Saturday, March 29, 2008

Retail and commercial development gathers momentum in North Bangalore

Retail and commercial development gathers momentum in North Bangalore
Poornima B V
outlines the demand pattern for commercial, residential and retail spaces in the localities of this part of the city where the international airport and connectivity are driving demand

The upcoming international airport near Devanahalli and the improved connectivity to the city through the four-lane Bellary Road are the key drivers for the rapid development in this region. The residential market in Bangalore North comprises Sadashivanagar, Jayamahal, R T Nagar, Hebbal, Bellary Road, Yelahanka, Dasarahalli, Tumkur Road and Jalahalli. These are currently witnessing a spurt in development of apartments and sites. Apart from this, the availability of large land parcels has also led to potential for development of huge integrated townships here.
Residential market
The demand in the residential sector has picked up in North Bangalore and there are many developers who have acquired land in Devanahalli, off Bellary Road, Hoskote, and Doddaballapur Road for proposed commercial, residential and integrated township developments. The increasing demand for residential developments could be attributed to higher disposable incomes as also the availability of high-end residences with luxurious amenities.
According to Cushman and Wakefield, the capital values in the Bangalore residential market have increased by three to 12 percent across locations since the last year. North Bangalore is currently witnessing a spurt in the development of apartments and sites. A consortium of European investors and a Singapore-based firm are coming up with a modern self-contained 136-acre mega township here. According to Knight Frank Research, this region is expected to have a supply of approximately 10 million sqft in the next two to three years. The average capital value in this region ranges from Rs 3,000 to 5,000 per sqft.
In fact, the residential market witnessed a spurt in supply in micro markets like Whitefield, Marathahalli, Sarjapur Road. The increasing demand for residential developments could be attributed to large scale migration of IT professionals, increase in commercial Grade A developments and higher disposable incomes as well as investments in realty by NRIs.
The improvement in road connectivity from Hoskote, Whitefield and Tumkur Road to North Bangalore will result in increased residential developments along these stretches. In the recent past, this region has witnessed some high-end residential developments by major developers. The Metro Rail project is also likely to impact the demand situation with increased residential developments surrounding the terminals along the route.
Commercial market
According to Cushman and Wakefield, the total commercial office supply witnessed in 2007 is 9.59 million sqft. Commercial spaces in Bangalore North, in locations like Hebbal, Yelahanka, Bellary Road, Jayamahal and R T Nagar have seen a growing demand as these areas are closer to Devanahalli and the upcoming international airport.
Bangalore city has demonstrated a gradual movement in its growth corridors. While the city centre still remains around M G Road, the recent development corridors, led by the IT boom and upcoming international airport at Devanahalli, have emerged towards the south-east and north. The development of the Outer Ring Road (ORR) contributed substantially to the connectivity of the peripheral locations with the other business and residential hubs of Bangalore.
Retail market
Brand Bangalore, with its salubrious climate, cosmopolitan outlook and availability of skilled manpower has succeeded in attracting investors not only in real estate but in the retail sector too. Business parks which offer amenities such as food courts, banking facilities, health club and retail stores are becoming an essential criterion for companies seeking office space since it caters to their overall employee needs. Most of the commercial developments towards CBD and off-CBD locations have retail stores on the first few floors or ground floor owing to good frontage and accessibility.
According to Cushman and Wakefield, the mall supply in Bangalore in the year 2007 was recorded at approximately 6.1 lakh sqft, with key mall developments in excess of one lakh sqft commencing operations in the CBD, Hebbal, Whitefield and Mysore Road areas.


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