Corridor of growthCorridor Description and Rating

W H I T E F I L E D

Areas Included: Whitefield, Hoodi Junction, ITPL, Varthur/Gunjur Area, Mahadevpura, Marathahalli, KR Puram and Kundalahalli

Fig 1: Map of the corridor

Corridor of growth (COG)02

Properties available in the corridor

The corridor offers a wide range of properties in all price segments from affordable to ultra-luxury. Over 30%

properties fall in the category of Rs 40 - 60 lakh followed by around 19% in the Rs 60- 80

lakh and 18% in the Rs 20- 40 lakh segments. Fig 4 shows that 55% properties are 2BHK units and 40% are 3BHK units. Fig 2 and Fig 4 show that numerous 2BHK apartments in the price segment of Rs 20- 60 lakh are available

in this corridor. It is also observed that both ready-to-move-in and under-construction flats are amply available here. It is also noted that over 6% properties are available with price of more than Rs 1 crore, which shows

About the Corridor

Whitefield in Bengaluru has emerged as one of the most preferred destinations for residential and office

spaces. It has grown into a self-sustaining region with ample number of residential projects, office spaces, retail spaces and shopping malls.

The first IT industry was started in 1998 in Whitefield which created residential demand for a large number of IT professionals. Though initially meant for IT professionals, the affordability and land availability also generated interest from people in other professions as well. Since then Whitefield has been the hub of affordable residential market with projects having better amenities and bigger unit sizes. Gradually, the demand increased many-fold due to which the prices have also increased.

Marathahalli and Kundalahalli are affordable residential destinations catering mainly to the IT employees working at Outer Ring Road (ORR) or Whitefield.

In terms of connectivity, currently, BMTC is the only public transport facility but soon the metro extension from Baiyappanahalli will act as another major public transport mode. It is also situated at a one hour distance from Kempegowda International Airport (KIA) in Devanahalli. The KR Puram Railway Station, right next to the locality, serves as the railway transit point here. Whitefield, located along the ORR and adjacent to the Old Madras Road, connects it to the rest of Bengaluru.

The establishment of ITPB (International Technology Park of Bangalore) and EPIP (Export Promotion Industrial Park) has transformed the locality into a self-sustaining suburb. There are many educational institutions such as CMR Institute of Technology, Gopalan International School, Forest Technical and Administrative training Institute and Ryan International School among others, present in the locality. Whitefield has some of the largest shopping malls such as Phoenix Market City, Prestige Shantiniketan, VR Mall, Inorbit, The Forum Value etc.

The proposed metro blue line extension to Whitefield and Hoodi Circle will also be a major growth factor for the locality.

The Whitefield corridor has always maintained a good demand for different configuration of properties. But over the last few quarters due to high traffic and bad infrastructure it was observed that the ready-to-move-in properties are available at a discount of around 3-4% over the previous year. On the contrary, under-construction property prices have risen on an average of 4-5%. This anomaly can be explained by the fact that at present there is a lack of infrastructure in this corridor to support the high demand raised by the growing population. Future infrastructure upgrades such as the proposed PRR, widening of the Kundalahalli Road and the extension of the existing metro connectivity from Byappanahalli to Whitefield will ease the pressure and increase connectivity options to this corridor. It will likely take about 3-4 years time to complete under constrtuction projects in the corridor.

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

Corridor of growth (COG)03

Within the corridor, the locality with the highest rental demand is Whitefield, where the Metro Phase-2

is proposed. The corridor is considered the best rental destination. In fact, Marathahalli is the

second best rental destination with more than 20% of the total demand. As the IT industry grew in Whitefield and ORR, the demand for properties in Marathahalli increased. Hoodi Circle and Varthur are upcoming localities if

the proposed PRR is built. Whitefield corridor has high rental yields ranging from 3-6%. From the graph, it is evident that properties at Hoodi Circle have the highest rental yield and Varthur has the lowest rental yield.

that there are significant number of ultra-luxury projects in the locality.

