Skyrocketing Demands for Properties in East Bangalore.

Eastern India is celebrated for its beauty and culture and many things more, but in elements of the corporates, it is an amicable destination with A-Grade spaces with attractive rentals, a sufficient workforce and healthy ecosystem. All these positive influences have generated a robust demand for house spaces in this region.

When it comes to south India, first thing comes in a commoners mind is IT and the capital city of Karnataka, Bangalore. Whitefield is an IT hub in the heart of Bangalore and is a preferred most IT destination for professionals in the country. Another area is (ORR) Outer Ring Road, where significant IT industry is present.

A couple of decades ago, these areas were largely an open space with markers on them which use to represent the rural Bangalore. Now it is an axis of MNC’s and startups alike who attract the best of the talent from the city exterior.  To some Bangalore is a real estate study in history where expats and high-net-worth individual reside and operate.

Self- Supporting Locations

Residential development in the city has given rise to several malls and hypermarkets due to expanding demands. Many IT/ITeS companies are present here which is the main reason people have migrated into this area in large numbers, this has also created a flourishing micro markets operating in the area.

Before 1990, eastern Bangalore was known for the manufacturing industries like Hindustan Aeronautics Limited, Indian Telephone Industries Limited and Bharat Earth Movers Limited. These industries were the primary reason for the growth in this city area. In the era of IT, many of these companies have transformed into a tech- park. The location of east Bangalore is the main cause of its development. Availability of graded office spaces, proximity with (ORR) Outer Ring Road attracts major IT/ITeS companies into eastern Bangalore leading to a booming commercial and residential expansion.

Additionally, Mahadevapura, Whitefield, Old Airport Road, K R Puram, Indiranagar, Old Madras Road, CV Raman Nagar and Hoodi Circle are preferred urban destinations among the IT professionals where Whitefield is still the prime IT dominion of the city with business centers, captive campuses and multiple tech-parks located in this area including the SEZs.

Interlinked Areas

East Bangalore is connected to the central city via major routes like Old Airport Road, Varthur Road, Whitefield Main Road and Old Madras Road with KR Puram and ITPL Main Road. The region is interlinked with an access to South Bangalore and areas of North Bangalore via the (ORR) Outer Ring Road and the Airport is within reach with and alternative route of Cargo Road. Whitefield is also awaited to have its own Metro link in the east which will decongest the area plagued with traffic jams. This anticipated infrastructure expansion is set to come in Phase II of the metro project, which is 15.50 km extension from Baiyapannhalli and will cover 15 locations such as KR Puram, Mahadevapura, Doddanekundli, Kundalahalli, ITPB, Kadugodi Industrial Area with a final link to Whitefield. This projected is expected to be operational by 2020 and will have a significant buffer to the commuting time and the real estate price in this area.

There is also a planned (PPP) Peripheral Ring Road, in this area which will connect key roads and highways in the west, east, and south Bangalore, connecting from Tumkur Road to Hosur Road by KR Puram, Old Madras Road, Bellary Road and Sarjapur Road. All this will result in
rapid development in real estate sector in this belt soon.

Preserving  Denizens Interests

East Bangalore will keep its growth track in the coming 5 years. According to Knight Frank India, research elements such as access to International Airport, low rents, existing tenant profile, a large talent pool and residential merchandise will make sure that a steady growth in office space is seen in the coming years.

Bangalore’s offices are comprised of two major zones, the east and the south, with north gradually catching up. Presently about 75 percent of the city’s offices are a stock affiliated in southern and eastern zones.  However, there is a strong preference for office occupants in the east zone consisting of major areas such as Whitefield and eastern capsules of ORR. This trend is most likely to prevail in the next five years as well.

Another consideration is low rentals, which also has been a key factor contributing to the increase in the demands and high absorptions of areas in the peripheral east of Whitefield and EPIP.  Accredited by Colliers International India Research data, rentals in this area are between Rs. 28 to 36 per Sq. ft in the first quarter of 2016. Whitefield and Electronics City came second of the market share with 30 percent of the total occupant absorption in this quarter.

The city has extended business districts including Indiranagar, Koramangala, Old Madras Road and CV Raman Nagar, which has contributed demands of more than 30 percent total office spaces from the corporates in the first quarter of 2016 in addition to Domlur and Whitefield.