Bangalore, the IT hub, currently touted as the fastest growing city in India, is been in the conversation for property and real estate developments. If you are looking to move into the city then probably you have already heard about the famous North and South developments, which have put you in a fix for deciding which area to consider.
The endless articles on major developments in each area and would have left you in a dilemma of choosing between price and infrastructure.
On asking a lot of people, immigrants especially, about their ‘finalising’ the property location, we understood that the key parameters of deciding on the location were based on infrastructure, proximity to schools, good connectivity and purely on word-of-mouth and price/appreciation factors.
Keeping these factors in mind, here are two people, who have no connection with Bangalore, and are moving from different parts of country; here is how they decided what to fix on:
Case study 1
A and his wife are from Tamil Nadu, in their mid thirties, both working, and they had to shift to Bangalore, because A was transferred to his company’s Bangalore branch. The couple decided to settle down in Bangalore because of the opportunities here. A’s office is located in the vicinity of M G Road, but from research and networking, A chose to buy a flat on Kanakapura Road.
Reasons for buying a flat in South Bangalore:
- Though A’s office is located in the CBD area, he felt South Bangalore was well-connected to all parts of the city by bus. Also, A feels that the price of the flat on Kanakapura Road and its calm vicinity more than made up for the commute
- After a couple of enquiries and few recees, the couple found that SB has lesser water-related problems
- Facilities in South, they have realised, are already developed and have adequate infrastructure, in terms of schools, healthcare, entertainment etc.
- Eventually, A’s parents will relocate too, and they realised that proximity to older extensions such as Banashankari, Padmanabhanagar and Jayanagar would be more comforting for the parents
Case study 2
B and his wife shifted to Bangalore from West Bengal. B is a management consultant and can work from home while his wife too is a work-from-home professional. The couple, in their 40s, decided that Bangalore could be a great option to expand their work and when the opportunity came to buy a flat in the city, they chose North Bangalore. The couple has two children who are in mid-school.
Reasons for buying a North Bangalore flat:
- Research indicated that good schools are mushrooming in the area
- The couple doesn’t have a daily commute to worry about
- The proximity to the International Airport, they felt, would mean that the region would see a boom in the future, and the extension could become more self-sustained. Big-ticket retail and high-end malls are expected in the region
When one compares their choices, one realises that while A chose to be in the South, where there is great infrastructure in terms of connectivity, schools, colleges and entertainment, B chose a place which he thinks will grow in the future.
A has made his choice on current ground realities, while B has based his decision on future promise. A gets a mix of both worlds, as South has the traditionally rooted areas with a healthy mix of entertainment and get-aways, while B waits to see the likely developments of the ‘new age’ Bangalore.
The Naïve North
A recent market research report published in December, 2013 has pointed out Bangalore North’s residential market is poised to grow fast because of the planned infrastructure projects such as Elevated Expressway to BIAL, the Devanahalli Business Park, High Speed Rail Link, etc.
The research shows that capital values in this market stand between Rs 4,800 and 9,000 per sft for Class A villas or row houses. For Class A apartments, the values are between Rs 3,800 and 11,500 per sft. The annual average price appreciation is 10 to 11 per cent.
The stunning South
When it comes to South Bangalore, the report notes that the Metro Rail Project is expected to improve infrastructure further in the Kanakapura Road segment. The capital value for Class A apartments was Rs 2,100-6,300 per sft as of H1 2013. When it comes to class A villas/row houses, the value stood at Rs 8,500 in the same period. The average annual price appreciation here was 12-15 per cent.
Mid-segment and affordable housing launches are greater in the South than in the North, where there are more premium and luxury launches, reports suggest. Though North having full potential, saw work in full swing in the initial phase, is yet to see improved infrastructure or connectivity. Political uncertainties and global markets could make an impact on bringing investment to the North, which seems good for growth on paper, but that growth seems to be a distance away. There seems to be a declining interest in investing in North Bangalore due to the present day realities. The social infrastructure including shopping malls and entertainment options are very limited in North as compared to South.
The last word has not yet been uttered on the North Bangalore versus South Bangalore debate, in terms of buying property. With the above mentioned examples, we are certain that you will be able to be able to make a smarter property choice. Whether it’s the proximity to the international airport and thus the ‘likelihood’ of major appreciation in the area or the currently ‘almost’ developed, well-connected southern pockets, you pick your best buy!
Ramesh Kumar has extensive experience in real estate in a career spanning over a decade. With his critical expertise in sales and marketing, he has successfully launched and closed out projects across a complete spectrum of properties like plots, budget apartments, comfort homes as well as luxury villas.
Ramesh Kumar holds a Post Graduate Diploma in Management from Bombay University and is currently serving as the Deputy General Manager – Marketing & Sales at Vakil Housing.