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November 2013
A REPORT BY STRATEGIC ADVISORY GROUP
Bangalore: Real Estate Market Report
Office | Residential | Retail | Hospitality
An ISO 9001:2008 Certified Company
BANGALORE: REAL ESTATE MARKET REPORT
112 million sqft stock
OF
FIC
ER
ES
IDE
NT
IAL
Y-O-Y growth in absorption:
8%
5.7 million sqft absorbed in H1 2013
(including 2 million sqft of pre-committed space)
Average Annual Rental Appreciation (2012 -13): 0 - 8%
40,336 units launched in 2012
33,988 units absorbed in 2012
26,620 units launched in H1 2013
18,076 units absorbed in H1 2013
Grown at a CAGR of
31%
since year 2010
Annual Price Appreciation (2012-13): 5% - 25%
BANGALORE REAL ESTATE: 2013 AND BEYOND
RE
TA
ILH
OS
PIT
AL
ITY
7.7 million sqft stock 0.78 million sqft expected
to enter in 2013 (of which 0.35 millionsqft is pre-committed)
Grown at a CAGR of
12% since year 2010
Average Annual Rental Appreciation (2012 -13): 5% - 20%
9,585
total number of existing hotel rooms
5,190rooms likely to enter by 2017
56% - 59% average occupancy rate
2
BANGALORE: REAL ESTATE MARKET REPORT
During the last two decades Bangalore gained prominence as a growth corridor in India on account of rapid development of the
IT/ITeS sector. Going forward, in addition to the IT/ITeS sector
other sectors such as biotechnology, automobile, aviation and
textiles are anticipated to strengthen the city’s economy.
Bangalore witnessed a decadal population growth rate of 47% and today, the city is the fifth largest urban agglomeration in the
country with a population of 9.6 million. A growing base of young
professionals with rising disposable incomes and substantial
global exposure has provided an immense opportunity for
development across the real estate segment.
The city’s infrastructure is being constantly upgraded with projects like the Metro Rail, Elevated Road to the Airport and the
Signal-free ORR. Planned projects namely PRR, High Speed
Rail to the airport and Monorail are further expected to ease the
transport within the city. Despite the above mentioned
improvements, Bangalore faces two prominent challenges -
provision of infrastructure to match the pace of population growth
and provision of adequate water & electricity.
In the last two decades, real estate development in Bangalore was focussed towards the southern and eastern corridors until
the city's International Airport became operational in 2008. Since
then, the real estate development migrated towards the north
quadrant of the city. In the past two years, areas in Bangalore
West especially Tumkur Road and its neighboring locations have
gained momentum due to availability of large land parcels and
improved connectivity. Currently, the most promising areas for
real estate development are the North - West region,
Kanakapura Road towards South and Old Madras Road towards
the North - East.
Bangalore’s non-captive office space registered an absorption of 5.7 million sqft in H1 2013 including 2 million sqft of
precommitments. According to our estimate, Bangalore will
absorb nearly 9 million sqft by end of 2013 and ORR will remain
the most attractive micro-market for the next 3 to 5 years. Post
revision of SEZ regulation, many SEZ Parks are likely to witness
mixed developments owing to high residential demand.
EXECUTIVE SUMMARY
Bangalore’s residential sector continues to remain strong in H12013. The city witnessed fresh supply of 26,620 units in H1
2013 and 18,076 units were absorbed during the same period.
The most vibrant micro-markets include Whitefield, ORR
(Hebbal to Silk Board Junction), Sarjapur Road and Bangalore
North. The sector registered CAGR of 31% during 2010 and
2012 with national and international players like Arvind Real
Estate, Address Makers by India REIT, Phoenix Group, Bhartiya
Group and Penninsula Land Limited progressively venturing into
the sector. Further, Private Equity players are also investing in
this sector.
The city is poised for large supply in retail sector in the coming years. The rentals have registered an annual appreciation of 5 %
- 20% in shopping malls and 4% - 13% in high street locations.
Most of the operational space is concentrated in SBD and PBD
locations. With 5.65 million sqft of mall space under-construction,
the city will have 13.30 million sqft of operational mall space by
2016. The city lacks specialty malls focusing exclusively on sale
of themed merchandise. The most promising locations for future
development are ORR-Sarjapur stretch, Old Madras Road and
Kanakapura Road.
Hospitality sector is likely to witness entry of 3,793 rooms in next 3 years. The current inventory is dominated by the 4 and 5 star
category projects and the same is likely to continue in the
coming years. Apart from CBD- Whitefield, ORR and Bangalore
North are potential locations for development. Currently, national
and international operators are keen to operate 3 star business
hotels across the city.
Overall, Bangalore has great growth potential for real estate development across different segments.
4
BANGALORE: REAL ESTATE MARKET REPORT
The modern metropolis Bangalore scores over many other Indian cities for various reasons: salubrious
climate, cosmopolitanism and growing knowledge economy.
Area: Bangalore City Corporation (sq km) 741
Area: Bangalore Metropolitan Area (sq km)
Decadal growth rate of population (2001 - 11)
11,276
8.5 million
9.6 million
47%
2Total Population (Bangalore City Corporation)
2Total Population (Bangalore Metropolitan Area)
Bangalore - Area and Population Growth
0
100
200
300
400
500
600
700
16
1950 1963 1969 1979 1995 2007
800
2013
Are
a (
sqkm
)
0
1
2
3
4
5
6
7
16
8
9
10
Area (sqkm) Population (in millions)
Table: Bangalore - Demographic Snapshot
BA
NG
AL
OR
E G
RO
WT
H S
TO
RY
Real Estate emerged as a major player in the economic growth
of the city during the last three decades. The key reasons that
supported the rapid development of Real Estate Sector in
Bangalore are:
Growth in the IT/ITeS industry that led to creation of large number of jobs across sectors which in turn led to migration
of working population to the city.
Today close to 2,840 IT/ITeS companies including at least
100 Fortune 500 companies operate out of Bangalore.
The city today employs nearly 0.95 million people and 3creates nearly 90,000 new jobs annually.
The multiplier effect of this has led to a real estate boom
and a flourishing retail and entertainment industry. The
city is also sufficiently supported by the hospitality
industry with accommodation ranging from budget
segment to 5 Star luxury segments.
The growth in the IT/ITeS sector has been well supported
by the growth in the per-capita income of the city.
Bangalore’s per-capita income in 2011 - 12 was INR
237,0004, much higher than India’s per capita income of
INR 5,1305 for the same period. According to McKinsey,
by 2030 the city will have highest per-capita GDP in India.
Rising income levels, education and global exposure
have contributed to the evolution in the living standards of
the city.
The city witnessed entry of various MNCs like Texas
Instruments, IBM, Intel, Motorola, Dell and Microsoft,
which provided the required thrust for development of
the residential and business infrastructure.
Advancements in the IT/ITeS industry led to entry of
many other national and international developers in the
city. Key examples being the Ascendas Group
developing International Tech Park Bangalore (ITPB) in
Whitefield, Sun Forest City investing in the Aerospace
Park in Devanahalli. The residential sector saw the Tata
Group, DLF, Godrej Properties and Phoenix Group
expanding their portfolio in the city while international
hotel brands like Sheraton, Hilton Group, Radisson, Ritz
Carlton, Hyatt and Marriott entered the city. Bangalore
today, is also the most sought after retail destination in
the country followed by Mumbai and Delhi.
1Revised Master Plan - 2007and Bangalore Development Authority (BDA)2Population has been sourced from Revised Master Plan - 2007 and Census of India, 20113Working population has been arrived at using occupant load of 100 sqft of floor area per person for commercial buildings as per National Building Code (NBC) 20054“Market Skyline of India 2012” - Indicus Analytics, New Delhi India5Central Statistics Office
Figure: Growth of Bangalore City & its Population
in m
illio
ns
The working population in the city is educated, multi-cultural and young with the median age being 28 years.
Entry of Multi-National Corporations (MNCs) in office, hospitality, retail and residential sectors.
Apart from the IT/ITeS sector, Bangalore also accounts for close to 60% of all Biotech companies in India and 50% of the total
revenues at national level.
Bangalore is home to some of the best R&D facilities in aerospace & defense sector like ISRO, DRDO, Airbus Engineering Center,
Boeing Research & Technology Center. Apart from being the
base for most global players, Bangalore also accounts for
production of more than 25% of India’s aircraft and space craft.
Currently Bangalore’s economy is driven by the IT/ITeS sector. Other major sectors that contribute to the
city’s economy include biotechnology, automobile, aviation and textile industries.
ECONOMY
Automotive majors like Volvo, Toyota, Honda, Mahindra and Bosch have their presence in Bangalore.
Karnataka contributes to over 20% of national garment production and 45% of the total raw silk production in India. The
6garment sector employs close to 500,000 people in Bangalore
with leading manufacturers like Tommy Hilfiger, Marks & Spencer,
GAP, H&M, Matalan and Mothercare having their presence in the
city.
6Source: Karnataka Industrial Areas Development Board (KIADB) and Vestian Research
IT/ITeS Hubs CBD & SBDORR (Hebbal to Silk
Board Jn.) WhitefieldElectronics City &
Hosur Road
Type / Sector
With multiple economic activities, the city has grown from a uni-nuclear structure with a Central Business
District (CBD) to a multi-nuclear structure with several Suburban Business Districts and Peripheral
Business Districts (PBD).
Table: IT/ITeS Micro-markets in Bangalore
6
PBD
Bangalore North &Mysore Road
Corporate offices, BFSI, IT / ITeS
IT / ITeS IT / ITeS IT / ITeS, Electronics,
Manufacturing
IT / ITeS, Aerospace
Total Office Stock(in million sqft)
39.6 29.5 29 10.41 3.67
Working population 400,000 250,000 275,000 175,000 35,000
Projected Growth 10% 27% 10% 5% 5%
Key Operating Companies Microsoft, Dell, Goldman Sachs, IBM, Target, Google, Yahoo, Amazon
2Cisco, EMC , Capgemini, Oracle, Intel, Accenture, IBM, Cognizant, Honeywell
GE, SAP Labs, TCS, HP, Dell, Mercedes Benz, Huawei
Infosys, Wipro, Siemens, Mahindra Satyam, TCS
Shell Technologies, SLK Software, Tyco Electricals, Wipro
Bidadi Industrial Area Automobile & Auto components, General Manufacturing, Electronics & Electrical Manufacturing
Toyota, Coco-Cola, Tata Auto Plastic Systems, Shashi Exports
Phase III: 400 acres in planning stage
1,192
Doddaballapur Industrial Area
Textile, Beverages Gokaldas Images, Bombay Rayon Fashions, Gati Limited, Arviva Industries, Mudra Textiles, Grover Vineyards
~ 60 acres in Apparel park is under development
799
Industrial Area Type of IndustryTotal Area
(acres)Key Industries Growth Plans
Verasandra, Jigani & Bommasandra Industrial Area
IT / Manufacturing, Biotech 1,874 OTIS, American Power, KTTM, SKF, Maine Precision Tools, HCL, Tata Advanced Material
Phase III - Land acquisition in progress on Jigani - Harohalli Road (~712 acres)
Peenya IndustrialArea
Engineering, Auto Components, Textile, Electrical Goods Manufacturing
Wipro Lights, ITC, Kirloskar, Karle, ABB
Land acquisition of 200 acres for Greater Peenya industrial area
1,485
Narasapura & Hoskote Industrial Area
Auto & Auto Components Manufacturing, Warehousing, Textile
Volvo, GE India, Celebration Apparels, Autoliv, Indo-US MIM Tech
145 acres in Narasapura industrial area is under development
1,602
Kumbalgodu Industrial Area
Auto Components, Food Processing, Chemical Manufacturing
United Breweries, Sumi Motherson, Wirtgen India, Micro Labs -250
Harohalli Industrial Area Granite, Printing, Automobile, Hatcheries and General Engineering
Basant Betons, Komarla Hatcheries, Stovekraft, AO Smith, Lotus Polymers, Saint Gobain
Phase III: 1,365 acres under land acquisition stage
1,102
The city being an important industrial town has significant presence of manufacturing, automobile and
textile companies.
Table: Industrial Areas of Bangalore
Favourable Government regulations and improving infrastructure are expected to promote development in medium to long term towards Bangalore North.
Government of Karnataka (GoK) has announced the following projects within Bangalore Metropolitan Region in order to promote economic development in the city.
Particulars Devanahalli Business Park
AerospacePark
Hardware Park IT / BT Park
Location
ITIR Logistics Park
Devanahalli -
Adjacent to BIASouth of BIA Bagalur Village Bagalur Village
Muddenhall,
Kaniverayanapura,
Chikkaballapur
Balepura (near
Devanahalli)
Area (in acres) 414 1,000 941 1,028 12,000 150
Agency
Status
Companies
that have
been alloted
land
Karnataka State
Industrial &
Infrastructure
Development
Corporation
(KSIIDC).
Fresh EOI invited
in August 2011 to
develop the
project on a PPP
basis. Design for
the convention
center within the
park has been
finalized
Land aqusition is
underway
-
Department of
Commerce &
Industries, GoK
GoK - Hardware
Park,IFCI - Financial
City
Land has been
alloted to some
companies
already.BEML has started
construction.
BEML, AIMIL,
Dynamatic
Technologies,
Sunshine
Aerospace,
Starrag Seckert
Machine Tools,
Centum
Electronics
Land has been
alloted to some
companies
already.Foundation stone
laid for the
Financial city on
50 acres to be
developed by IFIC
Bangalore Bio-
Tech labs, Shell
Technology, Moser
Baer
Application
received from
various
companies to
develop IT/ITeS
SEZs. Land yet
to be alloted.
