thanisandra - yelahanka

Corridor of growthCorridor Description and Rating

T H A N I S A N D R A - Y E L A H A N K A

Areas Included: Thanisandra, Jakkur, Sahakara Nagar, Hebbal, Hennur Main Road, Yelahanka New Town, Kogilu, Nagawara and Bagalur Main Road

Fig 1: Map of the corridor

Corridor of growth (COG)02

Properties available in the corridor

This is a unique corridor which offers a good number of properties in all the segments, although the share of

property in the price range of Rs 40-60 lakh is slightly higher at 25%. Since the corridor

is developing, Fig 3 shows that almost 63% of the property in the corridor is still under-construction and will take a few more years for possession. Fig 4 shows that the number of 3BHK units in the corridor is 49% which is

higher than the number of 2BHK units at 41%. This is due to the fact that since the area has large open spaces available for development, property seekers look at larger floor plans than what is offered in properties closer to the

About the Corridor

Thanisandra- Yelahanka Corridor extends from Hebbal Junction to Yelahanka in the north and from Thanisandra Main

Road to Bagalur Main Road. This is a radial corridor that runs along the Bellary Road but also includes areas beyond the Jakkur Military Airport, Sahakara Nagar, Hennur Main Road and Yelahanka New town.

The corridor is commonly known as North Bengaluru and is closest to the Kempegowda International Airport (KIAL). Hebbal, about 28-km away, takes about 30 minutes to reach the airport. Since it was setup recently, it has very broad, well laid out roads. Bellary Road itself is a 6-lane highway with service roads and connects Hebbal to the airport. The corridor can also be accessed through the Outer Ring Road (ORR) at the intersection of NH-7 at Hebbal and Thanisandra Main Road at HBR Layout.

Although the corridor is not part of the Namma Metro-Phase II work, it will get a new metro route – the Nagawara-Kempegowda International Airport which is a 25-km line as

part of Phase-III planning by RITES, a design consultancy agency that is tasked with making the detailed project report.

Another line which runs from Hebbal to Central Silk Board will provide access to all points on the ORR until Hosur Road. These routes are still in the planning stages and it might take a few years to even start the actual groundwork.

The proposed PRR starting from Hosur Road is an 8-lane expressway which will provide an arterial connection to Tumkur Road and allow heavy traffic coming from Mumbai, Pune, and Chennai to bypass the city. This road will pass through the corridor at Bellary Road (NH-7). The KIADB Industrial Park is currently operational while, Shell India has started its set-up on a 52-acre plot and will be operational soon. European Aerospace and Defence and Jupiter Aviation are other big companies that will soon be setting up their India operations center here. KIADB has also earmarked about 60-acre land for residential purpose in the proposed industrial park.

The corridor has the widest range of properties available in terms of affordable plots as one moves towards Bagalur and Sathanur to high-end ultra-luxury apartments close to Hebbal and Nagawara near the ORR. It is a unique corridor as it is the only one where the supply of 3BHK units at 49% is higher than the number of 2BHK units at 41%. This is mainly due to the fact that the corridor was developed recently and vast tracts of land are available for development. The demand is also high for apartments with larger floor spaces and more open areas.

Although the corridor has good infrastructure in terms of wide roads, drainage and water pipelines, it has an acute water crisis and is mostly dependent on tanker water supply for daily needs. There are a lot of residential projects that are ready-to-move-in, but currently there are not many people living here. It might take a few more years for all the social infrastructure to be set-up and make this corridor completely liveable.

Overall Connectivity Social Infrastructure Security/Water

Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration


Within the corridor, the locality with the highest rental demand is Hebbal, which is a well-developed

locality and close to some of the premium areas such as RT Nagar and Sadashivnagar.

Rental yield shows the amount of rent that can be generated from a property in a year in terms of sale price. The corridor has low to average rental yields in all localities, ranging from 2-5%. From the graph it is evident that

properties which are towards North of Bellary Road such as Kogilu, have lower rental yield. Thanisandra, on the other hand, has properties which are priced high although there is not much social infrastructure here.