Whitefield corridor offers properties in all price segments, while Hoodi Circle and Varthur offer affordable properties; Marathahalli, Kundanahalli and Whitefield localities offer properties in the mid and Luxury segments. There are a wide variety of sizes available

ranging from affordable to luxury apartments with sizes of more than 1800 sq ft for 2 and 3 BHK segments available in the corridor. There are many villa projects by A grade developers with world-class amenities and infrastructure in the price range of Rs 1.5 – 5.5 crore are being offered. In fact, the home buyers are also showing potential interests here.

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

1 BHK 11-65 517-1135

2 BHK 18-150 600-2882

3 BHK 24-370 925-9300

4 and Above 47-550 1630-6652

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 10 localities by consumer for renting a house

Fig 6: Top 10 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 1% 3%

2 BHK 56% 49%

3 BHK 39% 43%

4 and Above 4% 5%

Table 2: Demand distribution for buying and renting

In the case of demand for home buying, Marathahalli has the highest share. This is mainly due to its connectivity to both South

and North Bengaluru. It is observed that

there are more number of ready-to-move-in apartments in Marathahalli in comparison to other localities within this corridor. Whitefield has the second highest demand for home

buying. All other six localities contribute to 15% of the total demand for home buying. However, Mahadevpura has limited demand among home buyers.

It is observed from the given tables that either for rent or sale, the number of 2BHK apartments and villas are highest with

around 50% of the total supply. The localities in and around Whitefield have more of 2BHK properties. According to the Table 2, the corridor is preferred have for both buying and renting option. And, the demand is for

2BHK units.The rental properties of 3BHK are observed to be high in this locality due to heavy demand generated by the IT/ITeS industry in and around Whitefield. Also, the home buyers are showing immense interests to buy 3 BHK units in the corridor. The requirement for 1BHK units in the corridor is limited.

Price changes and future prospects Historic Price movement

6 monthly change Yearly change

5% 10%

Table 3: Historical Price changes

Whitefield corridor has seen a good appreciation over the last one year. It is also one of the few corridors that

have actually seen a price rise over the last one year. The 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 in the outskirts of the corridor than in areas such as Whitefield and ITPL where there are new properties that are available and most of them are in the premium and luxury segment. The trend is in confirmation to what has been seen in other areas of Bengaluru as well where prices have remained stagnant in the luxury and premium segment and the mid segment has seen highest consumer demand as well as price appreciation. Most of the people looking for property in these areas are typically employees in the IT/ITES companies and are keener to purchase 2-3 BHKs in the mid segment range.

Fig 7: Historical Price changes of corridor

Corridor of growth (COG)04

Corridor Average Price Rs/sqft

Price movement for top localities by Consumer Preference

The last quarter has witnessed the prices moving up for four out of the top 5 sectors by consumer demand. Areas such as Varthur, which have significant consumer interest has seen that the prices have

actually reduced due to infrastructure issues and the Varthur Gunjur road being the only access point from Whitefield side. There is also a lack of social infrastructure in this area that has led to a reduction of prices. It has been observed that within the corridor the highest price increase has been in areas such as Marathahalli and KR Puram which offer property in the mid segment budget class. Although significant number of top localities witnessed price increases this quarter, this has been against the continual drop in the average prices of localities in the last two years and the current rise in prices does not follow a long term trend.

Fig 8: Price changes in top localities by consumer demand

Master Plan

It is observed that the whole of Whitefield and Kundalahali localities are designated for the pupose of High Tech development which

includes spaces for IT industry. Localities such as Marathahalli, Varthur and Mahadevpura are designated only for residential pupose with commercial facilities along the major roads. A lot of spaces are also designated for Industrial purpose in the locality. Existing public/semi public spaces are also marked on the map. Large tracts of area are identified near Sadarmangala Industrial Area and Kadugodi Colony as a green belt to preserve the open space in this corridor.