Sunlux
Technology
Karnataka
Industrial Areas
Development
Board (KIADB)
The Center has
approved the
project. Land
acquisition
underway for 2,200
- acres of phase I.
Global tender yet to
be floated to select
the developer
55 companies
including Infosys,
Wipro, TCS and
Cognizant have
signed up MOUs
KSIIDC
-
BANGALORE: REAL ESTATE MARKET REPORT
7Table: Key Government Initiatives: Proposed Economic Hubs in Bangalore
Integrated
Textile Park
Doddaballapur
Road
469
KIADB
Currently 41 units
are operational
across 48-acres
of land. Nearly
60-acres of land
under
development
Gokuldas
Images, Madura
Garments,
Raymonds,
Bombay Rayon
Fashion
7Vestian Research
Karnataka State
Electronics
Development
Corporation
Limited
(KEONICS)
PLANNING & DEVELOPMENT
Currently majority of the real estate development
in Banga lore is w i th in the Banga lore
Metropolitan Area (BMA 1,276 sqkm) under the
jurisdiction of Bangalore Development Authority
(BDA). However, with the development of various
under-construction and proposed infrastructure
projects in the Bangalore Metropolitan Region
(8,000 sqkm) under the jurisdiction of Bangalore
Metropolitan Regional Development Authority
(BMRDA), several new growth corridors have
emerged outside the BMA.
Bangalore-Devanahalli corridor due to the development of Bangalore International Airport (BIA) in Devanahalli.
Bangalore-Doddaballapur Corridor with the development of Doddaballapur Industrial area and its proximity to BIA.
Bangalore-Nelemangala-Tumkur corridor in North-West with the development of industrial areas in Peenya, Nelemangala and Dobaspet and the announcement of Bangalore-Chennai Industrial corridor.
KR Puram-Hoskote Corridor with the development of industrial areas in Hoskote and Narsapura.
Hoskote-Malur-Sarjapur-Attibele corridor with industrial development in this region; announcement of Bangalore - Chennai Industrial corridor and proximity to Electronics City.
Bangalore-Mysore corridor was looked at as an emerging corridor till 2008. However, with the Bangalore-Mysore Expressway and the associated townships failing to take off, this region has seen a decrease in activity levels.
The Revised Master Plan (RMP) 2031 has faced challenges while
implementing the proposed infrastructure development & economic
plans in terms of land acquisition issues, lack of funding, water shortage
and complex institutional mechanism. Key proposals of the Structural
Plan 2031 include:
A cluster based approach for development of the region identifying 8 clusters and 4 growth nodes in order to decongest the core.
The identified clusters include Ramanagaram-Channapatna, Bidadi-Harohalli, Nelamangala-Peenya, Dobaspete-Nelamangala,
Doddaballapur, Devanahalli-Yelahanka, Hoskote-KR Puram,
Jigani-Electronics City-Bommasandra-Attibele.
Growth Nodes include: Anekal, Kanakapura, Vijayapura, Magadi.
These clusters are connected by the Peripheral Ring Road (PRR), Intermediate Ring Road (ITRR) and the Satellite Town Ring Road
(STRR).
Commuter Rail Services to key towns within the Bangalore Metropolitan Region (BMR).
BDA has currently embarked upon the process of
preparing the revised master plan for 2031. The
recommendations of the Structural Plan 2031
prepared by BMRDA will play a major role in
developing the RMP 2031 for Bangalore.
8
Some of these emerging growth corridors include:
BANGALORE: REAL ESTATE MARKET REPORT
Figure: Key on-going and proposed infrastructure projects in Bangalore
Major Roads
Outer Ring Road
NICE Ring Road
Metro Rail Phase I (Operational)
Metro Rail Phase I (Under Construction)
Metro Rail Phase II (Proposed)
Proposed Monorail
Proposed High Speed Rail Link
Proposed Peripheral Ring Road
Bellary Elevated Express way Major Landmarks
Key Residential Areas
Key Metro Stations
Bangalore International Airport
Yelahanka
Outer Ring Road
Out
er R
ing
Roa
d
Outer Ring R
oad
HSR Layout
HMT Township
NH 7: To Hyderabad
Propo
sed
Perip
hera
l Rin
g Roa
d
Proposed Peripheral Ring Road
NH 4: To Mumbai
Hebbal
BIEC
HesaraghattaCross
NIC
E Ring R
oad
NICE Ring Road
Nagawara
Banaswadi
MG Road
Krishnarajapuram
Byppanahalli
J.P. Nagar
Bangalore CityRailway Station
Rajaji Nagar
RMVExtension
Vijayanagar
Mysore Road
Kengeri
Puttenahalli
Thalagattapura
Kanaka
pura
Road
NH 209: To Coimbatore
SH 17:To Mysore
Silk Board
Gottigere
Begur
Koramangala
NH 7: To Salem
Bellandur
Brookefield
Pro
pose
d P
erip
hera
lR
ing R
oad
Magadi Road
PalaceGrounds
Marathahalli
Varthur
Bommasandra
Tumkur Road
Arkere
Bannerg
hatta R
oad
Hosur R
oad
NIC
E R
ing
Ro
ad
IISC
ITI
IIMB
Rajanukunte
SahakaraNagar Thannisandra
Hennur
HBR LayoutAvalahalli
Seegehalli
Haralur
Hosa Road
Dommasandra
Kothnur
Jaraganahalli
Jalahalli
Budigere
NH 4: To Chennai
Mysore Road
Old Madras Road
Indiranagar
C.V.Raman Nagar
Old Airport Road
Bel
lary
Roa
d
Whitefield Main Road
Sarjapur Road
Varthur Road
TowardsDoddaballapur Industrial Area
Doddaballapur M
ain Road
Hope Farm Circle
Jayanagar
Electronics City
Majestic
M
BangaloreUniversity
M
M
M
M
M
MM
M
M
M
M
M
M
M
M
M
M
awww.bmrc.co.in, www.karnataka.com, www.timesofindia.com, www.deccanhearld.combwww.timesofindia.comcwww.ksiidc.com/tender.html, www.projectsmonitor.com/detailnews.asp?newsid=15665 dwww.deccanchronicle.com, 13 Feb 2013
BangaloreaMetro
Project Details Timeline
Phase 1
Phase 2
bMonorail
High Speed Rail cLink
Peripheral Ring dRoad
Bellary Elevated
Expressway
Signal Free Outer
Ring Road
Expansion of
Bangalore
International eAirport
BMRDA Satellite fTownships
Satellite Town Ring gRoad(STRR)
Intermediate Ring hRoad(ITRR)
The proposed mass rapid system
for Bangalore 41 km of elevated
and underground rail network with
36 stations in Phase I
Phase II: Extension of Phase 1 lines connecting Whitefield (in the East), JP Nagar
(in the South), Kengeri (to the West) and Nelamangala (to the North).In addition, two new lines, one connecting Nagawara to Gottigere and the other
connecting BTM Layout to Bommasandra has been proposed.
North-South Corridor: Hesarghatta Cross
(Peenya Industrial area) to Banashankari
via Malleswaram, Majestic and Jayanagar.East-West Corridor: Bypanahalli - Mysore
Road via Indiranagar, M.G.Road, Majestic
and Vijayanagar.
-
Phase I
to be fully
operation
al by
2015.
Status Impact
Under
construction
(Phase I under
construction
& Reach 1
operational)Better connectivity
from all parts of the
city to the CBD
Travel time
reduction
Proposed
(Geo-technical
survey is under
progress)
Project will act as a feeder network
to the metro rail. Four corridors
have been identified covering 60
km.
Corridor I:Kanakapura Road - Mysore
Road,Kathriguppe - National CollegeCorridor II:Bannerghatta National Park -
AdugodiCorridor III:Tumkur Road - Bellary RoadCorridor IV:Mysore Road - Tumkur Road,
Magadi Road - Toll gate
The project will cover a distance of 34 km
starting from BRV Grounds, passing
through Cubbon Road, Raj Bhavan Road,
Hebbal and Yelahanka to the Airport
The High Speed Rail will connect
the CBD with the Bangalore
International Airport in Devenahalli.
-
-
Formal
approval for
the project is
awaited
Better access to
Metrorail networkBetter connectivity
from peripheral
areas to the city
Proposed Improved connectivity between CBD and International Airport
The Peripheral Ring Road is a
Public Private Partnership (PPP)
project to be executed by the BDA.
This ring road will circumnavigate
the city connecting all the major
highways.
NICE Ring Road connecting Hosur Road
and Tumkur Road has been declared as
Phase 1 of PRR.
Phase 2 of the Ring Road will connect
Tumkur Road, Bellary Road, Old Madras
Road, Sarjapur Road and Hosur Road.
Proposed
(30
months
from the
start of
construc-
tion)
Tenders
invited for
Phase 2
Diversion of truck
traffic from the city
roads will ease
traffic situation on
ORR and within the
city. Second, will
open up new areas
for development
A six-lane elevated expressway is
proposed to connect Hebbal to
Yelahanka. A ten-lane (6 lanes with
two services lanes on either side)
highway will connect Yelahanka to
Bangalore International Airport.
Hebbal to Yelahanka and Yelahanka to
Bangalore International Airport2014 (E) Under
Construction
Under
Construction
Under
Construction
2014 (E)
2014 (E)
The existing Outer Ring Road will be
made signal free with the construction
of 7 more flyovers and an underpass
Expansion of Terminal 1 to double its capacity. To be increased to over 17 million
passengers a year.
Hosur to Silk Board Junction
Better and faster
connectivity to the
International Airport
Traffic
decongestion and
reduced travel time
to key IT hubs
To increase
passenger and
aircraft handling
capacity
Five townships proposed at Bidadi, Ramanagaram, Solur, Sathanur and Nandagudi.
Total area: 61,000 acres -
-
-
8 lane road connecting the proposal BMRDA satellite townships. Will connect the
satellite towns of Doddaballapur, Devanahalli, Hoskote, Anekal, Kanakapura,
Ramanagaram and Magadi with each other and also to the Bangalore International
Airports
8 lane road around the Bangalore Metropolitan region. Will come up in-between
Peripheral Ring Road and Satellite Town Ring Road. Will pass through
Nelamangala, the southern parts of Dobbspet, Doddaballapur and Devanahalli,
areas about 6 km from International Airport, the eastern parts of Hoskote and
Anekal, besides Harohalli, Bidadi and Magadi.
Proposed
Proposed
Proposed
Expansion of
Bangalore city and
formation of new
peripheral locations
Will open new
areas for Real
Estate development
Ease traffic
congestion in
Greater Bangalore
Region and spur
Real Estate
activities
INFRASTRUCTURE PROJECTS
The development of urban infrastructure in Bangalore has not been able to keep pace with the rapid
population growth and economic development of the city.
Table: On-going & proposed infrastructure projects in Bangalore
Expected Completion Time 0 - 3 years
10
Expected Completion Time 3 - 5 years Expected Completion Time more than 5 years
ewww.bengaluruairport.com f-gwww.bmrda.kar.nic.inhwww.timesofindia.com
BANGALORE: REAL ESTATE MARKET REPORT
Bangalore continues to be one of the best cities for real estate sector in the country-absorbing close to 1/3rd of the total
office space of the country. Since 2009, the city witnessed an
average annual absorption in the range of 7.5 and 9 million
sqft. With a total absorption (including pre-commitments) of
5.7 million sqft for H1 2013, the city is expected to achieve
similar statistics this year as well.
Among all the micro-markets, ORR continues to remain the most preferred market for expansion by IT/ITeS companies
mainly due to availability of Grade A office spaces and
support infrastructure. Honeywell Technologies, Volvo,
Goldman Sachs and Adobe have expanded and / or
consolidated their operations along ORR in the last two
years.
Office space take-up in Whitefield during 2012 - 13 was mainly due to expansion and consolidation by existing
companies in this micro-market. Schneider Electric, TCS and
Societe General are prominent companies that have
expanded operations in the city.
Healthy office space absorption and on-going infrastructure projects have fuelled residential demand in the city.
Absorption of residential units has grown at a CAGR of 31%
since the year 2010.
Bangalore witnessed a launch of 40,336 units in the year 2012 and absorption in the same year stood at 33,988 units.
H1 2013 witnessed a launch of nearly 26,620 units and
absorption during the same period stood at 18,076 units.
Currently the most active residential micro-markets of the city are ORR-Sarjapur stretch, Whitefield and Bangalore North.
Off-central location of Magadi Road is witnessing renewed
interest due to the availability of industrial land for
redevelopment in the inner ring city.
In 2012-13, Bangalore witnessed entry of national developers like Phoenix Group and the Address Makers by
India REIT.
Apartments and villas are the key established residential product types in Bangalore. 2012 saw Villaments gaining
prominence as a product type since it offers the best of both
apartments and villas. Leading developers like Habitat
Ventures, Nitesh Estates, Embassy Group have launched
villament projects in the city.
REAL ESTATE MARKET SUMMARYO
FF
ICE
RE
SID
EN
TIA
L
Bangalore North witnessed increased momentum during H1 2013 with manufacturing and aerospace companies like Wipro
Systems & Controls and Starrag Heckert commencing
operations in this region.
City’s real estate market witnessed sustained traction for SEZ spaces in H1 2013; however, a large part of the planned supply
is not likely to materialize due to restricted time limit until March
31, 2014.
Office rentals across micro-markets largely remained unaltered during H1 2013.
Economic outlook for the city remains strong in medium term as many large IT/ITeS companies, Engineering and Automobile
MNCs have impending growth plans for Bangalore.
Sky Villas, duplex apartments with large terrace spaces, is another new concept introduced in the luxury segment.
