Bangalore Economy and Real Estate thread II

[dino_srk]

They have a huge 8mn sq ft residential project coming up. Prestige Lakside Habitat





They will soon be launching their Integrated township "Falcon City" on 62 acres in JV with nottinghal investments

[gentem]

THE LONG STORY
Why Gauri’s kid can’t get a pink frock
As business competes with cheaper Asian exporters like Bangladesh, nobody seems to give a damn for Bangalore’s garment workers
Seethalakshmi S TNN

Bangalore: Gauri Ramesh has just readied a beautiful pink frock to be sent to Europe. And as she holds it up to check if everything is fine from buttons to threads, the 27-year-old imagines her 8-year-old daughter in the frock. A gentle tap from her supervisor to hurry up brings her back to reality.
“Our rights end here. I ready garments for children in Europe, Germany and the US. But I simply cannot afford to see that on my little one. I cannot dress her up in branded clothes though I have made thousands of them for children I never know. That’s the irony,” Gauri says as she goes about picking up the next garment in a prominent garment-export house on Mysore Road.
Gauri is among six lakh workers in Bangalore’s 850 garment export factories which generate nearly Rs 6,000 crore in yearly sales. After China and Bangladesh, India is the third largest exporter of textiles; Bangalore and Tirupur contribute 60% of India’s exports. The low wages in Bangladesh, Rs 2,008 compared to Rs 5,160 in Bangalore, has had international brands making a beeline for our South Asian neighbour.
Pink frocks mean nothing for workers like Gauri, who get just Rs 172 for a gruelling 8-hour day; verbal abuses and sexual harassment are not uncommon in such environments. “A supervisor once told me to stand next to his desk for a whole day because I questioned the impractical targets set for the day. No work was given to me. For two days I had to come at 9am to work and stand next to his desk till 5.30pm, then go home,” says Suma Girish, another worker.
Now take the case of Sakamma who earns Rs 4,100 per month even after 20 years of experience. Her day begins at 4.45am. For the next three hours, it’s cooking, drawing water from the nearby well, readying her two children for school. “At 7.45am, I must leave home to be at the factory at 9am
sharp. If I’m late, the gates close and I have lost my job. The casualty is often my breakfast, my next meal is at 1.30pm.”
Sakamma’s daily targets are 100-200 T-shirts. At 5.30pm she leaves the factory and works as a domestic help in two houses until 9pm; then, she heads home. “How do I manage with Rs 4,100 and feed three mouths? I must supplement the income by doing domestic chores. There is no other go.”

CITY’S SPREAD
Number of garment industries: 850
Employees: 6 lakh
Average pay: Rs 172 per day (Rs 5,160 per month)
Major clusters: Peenya, Mysore Road, Bommanahalli, Doddaballapur, Yeshwantpur, Sarjapur

Impractical targets make their life hell
For workers, demanding more wages would mean losing their jobs. For the garment business, it would mean losing out to other exporting countries in Asia. This has triggered a price war. “What is sad is that the price reduction is achieved by passing on the burden to workers. Brands now negotiate directly with garment factories or suppliers. If the cost is high, they move the business to Bangladesh, Indonesia and other Asian countries. Higher wages make companies uncompetitive in this labourintensive business. Since Indian labour comes cheap, it is exploited. You would think OT (overtime) is optional. But it’s mandatory at least in the garment industry. When suppliers have targets there’s no question of regular hours,” says Vinay Srinivas of Alternate Law Forum, which is seeking a uniform wage for Asian workers.
What is shocking is the impractical production target. “Targets are changed every day. The minimum is, say, 150 to 160 pieces every day. If there is an order for 5 lakh garments, which has to be delivered in a stipulated time, it’s hell for us. There are times when women have fainted due to overwork. The targets have to be met as they are all international clients. If the order is not delivered, workers lose jobs; bosses lose business,” says Prathibha R, president of the garment and textile workers’ union.
In such a hyper-competitive business environment, it’s better to focus on the working conditions. And that’s what the women have reconciled themselves to. Now, there are informal union groupings within garment units to resolve issues. “Whom do we report the harassments to? If we look for another job, the situation is no better there. I hear out women whenever they have problems and resolve them by talking to supervisors,” says Rukmini VP, who was fired when she intervened in a sexual harassment case concerning her junior.
Injustice is something they are so used to. Says Yashoda R, who works in a unit in Peenya: “I did OT for 20 hours in a week. But at the end of it, I got paid for nine hours. The circumstances in my home are so bad that I cannot afford to let go of that money.”
What is shocking is the wage anomaly across the city. Says KR Jayaram, adviser to the garment and textile workers’ union: “Bangalore has four zones and there is a difference of a minimum Rs 10 (per hour) between each zone. Yet the working hours are the same or more.”
Says Coen Kompier, senior specialist at the ILO’s decent work team for South Asia: “It’s disturbing to see the conditions in India. What is worrying is the complacency of unions, brands and companies. No one is hammering loudly for workers; brands are hiding behind and making profits. India surely cannot turn its back on workers’ plight.”
It cannot turn its back on the future too: Gauri’s 8-year-old daughter who deserves a better quality of life.

