North Bangalore, a suburb of Bangalore has been talk of town since 2008 with the opening of the new International Airport. Let’s spend some time in understanding how it has grown in the past few years to fathom the possibilities of future.
Realty Growth in Devanahalli
Devanahalli is located in North Bangalore and is reachable by NH7, also known as Bellary Road or Bangalore Hyderabad Highway. Stretch on NH7 from Hebbal to Devanahalli is well planned and expanded to six lanes with further plans of expansion to reduce the travel time to airport from current 40 minutes to less than 20 minutes. It is 35 kms to the north east of Bangalore City with Metro rail planned to have connection to Devanahalli Airport in its phase-2.
BIAL IT Investment region (ITIR) will house marquee names of IT industry and will create 4 million jobs. BIAL IT Investment Region to be located at the Nandi foothills between Doddaballapur and Chikballapur with total area under development – 10,000 to 12,000 acres.
1st phase of 2,072 acres and expected to complete by 2020
2nd phase – 10,000 acres and expected to complete by 2032
Karnataka State Electronics Development Corporation issued EOI in 2012 for development of ITIR for which it received interest from 55 MNCs including TCS, Infosys, Wipro etc. Once developed it will create total 4 million jobs. 1.2 million direct (employees working in these companies). 2.8 million indirect (people supporting these employees).
Even if 20% direct employees choose to live close by, it will result in demand of 240,000 dwelling units.
Commercial Developments in Devanahalli (ITIR, Aerospace SEZ, Devanahalli Business Park)
Most MNC IT majors are planning to move their technology and R&D Centres closer to the Airport. This has been the story in many parts of the world where developments have taken around international airports and creating a new hub of commercial activity relating to high uptake of residential Apartments in Thiruverkadu and the appreciation in price. The major player moving near the airport is Shell
Aerospace SEZ, IT and Hardware Park, Devanahalli
Aerospace SEZ, IT and Hardware Park will occupy 3,000 acres and house Boeing, Airbus and many more. Aerospace Park and SEZ, IT and Hardware Park are being developed close to southern boundary of BIAL. Hardware Park – 850 acres & IT Park – 1,156 acres. 56 large and mid sized companies have signed up for operations in Aerospace Park. Boeing, Airbus and Bombardier have agreed to setup shop in Aerospace Park. StarragHeckert and Wipro have already initiated operations in Aerospace Park Hardware Park. Shell,Tata Elxi and many other hardware companies will occupy space in Hardware Park. IFCI is also building a 50 acre Global Financial District with cost of Rs 1,000 crores in IT Park. TCS is planning a 100 acre campus in the same IT Park. As per government estimates 250,0001 direct jobs will be generated by Aerospace Park only.
Devanahalli Business Park
Devanahalli Business Park will provide another 309 acres of infrastructure for hospitals, retail and hospitality adjacent to northern boundary of BIAL. It will be multi use business park. 2 IT parks in 50 acres, Central Business District in area of 35 acres, 3 hospitals in 26 acres, Retail and hospitality in 22 acres, Finance District in 25 acres, Goods assembly unit in 25 acres, Office complex in ~21.5 acres, Aviation academy in 10 acres.
Expected investment in the park is ~Rs 9,5001 crores as per government estimates of 2008. International Convention Centre and Hotel is also planned in 35 acres, adjacent to Devanahalli Business Park.
Residential Real Estate Development
Real estate demand which is highly correlated with job creation is expected to grow as employees move closer to their workplace. Limited supply from Tier A builder has already resulted in high price for such projects
Prestige Golf Shire
Divyasree Valley of Wind
Nandi Belle Vue
Nitesh Long Island
Sobha Lifestyle Legacy
House of Hiranandani Upscale
QVC The Hills
The Belvedere – Airport district by UKn – Pre Launch
Devanahalli, has on offer many tier 2 builders focusing on plotted developments considering small ticket size. The growth data points for Devanahalli is not very skewed from any upcoming business city.
Tier A builder like UKn is pre-launching UKN Belvedere as they find the north bangalore market mature and the area prices have crossed a healthy threshold. With their speed and reputation for handing over projects ahead of time as in all their projects, excellent Customer relationship management and Quality would be a good bet at this time.
Opportunity to invest exists in right sized apartments with 25 lavish and new amenities including dance studio, fight club and bowling alley at a launch price of Rs 3,699. They expect the price to hit the barrier of Rs. 4999 in 12 months due to the amenities provided.. Investors will reap the maximum benefits when social infrastructure grows and families start to move in.
Future Growth & Expectations
Devanahalli is expected to become major commercial and office hub
Aerospace Park and SEZ to be fullyfunctional
Shell, Ascendas and IFCI campus will be ready by 2017.
International Convention Centre will be ready by 2016.
ITIR Phase 1 should be ready by 2020, many IT companies will move to ITIR to save cost as well as to reduce current commute time to Airport, resulting in at least 300,000 white collar job creation Devanahalli by 2019. Job creation can be anywhere between 1 – 1.5 mn by 2020 once ITIR Phase1 is operational.
Planned Metro Rail connectivity in phase-2 will further improve accessibility of this region.
Whether we like it or not, Devanahalli is future of Bangalore. Smart investors are ahead of time, if you haven’t already invested, it’s your time now.
We expect your investment to grow 2 – 3 times in next 5 years.