Although this concept was prevalent in Mumbai, it has recently
gained prominence in Bangalore with the launch of luxury
apartments in off-central regions.
Capital Values for residential projects witnessed an increase in the range of 5% - 25% across micro-markets. Among micro-
markets- Tumkur Road, ORR-Sarjapur Stretch and Whitefield
observed the highest appreciation.
Bangalore remained one of the favoured real estate markets for Private Equity Funds resulting in their sizeable
participation in this asset class. Besides residential asset
class, commercial asset class also witnessed large
investments by PE funds during the last one and half year.
Strong economic outlook is likely to propel healthy growth rate in residential segment.
8As per Massachusetts Institute of Technology (MIT), Technology Review
8The real estate sector in Bangalore, one of the 8 largest Technology Innovation Clusters , will continue its
growth trajectory in future as well.
Favourable demographics, opening up of FDI in single and multi-brand retail and availability of large land parcels have
not only led to increase in mall space over the years but have
also facilitated development of larger malls.
Bangalore with 7.7 million sqft of operational mall space will see completion of 5.7 million sqft of mall space by the year
2016.
Based on the existing, under-construction and planned malls, Kanakapura Road, Bannerghatta Road, Mysore Road, Hosur
Road and Tumkur Road are in a balanced state in terms of
mall development vis-à-vis residential activity. ORR-Sarjapur
stretch is one of the most promising locations for
development of a shopping mall in short term while Whitefield
due to high under trading mall spaces offers less advantage.
Some of the national and international brands that entered Bangalore in 2012 - 13 are Krispy Kreme, Promod, Aldo,
Charles and Keith and Debenhams.
Continuous expansion of the city limits have led to availability of large mills / industrial land for redevelopment.
Development of mixed-use integrated townships
encompassing office, retail, residential and hotels has gained
prominence over the years.
Bangalore’s hospitality sector is primarily driven by the IT/ITeS sector with business travelers accounting for majority
of the room occupancy as compared to MICE and leisure
travelers. The city today has 9,585 rooms and 1,157 rooms
are expected to enter by Q1 2014.
Currently the hotel industry is dominated by 5 Star Category Hotels. Nearly 42% of the total operational rooms fall under
this category. After 2008, the city started witnessing entry of
many branded budget hotel operators. Some of the key
operators in the city are IBIS by Accor Group, Keys Hotel by
Berggruen Hotels and Ginger by Tata Group.
Bangalore will continue to see entry of 4 and 5 Star Category hotels as most of the under-construction hotels expected to
be operational in medium term are positioned in these
categories.
Occupancy levels in the city range between 56% and 59%.
Room rates for the 5 Star category ranges between INR 7,000 - 8,500 per night while they range between inr 4500-
5500 per night for the 4star category.
RE
TA
ILH
OS
PIT
ALIT
Y
Mall rentals have appreciated in the range of 5 - 20% in last one year. UB City on Vittal Mallya Road witnessed highest
appreciation in rentals due to lack of luxury spaces in the city.
The Forum at Koramangala and Garuda Mall at Magrath
Road also witnessed significant appreciation in the last one
year.
High-street locations over the last one year witnessed lesser appreciation as compared to shopping malls. Rentals across
the locations grew in the range of 5 - 12%. Among the high-
street locations, Vittal Mallya Road, which is a key high street
location for luxury brands, witnessed a significant increase in
rental value over H1 2012 due to limited supply of retail space
for luxury spaces. Other high-street locations that witnessed
growth in rental values included Kammanahalli Main Road
and M.G. Road.
Due to relaxation of FDI norms for both single and multi-brand retail, the retail sector in Bangalore is posed to grow in the
coming years.
Currently the most sought after development model in Bangalore is the management contract, wherein the landlord
undertakes the land acquisition, construction and fit-out of the
hotel and the hotel operator manages the operations.
Bangalore is increasingly witnessing development of hotels as a part of mixed use developments with residential,
commercial, retail and hospitality in the same project.
The city today has potential for development of serviced apartments and branded 3 Star category hotels.
Whitefield, ORR-Sarjapur Stretch, Bangalore North and Tumkur Road are among the most preferred locations by
hotel operators.
In light of the upcoming developments in the IT/ITeS sector and under-construction rooms, demand for hotels is
expected to remain unchanged in the short to medium term.
12
Source: Vestian Research, 2012
BANGALORE: REAL ESTATE MARKET REPORT
112 million sqft Total office stock in Bangalore
8.39 million sqft office space absorption in 2012 out of which
2.25 million sqft was SEZ
4.2 million sqft of fresh supply in H1 2013
5.7 million sqft of absorption in H1 2013 including2.0 million sqft of pre-commitment
7.13 million sqft Supply in 2012 out of which 3.3 million sqft was SEZ
16% overall vacancy level in Bangalore
OF
FIC
E
MA
RK
ET
OV
ER
VIE
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Figure: Bangalore's Office Space Supply and Absorption
0
2
4
6
8
10
12
14
Fresh supply Absorption
16
2009 2010 2011 2012 2013(E) 2014(E)
14
Bangalore continues to witness steady office space demand since 2009 and absorption exceeded supply for the third consecutive year since 2010.
Since 2009, Bangalore witnessed an average annual absorption in the range of 7.5 and 9.0 million sqft.
H1 2013 witnessed absorption of 5.7 million sqft of office space while fresh supply stood at 4.2 million sqft. Of the total
absorption in H1 2013, 2.0 million sqft of the space was pre-
committed.
Absorption in the city has exceeded for the third consecutive year since 2010. Cautious approach adopted by the
developers has led to controlled supply and pre-
commitment activities have helped to maintain demand-
supply equilibrium in Bangalore’s office space market in
2012.
mill
ion
sq
ft
16
Vestian Estimate
OFFICE MARKET OVERVIEW
CBD
Operational Space
Micro-Location
SBD
Non-Captive Space (in million Sqft/Month)
Non SEZGrade A
Captive Space (in million Sqft)
SEZGrade A
Non SEZGrade B
Total Non SEZ SEZ Total
ORR
PBD
Under-Construction Space
Pre-committed Space
Available Space
Planned Space
Operational Space
Under-Construction Space
Pre-committed Space
Available Space
Planned Space
Whitefield
Hosur Road & Electronic City
Mysore Road
Bangalore North
Operational Space
Under-Construction Space
Pre-committed Space
Available Space
Planned Space
Operational Space
Under-Construction Space
Pre-committed Space
Available Space
Planned Space
Operational Space
Under-Construction Space
Pre-committed Space
Available Space
Planned Space
Operational Space
Under-Construction Space
Pre-committed Space
Available Space
Planned Space
Operational Space
Under-Construction Space
Pre-committed Space
Available Space
Planned Space
7.52
134
-
0.70
0.10
-
-
-
-
-
4.35
0.1
-
0.92
-
11.87
1.44
0.00
1.62
0.10
0.70
-
-
-
-
-
-
-
-
-
-
-
-
-
0.70
22.2
1.68
0.03
1.20
0.70
-
-
-
-
-
5.56
-
-
1.3
-
27.76
1.68
0.03
2.50
0.70
1.3
-
-
1.7
-
-
-
-
-
-
-
-
1.7
-
1.3
12.84
8.94
0.24
2.51
37.33
16.40
5.50
0.84
0.78
10.36
0.25
-
-
0.06
-
29.49
14.44
1.08
3.35
47.69
2.25
0.45
-
1.0
-
-
-
2.5
-
-
0.45
-
3.5
-
2.25
17.77
0.71
-
4.46
5.41
4.66
0.96
0.20
1.04
15.22
6.61
-
-
1.89
-
29.04
1.67
0.20
7.39
20.63
10.5
4.1
-
2.5
-
-
-
1.1
-
0.2
4.1
0
3.6
0
10.7
8.00
1.70
-
2.37
0.40
-
-
-
-
3.0
2.41
-
-
1.09
-
10.41
1.70
-
3.46
3.40
13.1
-
-
4
-
-
-
1.1
-
5.1
-
-
5.1
-
18.2
- 3.20
-
-
0.13
3.50
0.08
-
-
0.05
-
3.28
-
-
0.18
3.50
-
-
-
-
-
-
-
-
-
-
-
-
-
0.35
2.04
0.10
0.02
19.20
0.04 0.39
2.04
0.10
0.11
23.03
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- -
-
-
-
-
3.80
-
-
0.09
-
BANGALORE: REAL ESTATE MARKET REPORT
Table: Bangalore Office Space Statistics H1 2013
The city accounts for 112 million sqft of operational non-captive office space. The micro-markets Outer Ring Road (ORR) and
Whitefield in PBD dominate the office space market with almost
an equal share of 30% each amongst all others. Though,
Electronics City in PBD accounts for a mere 8% of non-captive
office space, this micro-market has significant presence of
captive campuses. CBD and SBD locations continue to attract
occupiers however availability of land is a deterrent.
Vacancy levels in the city range between 9% and 14%. However, PBD locations account for a high vacancy level of 26%. This may
be attributed to the presence of large number of Grade B / B+
developments in these micro-markets with limited amenities as
compared to Grade A developments.
ORR today accounts for nearly 30 million sqft of operational IT/ITeS spaces. ORR witnessed the largest supply of office
space in Bangalore accounting for nearly 56% of the city's new
supply for 2012. Further, this micro-market also witnessed 42%
of absorption during 2012 and H1 2013.
ORR will continue to remain a preferred destination by IT/ITeS companies in medium term mainly because of availability of
Grade A office space, land for expansion and required support
infrastructure. Some of the prominent IT occupiers namely
Goldman Sachs (1.6 million sqft), Adobe (1.43 million sqft),
Honeywell Technologies (1.0 million sqft) and Samsung (0.45
million sqft) have expanded their base in this micro-market.
Volvo is developing its captive campus in this micro-market; the
company has bought 1 million sqft of office space in Bagmane
World Technology Centre. Apart from Volvo, Intel and Cisco are
also expanding their captive campuses along ORR.
Today, Whitefield has 29 million sqft of operational IT/ITeS office (non-captive) space of which nearly 7.4 million sqft is vacant.
Existing companies in Whitefield are consolidating and
expanding their operations within the region. Some of the
companies that have expanded their operations are Schneider
Electric (0.5 million sqft) and TCS (0.3 million sqft).
Electronics City, a 680-acre electronics park is phased in three phases. Phase I (332-acre) and Phase II (148-acre) in total
account for 8.6 million sqft of non-captive office spaces. Both
these phases have IT/ITeS, electronics and hardware
manufacturing companies. Infosys, TCS, HCL and Wipro have
their captive campuses in this region. Electronics City Phase III
(100-acres) is anticipated to be established as Biotech Hub.
16
ORR, for the next 3 - 5 years is expected to remain a preferred destination among IT / ITeS occupiers while
Bangalore North is anticipated to gain momentum by 2015.
Office space in Mysore Road is restricted to Global Village Tech Park. The IT/ITeS SEZ has close to 3.2 million sqft of operational
IT space. Accenture (0.9 million sqft) and Mindtree Technologies
(0.5 million sqft) are among the key companies that have
expanded their operations in this region.
Bangalore North, until 2013, witnessed activity from manufacturing and aerospace companies. Wipro Systems and
Controls (SEZ) and Starrag Heckert have commenced their
operations in Bangalore Hardware Park.
Bangalore North has seen a higher preference for a built-to-suit campuses over leased office spaces. Some of the prominent
companies developing their facility are:
Shell Technologies is developing its Research and
Development (R&D) unit in Bangalore Hardware Park. The
40-acre campus will have built-up area of nearly 2.5 million
sqft.
Tyco Electronics is setting-up a manufacturing unit spread
across 25-acres in Aerospace Park, Devanahalli.
Bangalore North witnessed first major office space transaction in H1 2013; SLK Software leased 0.2 million sqft of office space in
RMZ Latitude on Bellary Road. The region is likely to see
completion of nearly 2 million sqft of office space by the end of
2014. Key developers with presence in this location include
Assetz, RMZ Corp, Embassy Group, Salapuria Sattva, Brigade
Group, Hinduja Developers and Gokaldas Images.
Bangalore West is likely to see development of mixed use townships. Apart from existing project by Brigade World Trade
Centre, Tata Realty & Infrastructure Limited is expected to
develop one of its flagship projects in this area. The integrated
township is spread over 1.7 million sq ft in Yeshwantpur.
Figure: Stock Vs Absorption and Vacancy Levels across Bangalore
micro-markets
0
5
10
15
20
25
30
35
Stock Absorption
16
CBD SBD ORR PBD
mill
ion
sq
ft
40
45
50
14%
9%11%
26%
Vacancy
0
5%
16
10%
15%
20%
25%
30%V
aca
ncy
(%
)
OFFICE MARKET OVERVIEW
Bangalore has 24.3 million sqft of operational multi-tenanted IT/ITeS Special Economic Zones (SEZs) space. Of this, ORR
accounts for nearly 16.4 million sqft while PBD locations of
Whitefield and Mysore Road account for the remaining 7.9
million sqft of SEZ spaces.
Year 2012 and H1 2013 witnessed absorption of 2.35 and 2.1 million sqft respectively of SEZ spaces. ORR and Whitefield
are the two micro-markets, which have witnessed
considerable SEZ absorption during the last one year. ORR
accounted for nearly 75% of total SEZ absorption and PBD
locations of Whitefield and Mysore Road collectively
accounted for 25%.
Some of the major occupiers that leased out space in last two years are Honeywell Technologies (1.0 million sqft),
Accenture (0.5 million sqft), TCS (0.3 million sqft), Societe
General (0.07), Cognizant Technologies (0.75 million sqft)
and Mu Sigma (0.33 million sqft).
