Enhanced Metro connectivity and proximity to the airport is expected to impact property prices and home rents in North Bengaluru. Real estate experts favour buying a residential property over renting one in the northern parts of Bengaluru provided one has a certain corpus accumulated to pay upfront as the down payment.

₹70 lakh – 1 crore bracket. A 3 BHK property costs between ₹1 – 1.25 crore. Luxury properties are priced over ₹1.5 crore. (Representational photo)(Pixabay)” title=”Local brokers say that 2 BHK units in Grade A projects in North Bengaluru are currently available in the ₹70 lakh – 1 crore bracket. A 3 BHK property costs between ₹1 – 1.25 crore. Luxury properties are priced over ₹1.5 crore. (Representational photo)(Pixabay)” /> ₹70 lakh – 1 crore bracket. A 3 BHK property costs between ₹1 – 1.25 crore. Luxury properties are priced over ₹1.5 crore. (Representational photo)(Pixabay)” title=”Local brokers say that 2 BHK units in Grade A projects in North Bengaluru are currently available in the ₹70 lakh – 1 crore bracket. A 3 BHK property costs between ₹1 – 1.25 crore. Luxury properties are priced over ₹1.5 crore. (Representational photo)(Pixabay)” />

Experts anticipate an average property price appreciation of 10-15% annually over the next five years in this part of the IT capital.

“Residential properties are still relatively affordable there, which is why it is the right time to invest in North Bengaluru,” said Kiran Kumar, a Bengaluru-based real estate consultant.

According to local brokers, 2 BHK units in Grade A projects are currently available in the ₹70 lakh – 1 crore bracket. Meanwhile a 3 BHK property costs between ₹1 – 1.25 crore. Luxury properties are priced over ₹1.5 crore.

With substantial real estate supply expected to come into North Bengaluru in a few years, property prices will appreciate further, Kumar said. He anticipates home rents to easily shoot up by 20% in the next 2 years.

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Some key reasons cited for the anticipated surge in property prices and home rents include upcoming metro connectivity, rising number of commercial real estate projects, proximity to the airport, and so on.

Phase 3 of the Bangalore Metro Rail Project, greenlighted earlier this year, is expected to boost property prices in select localities by over 30%, real estate consultants who spoke to HT.com earlier said. This jump is exclusive of the annual price appreciation on account of inflationary pressures.

Upon completion, this phase will help provide metro connectivity to the entire Outer Ring Road and connect southern and western Bengaluru to the Kempegowda International Airport via Hebbal in North.

It must be noted that while the northern region as a whole presents a significant market opportunity, several micro-markets are seen as established localities today such as Hebbal and Jakkur, besides certain pockets in Yelahanka, Thanisandra Main Road and Hennur Road. They are at a distance of 10-20 km from the city centre.

Here’s how property prices stack up in North Bengaluru

In a recent list compiled for major cities in India by property consultancy Anarock, North Bengaluru’s Bagaluru locality topped the charts with an overall price appreciation of nearly 90% in the last five years.

Kumar cited a 30% year-on-year increase in queries for property purchase in the region, primarily from the IT crowd based in the city. He also stated a lack of easy availability of affordable land parcels in North Bengaluru presently.

According to data sourced from property portal Square Yards, the average rental fee for a 1,000-square feet apartment in North Bengaluru ranges between ₹24,000 to 42,000 across areas such as Devanahalli, Kogilu, Chokkanahalli, Thanisandra and Vidyaranyapura. Average property prices in these areas are currently pegged at ₹7,200 – 1,100 per square feet for a 1,000-square feet residential unit.

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Meanwhile the per square feet average commercial property prices range from ₹63.7 in Yelahanka to ₹72.9 on Thanisandra Road, ₹77 on Bellary Road and ₹103.9 in Hebbal, per property consultancy Colliers.

“With the coming up of the Kempegowda International Airport in 2008, the North Bengaluru property market took off as an investor-driven market. However, since 2012, as employment zones and commercial spaces have developed, end-users have moved into this micro-market,” said Samir Jasuja, CEO and Founder, PropEquity.

Jasuja likened North Bengaluru to Gurugram in Delhi-NCR. “Delhi was fully choked and there was no land availability there. Then Gurugram happened because it was an open slate and close to the airport. Today Gurugram is more expensive than Delhi because all the jobs and offices came to Gurugram,” he explained.

“Employment generation zones and airports drive the maximum price appreciation, especially in cities which are heavily congested, such as Bengaluru and Delhi-NCR,” Jasuja added.

Residential projects on the anvil

A mix of smaller and bigger real estate players, including Puravankara Limited, Godrej Properties and Brigade Enterprises, have invested in land parcels in North Bengaluru this year for residential development.

Last week, TVS Emerald, a fully owned subsidiary of TVS Holdings, announced the acquisition of a 4-acre land parcel in North Bengaluru. “The Thanisandra project, our second in North Bengaluru, comes at a time when the region is seeing rapid development,” said Sriram Iyer, Director and CEO, TVS Emerald.

The region is home to multiple residential projects by players across the spectrum, including Prestige Estates, Sobha, Shriram Properties, Tata Realty, and so on.

North Bengaluru’s growth story

Prior to 2000, North Bengaluru was primarily an industrial area, with companies like BEL, BHEL and HMT setting up their manufacturing units in the region. Real estate development in the region was limited, with a handful of residential projects being launched.

Starting 2011, the region has gradually grown into a sought-after real estate market, owing to a host of infrastructural developments such as expansion of the Kempegowda International Airport, construction of multiple flyovers, improving metro network under Phase 2 and 3 of the Bangalore Metro Rail Project, the proposed Peripheral Ring Road and so on.

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In recent years, a rising number of technology majors and real estate conglomerates have shifted increasing focus to North Bengaluru, building IT parks, retail spaces and opening up offices in areas such as Yelahanka, Jakkur, Hebbal and Thanisandra, among others.

For instance, IT services major Infosys earlier this year opened a 5-lakh square feet office facility in Yelahanka’s NorthGate Office Park. Meanwhile, a 41-acre campus in Devanahalli is currently under construction for SAP Labs.

According to data sourced from PropEquity, within a 5-km radius of Devanahalli alone, which is on the outskirts of North Bengaluru, about 37,000 residential units have sprung over in the last 3 years. This is inclusive of 36 apartment projects, 134 plotted development undertakings and 26 villa projects.