ASIA’s CHEAP LABOUR
$31.6 (Rs 1,715) — Cambodia
$37 (Rs 2,008) — Bangladesh $52 (Rs 2,822) — Sri Lanka
$52-104 (Rs 2,822-5,643) — Indonesia
$83 (Rs 4,504) — Pakistan
Rs 5,160 — Bangalore
Figures represent monthly wages for a worker. Source: Asia Floor Wage Alliance


ALL WORK, PALTRY PAY


IT’S A TOUGH JOB: There are six lakh workers in Bangalore’s 850 garment export factories which generate nearly Rs 6,000 crore in yearly sales

[karkal]

A Review of India Real Estate in 2012

2012 was a sluggish year in terms of economic growth, largely because of high interest rates and poor industrial production.

[naveen_blr]

Originally Posted by karkal

A Review of India Real Estate in 2012

2012 was a sluggish year in terms of economic growth, largely because of high interest rates and poor industrial production.

Pune is growing faster than blr.

[engineer.akash]

Originally Posted by naveen_blr

Pune is growing faster than blr.

Pune is another sexy chic now rising....It needs to improve its public transport system but.

[R2IChennai]

Originally Posted by engineer.akash

Pune is another sexy chic now rising....It needs to improve its public transport system but.

Bangalore probably has 3rd most number of inventory in India after considering the growth it had for the last decade slightly less than Mumbai, so the number for 2011 and 2012 doesn't reflect the total inventory. Chennai and Pune are going through real estate hype only from 2007 onwards

[dino_srk]

The above numbers are only for the 1st 3months of 2011 and 2012, and not for the full year. That's why the astreix symbol in 2011 and 2012

[gentem]

Originally Posted by chennaidesi

India's top residential destinations.
Frank and Knight advisory

http://www.knightfrank.co.in/content...eport_2012.pdf

Uploaded with ImageShack.us

[dino_srk]

Real estate developer Mantri Realty today said it will invest up to Rs 750 crore to develop three housing projects in Maharashtra and Karnataka over the next 2-3 years.

"We will launch 3 new projects next year. The total investments on construction of these projects will be Rs 700-750 crore," company chairman Sunil Mantri told PTI on the sidelines of NAREDCO summit here.

He added that one project each will be launched in Pune, Solapur and Bangalore during the period. Of these, the Pune project will be launched by March next year and will be a luxury housing project. The flats would be offered for Rs 1 crore each in the project.

"We will have about 8 lakh square feet area in the Pune project which will house around 350 flats. We will invest Rs 400 crore in the project," he added.

The company will also launch another luxury housing project in Solapur, Maharashtra next year, which will also have some commercial spaces.

"The Solapur project will have 100 units and we are going to invest around Rs 100 crore on its construction," he said.

Talking about the Bangalore project, Mantri said it will be a group housing project and would be launched by the middle of next year.

"We will build 1,000 units in the Bangaluru project. The construction cost will be around Rs 250 crore," he said.

When asked how the company is going to fund these investments, Mantri said it will be done through internal accruals, debt and selling stakes in the projects to private equity firms.

The real estate developer is currently developing 10 projects at various locations, mainly in Western India.

Source: http://economictimes.indiatimes.com/...w/17522409.cms

[dino_srk]

Bangalore has consistently emerged as the best place to launch and nurture startups in the country. Access to a deep talent pool and risk capital has helped the city catapult to the top.

BANGALORE

Bangalore's rise as the preferred destination for technology start-ups took off more than 70 years ago when the foundation stone of a Hindustan Aeronautics Ltd engineering facility was laid in the city. The abundance of engineering talent, ecosystem of academia, multinationals and a professional class of managers has led to greater socio-cultural acceptance for high-tech entrepreneurship. This has helped the city leapfrog over more established commercial centres such as Delhi and Mumbai.

Technology and tech-focused startups dominate the city's entrepreneurial landscape and have had a positive impact on other sectors like education, healthcare, renewable energy and life sciences. This upward spiral has come despite the city's creaking infrastructure and lack of sustained government support and is likely to catapult the city as one of the top-5 destinations globally for startups in the coming decade, say industry experts.