Currently about 5.15 million sqft of non-captive SEZ space is under-construction and expected to enter the market before
2014. However, a large part of the planned supply - nearly 31
million sqft of SEZ space is not likely to materialize due to
limited time frame. (As per the draft Direct Tax Code 2010,
units in SEZ spaces have to be operational before March 31,
2014).
The Government of India (GoI) has relaxed norms for key criteria such as minimum land requirement. As a result of the
above revisions, it will be possible for smaller IT companies
to develop their own SEZ units. Also, developers who have
already constructed 100,000 sqm are allowed to utilize the
remaining land for residential purpose.
BANGALORE: REAL ESTATE MARKET REPORT
The city continued to witness sustained traction for IT SEZ spaces mainly along ORR and Whitefield in PBD.
Figure: SEZ Supply and Absorption in Bangalore
0
5
10
15
20
25
30
35
Supply Absorption / Pre-committed Space
16
Operational Space Under-ConstructionSpace
Planned Spacem
illio
n s
qft
40
24.26
22.31
6.46
1.04
35.88
3.83
Particulars Before April 2013 w.e.f April 2013
Minimum LandRequirement
10 Hectares None
Minimum Built-up Area
100,000 sqm
Exit Policy for
SEZ units
None
10100,000 sqm for 7 major
cities
50,000 sqm for category B
cities
25,000 sqm for other cities
Transfer of ownership of SEZ
units including sale permitted
9Table: Key Revisions in norms for IT / ITeS SEZ
9Annual Supplement 2013 – 14 to the Foreign Trade Policy 2009 – 14, released on March 18, 2013
10Refers to Delhi NCR, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad and Pune
Tenant
NDS
Name of the Building Area Leased (Sqft) Micro Location Year of Transaction
Intel Technology
Atos Origin
Cerner India
Amazon
Pritech Park
RMZ Ecospace
Embassy Tech Square
400,000 ORR
ORR
ORR
Whitefield
2012
67%
Consolidation
Expansion
Relocation
New Entry
10%14%
9%
18
2012 - 13 witnessed expansion by major IT/ITeS companies
Year 2012 witnessed absorption 8.39 million sqft of which nearly 65% was a result of expansion by major companies.
Amazon.com, Intel Technologies, Caterpillar, Capgemini
and Samsung were among the prominent companies that
expanded their operations in the city.
Of the total deals reported during 2012, nearly 20% were consolidation and relocation deals and 15% were new
entrants to the market. Canadian High Commission, Wells
Fargo were some of the companies that commenced
operations in the city during 2012.
As of H1 2013, IT/ITeS companies continue to expand their operations in the city. Of the total absorption (including pre-
commitments), 70% of the deals were due to expansion by
major companies and 25% of the transacted space was for
re-location and consolidation of operations. Linkedin
started its operations in Bangalore during H1 2013.
Figure: Occupancy Strategy 2012 - H1 2013
Table: Key Lease Transactions in Bangalore during 2012 & H1 2013
In Mobi
Infosys
Honeywell
Alti Source
Texas Instruments
Gopalan Millenium Towers
JP IT Park
RMZ Ecoworld
Manyata Embassy Business Park
Pritech Park
Brigade WTC
Bagmane Tech Park
204,000
121,000
125,000
175,000
1,000,000
356,000
120,000
294,000
100,000
Eletronics city
ORR
ORR
ORR
SBD
SBD
2012
2012
2012
2012
2013
2013
2013
2013
2013
OFFICE MARKET OVERVIEW
BANGALORE: REAL ESTATE MARKET REPORT
Bangalore witnessed limited investments by Private Equity (PE) funds for office space compared to
Mumbai and Delhi NCR since land for development of commercial spaces in the city is allotted by KIADB at
low prices and the availability of pre-commitment loans at low interest rates.
Bangalore witnessed one of the country’s biggest commercial real estate acquisition deals by the US based Private Equity
fund – Blackstone Group. As a part of the deal, Blackstone
purchased stake in a SPV comprising of three commercial
properties (2 in Bangalore and 1 in Pune) totaling over 10
million sqft.
Fund Owner Project
Blackstone Embassy
Group
Manyata Embassy
Business Park SEZ
Blackstone, GIC
Singapore and
HDFC Property
Fund
Vikas
Telecom
Vrindavan Tech Village
Amount(INR Cr)
875
1,951
Baring Private
Equity Partners
RMZ Corp 6 million sqft of office
space
500
Bannerghatta Road
Micro-Location
CBD
SBD
Koranmangala
Indiranagar
Intermediate Ring Road
PBD
Mysore Road
Electronics city
Whitefield
Bangalore North
ORR
Warm Shell Rental Value (INR/sqft/month)
Grade A Grade B
Non SEZ SEZ Non SEZ
Capital Values (INR/Sqft)
Grade A
80 - 100 60 - 70-
50 - 55 40 - 45-
45 - 50 40 - 45-
35 - 45 30 - 35 -
70 - 80 50 - 60-
9,000 - 12,000
6,500 - 8,000
26 - 28 18 - 20-
26 - 30
24 - 26
45 - 55
32 - 34 20 - 25
-35 - 38
25 - 26
-
5046 - 48 38 - 40
3,200 - 3,700
4,500 - 5,000
-
-
5,000 - 6,200
Office rental values remained unchanged in most micro-markets during 2012 - H1 2013 owing to controlled
supply and healthy absorption levels. Investors are capitalizing Grade A office spaces between 11% and
13% whereas developers are capitalizing it at 8% to 10%.
Majority of the available Grade A spaces in CBD locations are fully-furnished mainly due to limited availability of fresh supply in
this micro-market.
Despite healthy absorption and pre-commitment levels, rentals in the ORR remained unchanged which is a result of huge planned
inventory and large built-to-suit transactions in this micro-market.
Table: Bangalore - Office Rental and Capital Values
Old Airport 45 - 50 - 32 - 36
Table: Key PE deals for office space in Bangalore during 2012 - YTD
Qatar Investment Authority, a sovereign fund invested in RMZ Corp with a focus of investing in commercial properties in
Bangalore, Hyderabad, Chennai and Pune.
Source: www.vccircle.com
20
H1 2013 has witnessed entry of 4.2 million sqft of office space.
Another 4.9 million sqft of office space is likely to enter in H2
2013, totaling the fresh supply for 2013 to 9.1 million sqft.
Absorption in 2013 is pegged between 8.5 and 9.0 million sqft.
ORR, for the coming three years is expected to remain a
preferred destination among IT/ITeS occupiers. The micro-
market has witnessed substantial activity in the past three
years and is expected to continue the trend with significant
planned supply.
With companies initiating development of their campuses in
Bangalore North, this micro-market is anticipated to gain
momentum by 2015.
Rental and capital values in Bangalore are expected to remain
unchanged in short term. Besides, increase in rentals is
expected in prominent Grade A IT Parks due to controlled
supply and healthy leasing activity.OU
TL
OO
K -
OF
FIC
E
BANGALORE: REAL ESTATE MARKET REPORT
40,336 units launched during 2012
31% CAGR of residential absorption
5% - 25% annual capital appreciation range
3% - 7% range of annual average rental yield
33,988 unitsabsorbed in 2012
RE
SID
EN
TIA
L
MA
RK
ET
OV
ER
VIE
W
26,620 units launchedduring H1 2013
18,076 units absorbed in H1 2013
Figure: Supply and Absorption as per ticket size in Bangalore, H1 2013
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Supply Absorption
16
< 25L 25L-50L 50L-1Cr 1Cr-5Cr >5Cr
22
Bangalore residential market witnessed a launch of 40,336 units including both Class A and Class B projects in 2012. This
was a drop by 8% compared to the number of launches in 2011.
Total absorption in Bangalore during the year 2012 was 33,988 units in Class A and B categories. Absorption of residential units
in Bangalore is growing at a CAGR of 31% over the last 3 years.
H1 2013 witnessed launch of 26,620 units and absorption for corresponding year stood at 18,076 units.
Majority of these new launches have a ticket size in the range of INR 50L to 1Cr (Premium segment). The remaining were in the
INR 25L to 50L (Mid-segment); INR 1Cr to 5Cr (Luxury
segment). Launches in the < INR 25L (Budget segment) and >
INR 5Cr (Super-luxury segment) were less than 1% of the total
number of units launched.
Analyzing new launches, absorption and availability across the various segments- there is a demand for units in budget, mid-
segment and super-luxury categories. However, if the launches
continue at the same levels, there will be an oversupply
situation in the premium and luxury segments by 2014.
93% of the new launches were apartments and 7% were villas. Absorption also followed a similar trend with apartments
accounting for 94% and villas accounting for 6% of the total
absorption witnessed in H1 2013.
Among micro-markets, Bangalore North witnessed highest number of launches accounting to 20% of the total units
launched. Whitefield and ORR-Sarjapur with 18% and 17% of
total launches respectively were among the other micro-
markets to see high activity.
Nu
mb
er
of
Un
its
RESIDENTIAL MARKET OVERVIEW
Again Bangalore North, ORR-Sarjapur Road and Whitefield micro-markets witnessed highest absorption; accounting for
29%, 16% and 14% of total absorption respectively.
Off-central location of Magadi Road is witnessing renewed interest due to the availability of industrial land for
redevelopment in the inner ring city.
Bannerghatta Road, Mysore Road and Kanakapura Road witnessed subdued activity in terms of new launches.
Unit sizes ranged between 3,000 - 6,000 sqft in Central and Off-central locations. In peripheral locations like Whitefield, ORR-
Sarjapur Road, Bangalore North and Bannerghatta Road- the
average unit size ranges between 1,250 - 2,500 sqft for
apartments and 2,500 - 4,500 sqft for villas. In micro-locations
like Tumkur Road and Hosur Road where target audience is
predominantly industrial workers, the unit size range between
900 - 1,800 sqft for apartments and 1,500 - 3,000 sqft for villas.
Annual capital appreciation ranges between 5% - 25% with maximum appreciation of 25% observed in Tumkur Road, due
to Metro connectivity. Other locations that witnessed high
capital appreciation include ORR-Sarjapur Road and
Whitefield.
Annual average rental yield in Bangalore ranges between 3% - 7% with Bangalore North and Whitefield offering the best
returns of upto 7% and 6% respectively.
Segments in INR
Supply includes fresh supply for H1 2013. Absorption includes sale of fresh and unsold stock of
previous years.
PE Firm
Madison India
RE Fund Ltd.
Developer Building LocationAmount
(in million USD)
GIC (Singapore
Soveriegn Fund)
Ask Property Fund
Redfort Capital
Ask Property Fund
APG and Group of
investors
Portman Holdings
Sun Apollo
Pragnya
Shriram Land
Developers India Ltd.
Brigade Enterprises
Mantri Developers
Prestige Estates
Godrej Properties
Tata Housing
Sobha Developers
Habitat Ventures
Shriram Properties
Residential PlottedDevelopment
-
Land Acquisition
Residential
Residential
Residential
Residential
Promont
Sarjapur and
Meesaganahalli
Whitefield
Bangalore
Lal Bagh Road
-
Banashankari
Bangalore East
Bannerghatta Road
5.5
19
18.2
14
36
138
12
9.2
5
Source: www.vccircle.com
BANGALORE: REAL ESTATE MARKET REPORT
Residential sector is the most preferred Real Estate segment for investment in Bangalore. Among the prominent channels available
for funding real estate projects are construction finance from
banks, private equity (FDI compliant & domestic funds) and Non-
Banking Financial Corporations (NBFCs). Apart from these,
overseas funding for Real Estate sector include External
Commercial Borrowings (ECB). However, ECBs can be used to
fund only low-cost affordable housing projects.
Despite availability of construction finance from banks at a low cost, developers are evaluating alternate sources for financing the
project mainly due to end-use restrictions. While selecting an
investment partner, sought after parameters for the developer
include availability of funding at land aggregation stage, lesser
end-use restrictions and lower monitoring of the funds.
PE funds and NBFCs are the major channels available for financing large-scale residential developments in the city. Opening
of Real Estate sector in the year 2005 to FDI led to entry of Private
Equity (PE) funds in this sector. Until 2008 access to PE funds was
less challenging and funding was available at land aggregation
stage. However post 2009, funds prefer to evaluate projects post
land aggregation stage. PE funds today evaluate preferred /
promote return structure with Grade A developers. Also, minimum
IRR evaluated is 25%, although a few funds have exited with a
return as high as 35%.
NBFC finance through structured debt / mezzanine finance offer guaranteed returns and fixed timelines for exit. In addition,
provision of collateral including land and / or corporate
guarantees are a pre-requisite to avail funding through NBFCs.
Coupon rates for NBFC ranges between 18% - 24% depending
upon the reputation of the developer and project attributes.
Exit timelines for both PE funds and NBFCs range between 3 - 5 years.
Launch of Real Estate Investment Trust (REIT) on the Alternative Investment Fund (AIF) platform is expected to
positively impact the industry.
Table: Key PE investments in Bangalore residential market during 2011-12
PE funds have invested close to INR 1,386 Cr in Bangalore’s residential market during 2012.
