Chandnani, Deputy Manag-ing Director - South India, CBRESouth Asia, outlines the real estatelandscape here. "The land was ini-tially allotted to biotech, chemicals,printing press, garment industries
and construction companies. Thegovernment improved connectivityto the area by building a link roadbetween Bommasandra and Jigani,another industrial estate towardssouth Bangalore, and promoted in-dustrial development along thisroad. Apart from industrial devel-opment, the setting up of a large,multi-specialty hospital in Bom-masandra has created opportunityfor small scale, unorganised retail-ers too."
Hub of large developments
A biotech major is a large occupi-er of Bommasandra Industrial Es-tate with a 100 plus acres campus. Inaddition to this facility, an IT/ITeSmajor has acquired 25 acres and builtan IT SEZ here, among other large
industrial developments. Completionof the flyover from Bommanahalli toElectronics City, as well as the NICERing Road, have improved connec-tivity to Bommasandra from otherparts of Bangalore.
Ram explains, "Robust commercialand residential development in and
around Electronic city is pushing re-development opportunities in Bom-masandra. In terms of outlook, Bom-masandra is expected to witness re-development of industries to small-scale commercial development andalso small budget residential devel-opments from Tier II and III devel-opers."
Future growth corridor
Shrinivas Rao, CEO - Asia Pacific,Vestian Global Workplace Solutions,traces the emergence of this locationinto prominence. "Bommasandra wasearlier an indistinct location enrouteto the Jigani Industrial Area. Prox-imity to Jigani and the IT/ITeS hubof Electronics city has played a piv-otal role in the transformation of thislocation into a thriving space for both
commercial and resi-dential real estate. Com-ing in the automobile,auto-components belt,684 acres of land has al-ready been developed bythe Karnataka Industri-
al Areas Development Board (KI-ADB), while 712 acres have been ac-quired for future growth. Post com-missioning of the Chennai-Banga-lore Industrial Corridor, this regionis anticipated to observe heightenedgrowth in the medium to long terms."
According to Vestian Global's re-
search analysis, a workforce of over75,000 employees is engaged in vari-ous facilities in Bommasandra In-dustrial Layout. These operationalunits are an extension of the com-mercial offices in Electronics Cityand Hosur Road. The monthly rentalshere currently range between Rs 28-35 per sqft while an escalation be-tween five to six percent is expect-edly annually.
Emerging localities
According to Ram, emerging lo-cations in and around Bommasan-dra include parts of Hosur Road, theJigani-Bommasandra Link Road andinitial parts of Chandapura Road.
"A few residential layouts/devel-opments are proposed and some areunder construction on multiple pri-vate land parcels, located at the pe-riphery of Bommasandra (non-KI-ADB land), Hosur Road and Chan-dapura. Karnataka Housing Boardhas promoted and is in the processof building low-cost apartments andlayouts on Chandapura Road," hesays.
Affordably-priced housing options
Idirees Chenakkal, Head - Re-search & Consulting, L J Hooker In-dia, adds, "It is close to the hi-techzone of Electronics City and thegrowth in industrial developmenton this stretch till Hosur will gen-erate a good amount of demand forresidential developments, especial-ly for budget homes, in this region.Housing options around ElectronicsCity and Jigani-Bommasandra Roadinclude one-bedroom apartments inan average size of 663 sqft at a priceof around Rs 19 lakhs, two-bedroomflats in an average size of 1,097 sqftat a price of around Rs 31.50 lakhs.Three-bedroom apartments are inan average size of 1,541 sqft at a priceof around Rs 54.20 lakhs while four-bedroom apartments in an averagesize of 3,384 sqft are available foraround Rs 1.19 crores."
According to Shrinivas Rao, "Res-idential choices, although plenty innumber and priced lower in com-parison to Sarjapur Road and Ban-nerghatta Road, comprise apartmentblocks on Hosur Road or Electron-ics City, while plot developments andvillas are gradually gaining traction.High commercial activity antici-pated here will support good resi-dential development in the short tomedium terms."