Leading startups: Flipkart, InMobi, redBus, Myntra Leading investors: Sequoia Capital. Accel Partners, Helion Venture Partners, New Silk Route, Seedfund Top sectors: e-commerce, technology and technology services and education services

Forecast: The expectation is that Bangalore will be the first Indian city to rank amongst the top-5 global startup destinations, driven largely by its brand, cultural and financial proximity to Silicon Valley and education infrastructure. However, what is required are greater government and regulatory support to foster entrepreneurship.

Amount of capital raised in FY 2012 (YTD): $131 million
39 deals

CHENNAI

Paying less for talent, space and living costs is what makes Chennai attractive to entre preneurs. Over 500 engineering colleges in the state provide a steady stream of new hires, while major anufacturing and automobile companies provide a customer base for enterprise-tech ventures. Startups, however, suffer from a paucity of networking events and risk capital. It also suffers from frequent power cuts.

Leading startups: Bharat Matrimony, Perfint Technologies, Freshdesk, OrangeScape, ChargeBee, Shopo Leading investors: Chennai Angels, VenturEast

Top sectors: Enterprise technology for auto, healthcare, retail, shipping and freight management; healthcare, education.

Forecast: Risk capital is getting easier to access, as global funds like Accel and Nexus invest in city-based startups. This bodes well for Chennai.

$36 million: Amount of capital raised in FY 2012 (YTD)
9 Deals

HYDERABAD

In the last three years, capital for young startups has risen dramatically, though it is not as abundant as in mature markets like Bangalore. Outreach and networking has picked up due to the presence of the Indian School of Business and International Institute of Information Technology.

Leading startups: Edutor Technologies, Gharpay, Mojostreet, TalentSprint, Apalya Technologies Leading investors: Hyderabad Angels, VenturEast.

Top sectors: Education, enterprise software and mobility, IT Services, pharma and bio-tech.

Forecast: City-based incubators and accelerators set to kickstart growth that could catapult the city to the number two spot.

Amount of capital raised in FY 2012 (YTD): $24 million
8 deals


MUMBAI

The inherent entrepreneurial culture, coupled with the availability of risk capital, has made the city an ideal location for startups. Startups here focus on finance, retail and consumercentric businesses that address a local customer base and also gain from access to a wide pool of mentors. Dampeners are high cost and lack of engineering talent.

Leading startups: Pubmatic, Netmagic, Suvidhaa, CarWale, Games2Win, FreeCharge, Goli Vadapav, MyDentist, Ola Cabs, Meter Down.

Leading investors: Mumbai Angels, Kae Capital, Blume Ventures, Nexus Venture Partners, Sequoia Capital, IDG Ventures, MyFirstCheque, Seedfund, Matrix Partners.

Top sectors: Retail, F&B, finances Forecast: Poor infra and high costs are stopping Mumbai from having India's best startup ecosystem. This is unlikely to change dramatically in the near future.

Amount of capital raised in FY 2012 (YTD): $36 million
28 deals

DELHI-NCR

The closest competitor to Bangalore, the region wins due to superior infrastructure and lower costs. Startups in education, IT, manufacturing, retail and healthcare have chosen NCR due to easy access to capital, customers and talent. The city has also seen the emergence of online retailers because of access to warehouses, network of distributors and good transport infrastructure.

Leading startups: Snapdeal, Yebhi, Akosha, Reverse Logistics Co, Mettl.

Leading investors: Indian Angel Network, SAIF Partners, Canaan Partners, Lightspeed Venture Partners.

Amount of capital raised in FY 2012 (YTD): $62 million
29 deals

Source: http://articles.economictimes.indiat...accel-partners

[dino_srk]

Bangalore, closely followed by the National Capital Region, continues to lead the pack in nurturing and growing the Indian entrepreneurial ecosystem, even as risk capital looks to back a plethora of new businesses. The southern city has consistently topped the list of cities receiving the highest amounts of angel and venture capital in India. In 2012, Bangalore-based ventures have so far received investments of $130 million (about Rs 708 crore), spread across 39 deals, while NCR has received an estimated $62 million in 29 transactions, according to data collated by research firm Venture Intelligence. Industry experts believe that an Indian city will break into the top-5 startup ecosytems globally in the next two years, and have placed their bets on Bangalore. But other cities like Chennai, Hyderabad, Pune and Mumbai are also close on its heels.

Bangalore will be one of the top-5 destinations in the world. That is because it has abundance of highly experienced and educated workers who are yearning to become entrepreneurs," technology entrepreneur and academic Vivek Wadhwa said. The advantages held by Bangalore and NCR are highlighted by a recent industry report which states that of the 3,400-odd product companies set up in India since 1990, 51% are based in Bangalore or NCR. Separately, 58% of the ventures funded since 2005, are also from the same regions. Online retailer Flipkart, independent mobile advertising network InMobi and India's largest bus ticketing company red-Bus bear testimony to the effectiveness of Bangalore's startup ecosystem. "Bangalore has always had a far stronger tradition of starting up ventures than any other city in India," said S Sadagopan, director of International Institute of Information Technology.