--
RESIDENTIAL MARKET OVERVIEW
24
Major Roads
Outer Ring Road
NICE Ring Road
Metro Rail Operational
Major Rail Phase I Under Construction
Proposed Metro Rail Phase II
Proposed Monorail
Proposed High Speed Rail Link
Proposed Peripheral Ring Road
Elevated Express Highway Under Construction
IT/ITeS Clusters
Major Industrial Areas
Major Landmarks
Key Residential Areas
Bangalore International Airport
Peenya Industrial Area
ITPB
Electronic City
OFF-CENTRAL
BANGALORE NORTH
TUMKURROAD
MYSOREROAD
KANAKAPURAROAD
BANNERGHATTAROAD
HOSURROAD
SARJAPUR ROAD
WHITEFIELD
OLD MADRASROAD
Manyata EmbassyBusiness Park
Bagmane Tech Park
Cessna Business Park
WiproGlobal Village
Technology Park
Doddaballapur Industrial Area
Hoskote Industrial Area
KumbalgoduIndustrail Area
Bommasandra & JiganiIndustrial Area
Figure: Bangalore's Residential micro-markets
Yelahanka
Outer Ring Road
Out
er R
ing
Roa
d
Outer Ring R
oad
HSR Layout
HMT Township
NH 7: To Hyderabad
Propo
sed
Perip
hera
l Rin
g Roa
d
Proposed Peripheral Ring Road
NH 4: To Mumbai
Hebbal
BIEC
HesaraghattaCross
NIC
E Ring R
oad
NICE Ring Road
Nagawara
Banaswadi
MG Road
Krishnarajapuram
Byppanahalli
J.P. Nagar
Bangalore CityRailway Station
Rajaji Nagar
RMVExtension
Vijayanagar
Mysore Road
Kengeri
Puttenahalli
Thalagattapura
Kanaka
pura
Road
NH 209: To Coimbatore
SH 17:To Mysore
Silk Board
Gottigere
Begur
Koramangala
NH 7: To Salem
Bellandur
Brookefield
Pro
posed P
erip
hera
lR
ing R
oad
Magadi Road
PalaceGrounds
Marathahalli
Varthur
Bommasandra
Tumkur Road
Arkere
Bannerg
hatta R
oad
Hosur R
oad
NIC
E R
ing
Ro
ad
IISC
ITI
IIMB
Rajanukunte
SahakaraNagar Thannisandra
Hennur
HBR LayoutAvalahalli
Seegehalli
Haralur
Hosa Road
Dommasandra
Kothnur
Jaraganahalli
Jalahalli
Budigere
NH 4: To Chennai
Mysore Road
Old Madras Road
Indiranagar
C.V.Raman Nagar
Old Airport Road
Bel
lary
Roa
d
Whitefield Main Road
Sarjapur Road
Varthur Road
TowardsDoddaballapur Industrial Area
Doddaballapur M
ain Road
Hope Farm Circle
Jayanagar
Majestic
M
BangaloreUniversity
M
M
M
M
M
MM
M
M
M
M
M
M
M
M
M
CBD
Key Metro StationsM
Target Segment: MixedKey projects launched in H1 2013: Legacy Mycon Vuv, Total Environment’s Lost in the Greens
Type of developments: High end luxury homesSocial Infrastructure Maturity Status: High
Target Segment: MixedKey Projects: Sobha Indraprastha, Prestige Westwood, Purva Sunflower, Total Environment’s Here comes the Sun and
Assetz Lumos.
Type of developments: This micro-location mostly comprises of first ring suburbs with industrial areas that are now open for
redevelopment thereby making large land parcels available for
mixed use development.
This micro-location has witnessed the development of not just apartments, but has come up with newer concepts like sky villas
(duplex apartments with large terrace spaces) in Divyasree’s 77
East; Doublements (Twin units) Divyasree’s 77 East, row
houses and villas.
Social Infrastructure Maturity Status: High
BANGALORE: REAL ESTATE MARKET REPORT
19units launched in H1 2013
33units absorbed in H1 2013
190units available as on H1 2013
INR 7,000 - 25,000 per sqft Capital value for each class A apartments
3% - 4%Average Annual Rental Yield
11% Average Annual price Appreciation
Target Segment: Predominantly IT/ITeS employeesDemand for residential segment is highest in this micro-market due to its proximity to Outer Ring Road (ORR) – one of the most
sought after IT/ITeS hubs in India.
Key projects: Prestige Ivy Terraces, KMB La Palazzo, SJR Parkway Homes, VBD Azure, LGCL Puevlo.
Social Infrastructure Maturity Status: Medium
Central
Off Central
1,505 units launched in H1 2013
1,116units absorbed in H1 2013
3,340units available as on H1 2013
INR 5,000 - 11,000 per sqft Capital value for class A apartments
3% - 4%Average Annual Rental Yield
11% Average Annual price Appreciation
INR 11,500 - 13,000 per sqft Capital value for class A villas / row-houses
ORR - Sarjapur Road (Marathahalli to Silk Board Junction)
4,485 launched in H1 2013
11,011 units available as on H1 2013
INR 4,790 - 11,350per sqft Capital value for class A villas / row-houses
3% - 4% Average Annual Rental Yield
2,841units absorbed in H1 2013
INR 4,000 - 9,000 per sqft Capital value for class A apartments
15% - 20%Average Annual price Appreciation
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RESIDENTIAL MARKET OVERVIEW
Whitefield
Old Madras Road
5,338 units launched in H1 2013
2,479units absorbed in H1 2013
9,886 units available as on H1 2013
INR 4,200 - 8,000 per sqft Capital value for class A apartments
INR 7,500 - 11,300per sqft Capital value for class A villas / row-houses
11% - 21%Average Annual price Appreciation
4% - 6% Average Annual Rental Yield
Target Segment: Predominantly IT/ITeS employeesKey projects launched in 2013 include: Skylark Ithaca, Brigade Begonia, Rohan Avrithi
Social Infrastructure Maturity Status: HighClass B project launches were higher than Class A.
3,281units launched in H1 2013
1,387units absorbed in H1 2013
3,940 units available as on H1 2013
INR 3,300 - 5,950 per sqft Capital value for class A apartments
4% - 6% Average Annual Rental Yield
11% - 21%Average Annual price Appreciation
INR 4,000 - 5,250per sqft Capital value for class A villas / row-houses
Target Segment: Industrial workersKey Projects launched in 2013: Brigade Golden Triangle and Prestige Glenwood.
Social Infrastructure Maturity Status: LowInfrastructure: This location is strategically located between Bangalore
International Airport, Whitefield and Outer Ring Road, the three
economic magnets that will lead the economic growth in the next
5 -10 years.
The announcement of the Chennai-Bangalore expressway
connecting Hoskote will also lead to the growth of automobile,
aerospace and manufacturing sectors around Hoskote.
Currently, this location lacks water supply and social
infrastructure which is the key reason for low absorption by end
users. Absorption is mostly investor driven.
BANGALORE: REAL ESTATE MARKET REPORT
Bannerghatta Road
No units launched in H1 2013
552units absorbed in H1 2013
800 units available as on H1 2013
INR 2,100 - 6,300 per sqft Capital value for Class A apartments
3% - 4% Average Annual Rental Yield
6% - 8%Average Annual price Appreciation
INR 8,500per sqft Capital value for class A villas / row-houses
Target Segment: IT/ITeS employeesKey Projects launched in 2012: DLF Bella Greens was the only Class A project launched in this micro-market in 2012.
No new projects launched in H1 2013Social Infrastructure Maturity: High. However, travel time is an issue during peak hours.
Infrastructure: Proposed new line of Metro connecting Nagawara to Gottigere
Bangalore North
4,730 units launched in H1 2013
5,170units absorbed in H1 2013
14,011 units available as on H1 2013
INR 3,800 - 11,500 per sqft Capital value for class A apartments
4% - 7% Average Annual Rental Yield
11% - 18%Average Annual price Appreciation
INR 4,800 - 9,000per sqft Capital value for class A villas / row-houses
Target Segment: MixedKey projects: Ashed Properties’ Regency La Majada, Prestige Augusta Golf Village, Samruddhi Rhythm, Bhartiya
City - Phase II and Equinox Water’s Edge - Phase II.
Social Infrastructure Maturity Status: LowInfrastructure: This micro-location has the advantage of availability of large land parcels. The completion of physical
infrastructure projects like Elevated Expressway to BIAL,
High Speed Rail Link and operationalization of government
promoted & private industrial and / or business parks in
Devanahalli are likely to improve the long term potential for
residential growth in this market.
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RESIDENTIAL MARKET OVERVIEW
Hosur Road
Kanakapura Road
3,875 units launched in H1 2013
2,367units absorbed in H1 2013
7,494 units available as on H1 2013
INR 3,000 - 5,000 per sqft Capital value for class A apartments
4% - 5% Average Annual Rental Yield
15% - 18%Average Annual price Appreciation
INR 3,500 - 6,400per sqft Capital value for class A villas / row-houses
Target Segment: IT/ITeS employees, Industrial workersType of development: Class A developments are limited. Absorption was high in this micro-market and was next only to
Bangalore North and Sarjapur Road due to the availability of
lower priced apartment and villa projects as compared to prices
in other nearby micro-markets.
Key projects launched include Prestige Sunrise Park, Sattva Greenage - Phase II, Godrej E City - Phase II, Indya Estates - The
Greens.
Social Infrastructure Maturity Status: Medium
728 units launched in H1 2013
610units absorbed in H1 2013
4,523 units available as on H1 2013
INR 2,100 - 6,300 per sqft Capital value for class A apartments
3% - 4% Average Annual Rental Yield
10% - 11%Average Annual price Appreciation
INR 8,500per sqft Capital value for class A villas / row-houses
Target Segment: MixedKey Projects launched in H1 2013 are Golden Panorama and Mahaveer Carnation
Social Infrastructure Maturity Status: HighInfrastructure: Ongoing construction of Metro Rail Project Phase I.
BANGALORE: REAL ESTATE MARKET REPORT
Mysore Road
Tumkur Road
Target Segment: Predominantly industrialThis micro-market witnessed limited supply. Absorption was witnessed mostly in Grade A projects before NICE corridor.
Key projects launched include Provident Sunworth, VBHC Vaibhava, Gopalan Sanskriti and Kumar Properties
Princeville
Social Infrastructure Maturity Status: HighInfrastructure Projects: Metro Rail Phase I will improve connectivity to this micro-location.
2,385units launched in H1 2013
1,079units absorbed in H1 2013
1,768 units available as on H1 2013
INR 2,900 - 4,300 per sqft Capital value for class A apartments
3% - 4% Average Annual Rental Yield
5% - 6%Average Annual price Appreciation
INR 4,200 - 6,600per sqft Capital value for class A villas / row-houses
Target Segment: Industrial workersMajority of the projects launched in 2012 were in the mid-segment. However, this location also witnessed the launch of its
first luxury villa project by Godrej Properties.
Key projects launched in H1 2013 include Tata RivaSocial Infrastructure Maturity Status: HighInfrastructure: This micro-market was previously looked at as an industrial location, and is now undergoing a shift with metro
connectivity. However, in the long term, the proposal to shift units
within Peenya Industrial area and the micro-location’s proximity
to Bangalore International Airport will unlock land for commercial
Grade A developments, thereby making this location suitable for
the development of a range of residential projects.
274 units launched in H1 2013
442units absorbed in H1 2013
4,111 units available as on H1 2013
INR 2,800 - 5,000 per sqft Capital value for class A apartments
3% - 5% Average Annual Rental Yield
20% - 25%Average Annual price Appreciation
INR 8,000per sqft Capital value for class A villas / row-houses
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New project launches are likely to be in the range of 40,000 -
45,000 units whereas absorption is likely to be in the range of
33,000 - 35,000 units.
Since the announcement of additional interest benefits at the
Union Budget 2013-14 on home loans up to INR 25L for
projects within a ticket size of INR 40L, developers are likely to
come up with projects in the 25L - 40L bracket.
New project launches are expected to increase especially in
the budget and mid-segment category; however will be
subdued in the premium and luxury categories due to
availability of large number of under construction units.
Meanwhile, super-luxury projects are likely to do well in 2013.
Bangalore North, ORR-Sarjapur Road and Whitefield will
continue to witness major activity in the residential segment
with several projects already lined up for launch.
Key upcoming micro-locations include Tumkur Road and
Kanakapura Road due to improvement in infrastructure and
Old Madras Road for its strategic location and announcement
of new infrastructure projects. This will result in capital value
appreciation in these micro-locations.
Strong demand for office space in ORR and Sarjapur Road is
expected to appreciate the rental values in these micro-
markets.
The success of Integrated Townships like Brigade Gateway
and Prestige Shantiniketan, and availability of industrial land
for redevelopment in off-central locations (inner ring city)-
developers are likely to announce many more mixed-use
integrated township projects.
In terms of residential products, there exists a huge scope for
innovation in the budget and mid-segment housing. Increasing
use of technology in various aspects like design, construction,
project management, marketing and customer service is
necessary to arrive at newer products.
New brands likely to enter Bangalore residential market in
2013 include India REIT’s The Address Makers, Olympia
Group, Supertech and Sahara Group.
BANGALORE: REAL ESTATE MARKET REPORT
7.65 million sqft Total Mall space
operational in Bangalore0.5 million sqft vacancy in operational malls
0.78 million sqft is likely to enter in H2 2013
2.50 million sqft is pre-leased inunder construction malls
13.79 million sqft is under planning stage
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5.65 million sqftof mall space under-construction
0.00
0.50
2004 2013(E)
11Mall space statistics in the report are indicated in Gross Leasable Area (GLA) unless mentioned otherwise
GLA
in m
illio
n s
qft
32
Bangalore will add of 5.65 million sqft of shopping mall space by 2016
Bangalore witnessed completion of 1.29 million sqft11 of mall space during 2012; higher than Tier I cities of NCR and Mumbai.
As of H1 2013, operational shopping mall space in the city totaled
to 7.65 million sqft.
The city reported no new completion of malls during H1 2013. However, with three malls under construction, completion of 0.78
million sqft of mall space is anticipated by year end. Shopping
malls expected to enter the market during 2013 are Vaishnavi
Sapphire (0.25 million sqft) on Tumkur Road, World Market -
Phase I (0.18 million sqft) on Old Madras Road and MSR Regalia -
Elements Mall (0.33 million sqft) on Thanisandra Road.