CBD. It is also seen that at 3%, the number of 1BHK units is very less as the corridor is not much preferred by bachelors since there are not many work locations here other than the Manyata Tech Park at Nagawara. There are a lot of luxury villa projects available here. As explained, prices in the corridor move north as one moves towards the CBD around Hebbal

and Nagawara, which are closer to BDA layouts such as HBR and HRBR. As one moves North of Bagalur, it is observed that the floor area/built-up area of apartments are larger and there are 2BHK units with super built-up area of even 1600 sq ft. The corridor also has a good supply of luxury villas with sizes in the range of 2500-11000 sq ft.

Sales Price Covered Area ( Lacs) (Sq.ft)

1 BHK 15-146 520-1200

2 BHK 19-225 575-1800

3 BHK 22-400 900-5347

4 BHK and Above 100-650 2000-6300

Best sectors to invest in a home Based on rental demand in sectors

Table 1: Sizes and prices of flats available for various room configurations

Based on home buying demand in sectors

Fig 5: Top localities by consumer for renting a house

Fig 6: Top localities by consumer for buying a house

Best bedroom configurations to buy Preferred buying and renting options

Buying Renting Total (BHKs) Total (BHKs)

1 BHK 5% 7%

2 BHK 42% 52%

3 BHK 49% 39%

4 and Above 4% 2%

Table 2: Demand distribution for buying and renting

In the case of demand for home buying, again Hebbal has the highest share at 49% of the entire demand. It is preferred by end

users due to good social infrastructure and connectivity and by investors as it fetches

good rental yield. Property prices are also the highest at Hebbal at Rs 6,300 per sq ft.

The area is mostly preferred by pilots and airline staff who find it the best to live in as

it has all social infrastructure and is close to the airport. The next highest demand is on Thanisandra Main Road which has a lot of big townships launched by Tier-1 developers.

It is observed from the given tables that for rent 2BHK apartments are most preferred but from a buying perspective 3BHK

configurations at 47% have a higher demand. This is due to the fact that prices were generally lower in this corridor and hence, buyers looked for large floor areas while buying property here. From a sale perspective,

both 2 and 3BHK units have the same demand. About 43% of the people looking to buy and 50% of the people looking to rent are considering 2BHK units. The demand for ultra-luxury apartments and villas above 4BHK is about 5% and people are looking to buy such configuration closer to the airport.

Price changes and future prospects Historic Price movement

6 monthly change Yearly change

3% 7%

Table 3: Historical Price changes

Thanisandra-Yelahanka corridor has seen a steady appreciation over the last one year. It is also one of the few corridors in which

all the top 5 localities that are in demand have seen a rise in price over the last one year. It is observed that prices have appreciated across the last 3 quarters of 2015 but the increase in price has reduced in the first quarter of 2016. Property prices have increased mainly in the Thanisandra region which has had the highest consumer demand as well. Most of the tier 1 builders have launched properties on this road and some of them will be ready for possession by end of 2016 which could be another trigger for rising prices. In line with the price trends observed over all the corridors in Bengaluru, here too it is seen that areas which have higher concentration of properties in the mid segment category have seen the highest demand from consumers and the highest price rise as well.

Fig 7: Historical Price changes of corridor


Corridor Average Price Rs/sqft

Price movement for top localities by Consumer Preference

The last quarter has witnessed the prices moving up for all of the top 5 localities by consumer demand. Areas such as Jakkur and Hebbal which have high number of luxury and premium properties have

seen appreciation less than 1% as compared to areas such as Thanisandra and Thanisandra main road where appreciation of 2% is observed. Both these localities have a high number of under construction properties in the mid segment budget category which has high consumer demand. Another factor contributing to high prices is the many number of pre launches in this corridor over the last two years. In general property prices are generally lower during the pre-launch stage and climb steadily as the project goes into launch which also has contributed to the price appreciation in these two localities.

Fig 8: Price changes in top localities by consumer demand

Master Plan

It is observed that large tracts of the corridor are designated as a mix of primary residential and high tech commercialsegments. Areas

lying on the east of Thanisandra Main Road are mostly High tech and industrial. This means that restricted land is available for development for residential purposes. Areas beyond Bagalur and Sathanur are earmarked as agricultural land which can be converted after changing the land use pattern with the

permission of the Deputy Commissioner of Town Planning. This provides scope for future development where vast tracts of land will be available for development of residential or commercial properties Although there are a few lakes in this corridor such as the Hebbal, Nagawara and Rachenahalli lakes, there are a few more lakes which have now become dry and much of the area has been encroached by illegal settlements.