Enablers of Bangalore's startup ecosystem point out that the city has always had the necessary ingredients to nurture entrepreneurial talent. "The first wave of innovation probably started with HAL (Hindustan Aeronautics Limited) and the other defence establishments that cropped up in the 40s and 50s. Bangalore saw a large number of educated middle-class Indians settling here, which kind of laid the base," Sanjay Anandaram, venture partner with Seedfund, an early-stage venture capital fund, pointed out. Bangalore has benefited the most after India liberalised its economy in 1991.

However, the acknowledged catalyst was the formation of Infosys and Wipro - amongst the biggest technology services companies in India- in the late 70s and early 80s. "One of the prime reasons was that both companies needed access to quality engineers, something that Bangalore offered in abundance," Anandaram said. The city's institutions of higher learning, including the Indian Institute of Science and the Indian Institute of Management, Bangalore, have played a very active role as feeders to the city's entrepreneurial community. "That is an advantage both Bangalore and Delhi share over the rest," IIIT's Sadagopan said.

Source:http://articles.economictimes.indiat...cel-partners/2

[dino_srk]

The inevitable comparisons with Silicon Valley, often identified as the cradle of entrepreneurship, startups and incubation globally, have cropped up. Bharati Jacob, founder and partner at Seedfund, a leading early-stage venture capital firm, believes the lack of infrastructure in Bangalore, has actually helped the city's startup ecosystem.

"Entrepreneurs largely come out of emerging economies, where they aren't as dependent on physical infrastructure. When was the last time you heard of any innovation coming out of major cities?" she asks. The consensus seems to be that the lack of infrastructure and continuing government apathy is an issue faced by all Indian cities, and startups have to work around them. "Both Mumbai and Pune have vast potential, but the former needs to get its infrastructure fixed, while the latter needs to get its education system right," said Sasha Mirchandani, co-founder of Mumbai Angels, an angel network.

A recent report by global HR consultancy Mercer ranked Bangalore as the best city to live in India, given the quality of the city's educational infrastructure, compared with the country's other metros. Even as companies, including Yahoo, Cisco and Intel shifted their R&D operations to Bangalore, simultaneously looking to hire the best talent and cut costs, the decision saw quality Indian talent move back to the city. "The culture grew, and people started taking risks and pushing boundaries," Anandaram said.

It is the same risktaking ability that saw the formation of IT services behemoth Infosys as well as online retailer Flipkart two decades down the line. Other cities, including Mumbai and Delhi, have focused more on traditional, family-run businesses, leading to a lag in the promotion of the startup culture. "Entrepreneurship has had greater and quicker social acceptance in Bangalore than any other city in India, and that has counted for a lot," IIIT's Sadagopan pointed out.

Source: http://articles.economictimes.indiat...cel-partners/3

[Homznspace]

Reviews of Bangalore Apartments & Villas, New Launch & Pre-Launch Offers, Developer Reviews, Feedback from Buyers, Group Buying, Property Q & A and Much More

Homz n Space is an online Property Advisory and discussion forum that is all about sharing information on Bangalore real estate.

Homz n Space was created by a group of real estate professionals whose main aim was to put forward an online platform to meet the expectations of the people in their need for clarity and simplification of real estate experiences and dealings. And to provide advice from Industry Experts
Homz n Space is open to guests and registered members. However registration on the website helps to post messages, share experiences, clear real estate uncertainties, do a comprehensive search, use the private messaging system to communicate with other members and much more!

For More Reviews & News Visit now www.homznspace.com

[dino_srk]

120-acre NeoTown has integrated rain-water harvesting system, sewage treatment plant, solid waste management, solar water heating and an in-house nursery

Bangalore will be pioneering the country’s first township according to the globally accepted norms of a green building. A green building is a structure that is environmentally responsible and resource-efficient throughout its life-cycle.

Spread over 120 acres, this environment-friendly project named NeoTown is being executed by Patel Realty and will find its home at Electronics City, South Bangalore.

NeoTown has met the criteria laid down by the Indian Green Building Council. IGBC guidelines include preservation of existing trees and water bodies, energy efficiency in infrastructural equipment, reduction of construction waste, recycled content and innovation in design and technology. IGBC is a national-level body that certifies green buildings and green townships. Townships seeking IGBC’s green rating can be predominantly commercial, industrial or retail and should necessarily earmark 25 per cent of their total built-up area for residential use.

