Driving third generation growth

Driving third generation growth
The Times of India outlines the development unfolding in this belt


World class flyovers, multi-lane passerways, high-speed under-passes, quickout-in-by-passes, spacious sideways, convenient service roads, smooth and straight traffic flow, availability of large chunks of land at competitive prices, and the hope and hype built around the Devanahally international airport project. These are the basic elements that are going to fuel corporate growth in the east and north parts of Bangalore. If the first generation corporate growth happened in and around the central business district of the city between 1994 and 1999, the next phase of expansion took place mostly in the south and parts of east during 1999-2005, while the third generation business development is expected to come from the quarters of east and north.

Industry sources say a large number of IT, BT, pharma, retail, healthcare, hospitality, logistics, manufacturing, clothing, training and education companies are waiting in the wings to enter into these areas. "Over a dozen IT, ITES and hospitality firms are currently in advanced negotiations to acquire 100 to 300 acres of land in the northern parts of the city", they say.

In fact, east and north of Bangalore are heading towards a well-planned growth. "These areas will witness a housing boom in the next 12 to 20 months while substantial corporate growth will emerge in the next 18 to 48 months. The magnetic component will be the airport project", says Ashish B Singh of Cushman Wakefield.

To begin with, Yelahanka, Hebbal, New BEL Road, Jalahalli, Bellary Road, Yeshwanthpur, Whitefield, and Marathahalli would witness large volume retail and corporate growth, says a property analyst. "As of now, new economy businesses may not have much presence in these areas. This is going to change in the near future with a large number of tech firms itching to expand into these areas". The 2-million sqft Kirloskar Business Park already houses five domestic and multinational business firms, on Bellary Road. Fidelity alone is setting up a 2.5 lakh sqft facility, Philips Software is all set to move into a 8,000 sqft facility off Bellary Road, while it's believed that tech biggies like Wipro, Infosys and TCS are scouting for large chunks of land to set up their campuses. HMT has recently sold around 50 acres of land to local developers for projects.

These areas would also see a phenomenal growth of ancillary industries. Hotels and logistics chains like Marriott, Taj, DHL, and BlueDart are already waiting for their turn to enter the region. "A sizeable ancillary industry will emerge out of these areas", says Mahesh Laxman of Chesterton Meghraj. "Compared to the south, east and north will see a very planned and smooth growth. Therefore, the business community will be easily attracted to these areas", says another realty expert. Currently, the prices hover around Rs 1,500 per sqft in Bangalore east while it's between Rs 600 and Rs 1,000 in the north. In fact, they have doubled in the last 12 to 18 months.

So, it's action time for Bangalore east and north. A large number of property developers, builders and consultants have already checked into these areas. "The process of growth in Bangalore north will be pretty fast, as infrastructure will not be a bottleneck", says Mithili Kumar, an infrastructure consultant.