Fig 9: Land use of various localities in the corridor


Infrastructure Updates

Commercial development picks up in North Bangalore

Over the last five years, North Bangalore has emerged as a destination to reckon with. Smooth connectivity to the airport has unlocked the value of land parcels, paving the way for commercial and residential development in this region. The stretch from Hebbal along the Bellary Road up to the airport and beyond has witnessed the emergence of micro-markets, which are in demand due to proximity to the airport and to tech parks, lower land costs and accessibility. Moreover, the industrial areas of Chikkaballapur and Doddaballapur are to the north of this micromarket.

n Source: The Times of India

Demand for residential projects on the rise

The north of the city was predominantly dependent on residential growth but restricted to certain pockets. When the international airport at Devanahalli became operational, the property market growth and infrastructure projects started taking shape. The region is today one of the fastest-growing property markets with prices skyrocketing and a large number of premium projects coming up. These residential areas are well-serviced with the ORR and other arterial roads. Social infrastructure such as retail spaces, schools, colleges and hospitals too are around making these locations quite self-sufficient.


Jakkur, emerging as a potential residential hub

Jakkur, located after Hebbal in north Bengaluru on Bellary Road (NH7), holds prominence because of the Jakkur airfield which houses government and private flying schools and clubs. Jakkur has government and private industrial establishments, workshops for research and development projects etc. The growth of Jakkur surged further when the airport started operations. Connectivity to Jakkur improved significantly, attracting more investments. The availability of social infrastructure with reputed schools and hospitals made it a destination for luxury homes. The commercial development and upgradation of infrastructure around Hebbal, Yelahanka and Thanisandra Road have contributed significantly to the emergence of Jakkur.


Bangalore’s high-end properties attract NRIs

There are several old premium neighbourhoods that continue to retain their high-end tag, offering a lifestyle comparable to the ones experienced abroad with established social infrastructure. Older upscale neighbourhoods in the North include areas such as Jayamahal, Sadashivanagar, RMV IInd Stage, Dollars Colony, RT Nagar, to some extent HBR and HRBR Layouts, along with new layouts in Jakkur, Bellary Road and Hennur Road are fairly good areas targeted by NRIs. These areas continue to remain preferred premium locations primarily due to the lifestyle and conveniences that they provide.

IN NEWS


l As part of the Metro Phase-II, the Nagawara-Gottigere Line will link the metro to this corridor. Work on this stretch has slowed down as there is some realignment at the Jayadeva Hospital Junction

l There is a proposed PRR - Peripheral Ring Road - on which BDA has recently started the land acquisition process. PRR is an 8-lane expressway that will cross Bellary Road and connect to Tumkur Road on one end and to Hosur Road on the other

l The Devanhalli Business Park is a 415-acre business park to be developed on a Public Private Partnership (PPP) model and a consultant has been appointed to do the PPP process on behalf of the

Karnataka State Industrial Investment and Development Corporation (KSIIDC)

l The government has proposed to divert the Yettinahole River from Sakleshpura to cater to water demand from Chikkabalapur and Kolar which will eventually also reach Devenahalli, but there have been massive protests against this project and as of now, there is no clear roadmap on when this will be implemented.

A recent visit to the corridor has revealed that there is a lot of speculation. Three new projects from the government regarding the Aerospace SEZ, ITIR (IT Investment Region) and Devenahalli Business Park have been proposed in this corridor. This has led to developers increasing the prices of properties

and factoring future projected appreciation in the current prices. So ideally a developing corridor that is yet to get all the social infrastructure in place which should be priced affordably, has now been priced aggressively and this has put off end users from buying here. The inventory of ready-to-move-in units is higher than the average for the rest of the city. This has prompted developers to slow down construction and thus, some projects have been under construction for almost 8-years. With some proactive measures from the government to arrange good drinking water supply and quick set-up of the proposed buisness and IT parks, the area can see faster growth than expected.

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D I S C L A I M E R

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damage caused, or alleged to have been caused, directly or indirectly, by the information contained in this report. The information/data in this report is subject to change from time to time due to market condition.

thanisandra - yelahanka

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