Started in 2001, IGBC has put its approval seal on 295 buildings in India -- covering 1.26 billion sq ft of green space. “As a thumb rule, green buildings tend to cost 10-12 per cent more than regular buildings. We have decided not to pass this extra cost to the buyers,” claims Pravin Malkani, managing director, Patel Realty.

So far, 2,000 residential apartments have been completed at NeoTown and 85 per cent of these have been sold.

When the project is completed by 2015 or 2017, there will be another 2,000-2,500 houses in the township. “Since we are retaining the extra cost, there is no question of payback for the buyers. In fact, they will save lots of money on water, power and fertiliser,” Malkani said.

Some of NeoTown’s features include an integrated rain-water harvesting system, sewage treatment plant, solid waste management, solar water heating, in-house nursery, and long-term tree planning.

Over one lakh trees have been planted and will be nourished by fertilisers made from human waste generated at the township. The township will depend on Bescom for its power needs and will be largely self-sufficient for its water requirement and sewerage treatment.

“Nearly 90 per cent of water needs will be met from our own sources,” Malkani said.

However, Zed Homes, a Bangalore-based builder, said houses developed by them would depend on Bescom for only 30 per cent of their power needs. Zed said it tries to minimise external dependency for all its infrastructure needs, including water and sewerage treatment.

Malkani said that building a township which is self-sufficient in power needs would be next to impossible.

Despite the massive size of NeoTown, not a single bucket of soil was moved out of the building site, claims Patel Realty.

Using bio-enzymes imported from South Africa, soil collected from the project has been converted into hard bricks that have been used for building walls and roads. These bricks, in turn, allow rainwater to be harvested more effectively.

Each of the 950-1,100 sq ft houses are retailed in the price band of Rs 45-60 lakh.

Source: http://www.bangaloremirror.com/artic...nics-City.html

[dino_srk]

Puravankara Projects is set to launch a 6-million sq ft residential township on 60 acres in Bangalore. The township is expected to generate Rs 2,500 crore in revenue.

The project, ‘Provident Sunworth’, will have two BHK units (883 sq ft) priced at Rs 29.75 lakh and three BHK (1,082 sq ft) priced at Rs 35.96 lakh, all inclusive.

Overall, 5952 apartments will be built over a period of five years by Provident Housing, a wholly-owned subsidiary of Puravankara Projects. The development is located off Mysore Road, near the Bangalore-Mysore Infrastructure Corridor ring road junction.

EXPANSION PLANS

Puravankara Projects is set to launch 5.97 million sq ft over the next six months, said Ashish Puravankara, Joint Managing Director, Puravankara Projects, here on Thursday.

Madhu V, Managing Director, Provident Housing Ltd, said, “The group’s immediate expansion plans include launches in Mangalore, Coimbatore, , Mysore and Chennai besides the addition of two more projects in Bangalore. Future markets of interest are New Delhi, Mumbai, Pune, Ahmadabad, Baroda, Kolkata Nagpur and Jaipur.”

The company is currently negotiating for a few land parcels in Navi Mumbai and NCR region. In Mumbai, one will be a joint development and the other an outright proposition, Puravankara said. Puravankara established the Provident brand in 2008 to offer ‘premium affordable’ housing. Since its inception in November 2008, Provident has sold over 4,000 apartments and handed over keys to about 1,000 owners in its provident welworth city project in Bangalore

Source: http://www.thehindubusinessline.com/...cle4196042.ece

[dino_srk]

Smart Value Homes Ltd, a 100 per cent subsidiary of Tata Housing Development Company Ltd, has announced its foray into Bangalore realty market.

The company launched its affordable housing township brand titled ‘New Haven’ Off Tumkur Road. The project offers over 1,800, two and three bedroom apartments priced from Rs 20 lakh onwards and has 11 to 15 storeyed towers.

Brotin Banerjee, MD & CEO, Tata Housing, announcing the launch of ‘New Haven’ said: “Envisaging the rising demand for affordable homes with premium facilities in Bangalore, we are pleased to bring this iconic and successful affordable housing brand for the people. The launch is in line with our expansion plans for the Smart Value Homes across India.”

Source: http://www.thehindubusinessline.com/...cle4195605.ece

[dino_srk]

Brigade Group has announced the pre launch of its new project called Brigade Golden Triangle. Brigade Golden Triangle is located at Old Madras Road, Bangalore. The township, spread over 10 acres, offers not only majestic views but also takes you away from the fuzz of the crowded city. Strategically planned, the township has total of 7 towers, with each town comprising of basement, ground and 12 floors. Brigade Golden Triangle offers a vast choice between 2, 3 and 4 BHK apartments that ranges from size 1125 sq. ft to 2000 sq. ft. The entire township is clubbed with high end features that provide an opulent and comfortable living to almost 690 apartments. Associated with the Brigade Group, the project ensures quality structure and high end infrastructure.