Fig 9: Land use of various localities in the corridor

Corridor of growth (COG)05

Infrastructure Updates

Bengaluru’s Whitefield is the most preferred area

Whitefield was a nondescript settlement till the late 1990s when the IT boom reshaped it as an important suburb and it is now a major part of Greater Bengaluru. Whitefield receives a healthy demand for residential properties due to the availability of quality housing in all budget categories. Investors get a host of options from gated communities to villas to high-end apartments. The area is surrounded with IT companies such as HCL, Accenture, IBM, Tesco, TCS, Society General, GE, SAP and many more. Employees working here generate the housing demand in the area.

n Source: Magicbricks Bureau

Demand for homes up in Whitefield road belt

The Outer Ring Road (ORR) and Whitefield have, together, led to the development of several pockets in the east and south. The K R Puram to Hope Farm belt is one such stretch. The link towards the airport on one end, IT hubs in the south on the other end and the IT hub at Whitefield have led to the mushrooming of residential options in this belt. Retail, with large-format malls, caters to the shopping and entertainment needs of residents. Connectivity via Old Madras Road towards Whitefield and Budigere Cross is also spurring development and property demand in this belt.

n Source: The Times of India

Whitefield - Development hub for micro markets

Connectivity was one of the key factors that led to Whitefield development as an IT hub. Good civic infrastructure provided a link to important commercial centres as well as to upcoming areas in the vicinity. Several of these areas have now developed into

micro-markets in their own right, with Whitefield emerging as the nodal hub. Old Airport Road connecting to Varthur, and the Outer Ring Road (ORR) linking the HSR-Bellandur belt and Marathahalli to Whitefield have led to exponential growth in these areas.

n Source: The Times of India

Whitefield is considered among the top 5 localities

If you are looking for a property to buy or rent in Bengaluru, it always makes sense to go for the preferred localities. Whitefield is considered to be among the preferred localities in the city. Life as a home owner or tenant is easy when you live in a locality that is one of the preferred ones in a city. The localities have affordable and luxurious housing options available. It also means that the liveability quotient is better due to the presence of sound social and physical infrastructure.

n Source: Magicbricks Bureau

Where are buyers looking for property in Bengaluru?

Currently, the buyers are looking for properties available in Whitefield, Electronic City, Sarjapur Road etc. Malls, schools, clubhouses, nursing homes and café hangouts have changed the skyline of Sarjapur Road over the years. Many residential projects in Sarjapura have Cauvery water connection which means water resource would be sufficient for the next 15 years and the groundwater level is maintained. Sarjapura benefits because it already has a transport link and there is transit-oriented development. In fact, Whitefield and Electronic City have scope for 2BHK and 3BHK units.

n Source: Magicbricks Bureau

IN NEWS

Corridor of growth (COG)06

l The 65 km proposed Peripheral Ring Road (PRR) connects four highways - Tumkur Road, Ballari Road, Old Madras Road and Hosur Road - stretching from Tumkur Road to Hosur Road. The estimated land acquisition cost is Rs 8,100 crore while the construction is expected to cost Rs 3,850 crore. The Central government has agreed to bear the land cost for the project.

l The government has proposed to construct three elevated roads to decongest long distance travels. The proposed elevated roads are:

- Silk Board to Chalukya Circle

- KR Puram to Yeshwantpur - Varthur Kodi to Jnana Bharti

l Infosys is going to develop two new campuses at Whitefield and two new campuses at Konappana Agrahara with a total investment of Rs 1,918 crore creating 27,000 job opportunities

l The Embassy Group in agreement with Cornerstone Group will develop a business park over 100 acre of land at Varthur which will generate 12 million sq ft of space

The Whitefield corridor has always maintained a good demand for its configuration of

properties. But over the last few quarters due to high traffic and bad infrastructure, the ready-to-move-in properties are available at a discount of around 3-4% over the last year’s rates. On the contrary, under construction property prices have risen by about 4-5%. Lack of infratsructure is failing to support high demand. Future infrastructure upgrades such as the proposed PRR, widening of the Kundalahalli road and extension of metro connectivity from Byappanahalli to Whitefield, will ease connectivity to this corridor. This is expected to take about 3-4 years to complete the under construction projects.

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D I S C L A I M E R

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