Between 2004 and 2008, shopping mall space in the city grew at a CAGR of 8%; however, last four years 2009 - 12 witnessed
significant mall completions and the city’s mall space grew at a
CAGR of 20%.
Favourable demographics, opening-up of FDI in single and multi-brand retail and availability of large land parcels have not only led
to increase in mall space over the years but have also facilitated
development of larger malls. Until 2008, the malls were
predominantly neighbourhood and community malls with sizes
restricted between 0.35 and 0.60 million sqft while today the city
has witnessed completion of regional malls ranging between 0.75
and 0.90 million sqft.
Figure: Year-on-year increase in mall space in Bangalore
1.00
1.50
2.00
2.50
3.00
3.50
2005 2006 2007 2008 2009 2010 2011 2012 2014(E) 2015(E) 2016(E)
0.36 0.35 0.300.40
0.550.46
0.93
2.90
1.30
0.78
2.30
1.191.35
1 2 2 3 3 2 1 7 3 4 13 3
Total number of malls operational in the respective year
Vestian Estimate
RETAIL MARKET OVERVIEW
Total number of malls expected to be completed in the respective year
BANGALORE: REAL ESTATE MARKET REPORT
12CBD covers areas around MG Road, Brigade Road, Magrath Road, Richmond Road, Lavelle Road, Vittal Mallya Road, Cunningham Road, Langford Town, Brunton Road and Residency Road.13SBD Locations include areas of Indiranagar, CMH Road, Old Madras Road (till KR Puram), Banaswadi, Bellary Road, Koramangala, Kanakapura Road (till ORR), Jayanagar, JP Nagar,
VijaynagarSadashivnagar, New BEL Road, Sanjaynagar, Malleshwaram and few locations of Bannerghatta Road, Hosur Road Rajajinagar and Yeshwantpur.14Locations of Whitefield, ORR-Sarjapur, Electronics City and Hosur Road, Bannerghatta Road, Kanakapura Road, Mysore Road, Old Madras Road, Tumkur Road and Bangalore North.
SBD and PBD locations are likely to be focus areas for developments of shopping malls in next three to five
years.
The Forum (0.36 million sqft) in Koramangala, Garuda Mall (0.35 million sqft) at Magrath Road and Sigma Mall (0.18 million sqft) at
Cunningham Road are situated in Central Business District 12 13(CBD) and Secondary Business District (SBD) locations.
Growth in city’s population coupled with infrastructure projects like completion of Outer Ring Road (ORR), NICE Ring Road and on-
going metro rail project have provided impetus for development of 14retail spaces in Peripheral Business District (PBD) locations of
the city.
Further lack of availability of large land parcels in CBD of the city has fuelled development of shopping malls towards SBD and PBD
locations. Currently 4.5 million sqft of shopping mall space is
under-construction in these locations.
PBD location of Whitefield has witnessed highest mall space activity in the past few years. The micro-market accounts for 33%
of total operational mall space in the city. The micro-location is also
expected to see completion of 0.87 million sqft of mall space in
next three years. As a consequence of this large under trading
supply, the potential for retail development in this micro-location is
low. Under-construction malls in this location include Forum
Shantiniketan Mall (0.45 million sqft) and Xander Mall (0.42 million
sqft).
Based on existing, under-construction and planned malls Kanakapura Road, Bannerghatta Road, Mysore Road, Hosur
Road and Tumkur Road are in a balanced state in terms of mall
development vis-à-vis residential activity.
ORR Sarjapur Road is one of the most promising locations for development of a shopping mall due to high residential activity, low
existing mall space and no malls under construction.
Bangalore North and Old Madras Road have high potential for mall development in long term due to proposed developments in
commercial and residential sectors.
Currently, CBD, SBD and PBD locations respectively account for 10%, 42% and 48% of existing mall space and this ratio is
expected to remain the same in next three to five years. Although
PBD locations are expected to witness completions of more
number of malls than SBD locations, the latter is anticipated to
house larger malls designed mostly as regional or community
malls.
Today, shopping malls are being developed as an
integral part of a mixed-use development having an
appropriate mix of office spaces, residences and
hotels.
Continuous expansion of the city limits have led to availability of large mills / industrial land for redevelopment. These sick mills land
have facilitated development of mixed-use integrated townships
and over the years have emerged as preferred destinations for
development of shopping malls. Some of the key examples being
Brigade Orion (0.75 million sqft) on Kirloskar Factory land in
Rajajinagar, Mantri Square (0.93 million sqft) on Raja Mills land in
Malleshwaram and Salarpuria World Market (1.0 million sqft) on
BPL Factory land in Old Madras Road.
34
Bangalore mainly has shopping malls anchored around a department store / hyper-market chain and / or a
multiplex. The city offers an opportunity for development of specialty shopping malls revolving around a
theme.
Although Bangalore has the third largest High Net-worth Individual (HNI) population in the country, next only to Delhi and Mumbai, the
city has limited luxury mall space. The Collection Mall in UB City
and Leela Galleria in Hotel Leela Palace are the only available
luxury mall spaces in the city. The upcoming Galaxy Mall on
Residency Road, the luxury mall in West Court’s City View on
Bellary Road and luxury retail space within Ritz Carlton on
Residency Road are likely to add some luxury mall space in the
coming years.
Currently mall spaces are largely anchored around departmental stores or hypermarket chains. Until recent past, entertainment in
the malls was limited to multiplexes however; today it is growing to
a status of an important anchor.
The city lacks specialty malls focusing exclusively on sale of home & furnishing products, cars &auto-accessories, jewelry, electronics
& white goods. No such malls have been planned presently, but with
the Government opening FDI in multi-brand retail the city is likely to
witness entry of retail giants that will provide necessary impetus for
development of themed malls
High-street locations currently face traffic congestion, crunch in availability of parking space and lack of
unobstructed pedestrian walkways.
High-street, synonymous with a market, offers better brand visibility and rental advantage as compared to a shopping mall.
Brigade Road and Commercial Street in CBD and Indiranagar 100 thfeet Road, Malleshwaram 8 Cross, New BEL Road, Jayanagar 4th
Block and Koramangala 80 feet Road in Koramangala in SBD are
among the prominent illustrations of evolved high-streets of the city.
Among the recently developing high-street locations are Kamanahalli Main Road, Sahakar Nagar and Marenahalli Road
towards the PBD locations.
Regardless of increasing mall space; Bangalore’s high-street locations are preferred by Apparel & Footwear, Electronic goods
and Food & Beverage (F&B) retailers.
High-street expansions during 2012-13 included Delsey (Indiranagar), Baileys (Koramangala), Krispy Crème (Church
Street), Choki Dhani (Intermediate Ring Road) and Me n Mom’s
(Banashankari). Further, some of the entrant retailers namely
Starbucks coffee is currently evaluating high-street locations for
setting-up their stores in the city.
RETAIL MARKET OVERVIEW
BANGALORE: REAL ESTATE MARKET REPORT
1 G Corp 1 MG Road
Operational
6
72
3
4
5
Suraj Cambridge Mall
Embassy Galaxy MallEVA Mall
Garuda Mall
The Collection
Sigma Mall
Under Construction Planned
Operational Under Construction Planned
8
9
10
11
12
Salarpuria Oasis Mall
The Forum
Swagath Garuda
Gopalan Innovation Mall
Mantri Junction
13
14
Mantri Square
Orion Mall
15 Gopalan Signature Mall
16 Leela Galleria
17 Vega Mall Sobha Grand Mall
World GT Mall
21
18
19
Karle MallCity View
Orion Mall - 2 Nitesh Mall23
22
Operational Under Construction Planned
35
36
24
25
29
26
27
28
37
Grand Mall & TowersSoul Space Arena Gopalan Destination Mall
Virtuous Xander MallPhoenix Market City Prestige Technostar
MBD ZephyrInorbit Mall
Park Square
Forum Shantiniketan Mall
Salarpuria World Market
The Forum Value Mall
Cosmos Mall
46
47
48
38
30
39
40
Soul Space Spirit
Mantri Mall, Agara
Perk In Mall
Neo Mall
44
45
49
Royal Meenakshi Mall31
41
Gardens Galleria
32
42
Gopalan Arcade Mall
Vaishnavi Sapphire
43
MSR Regallia Elements
50
33 Gopalan Legacy Mall
34 Esteem Mall
RMZ Galleria
Mantri Mall, Kanakpura
Puravankara Mall
51
52
Lotus Mall53
Prestige Falcon City
54
55 Monarch Celestial
Century Istana High Street56
Karle Town Center
20
Raheja INXS Mall
Malls in CBD
Malls in SBD
Malls in PBD
Legend: List of existing, under-construction and planned malls in Bangalore
36
RETAIL MARKET OVERVIEW
Figure: Map of existing, under-construction and planned malls in Bangalore
Bangalore International Airport
Yelahanka
Outer Ring Road
Out
er R
ing
Roa
d
Oute
r R
ing R
oad
HSR Layout
HMT Township
NH 7: To Hyderabad
Propo
sed
Perip
hera
l Rin
g Roa
d
Proposed Peripheral Ring Road
NH 4: To Mumbai
Hebbal
BIEC
HesaraghattaCross
NIC
E Ring R
oad
NICE Ring Road
Nagawara
Banaswadi
MG Road
Byppanahalli
J.P. Nagar
Bangalore CityRailway Station
Rajaji Nagar
RMVExtension
Vijayanagar
Mysore Road
Kengeri
Puttenahalli
Thalagattapura
Kanaka
pura
Road
NH 209: To Coimbatore
SH 17:To Mysore
Silk Board
Gottigere
Begur
Koramangala
NH 7: To Salem
Bellandur
Brookefield
Pro
pose
d P
erip
hera
lR
ing R
oad
Magadi Road
PalaceGrounds
Marathahalli
Varthur
Bommasandra
Tumkur Road
Arkere
Bannerg
hatta R
oad
Hosur R
oad
NIC
E R
ing
Ro
ad
ITI
IIMB
Rajanukunte
SahakaraNagar Thannisandra
Hennur
HBR LayoutAvalahalli
Haralur
Hosa Road
Dommasandra
Kothnur
Jaraganahalli
Jalahalli
Budigere
NH 4: To Chennai
Mysore Road
Old Madras Road
Indiranagar
Old Airport Road
Bel
lary
Roa
d
Whitefield Main Road
Sarjapur Road
Varthur Road
TowardsDoddaballapur Industrial Area
Doddaballapur M
ain Road
Hope Farm Circle
Jayanagar
Electronics City
Majestic
M
BangaloreUniversity
M
M
M
M
M
MM
M
M
M
M
M
M
M
M
M
39
52
51
4050
3149
1711
53
32
33
47
48
30
16
12 10
9
8
214
3 2
23624
3529
28
2646
4544155 1
38
37
2536
18
56
55
43
42
54
34
41
22
14
13
19
2027
7
Major Roads
Outer Ring Road
NICE Ring Road
Metro Rail Phase I (Operational)
Metro Rail Phase I (Under Construction)
Metro Rail Phase II (Proposed)
Proposed Monorail
Proposed High Speed Rail Link
Proposed Peripheral Ring Road
Bellary Elevated Express way Major Landmarks
Key Residential Areas
Key Metro StationsM
Krishnarajapuram
BANGALORE: REAL ESTATE MARKET REPORT
Micro-LocationRentals on UCA
CBD
H1 2012 H2 2013
Magrath Road
Cunningham Road
Vittal Mallya Road
300
165
330
15Table: Malls and High-street Rental Value (INR/sqft/month)
350
185
395
Mall RentalsRentals on SBA
H1 2012 H2 2013% Change
195
107
215
228
120
260
17%
12%
20%
SBD
Koramangala
Malleshwaram
400
210
450
225
260
137
292
146
13%
7%
PBD
Whitefield
Bannerghatta Road
Mysore Road
Rajarajeshwari Nagar
150
180
100
110
170
200
105
115
98
117
65
72
110
130
68
75
13%
11%
5%
5%
Brigade Road
Commercial Street
Church Street
Vittal Mallaya Road
M. G. Road
450
300
160
200
300
480
320
175
225
330
360
240
128
160
240
384
256
140
180
264
7%
7%
9%
13%
10%
Koramangala 80 Feet Road
Indiranagar 100 Feet Road
Jayanagar 11th Main Road
Malleshwaram - Sampige Road
New BEL Road
Kammanahalli Main Road
130
210
245
120
130
125
130
225
255
125
140
140
104
168
196
96
104
100
104
180
204
100
112
112
0%
7%
4%
4%
8%
12%
ORR (Marathahalli - Sarjapur Road)
Bannerghatta Road
Yelahanka Main Road
100
95
90
100
100
90
80
76
72
80
80
72
0%
5%
0%
15Shopping Mall rentals indicated on UCA are for a 1,000 sqft vanilla store on Ground Floor with an efficiency of 65%. High-street rentals indicated on UCA are for 1,000 sqft store on Ground Floor with an
efficiency of 85%.
Since last year, shopping mall rentals have appreciated between 5% and 20% while high-street rentals have
appreciated between 5% and 12%.
Mall rentals have appreciated in the range of 5 - 20% in last one year. UB City on Vittal Mallya Road witnessed highest
appreciation in rentals due to lack of luxury space in the city. The
Forum in Koramangala and Garuda Mall on Magrath Road
witnessed significant appreciation in the last one year.