Brigade Golden Triangle, Old Madras Road is a heaven on the earth that is equipped with world class amenities that not only make your living indeed comfortable, but also add opulence to your living standards. Some of the common amenities that the township offers are: well equipped club house, large size swimming pool, gym, indoor game facilities, and separate play area for your kids and a multi-purpose hall. This township also includes a proposed shopping complex of 3 lakhs sq. ft and also 7 lakh sq.ft of area reserved for the corporate offices. This facility provided by the builders gives an edge to this township over other residential complexes in the area.
What do one customer also look for in a township? It is indeed the connectivity of the township from rest of the city. Here also Brigade Golden Triangle Bangalore gains few points. The strategic location of this complex is its USP. This complex is located at a distance of 2 kms from Budigere Cross and is located at right of the junction at NH-4, whitefield, Kadugodi Road. Brigade Golden Triangle has an easy access to the major landmarks of the city and is well connected with Whitefield, EPIP and Bangalore via NH4. Other major locations like airport are around 41 kms from the township and Golden Triagnle has its nearest metro station, at a distance of mere few minutes’ drive.

[gentem]

Bangalore realty one of the most affordable
Those In 6-15 Lakh Income Category Don’t Have To Go To Peripheral Areas
Anshul Dhamija TNN

Bangalore: Many may complain about the rise in realty prices in Bangalore. But if there is still a major city in India where a household earning between Rs 6 lakh and Rs 15 lakh a year can find good livable locations within the city limits, it is Bangalore.
“A mid-segment buyer does not need to go to peripheral locations of the city to find a home as he has options in good emerging locations within the city,” says Samir Jasuja, founder and CEO of PropEquity, a real estate data analytics and research firm that conducted a study recently on affordable locations.
The study finds that in the National Capital Region, you have to be in the Rs 9 lakh to Rs 20 lakh income category to find livable locations within the city. The study is still in the process of evaluating Mumbai, but it is likely that the income bracket there would be even higher considering the rate of realty price increases.
Bangalore is seen to offer buyers a range of products starting from 2-BHK units priced at Rs 32 lakh to 3-BHK units priced at Rs 54 lakh, across locations such as Electronics City, Outer Ring Road, HSR Layout, Marathahalli, Hosur Road, Tumkur Road, and Magadi Road.
“The city has a very balanced development which is not skewed towards certain pockets. Each region has options catering to buyers of varied income brackets,” says Jasuja.
A research report by global real estate consultancy firm Knight Frank found that 16,700 residential units were launched in Bangalore during April to November this year. Properties priced in the mid-market segment constituted by far the biggest component, though the premium housing market too gained momentum.
Real estate consultancy Cushman & Wakefield finds that in 2012, the average capital appreciation in Bangalore was 11-12%, one of the lowest among big cities. Chennai saw the highest appreciation of 16% followed by NCR at 15% and Mumbai at 14%.
“The city witnessed healthy demand from end users, as it offers a number of affordable options in the micro markets of Hebbal, Whitefield, Marathahalli, Jayanagar, and Bannerghatta Road,” says Sanjay Dutt, executive MD, South Asia of Cushman & Wakefield.
Many believe that Bangalore has avoided excessive speculative buying in recent years, which has kept prices in check.
Karun Varma, MD (Bangalore & Kochi) of Jones Lang LaSalle India, said Bangalore’s real estate market was one of the safest and most lucrative residential property ‘investment bets of the year’. Varma added that the top emerging destinations in the city in 2012 were Tumkur Road, Vijayanagar and Magadi Road in West Bangalore, which saw capital appreciation of 12% to 15%.

[RRaju]

Location matters

AREAS OF INVESTMENT



Bindu Gopal Rao speaks to a cross-section of realty professionals to get an understanding of which localities are the best bets for investment in Bangalore.

In the Bangalore Development Authority Master Plan 2015, the government has allocated 12,000 acres of land for ‘hi-tech’ use. The said land covers Kengeri in the West and Electronic City, Whitefield, Varthur and Begur in the southern part of the city. In Bangalore East, there are seven notified SEZs and the proposed investment is Rs 4725 crore with an employment potential of 1,08,500.

The southern part of Bangalore has already seen the establishment of major IT parks which has triggered the growth and development of residential spaces. The KSIIDC has also earmarked 400 acres for Devanahalli Business Park (DBP) and around 300 acres will be given for commercial development on the Build-Operate-Transfer (BOT) model. Growth has been pretty even in most outbound directions.

“The north in particular is seeing the development of a few industrial parks over the next five years which will fuel the growth of ancillary support sectors. Apparels, back office support business and such have been typical of the kind of business infrastructure that the city has witnessed these last two decades,” says Chandrashekar Hariharan-CEO & Co Founder BCIL ZED Homes. The highest demand is currently for 3BHK apartments with a ticket size of between Rs. 40-50 lakh.

