Hebbal in north Bangalore and Whitefield in the east of the city are once again seeing a flurry of land transactions, thanks to attractive prices in peripheral areas and rising demand in certain segments of the property market.
Earlier this month, T wrote about three major transactions in Whitefield, including a 27-acre purchase by Shriram Properties for Rs 146 crore, a 5-acre purchase by Indiareit Domestic Fund for Rs 40 crore, and an 18-acre purchase by Total Environment Building Systems for Rs 150 crore.
The Times of India has now learnt that several more such transactions have happened in the past few months, mostly on the eastern periphery of Whitefield. Bangalore based RMZ Corp has bought 28 acres on Sai Baba Ashram road for Rs 133.38 crore, which translates to Rs 4.76 crore an acre. The rate indicates a near doubling of capital values, to Rs 1,100 per sft, on this stretch (which is a little away from the heart of Whitefield) in the last three years.
Raj Menda, MD of the company, declined to comment on the valuation, but said that they are coming up with villas priced at Rs 2.5 crore a unit and measuring Rs 3,200 sft each. “Whitefield has some inventory left on the apartment side. But there are hardly any supply of villas in the sub-Rs 3 crore range,” he said.
Salarpuria Sattva is buying 110 acres in Gunjur village in Whitefield for Rs 275 crore or Rs 2.5 crore an acre, say sources tracking the deal. Bijay Agarwal, CMD of Salarpuria Sattva Group, declined to comment on the valuation, but said he was planning an integrated township on the land parcel. Many developers are looking at Gunjur – about 8 km from ITPB in Whitefield — as land rates are around Rs 600-750 per sft.
Significant commercial leasing activity in Whitefield is creating residential demand. Almost 0.46 million sft of office space was absorbed in Whitefield in the July-September quarter, says a report by real estate consultancy CB Richard Ellis. This is said to be a 20% increase over the same period last year.
“Whitefield is seen as a cost-effective market for office space compared to Outer Ring Road (ORR). Grade A office space rentals are at Rs 26-30 per sft compared to Rs 35-45 along ORR. With many IT companies expanding in the area, residential development will be catalysed,” said Ram Chandnani, deputy MD-South India of CB Richard Ellis.
Farook Mahmood, CMD of property brokerage firm Silverline Realty, feels that Whitefield was under-priced as an asset class due to lack of quality infrastructure. “Things have improved today and it will soon catch up with ORR,” he said.
The Bangalore north market is also warming up. Surendra Hiranandani-promoted House of Hiranandani is close to buying 10 acres in Tata Nagar, about 2 kms from the Hebbal flyover for Rs 160 crore, according to sources privy to the development. Neha Hirandnani, director in the company, said, “We are working on many transactions and I don’t want to comment on it.”
The Hiranandani deal would value land in Hebbal at Rs 16 crore an acre or Rs 3,700 per sft. Analysts say that land values in Hebbal have increased by 15% over the last two years primarily because of the nearby Manyata Tech Park and the proximity to the airport.
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