Vestian Global's research indicatesthat capital values for Grade-A apart-ments are in the range of Rs 3,000-5,200 per sqft. Capital values forGrade-A villas/row houses are be-tween Rs 3,000-3,500 per sqft. Capi-tal values for plot developmentsrange between Rs 1,500-2,500 per sqft.
Vestian's quarterly research re-veals the average monthly rentalsfor apartments range between Rs 10-15 per sqft while the average annu-al capital value appreciation is be-tween 12-15 percent.
The spatial expansions ofWhitefield and the EPIParea, and proximity to
the ORR as well asupcoming industrialareas around, have
Hoskote town is located towards thenorthern periphery of the cityand is connected to the city by the
NH-207. It is located on the way from Ban-galore to Tamil Nadu and is well-con-nected to other established and emerg-ing locations via the NH-207, Old MadrasRoad (NH-4), State Highway (SH)-35, SH-
82 and SH-95.It is an emerging industrial hub and
houses prominent companies which havetheir manufacturing plants in the region.The region is also perceived as a promi-nent logistics hub. The government hasnotified land in Bagur and Narsapur fordeveloping these locations into an IT and
electronics hardware hub. Its strategiclocation between Whitefield and K R Pu-ram along with the upgradation of thehighway has led to hectic developmentin this belt.
Development along the highway
The Hoskote belt is spread on the NH-4 which connects Mumbai, Bangalore andChennai. This belt benefits from con-nectivity as well as easy access to the city'sinfrastructure. The Outer Ring Road(ORR) connects Hebbal and the airport
in the north with Sarjapur Roadand Electronics City in the southfrom Hoskote (Old Madras Road).The planned Peripheral RingRoad (PRR) will improve con-nectivity from Magadi Road toHosur Road.
According to Ram Chandnani, DeputyManaging Director - South India, CBRESouth Asia, "Developments in Hoskoteare mostly concentrated along NH-4. Butsince 2010, the micro-market has wit-
nessed the mushrooming of plot devel-opments along SH-82 (Chintamani Road)and SH-35 (Sidlaghatta Road)."
Prominent locations
Hoskote Road or Old Madras Road (NH-4) begins after M G Road extending rightup to Hoskote. Any area beyond the KRPuram-ORR junction can be consideredunder the Hoskote Road belt. Locationsaround this belt are K R Puram, Ma-hadevapura, Old Madras Road includingT C Palya, Medahalli, Avalahalli and Budi-gere Cross, Kannamangala and Hoskotetown.
According to Idirees Chenakkal, Head- Research & Consulting, L J Hooker (In-dia), the expansion of IT as well as oth-er tertiary sector developments from EPIP,Whitefield and the ORR has led to the ris-ing demand here.
Demand for industrial area
According to Ram, "The Eastern Cor-ridor comprising parts of NH-207,Hoskote, Budigere Cross and other loca-tions are witnessing steady demand forindustrial area, particularly e-commerce,third party logistics and automobile com-panies."
Mixed use developments on the rise
Locations witnessing residential de-velopment are Avalahalli, Huskur, Budi-gere and Kannamangala. While Huskuris witnessing the rise of budget housingprojects ranging from Rs 25-45 lakhs, de-velopers are coming up with projects inBudigere too.
Shabeer Sait, Executive Head of Op-erations, Irshad's Property Matters, ex-plains, "Several companies are shiftinghere or evincing interest in this belt. Sec-tors such as manufacturing, semi-con-ductors and IT have their facilities aroundthis belt. Several mixed use developmentsare coming up here. You will find a hostof residential projects right up till thetoll plaza."
Wide range in options
According to research by CBRE SouthAsia, significant residential activity tak-ing place in this area is through plot de-velopments along locations on the SH-35and SH-82. They are priced between Rs
1,100-1,600 per sqft. Developments alongNH-4 command a premium, with pricingvarying from Rs 2,000-Rs 2,700 per sqft.Two-bedroom apartments are available inthe price range of Rs 2,000-2,500 per sqft.
