Nagawara in Bangalore attracts buyers

Sale price of multi-storey apartments in Nagawara has increased by 20 per cent in October-December 2012 quarter.

Nagawara in North Bangalore is fast becoming a one-stop destination for people looking for a peaceful backdrop. The growing popularity of Nagawara can be credited to its close proximity to schools, hospitals and IT companies.

As per the data, sale price of multi-storey apartments in Nagawara has increased by 20 per cent in October-December 2012 quarter.

“The sale prices of multi-storey apartments in Nagawara have increased by Rs 10 lakh approximately due to several reasons. The area is peaceful with good security measures. There is ample parking space and the area is also well-connected,” said an official.

The airport is just 30 minutes away. Nagawara is attracting IT professionals and emerging as a popular IT hub. “It is also near to the Railway Station and Ring Road. It is close to offices like IBN software, BHEL, Manyata Tech Park and many other MNC offices also which is making it a hot locality,” added the official.

Experts in the industry said that Nagawara is accessible to all important places of the city and its value has the potential to increase further with time. Lumbini Gardens is a famous tourist attraction and Karle Technology Park is expected to come here soon. 1, 2 and 3 BHK apartments are much in demand.

The cost of 1 BHK in 600-800 square feet area is Rs 30-40 lakh, for 2 BHK in 1100-1200 square feet area one will have to pay around Rs 50-60 lakh. Whereas a 3 BHK flat is in Rs 70-80 lakh price bracket which is spread in 1500-1600 square feet area.

The buyers mostly are IT professionals and businessmen. The user- investor ratio is 75:25. Experts also hint that a metro station is in the pipeline. Shobha Developers have a lot of under construction projects in the area.

Demand for property growing in and around Whitefield

The suburb of Whitefield in Bangalore works as a good bet for many in the city due to various factors. These include connectivity, the creation of a micro-market, proximity to workplaces and other social infrastructure. Here are some of the most prominent infrastructure projects that give a head start to this locality.

Metro connectivity

The most ambitious project in the city, the Metro Rail network, will reinforce the alreadyexcellent connectivity to Whitefield. The operational phase of the Metro till Baiyappanhalli provides a glimpse into what a mass transit system like this can do for the realty segment. With the extension of the Metro up to Whitefield and stations at Kundalahalli, ITPL and Kadugodi Industrial Area, residential and IT belts will be hugely benefitted.

Road connectivity

In addition to the Outer Ring Road (ORR) becoming a signal-free corridor, the eight-lane Peripheral Ring Road (PRR) will be connecting Tumkur Road, Hessargatta Road, DB Pura Road, Bellary Road, Hennur Road, Old Madras Road, Whitefield Road, Anekal Road, Sarjapur Road and Hosur Road. This proposed infrastructure corridor will further give rise to extensions and layouts around them. Residential belts will spread along its length as is already seen along the ORR.

IT and industrial belts

The IT sector is spearheading growth in this region resulting in the development of residential and retail spaces too. The presence of industries and IT Special Economic Zones has ensured that many employees prefer to either rent or buy homes close to where they live. This has in turn led to the rise of social amenities. Whitefield has many good schools, hospitals and malls and most residents in this area very rarely find the need to travel into the city, as most of their shopping needs are taken care of.

The Karnataka Industrial Areas Development Board (KIADB) has given a significant boost to industrial growth and this has spread beyond Kolar. The Malur Phase IV and Narsapura Industrial Belts are well-connected with access to rail and road networks. Residential catchments too can be seen till Kolar.

Supply of premium housing

A vital factor pushing demand for residential property in this region is the supply of top grade housing to suit every budget. From gated communities to villas and high-end apartments Whitefield offers a host of options for investors to choose from.

Price no bar for premium apartments in Koramangala

 
South Bangalore is the way forward of taking the city to the world or at least in terms of premium living. Being crowded by the well travelled expat population, Koramangala has seen unprecedented rise in the premium living properties. Inevitably, with the escalation of demand in the segment, prices of such properties according to industry experts have doubled in the last two years.

Looking at the demand, many builders too are coming up with options for the HIG and HNI clients when it comes to luxurious living. On the other hand the projects that are already there are cashing in on the demand in the secondary market.

"In Q1 2013, the luxury residential market witnessed ample supply. More than 520 projects have been supplied in last one year in the category. These projects show a healthy absorption of around 60 percent," said Sumit Jain, co-founder and CEO, CommonFloor.com.

According to Q1 2013 Residential Real Estate Market Report Bangalore, by LJ Hooker, there has been a general oversupply of high-end inventory. In luxury and super luxury segments there is a potential oversupply of stock being put into the market. The report maps 470 residential projects in categories of apartments, villas, row houses, villaments, and plots.

These projects show a supply of approximately 1.3 lakh units across the city and its suburbs with 42 percent of unsold inventory as of end Q4, 2012. The average area of an apartment in the Bangalore market is quite large by national standards at 1,753 square feet, while that of row houses and villas were 2,831 and 3,545 square feet respectively.

"In last one year we have seen a lot of new entrants in lifestyle oriented high rises in the city including Rajajinagar, Maleshwaram, Ulsoor, Indiranagar and especially Koramangala, that over the years has become a hub. Well travelled population in Koramangala are now looking for all those features in their homes too," added Jain.

The under construction projects in the segment include Chourasia Signature and Indus Oasis priced at Rs 1.63crore and Rs 2.63crore. The existing ones that completed within 2 years are Sipani Grand, Raheja Vivera, Prestige St Johns Wood and Embassy Pristine. Their prices vary from Rs 1.4crore to Rs 3.49crore.

With shortage of space being an ever existing problem in the South Bangalore hub, demand exceeds supply in at Koramanagala. However there has been a 30 percent increase in new launches in the premium segment with high sales velocity. According to Jain, clients are not shying away to invest in properties that start at as high as Rs 9000 per square feet. These prices for the luxury residential nevertheless are lesser than what the present rates are at other metropolitans like Mumbai.

"Presence of old Bangalore charm, boulevard line ups, social infrastructure and a heterogeneous metropolitan crowd makes the place a niche neighbourhood. The value for money hence, being huge in these segments. In last two fiscals, the capital values of these projects have also gone up by 100 percent," added Jain.

According to data available with Cushman & Wakefield, average capital value as on Q2 of 2013 has been between Rs 6,000 to Rs 10,000 per sq ft whereas houses in premium segment have prices 10 -15 percent higher even if similar size.

"Premium projects could be ground level or top level penthouses with extended wooded decks, or be a villa or a simple spacious apartment with facilities like swimming pool, a thermal pool, private elevators, three sides open structure, multi-gym, community halls, state of the art security system, joggers track and various other features," said Kalpana Murthy, associate director, residential services, India, Cushman & Wakefield.

She also mentions that while buying a project that has an extended terrace or balcony and been played up with, one must take into consideration the legality of the construction. "Calculation of super built-up area is also an important factor buyers should look at while zeroing on a certain project because of the maintenance to be paid later. Cost of space could be anything like 50 percent of per square feet cost or 1/4 th or anything else and is the discretion of developer," adds Murthy.

The housing projects with penthouse and luxury apartments also try to accommodate a mini super market, spa, golf course view, lake view and creche facilities inside the compound itself. Though demand has been softening in the city according to builders due to the recent slowdown, Koramangala has remained unaffected by any adversities.

NRI investments too have gone up and the secondary market in the segment has also seen an upward trend with old houses being refurbished into luxury apartments where property owners have enjoyed a 15-18 percent ROI.

Source - Economic Times