Friday, August 24, 2007

New roads set to change city’s realty scene

New roads set to change city’s realty scene
The expressways and second ring road will create more well-connected localities, and add another dimension to the city’s real estate, writes B S Manu Rao

Rarely would a city have seen the sort of thrust on connectivity that you can see in Bangalore today. An international airport, metro rail, a second ring road, and three expressways are in the making. While the second ring road (Peripheral Ring Road), the expressways (Bangalore-Mysore Infrastructure Corridor), the new road to the international airport, and metro rail are some time away, the airport will soon be ready.
All over the world, a trend that has been noticed significantly, is that cities tend to grow towards major transport hubs. Be it a new international airport, a road transport hub or a port, mass transit infrastructure has drawn development towards it. Economic reasons and convenience in commuting, predominantly, are the reasons offered for this trend.
In Bangalore, it has been seen that all it takes is a good six-lane road to drive growth and development in the vicinity. The Outer Ring Road saw new localities emerge all around, thanks to the connectivity it offered from the other parts of the city. This road brought many localities considered 'far off' virtually into the city. "We are now in the city", was an often-heard comment from people living 12 km from the city centre after the Ring Road was ready.
So what do these new developments hold for the city? International airport The fact that the international airport is coming up in the north of the city holds more significance for the localities there than just the obvious. While surely land rates will see considerable increases as the project nears completion and the airport becomes functional, the roads leading to it will see a spurt in real estate activity around. The new expressway connecting the international airport from the Outer Ring Road will see more residential and commercial hubs being carved around. On the one hand, demand will come from the gamut of services needed to run an international airport, and on the other, good accessibility and consequent proximity to the city will drive demand from both investors and those looking for a house in the city.
The ambitious tunnel project (Minsk Square to Hebbal Flyover) to augment connectivity to the airport will mean many extensions in the northern parts of the city being just 20 minutes away. This again spells good news to those holding property in these localities.
Metro rail
The connectivity that this mass transit system entails holds promise for many located near the proposed stations. The State Government's initiative of increasing the floor area ratio in these areas to promote the use of the metro rail will see a lot of rejuvenation of existing buildings. In many cases, the yield in terms of rent will increase significantly with the higher rentals that the location will command and the additional space possible in the light of the increased floor area ratio permissible.
Peripheral Ring Road
This new road, with its linkages to the Outer Ring Road, will on the one hand decongest the Outer Ring Road, and create new localities in between on the other hand. It will add to the connectivity the Satellite Town Ring Road planned between the proposed five townships will bring. This is a key infrastructure project that is coming up just as many large IT organisations in the city will be looking for another round of expansions. Connectivity and large land parcels are just what campus development needs.
Bangalore-Mysore Infrastructure Corridor
This expressway to connect Mysore, along with its five townships, will be another catalyst in the development of the city's realty. The integrated townships and the expressway's connectivity will pull development on the other side. Given the city's draw and the fact that around four new IT organisations set up shop in the State, predominantly in Bangalore, every week, this corridor will see considerable and rapid development.
Changing skyline
A rather unique aspect of Bangalore's Central Business District (CBD) has been the fast-changing skyline. A good many large and landmark buildings have been pulled down for redevelopment in the early stages of their lifetime. Corporate offices to commercial centres, the fact that solid and occupied structures are pulled down, indicates the demand and potential seen in these localities. This, along with the new road infrastructure, will see the city's realty scene changing gears.
There are a good many reasons why property is always a sound investment. Demand and supply equations apart, Bangalore offers another unique one. Even if you buy property on the outskirts, your property comes closer to the city centre every time a major new road is planned.


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