High-street locations over the last one year witnessed lesser appreciation compared to shopping malls. Rentals across the
locations grew in the range of 5-12%. Vittal Mallya Road, a key
high street location for luxury brands, witnessed significant
increase in rental value during H1 2012 due to limited supply of
retail space in the luxury category. Other high-street locations that
witnessed growth in rental values include Kammanahalli Main
Road and M.G. Road.
CBD
SBD
PBD
High-Street Locations
38
OU
TL
OO
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RE
TA
ILThe city is slated to add 0.78 million sqft of mall space by the
end of 2013. Total operational mall space shall account to 8.45
million sqft by the year end.
SBD and PBD locations are expected to witness significant
entry of new malls in the next three years. Close to 4.5 million
sqft of mall space is under-construction across these
locations.
Among the PBD locations ORR-Sarjapur has high potential for
development of malls in near future while Whitefield due to
high penetration of shopping malls remains less attractive.
The city offers an opportunity for development of specialty
malls that concentrate on a particular merchandise like
furniture, automobile and its accessories, entertainment and
jewelry to name a few. No such malls have been planned
presently, but with the Government opening FDI in multi-brand
retail, the city is likely to witness entry of retail giants that will
provide necessary impetus for development of themed malls.
Retail demand in high-street locations of Brigade Road and
Commercial Street is expected to strengthen with completion
of Bangalore Metro Rail. Indiranagar 100 feet Road and
Koramangala 80 feet Road will continue to be a preferred
location with F&B retailers while Jayanagar 4th Block and
Malleshwaram will be preferred by retailers focusing on
womens’ apparel and jewelry.
Mall Rentals in SBD locations are likely to increase in short
term while rentals in PBD locations are expected to remain at
current levels in coming one year.
High-street rentals are anticipated to contain past growth trend
in coming one year.
With Karnataka Government easing FDI norms for both single
brand and multi-brand retail, the retail sector in Bangalore is
poised to grow in the coming years.
BANGALORE: REAL ESTATE MARKET REPORT
HO
SP
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557 roomsadded in Bangalore in 2012
9,585 rooms at the end of 2012
324 rooms entered in H1 2013
1,157 rooms likely to enter byQ1 2014
5,190 roomsunder-construction
Hotel Name Micro-market No. of Rooms
40
The city’s hospitality market is dominated by upscale hotels; 42% of the existing room inventory is under 5
Star Category. In medium term, the city will continue to see addition of 5 Star category hotels over other
formats.
Bangalore’s hospitality sector is driven by business travelers that contributes close to 75 - 80% of the city’s hospitality demand. Leisure travelers
and Meetings, Incentives, Conferencing & Exhibitions (MICE) travelers contribute to a mere 20% - 25% of the city’s hospitality demand.
29%
Serviced Apartment
4 Star
3 Star
5 Star
42%
6%
23%
Figure: Distribution of ExistingInventory
Figure: Distribution of Under-construction Inventory
Figure: Distribution of Planned Inventory
17%
Serviced Apartment
4 Star
3 Star
5 Star
69%
7%
6%
Serviced Apartment
4 Star
3 Star
5 Star
82%
10%
18%
0%
Existing Inventory:
Bangalore’s hospitality market is dominated by upscale 5
Star category hotels. Nearly 42% of the total existing room
inventory falls under this category. Mid-segment hotels
have started penetrating the market only post 2008 and
currently accounts for a mere 23% of the existing inventory.
Branded serviced apartments contribute to 6% of the
existing inventory.
In the year 2012, 557 rooms entered the city’s market.
Sheraton (230 rooms) at Rajajjnagar and Vivanta by Taj
(327 rooms) at Yeshwantpur commenced operations in
2012. However, this is only 30% of the rooms that were
slated to enter the market in 2012. Ritz Carlton on
Residency Road, JW Marriott in UB City deferred their
construction schedules. H1 2013 witnessed completion of
Hotel Marriott (324 rooms) in Whitefield.
Upcoming and Planned inventory:
Going forward, the hospitality market will continue to be
dominated by 5 Star category hotels as of the 5,524 rooms,
nearly 4,000 rooms are under this category.
By Q1 2014 Bangalore is likely to witness entry of 1,157
rooms, of which 65% are in 5 Star Category.
Table: List of Hotels likely to enter Bangalore market in 2013-14
CategoryLocation
Fairfield by Marriott
Hilton Residences
Taj Gateway
Marriott
Double Tree Suites by Hilton
Rajaji Nagar
Inner Ring Road
Bannerghatta Road
Devanahalli
ORR - Sarjapur
SBD
SBD
SBD
PBD
PBD
140
251
210
307
172
5 Star
4 Star
Business
4 Star Serviced Apartments
5 Star Serviced Apartments
HOSPITALITY MARKET OVERVIEW
BANGALORE: REAL ESTATE MARKET REPORT
PBD locations account for nearly 48% of the total room inventory. Currently of the total 5,190 rooms under-
construction, PBD is expected to see an entry of 3,471 rooms.
Based on the micro-markets, CBD accounts for 3,582 operational hotel rooms. The location, due to its proximity to the
city center and high land prices is preferred for development of 5
Star category hotels. Currently, nearly 70% of the existing
inventory is under 4 and 5 Star category hotels. In medium term,
this micro-market will continue to see entry of 5 Star category
hotels; 1,098 rooms under this category are expected to enter
the market by 2015 - 16. Ritz Carlton (267 rooms), JW Marriott
(318 rooms) commenced operations while Hilton (285 rooms) is
presently under-construction in this region.
SBD locations account for a mere 1,923 rooms. This location has witnessed development of a hotel as a part of mixed-use
development having an office, residential and / or a shopping
mall within a development. Key illustrations being Sheraton in
Brigade World Trade Center, upcoming serviced apartments -
Hilton Residences by Hilton Group in Embassy Golf Links and
upcoming 5 Star hotel in Mantri Group’s proposed integrated
township at Agara.
PBD tops the chart with 5,144 operational hotel rooms. Proximity to IT micro-markets of ORR, Whitefield and Electronics City has
led to development of branded 3 Star category / business hotels
and branded serviced apartments as compared to CBD or SBD
locations. Some of the prominent national and international
operators with presence in this area include Novotel and IBIS by
Accor, Marriott by Marriott Group, Lemon Tree Hotel by Lemon
Tree Group of Hotels, Premier Inn by Premier Inn Group and Aloft
by Starwood Group of Hotels. With 3,471 rooms in various stages
of construction, PBD is likely to have the highest inventory in the
city in the near future.
CategoryCBD SBD PBD
4 Star
5 Star
Total
Existing U/C Planned Existing U/C Planned Existing U/C Planned
807
1,192
1,289
3,582
30
-
1,068
1,098
-
-
-
-
179
186
1,404
1,923
140
-
230
621
-
-
-
-
1,734
1,455
1,727
5,144
194
988
2,117
3,471
125
-
1,412
1,712
Table: Bangalore's Existing, Under-construction and Planned Hotel Room Inventory
3 Star
Serviced Apartment 294 - 154 251 - 228 172 175
Total
2,930
4,100
9,246
1,274
17,551
-
42
Among the PBD locations, ORR-Sarjapur Stretch and Whitefield are preferred locations by hotel operators
mainly due to its proximity to IT clusters while Tumkur Road and Bangalore North have gained prominence
owing to its proximity to Bangalore International Airport.
LocationNo. of Hotel Rooms
Whitefield
ORR-Sarjapur
Tumkur Road
Existing U/C Planned
5,144
2,129
1,058
662
3,471
1,160
984
-
502
1,712
700
-
Table: Bangalore's Hotel Room Inventory in PBD locations
PBD
Bannerghatta Road - 215 -
Bangalore North
Hosur Road
31
1,264
1,112
-
510
-
ORR-Sarjapur Road accounts for nearly 30% of the total operational IT/ITeS space in the city. This location has witnessed
increased penetration by hotel operators in the last two years
due to high commercial activity across this corridor. Some of the
prominent hotels in this location are Novotel and IBIS by Accor
and Park Plaza by Carlson Rezidor Group. Apart from the
operational hotels, Aloft by Starwood Group, Courtyard by
Marriott and Double Tree Suites by Hilton are among the
upcoming hotels in this micro-market. However, room inventory
in this micro-market is not sufficient to cater to the demand of this
micro-market.
Whitefield currently accounts for more than 40% of the operational rooms in PBD locations. This micro-location also has
a significant under-construction and planned inventory, which is
likely to enter in medium term.
Hosur Road has sufficient existing inventory to cater to the demand. With office development in Electronics City almost
nearing saturation, the potential for developing hotels in this
micro-location is low.
Tumkur Road is emerging as a preferred location for hotels due to its proximity to Bangalore International Airport and CBD
locations. Further, proximity to business hubs like Brigade
World Trade Center, Manyata Embassy Business Park,
Bangalore International Exhibition Center (BIEC) and industrial
areas of Peenya and Nelamangalais are make this an attractive
location. Vivanta by Taj and Golden Beach Palm Resorts are
among the major operational hotels in this location. However,
almost all hotels that are operational in this micro-location are in
the upscale categories. The micro-market has an opportunity
for development of branded 3 Star category hotels.
With Bangalore International Airport commencing operation in 2008, several hotel projects have been announced in the
Bangalore North micro-market. Currently 1,112 rooms are
under construction and are likely to enter the market in the next
24 months. However, this location has high potential for hotel
development in the long-term due to the proposed economic
hubs. Leela Ventures is coming up with a 300 room 5 Star hotel
in Bhartiya City on Thanisandra Road.
HOSPITALITY MARKET OVERVIEW
BANGALORE: REAL ESTATE MARKET REPORT
1 Royal Orchid Central
2
3
4
5
Lemon Tree Premier
The Hilton
Hyatt
Taj Vivanta
6
Royal Orchid7
8
9
10
The Leela Palace
Matthan
Hilton Residences
The Oberoi
11 Ginger
12
13
14
15
Ritz Carlton
JW Marriott
ITC Gardenia
JNR IBIS Citi Centre
16
The Taj West End17
18
19
20
Viceroys
Shangri-La
Le Meridien
The Atria
21 ITC Windsor
22
24
25
The Lalit Ashok
Sarovar Portico
Fairfield by Marriott
Sheraton
26 Movenpick
27
28
Taj Vivanta
Ascott
The Wyndham Grand
30 Marriott
31
32
33
34
Hotel Trident Hilton
Howard Johnson
Hyatt Place
Swissotel
35
MBD Zephyr
37
38
39
Keys Hotel
Ginger
Sheraton
Zuri
40 Aloft
41
42
43
44
Marriott
Taj Vivanta
Royal Orchid
Alila
45
Aloft46
47
48
49
Novotel and IBIS
Citrus
Double Tree Suites by Hilton
Park Plaza
Planned Hotel (Mantri Group)
51
52
53
54
Davanam Sarovar Portico
Courtyard by Marriott
The Gateway by Taj
Keys Hotel
55
Lemon Tree Hotel56
Crowne Plaza
36
50
23
29
Operational Hotels Under-Construction Hotels Planned Hotels
List of Key Hotels in Bangalore
Legend: List of existing, under-construction and planned hotels in Bangalore
44
Operational Hotels
Under-Construction Hotels
Planned Hotels
Figure: Map of existing, under-construction and planned hotels in Bangalore
Bangalore International Airport
Yelahanka
Outer Ring Road
Out
er R
ing
Roa
d
Outer Ring R
oad
HSR Layout
HMT Township
NH 7: To Hyderabad
Propo
sed
Perip
hera
l Rin
g Roa
d
Proposed Peripheral Ring Road
NH 4: To Mumbai
Hebbal
BIEC
HesaraghattaCross
NIC
E Ring R
oad
NICE Ring Road
Nagawara
Banaswadi
MG Road
Krishnarajapuram
Byppanahalli
J.P. Nagar
Bangalore CityRailway Station
Rajaji Nagar
RMVExtension
Vijayanagar
Mysore Road
Kengeri
Puttenahalli
Thalagattapura
Kanaka
pura
Road
NH 209: To Coimbatore
SH 17:To Mysore
Silk Board
Gottigere
Begur
Koramangala
NH 7: To Salem
Bellandur
Brookefield
Pro
pose
d P
erip
hera
lR
ing R
oad
Magadi Road
PalaceGrounds
Marathahalli
Varthur
Bommasandra
Tumkur Road
Arkere
Bannerg
hatta R
oad
Hosur R
oad
NIC
E R
ing
Ro
ad
IISC
ITI
IIMB
Rajanukunte
SahakaraNagar Thannisandra
Hennur
HBR LayoutAvalahalli
Seegehalli
Haralur
Hosa Road
Dommasandra
Kothnur
Jaraganahalli
Jalahalli
Budigere
NH 4: To Chennai
Mysore Road
Old Madras Road
Indiranagar
C.V.Raman Nagar
Old Airport Road
Bel
lary
Roa
d
Whitefield Main Road
Sarjapur Road
Varthur Road
TowardsDoddaballapur Industrial Area
Doddaballapur M
ain Road
Hope Farm Circle
Jayanagar
Electronics City
Majestic
M
BangaloreUniversity
M
M
M
M
M
MM
M
M
M
M
M
M
M
M
M
56
55
54
53
4952
51
50
44
46
48
45
47
34
3335
39
40
4241
38
37
36
438
9
7
10
12
11
14
13
15
2416
456
17
23
22
18
21
25
27
30
31
29
28
32
26
20
19
1
2 3
HOSPITALITY MARKET OVERVIEW
Major Roads
Outer Ring Road
NICE Ring Road
Metro Rail Phase I (Operational)
Metro Rail Phase I (Under Construction)
Metro Rail Phase II (Proposed)
Proposed Monorail
Proposed High Speed Rail Link
Proposed Peripheral Ring Road
Bellary Elevated Express way
Major Landmarks
Key Residential Areas Key Metro StationsM
BANGALORE: REAL ESTATE MARKET REPORT
CategoryCBD SBD PBD
4 Star
5 Star
Rack Rate Discount Offered
5,000
7,900
4,000
20%
11%
16%
5,650
8,000
5,350
20%
14%
14%
4,000
7,700
2,000
24%
20%
30%Serviced Apartment
Rack Rate Discount Offered Rack Rate
Table: Hotel Rack Rates in Bangalore
3 Star 4,200 28% 3,700 36% 3,600 25%
Management Contract is the most preferred model by International and National Hotel Operators.
