Bangalore: Bengaluru’s real estate growth has not been just vertical it has spilled over on to the main highways leading into the city. The main factors which have contributed to the growth of real estate, commercial retail and residential, has been the relatively lower costs for land and the availability of large land banks. Demand has also been high on the peripheral areas of Bengaluru.
One of the important roads through southwestern side leading into Karnataka’s capital city has been the road from the second important city in Karnataka, Mysore. Yet, the Mysore Road micro market has been rather slow in terms of real estate development.
At the start of the Mysore Road, is the Kengeri satellite town, a part of the Mysore Road micro market, which was developed by the Bangalore Development Authority more than 30 years ago. But the development, especially real estate, has been slow to happen until recent times.
The Mysore Road micro market, however, has come into the limelight only after a few educational institutions were set up and some industrial development happened. As far as residential real estate was concerned the better connectivity from the NICE (Nandi Infrastructure Corridor Enterprises) Road and the Outer Ring Road (ORR) has been the key. Many residential projects are now coming all along this road, especially in areas such as Kengeri, which are closer to Bengaluru. The reasons for this are as follows:
- Proximity to Bengaluru (the capital city is just 14 kms away)
- Connectivity – Rail (Kengeri Railway Station is on the Bangalore-Mysore rail route) & Road – NICE, ORR and the Mysore-Bangalore Highway
- Potential for future development – Extension of Namma Metro from Mysore Road Terminal
- Weather – pleasant weather most times of the year except during mid-Feb to mid-May when average day temperatures would be 35C – 36C.
Affordable Land Prices
One of the major developments which will boost real estate in Kengeri would be the western extension of Namma Metro from the Mysore Road terminal to Kengeri. The metro will have stations at Nayandahalli, Rajarajeshwari Arch, Bangalore University Gate and R V College of Engineering. Kengeri’s proximity to the ORR will also help the residential demand to go up. These two infrastructure developments will contribute to the increased demand for apartment in Kengeri.
The housing in Kengeri caters mainly to the lower and mid segment. Many of the residential projects coming up on the Mysore Road micro market cater primarily to this segment. The premium segment is still in the early stages. The home buyers are mainly government employees and those employed by the small and medium scale industries in the vicinity. There are also some takers from the Information Technology sector.
One of the main commercial spaces on Mysore Road is a software park at Mylasandra, (which is 36 minutes from Kengeri via NICE road) with about 3.20 million sq ft of prime IT space. The total IT space on the Mysore Road at the end of last year was around 5 million sq ft. Considering the increase in commercial space, it only follows that the demand for apartments in Kengeri will increase.
Organized retail is also likely to increase along the Mysore Road in the coming years, the area has a good potential for malls. Along with this, there will also be an increase in the demand for residential space in areas such as Kengeri. Market experts predict that the demand for commercial space on the Mysore Road will increase when Phase II of the Metro, which will connect Kengeri to Whitefield and MG Road, is completed.
One of the better localities on the Mysore Road micro market is Kengeri and Rajarajeshwari Nagar mainly because of its easy access to the city for the former and the better social infrastructure for the latter. According to newspaper reports, the Mysore Road micro market has about 8000 units under construction which might be launched in two years. The prices for apartments in Kengeri have been going up during the first three months of the year. The going rate for apartments in Kengeri falls between INR 3300 and INR 3700 per sq ft.