“In Bangalore, the real estate market growth had reached its peak at 30% per annum towards 2007. Today, the city is recovering steadily from the effects of the global financial crisis and growth can be pegged at a steady 10-15% per annum,” opines Karun Varma, Managing Director (Bangalore & Kochi) Jones Lang LaSalle India. “The market witnessed slow recovery for all segments of real estate in 2010 but it is expected to grow by 10-15% in the next six months,” says Harinder Dhillon, VP-Marketing, Raheja Developers.

Growth drivers

Bangalore as a whole has a diverse set of economic drivers that include IT/ITES, biotech and aerospace engineering, with a lot of the existing demand coming from these sectors.
Commercial office development is shifting into new areas and opening them up for residential property growth, and most of the micro-markets in Bangalore are still quite affordable. Says Kruti Jain, Director, Kumar Urban Development, “the availability of land parcels for commercial development is one of the main factors driving development in these locations. Other significant factors are the proximity to the airport, and upcoming residential, educational and hospitality developments.”

A steady increase in population has resulted in greater demand for housing facilities and commercial and retail space in the city. “Bangalore has considerably led the recovery within the commercial property space as an anticipated supply of 12.61 million sq. ft. is expected through 2010. Also secondary business districts in the city are becoming preferred locations for commercial activity as there are large land parcels available in these areas which could support corresponding residential requirement at affordable rates,” says Sachin Sandhir MD & Country Head, RICS India.

Anshuman Magazine, Chairman & MD, CB Richard Ellis South Asia Pvt. Ltd. explains, “Large scale expansion by a corporate occupier means that a large chunk of ‘Grade A’ commercial property stock is getting added to the city’s skyline every year. This implies highly lucrative investment grade opportunities for an investor in the Bangalore commercial property market. Secondly, the residential market which has always been strong in the city, and the IT boom in the city which has brought a lot of migrant population inflow looking for quality dwelling units. This has further strengthened residential demand in the city.”

Infrastructure advantage

Wherever there is improvement in infrastructure, there is an increased real estate activity and subsequent demand. “In south Bangalore, close proximity to the NICE corridor, improved connectivity to Electronic City, prestigious schools, high-end hospitals and retail chains, property investments in south Bangalore have led to a surge in demand. In north Bangalore, the International airport and the six-lane expressway have resulted in a lot of prestigious projects in its vicinity,” opines Sushil Mantri, Chairman and Managing Director, Mantri Developers. In the next one or two years, north Bangalore, in particular Devanahalli will see a lot of commercial development with the recent Global Investors’ Meet having brought a lot of focus to the area. There are three industrial parks on 3,000 acres of land which are proposed.

“Worldwide, the trend has been that cities are built around airports. Another reason why north Bangalore is the best location to buy today is the connectivity. There are plenty of infrastructure projects which are being planned in north Bangalore which will make it the most well-connected locality in Bangalore,” says T S Sateesh, Managing Director, Hoysala Projects.

Agrees Alok Kumar Singh, Executive Director - Strategy and Fund Operations -Azure Capital Advisors Private Limited, “We expect significant action to happen in north Bangalore after three-four years when some of the investments committed during the Global Investors’ Meet start showing initial results.

“West Bangalore is seeing a very moderate uptake in residential real estate. Residential projects in West Bangalore have been observed to be taking longer than anticipated time to sell out. Prices also have remained stagnant after the last correction. The launch prices in new projects have already started going up in most of these areas. Just around start of this year most of the apartments on Outer Ring Road close to Intel were quoting around Rs 3,500/sq. ft. whereas now second sales are happening at Rs 4,000/sq ft.”

“The widening of National Highway 7, improvement of roadwork on National Highway 207 and State Highway 104 (connecting Whitefield and Hoskote to north Bangalore), is also paving the way for various residential, industrial and commercial developments. The improvement in road connectivity from Hoskote to Whitefield and Tumkur Road to North Bangalore are other factors,” says Girija Prasad, CEO-India, REBI.

CBD rules

With the upcoming metro, most of the peripheral areas are likely to get a faster connection to the Central Business District (CBD) in the coming four-five years. Connection to the Airport is also likely to get easier for these areas with the upcoming Peripheral Ring Road and the Satellite Ring Road.

Because the route of Metro’s Reach One passes through the city’s CBD it will give a greater thrust to the commercial growth here. Bangalore’s CBD is the most attractive and suitable real estate destination for new firms entering the city. In recent times, the combination of residential complexes located nearby and development of shopping malls as entertainment centres have given the CBD a new life.