Research by L J Hooker India revealsthe value homes segment (up to Rs 30lakhs) contributes around one million
sqft of supply while the budget homessegment (Rs 30-60 lakhs) contributes about5.40 million sqft. The mid-range segment(Rs 60 lakhs-Rs 1 crore) contributesclose to 3.75 million sqft of supply.Upcoming housing stock can be expect-ed around Avalahalli, Budigere andKannamangala.
The city continues to charmboth industrialists and talent
Rama N S
From the days of acute shortage of foreignexchange, today we have a decent foreign ex-change position. This would have not have beenpossible without the IT industry and its expo-nential growth in exports over the decade anda half. IT/ITeS has spread their wings and istoday responsible for USD 85 billion exportsand three million jobs.
According to reports, India needs over 10-15million jobs every year with 10-15 percentgrowth per year which is challenging and can-not be achieved by one sector or industry. Ban-galore occupies a key position in delivering ITservices globally.
Prominent IT hubs
Electronics City, Whitefield, Outer RingRoad, Inner Ring Road, and Bannerghatta Roadare some of the major clusters of IT and en-gineering activity in Bangalore. In addition,there are over 2,000 small and medium IT com-panies adding to the economy of Bangalore.
There are more areas like Devanahalli, Sar-japur, and Anekal on the growth path. Banga-lore continues to charm both industrialistsand talent. Hence, there is a long list of com-panies in Bangalore including both global andlocal giants in IT and electronics.
Integrated solutions
There is no denying that the vanilla IT busi-ness is essential for stability of industry andopportunities will continue with a growth of12-15 percent (NASSCOM). Product develop-ment and service solutions which are closelyintegrated with manufacturing and engi-neering industry are opening up in emergingmarkets. Transport services, surveil-lance, traffic management, health-care, municipal services, gover-nance, education, automobile,aerospace, electronics manu-facturing, online services andmany more require integratedinnovative service solutions us-ing the engineering and IT in-dustries.
Technology to reach out
Currently, the IT industry in India is sup-porting the service solutions as conceived byits customers across the globe. The local andnew markets in developing countries will re-quire innovation and engineering solutionsapplicable to them.
Mobile, big data and IoT (Internet of Things)are the order of the day and will be very crit-ical for the growth of the IT industry. Thesetechnologies are essential for ambitious pro-grammes like reaching out to more than a bil-lion people in the country, creating smart cities,smart farming, surveillance and overall serv-
ice delivery in the country. The dream of bring-ing healthcare, education to everyone, im-proved farming, smart cities and villages of-fers great opportunity to the industry.
Manufacturing and IT
The manufacturing industry is showingsigns of growth with supportive governmentpolicies, enthusiastic industry and more im-portantly, interest shown by engineering tal-ent. Engineering and problem-solving mind-set will blur the line between manufacturingand IT. This offers new opportunities for com-panies and talent provided some policy im-plementation challenges are addressed.
There is awareness all around that manu-facturing is critical for economic growth. Tal-ent for design of electronics products is part
of Bangalore's ecosystem. Innovation, en-trepreneurship and product spaces are
inviting the talented. Electronics andIT are two sides of a coin and Ban-galore is all set to cash in on thisopportunity.
The presence of local and glob-al companies in Bangalore makes
it an interesting combination to de-velop business in both manufactur-
ing and IT sectors which can provide ho-listic growth and opportunities. As an exam-ple, Electronics City is slated to pilot 'smartcity' which requires both electronics subsys-tems and IT applications. This will certainlybolster the IT and electronics manufacturingin Bangalore.
Here is an opportunity to marry our IT ex-cellence and engineering prowess to addressthe needs of global and local markets, to pro-vide holistic solutions for better quality of life,together with sustainable industry growth.
(The author is CEO, Electronics CityIndustries Association)
