With good accessibility to other parts of the city, the micro-market on Kanakapura Road is expected to improve further once the Metro starts operations this year, says industry expert Shrinivas Rao in an interview with RANJANI GOVIND
The South region of Bengaluru is one of the upcoming zones in commercial and residential space, according to market experts. It is densely populated with provision for civic infrastructure and basic amenities. The zone is gradually developing a taste for commercial space and is well connected by road.
What perhaps brought the southern tip of Bengaluru, Kanakapura Main Road, under focus was the announcement of the Greenline Metro that brought in a profusion of apartments and malls that is expected to push all-round growth.
The Hindu-Property Plus spoke to industry and market expert Shrinivas Rao, CEO-APAC, Vestian, who elaborates on the growth factors in store for Kanakapura Main Road.
Extracts from the interview….
You have said earlier that well developed social infrastructure and good connectivity across South Bangalore are the key factors that attract property buyers to invest in this region. How much does Kanakapura Road come under this and why?
Kanakpura Road has very good social infrastructure, which is further improving. There are multiple reputed schools and other education institutes based there, making it one of the educational hubs of the city.
On the retail front, Mantri Developers is developing a mall in this area, which is currently under construction while the Prestige Group is planning to develop a mall in Falcon City. ISKCON is also planning to develop an entertainment park in this region.
Thus, with good accessibility to other parts of the city, this micro-market is expected to improve further once the Metro starts operations this year. The National Highway Authority has also notified land for widening of National Highway 209 till Kanakapura, thus boosting growth in this region.
Metrorail seems to be the biggest boost for the region right now with the added advantage of land parcels that were once available in plenty?
The Bengaluru Metrorail authority is developing the green line through South Bengaluru with several stations on Kanakapura Road. This would certainly be the differentiating factor. Besides this, we also expect growth to be the highest along this road owing to abundant availability of water and land and easy accessibility to other parts of the city.
There is also a steadily developing taste for commercial space coupled with educational institutions. Would you advise that the road can be a choice for good investment?
We expect commercial development to pick up in this micro-market. We can soon expect an IT park to develop in this region bearing in mind that IT companies would want to set up their workplaces along the high talent density locations. South Bengaluru has a large IT population, and easy accessibility through Metro will further attract IT firms/ companies to set up their offices here. This is also a good location to set up more educational institutes.
Beginning this year, Vestian’s study had said, Kanakapura Road demands a price of ₹ 5,000-7,500 per sq. ft amongst bigger developers, and ₹ 3,600-4,200 amongst the mid-level. Will metroline, NICE road connectivity and the Metro Cash & Carry together boost property rates?
At present, South Bengaluru has a high residential supply. Therefore, we don’t foresee any major/steep appreciation in price for the next 12 to 18 months.
However, properties of Grade A developers may appreciate by 8% in the next one year. Land prices along the main road may rise by 15% to 20% in the next 12 to 18 months. In the long run, this will unquestionably be one of the major growth corridors of South Bengaluru.
According to Vestian Research, apartments are more popular in this area compared to villas. But right now it’s traffic bottlenecks due to increased construction work that poses a serious challenge to connectivity…
Most certainly the demand will increase. Till date, Kanakapura Road has been one of the most sought-after locations by IT professionals in terms of choice for residences, after Bannerghatta Road. This is because of the presence of social infrastructure and easy accessibility to workplaces.
Therefore, villa projects and luxury residential projects were concentrated in Bannerghatta Road region. However, this is changing now; and with new malls under construction, development of the green metro line and proposed widening of the National Highway, we expect several luxury projects including villa development to take off in this region over the next one year.
The above interview attributed to Vestian, has been carried in The Hindu