Because rentals here are high, the tenants opting for office and retail spaces here will want the best in terms of infrastructure and services. Hence, the metro running through the CBD will spur demand for space along the route.

Heading north

Says Sam Chopra, Director - RE/MAX India, “Presently, real estate in North Bangalore is undergoing rapid transformation due to commercialization. Also, it is noticeable that the region has significant residential real estate activity, along with commercial developments. The demand is growing with corresponding low supply in the pipeline. Other significant factors are the proximity to the airport, road projects and upcoming Business Park in Devanahalli.”

North Bangalore is ruling the realty charts in a sense. “In the recent past we have seen a huge influx of residential supply and demand in the north of Bangalore.
Areas such as Sanjay Nagar, Sahakar Nagar, Hebbal, Jakkur and as far as Yelahanka New town have been areas in high demand.

Yelahanka - Doddaballapur road is witnessing a huge demand for landed properties such as villas and private gated colonies. While the North develops in a more efficient and organised fashion, Sarjapur Road and Bannerghatta Road still has its loyal customers. But with the market opening up in the North, developers and investors alike are skeptical of new developments in the east and south east of Bangalore,” says Ravindra Pai, MD, Century Real Estate.

North Bangalore is most likely to see the highest level of appreciation which may given go up to 20-30% in some properties. The real estate boom from Devanahalli near Bangalore is also creating a lot of spillover in places like Anantapur, Madakasira, Hindupuram, Chilamathur, Lepakshi, Parigi, Gorantla, Obuladevara Cheruvu of Anantapur dist which are as far as 65 km to 120 km away from Bangalore.

Public-private partnership

Adds Snehdeep Aggarwal, Founder and Chairman, Bhartiya Group, India, “there are plans to look at the proposed high speed rail link to the International Airport, Mono Rail, and development of ring roads on public - private partnership model. A four km-elevated highway will come up between the Hebbal flyover and Yelahanka bypass. There will also be flyovers at Yelahanka bypass and Vidyanagar, two pedestrian underpasses, one vehicular underpass, and a cattle crossing. Totally, there will be 26 bus bays till the airport.

Along with connectivity, Bhartiya City, KIADB’s Hardware Park, Aerospace Park, and the ITIR planned here will give a push to residential development around.”
The re-emergence of IT/ITES sector as the key driver of the economy has propelled a high-disposable income and a demand for quality housing. “Additionally, availability of good housing options providing international lifestyle, as in case of The Empyrean Township, encourages the migrant professional working class to purchase property at Bangalore.

“The cosmopolitan crowd, the availability of good education system and expectation of it being an important commercial hub makes it an attractive investment destination. These factors have made Bangalore one of the fastest growing cosmopolitan cities witnessing an unprecedented growth in real estate during the last few years,” says Sanjiv Aundhe, COO, FIRE Luxur Developers Pvt. Ltd

source:http://www.deccanherald.com/content/...n-matters.html

[JhonJ]

Yelahanka may finally get a playground

After a year-long wait, sports enthusiasts of Yelahanaka may finally get an open playground.
But their dream of having a full-fledged stadium with indoor courts will have to wait.

After three tenders failed to evoke response, the Bruhat Bangalore Mahanagara Palike (BBMP) had recently floated another tender which, they hope, will yield result.

The Hoysala playground and stadium proposed to be constructed behind Yelahanka bus stand will be the first such sports facility in the constituency.

The project estimated to cost about `4 crore did not enthuse contractors who feared that they might have to pay hefty sums as bribe to politicians and BBMP officers after taking up the work.
In the case of the first tender, only one contractor showed interest in the work. There were no bidders for the second and third tenders.

Yelahanka zone’s chief engineer PS Ramesh said contractors were finding it difficult to fulfil the ‘harsh’ conditions laid down by the BBMP in the tender rules.

“For instance, the contractors should have previous experience in constructing similar type of work which some of the contractors are lacking. Another problem is the delay in payments to contractors by the BBMP,” he said.

With no response coming from the contractors, the BBMP dropped its plans to construct badminton and other indoor courts in the stadium in their fourth tender.

“This time, we have planned to construct only an open playground. After this work is completed, we will place the subject of taking up indoor courts in the BBMP council for approval,” Ramesh said.

source:http://www.dnaindia.com/bangalore/re...ground_1780512.

Yelahanka - on it's way to get Taluk status - with Foundation stone being laid for Mini Vidhna soudha, Multiplex, 398 acres - Yelahanka kere up gradation work , Inter - Modal Transit Hub near Kogilu cross, HSRL planned / Normal Metro as part ( 44 KM connecting ITIR), Yelahanka Railway station and Bus stand. Now all required Playground. May be a swimming pool on grounds like one Planned in Mathikere....... etc may come in Future.