Potential areas for property investors in Bangalore

The concept of integrated development has the fundamentals to work well for investors in the long term. Commercial and residential spaces close to each other opens up prospects for investors looking at rentals.

Any growing city will witness the creation of micro markets, especially in pockets where there is efficient civic infrastructure. Connectivity too plays a major role in the creation of micro markets, as a destination that has quick and easy accessibility will find takers both in the commercial and residential arenas. Bangalore is no different. The city has grown from a predominantly residential location with a Central Business District and shopping belts in the commercial areas to a regional business powerhouse. In the process of this transition, many micro markets have sprung up around the core city areas.

Apart from end-users, these emerging micro markets, especially those in the outskirts, offer property investors a huge potential. Those who invested in land close to the airport, for example, before it relocated from the city, have generated huge capital gains. The prices skyrocketed with the airport becoming operational, Bellary Road being upgraded, and with more civic infrastructure projects being announced. The State government’s initiative of an IT investment region in the vicinity, apart from other commercial zones, is adding more value.

The first of the significant micro markets, close to the city, that yielded multi-bagger returns for property investors was the IT belt in the south. Bannerghatta Road, Hosur Road, and Sarjapur Road, the first of the IT hotspots, pushed land values in the vicinity up sharply with a large number of IT firms locating here. The resulting demand for housing led to this micro market emerging as a potential location for investors and entrepreneurs alike with demand for commercial and social infrastructure on a constant uptrend.

Just how good connectivity is in creating a micro market is visible in the case of the Outer Ring Road. This road was planned to ease the traffic congestion in the city. It was a boon to motorists as it led to heavy vehicles not coming into the city. A large number of trucks on their way to other destinations in the south stopped coming into the city enroute. However, it also opened up large parcels of land for development and many IT facilities set shop alone the road. It wasn’t long before it turned into a commercial hub and significant micro market.

These micro markets are self-contained localities where the social infrastructure is fuelled by the residential catchments that in turn find the commercial development a profitable market to cater to. Given the city’s climate, talent pool and cosmopolitan culture, its growth in popularity as a base for the knowledge industry in the region has been phenomenal. The city’s horizons have naturally been moving further away and the upgraded State highways have made it possible to tap the suburbs for their large land parcels.

In this scenario, the integrated developments being planned around the city are potential investment hubs, much like the micro markets of today were some years ago. Unlike in the earlier days, social and commercial infrastructure is no longer concentrated in specific parts of the city. With integrated development comes the convenience of a self-contained neighbourhood where you can walk to work and source all the social infrastructure you need in the locality. And, given the convenience of wellmaintained services such as power, water and recreation, these developments offer a new dimension to community living.

At one time, it was believed this city would not accept apartments, being used to bungalows with sprawling gardens. What actually happened is a different story. Many actually prefer an apartment for the conveniences and safety it offers. Gated communities too are preferred for much the same reasons.

Integrated developments offer value in terms of quality of life. They save precious commuting time, for example, leaving one with more time on hand and considerable saving on transport costs. They also bring facilities such as a club house or a sports facility, and recreation, within walking distance from home and the workspace. This is an attractive proposition for both employers and employees, as the convenience of work-live-play add to create a more productive workforce.

Over the years, these developments will host ‘floating populations’. Those working in one, while owning a home in a different part of the city, would look at renting out a space here for the interim period. Many coming into the city on a job at one of these developments too would prefer to stay in the residential wing on the campus. This will form a large rental market for prospective investors to tap. Serviced apartments to individual flats, there will be demand from the neighboring commercial buildings.

Integrated developments are potential avenues for property investors, given their long-term relevance here. This is another dimension the city’s property sector is acquiring.

Source: Times Property