Currently, management contract is the most preferred model by the international and national hotel operators. In this model, the
landlord / developer undertakes the land acquisition,
construction and fit-out of the hotel and the hotel operator
manages the operation of the hotel, in return paying a
management fee on top-line and bottom-line revenues.
Hotels are bringing in external brands of restaurants, spas and lounges on leases or management contracts in order to increase
revenue generation.
Bangalore is also witnessing the development of hotels as part of mixed use developments with residential, commercial, retail and
hospitality in the same project. Key examples include the
Sheraton Hotel in Brigade Gateway (Rajajinagar), JW Marriott in
UB City (Vittal Mallya Road), Four Seasons Hotel in City View
(Bellary Road) and Fairfield by Marriott in Sumangala Golden
Heights (Rajkumar Road).
International Hotel operators today are also exploring opportunities to acquire existing hotels and re-brand these under
their parent companies. Hyatt Hotels Corporation signed
management agreement with Indian Hotels and Health Resorts
(IHHR) and rebranded five Ista Hotels in India including Ista in
CBD location of Bangalore.
Figure: Average Occupancy Levels and Room Rates (INR/night) in Bangalore
0
2,000
4,000
6,000
8,000
10,000
12,000
Room Rate
16
5 Star
Ro
om
Ra
te (
INR
/ R
oo
m /
Nig
ht)
58%
Average Occupancy Levels
50%
16
Occ
up
an
cy L
eve
ls
Average occupancy rate in branded hotels across Bangalore ranges between 56% and 59%.
4 Star 3 Star
7,867 4,883 3,833
55%
60%
65%
70%
75%
Occupancy rates for 5 Star category hotels in the city range between 55% and 60%. Further, occupancy rates in 5 Star
category hotels are higher in CBD and SBD locations as
compared to PBD locations.
Lower occupancy rates in 3 Star category hotels is due to two main reasons; firstly not all the 3 Star hotels are managed by
branded operators and secondly most of 5 Star & 4 Star hotels
have long-term corporate tie-ups that impact the demand
supply dynamics.
Discount Offered
59%
56%
46
OU
TL
OO
K -
HO
SP
ITA
LIT
Y
Majority of the under-construction and planned projects are
under the 4 Star and above categories. However, there is still a
demand for 3 Star and business category hotels in PBD
locations in and around economic hubs.
Occupancy levels and average room rates are likely to fall with
an addition of 1,157 rooms by Q1 2014. However, in the long
run economic growth is likely to increase demand for hotel
rooms.
Active micro-markets in the short to medium terms are CBD
and ORR, whereas Bangalore North has potential for hotels in
the long term.
Management contract will be the preferred development model
for hotels in the short to medium term.
Serviced apartments and company hotels or guest houses
have immense potential to grow.
BANGALORE: REAL ESTATE MARKET REPORT
Opportunities across Real Estate Sector in Bangalore in the short term
OFFICE
RESIDENTIAL
RETAIL
HOSPITALITY
48
ORR being one of the most preferred micro-market will remain a promising
location for development of office space in short to medium term. Further,
with availability of land for redevelopment in CBD and SBD locations, there is
a scope for development of office spaces in these locations.
Bangalore has witnessed significant launches in the ticket size of INR 1 crore
and above. Demand for mid segment (ticket size of INR 25L - INR 50L)
continues to remain buoyant across the city. Some of the locations that have
an opportunity for development of this product type include Kanakapura
Road, Sarjapur Road (after Railway Crossing), Hosur Road and
Bannerghatta Road.
With most of the malls being anchored around a department store and / or a
hyper-market / super-market chain, the city has opportunity for development
of a specialty mall focusing exclusively on sale of home & furnishing products,
cars & auto-accessories, jewelry, electronics & white goods.
The city’s hospitality sector is currently dominated by the 4 and 5 Star
category hotels. There is scope for development of branded 3 Star hotels. In
coming years, integrated township projects would be preferred development
spheres instead of single-use projects.
OP
PO
RT
UN
ITIE
S
BANGALORE: REAL ESTATE MARKET REPORT
Micro-Markets Areas covered within the micro-markets
OFFICE
SBD
ORR
CBD
PBD
Bangalore North
M.G. Road, Kasturba Road, Lavelle Road, V.M. Road, Ulsoor Road, Residency Road, Infantry Road.
Indiranagar, Koramangala, Inner Ring Road, Old Airport Road, Bannerghatta Road.
Stretch from Hebbal to Silk Board junction.
Whitefield, Electronics City, Mysore Road, Bellary Road, Sarjapur Road.
Bellary Road (Hebbal to BIAL).
RESIDENTIAL
Off-Central
ORR
Central
Whitefield
Old Madras Road
MG Road, Kasturba Road, Brunton Road, Lavelle Road, Richmond Road, Residency Road, Frazer
Road, Cox Town and Hanes Road.
Indiranagar, Koramangala, Jayanagar, JP Nagar, Malleswaram, RMV Extension, Sanjay Nagar, RT
Nagar.
HSR Layout, ORR (Marathalli - Silk Board Junction), Sarjapur Road, Haralur Main Road,
Kasavanahalli Main Road.
Whitefield, Brookefield, Mahadevpura, ORR (K.R.Puram to Marathahalli), Varthur Road
Bangalore North
Hosur Road
Bannerghatta
Road
Mysore Road
Kanakapura Road
Tumkur Road
K.R. Puram, Ramamurthy Nagar, Battarahalli, Sonnenahalli, Hirandahalli, Budigere, Devanahalli-
Hoskote Road
Banaswadi, HRBR Layout, Hennur Road, Thanisandra Main Road, Bellary Road, Yelahanka, Kogilu,
Chokkanahalli, Bagalur Road, Doddaballapur Road, New Town Yelahanka, Jakkur
Hosur Main Road, Electronics City, Neeladri, Chandapura, Anekal
Bannerghatta Road, Begur, BTM Extention
Mysore Road, Kengeri Satellite Town, Vijayanagar, Magadi Road, RR Nagar
Kanakapura Main Road, Banashankari Extension and Uttarahalli
Tumkur Road, Rajajinagar, Hesarghatta, Jalhalli, HMT Township, Yeshwantpur
RETAIL & HOSPITALITY
SBD
CBD
PBD
M.G. Road, Brigade Road, Magrath Road, Richmond Road, Lavelle Road, Cunningham Road,
Langford Town, Brunton Road and Residency Road.
Indiranagar, CMH Road, Old Madras Road (till K.R.Puram Bridge), Banaswadi, Bellary Road (till
ORR), Koramangala, few locations on Bannerghatta Road and Hosur Road (till Silk Board Junction),
Kanakapura Road (till ORR), Jayanagar, JP Nagar, Vijayanagar, Sadashiv Nagar, New BEL Road,
Sanjay Nagar, Malleswaram, Rajajinagar and Yeshwanthpur.
Peripheral locations of Whitefield, ORR - Sarjapur, Electronics City and Hosur Road, Bannerghatta
Road, Kanakapura Road, Mysore Road, Old Madras Road, Tumkur Road and Bangalore North.
LO
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50
Strategic Advisory
Vestian Global Workplace Services’ Strategic Advisory Group is the Research arm of Vestian. They align business
strategies of corporate clients with their real estate portfolio strategy. Property market intelligence, economic, urban &
space planning principles and analytical methods all come together to provide strategic insights to real estate
occupiers. This approach guarantees recommendations that are thorough and meets not only the needs of today, but
of the future as well. We primarily cater to Developers, Builders, Investors and Occupiers.
Our studies span a spectrum of sectors:Commercial, Residential, Industrial, Institutional, Hospitality.
Retail Business Solutions
Vestian Retail Business Solutions is the full-service retail arm of Vestian. We work with each client to understand their
objectives, keep them informed of associated risks, establish achievable goals, develop and implement effective
solutions. Vestian Retail Business Solutions provides end-to-end services such as Retailer Expansion Strategy, Real
Estate Services, Occupier Representation, Retail Concept Development & Consulting and Retail Project
Management.
Project Services
The Vestian Project Services team is a one-stop solution for clients opting for Project Management solutions. We are
focused on delivering functional facilities that meet the clients’ space requirements. We provides supervisory &
coordination services to the client. We deliver consistent, reliable and viable solutions for local and international
markets. Our delivery process involves Preparation of Design documents, Co-ordination with Architects &
Consultants on design, Finalization of Vendors, Supervision of the project, Project Closure
Facilities Management Services
Vestian’s Facilities Management Services team helps clients focus on their core business activities while supporting
the entire facility. We act on behalf of the client to preserve the value of the property, while generating income. We
effectively oversee property performance and maintenance following international best practices, using high end
technology and precision processes. We manage &supervise the administration of residential, commercial, retail
and/or industrial real estate.
Transaction Advisory
Vestian’s competent Transaction team provides an array of services focused on optimizing workplace solutions that
enhance the client’s workplace services portfolio. We handle varied workplace related transactions such as
purchase, lease, disposal, lease management, lease renegotiations and restructuring. We provide solutions that are
aligned to the business objectives of our clients.
Vestian Global Workplace Services, an ISO 9001:2008 certified workplace services firm, specializes in providing
occupier-focused solutions for commercial, residential, industrial, retail and hospitality sectors. Our service portfolio
includes Strategic Advisory, Retail Business Solutions, Transaction Advisory, Integrated Service Delivery, Project
Services and Facilities Management Services.
We measure key deliverables of our business and align it to the clients’ strategic business goals. Our commitment to
achieve excellence and consistency in our service delivery models has helped us attain high standards of quality and
raised the bar for the industry.
Our experienced team has the required expertise and exposure in different sectors. Combining global best practices and
local knowledge, the team provides an integrated solution for all real estate requirements. Moreover, the belief in our
corporate philosophy - Delivering Measurable Results - helps us in providing solutions in keeping with global delivery
standard.
ABOUT VESTIAN
BANGALORE: REAL ESTATE MARKET REPORT
Michael serves as Chairman and is responsible for strategic oversight. He is a recognized
leader in the field of workplace services. He has established and led the growth of a large
occupier focused services corporation.
In 2006, he received the Ernst & Young "Entrepreneur of the Year" Award. He is also an
active member of the YPO (Young Presidents' Organization) and WPO (World
Presidents' Organization).
Michael SilverChairman, Vestian
Shrinivas Rao, MRICSCEO - Asia Pacific, Vestian
Shrinivas serves as Chief Executive Officer for Asia Pacific arm of Vestian. With over 20
years of experience in working with global clients throughout India, he is well-versed in
delivering solutions that work in India's very challenging workplace services markets.
Amongst the pioneers of professional workplace consulting services in India, he
successfully established and led operations of three multinational corporations in India.
He is widely recognized as a "change leader", known for his keen insights into workplace
services trends and innovative structuring services.
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NA
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As a part of Strategic Advisory Group, Dhara contributes to property market reports,
research papers as well as client assignments. She has 6 years of experience and has
worked on investments and consultancy assignments across commercial, residential,
hospitality, retail and industrial sector. She holds an engineering degree with M. Tech in
planning from CEPT University, Ahmedabad.
Dhara Dalal
Sr. Manager, Strategic Advisory Group
dhara vestianglobal.com +91 80 40620100
Shwetha has over 8 years of experience in real estate research and consultancy. As an
account manager for key residential focus clients at Vestian, she is responsible for
developing and implementing customized research, corporate strategy and project
conceptualization. A qualified urban planner from the School of Planning & Architecture
(SPA), New Delhi, she has worked in both Indian and US markets.
Shwetha H Pai
Associate Director, Strategic Advisory Group
shwetha vestianglobal.com +91 80 40620100
Gorakh serves as Vice President and heads the Strategic Advisory Group. He guides the
team and is responsible for research output as well as client assignments. With over 10
years of work experience in investments, consulting and advisory domain, he has
executed and delivered assignments across asset classes. Gorakh pursued his master’s
degree from Indian Institute of Technology, Delhi and holds a bachelor’s degree in
Architecture.
Gorakh Jhunjhunwala, MRICS
VP, Strategic Advisory Group
gorakh vestianglobal.com, +91 80 40620100
@
@
@
Acknowledgment
The Vestian Strategic Advisory team would like to take this opportunity to extend our
gratitude towards all those who have helped us in our endeavor to produce this report.
We would like to especially thank the developers in Bangalore who have extended their
valuable support and market information to help us ensure authenticity of this report. A
special mention for our Corporate Communications Team, as well as Shailendra H C,
Sneha Sharma, Chandra Mohan Reddy and Manoj Joseph for their continued support &
cooperation. Our sincere thanks to Ramalekshman - Asst.Manager, Corporate
Communications for designing the report.
AUTHORS
BANGALORE: REAL ESTATE MARKET REPORT
USA
India
China
UAE
Srilanka
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DISCLAIMER: This report contains information available to the public and has been relied upon by Vestian Global Workplace Services on the basis that it is accurate. Vestian
accepts no responsibility if this should prove not to be the case. No warranty or representation, expressed or implied, is made to the accuracy or completeness of the information
contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions and withdrawal without notice.
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