Real estate in Bangalore East

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Research Report on new and upcoming projects in Bangalore East

Key Favorable Factors for investing in Bangalore East localities:

• CONNECTIVITY TO THE IT HUBS, CITY CENTER and AIRPORT • QUALITY OF RESIDENTIAL PROJECTS • APPRECIATION POTENTIAL

Bangalore is the only city, amongst the top 8 cities of India, where buyers continue to exhibit positive sentiment towards investing in properties, be it apartments, villas or plots. It has witnessed a 17% increment as per a leading publication’s property index. One of the key regions to have witnessed tremendous commercial and residential development in the last few years is Bangalore East. Residential pockets of Varthur, Brookefields, Kadugudi Road, Whitefield, Old Madras Road, Budigere Cross are witnessing a supply of large apartment units and gated villa properties and are turning into Bangalore’s fastest-developing micro-markets. The major driver has been IT and ITES related development, and its demand for commercial space. The landscape of this region has changed dramatically in the last decade, turning some of these locations into self-sustaining neighborhoods today. According to a recent article in the newspaper, ‘Bangalore witnessed an absorption of 33,988 residential units in 2012, of which the lion’s share of 45-50 per cent was seen in Bangalore East.’ Given below is a comparison of average pricing trends across five key development regions in Bangalore over the last twelve months. Kin Housing believe that property pricing across Bangalore East have held steady and are poised for growth as the pricing continues to fit comfortably with the average home buyers budget. Many investors view this as an opportunity to buy before the next boom. Connectivity The stretch from Vartur upto Hoskote almost has witnessed massive growth in infrastructure in terms of connectivity. The ‘signal-free ORR’ stretching all the way from Silk Board junction to Hebbal and linking Electronic City to Whitefield is the major highlight of the eastern quadrant. The KIADB Road, Whitefield Main Road and Marathahalli Bridge have been responsible for bringing growth to this region. Whitefield, for example, is well connected to the rest of the city via the four-lane Whitefield Road, four-lane Vathur Road, ITPL Road and Old Madras Road. Budhigere Junction on Old Madras Road, is the other region in this quadrant seeing a lot of new developments. Located 12kms from ITPL, 18kms from CBD and about 40kms from Bangalore International Airport, it seems to be the ideal residential location for the upwardly mobile tech employee. The State government has recently given a go ahead for the construction of a state-of-the-art peripheral ring road around Bangalore at a cost of Rs. 5,800 crore. This eight-lane peripheral ring road will connect Tumkur Road, Hessargatta Road, DB Pura Road, Bellary Road, Hennur Road, Old Madras Road, Whitefield Road, Anekal Road, Sarjapur Road and Hosur Road. Land acquisition for this multi crores project is ongoing. The phase two extension of the Metro from Byappanahalli to Whitefield, with stations in Kundalahalli, ITPL and Kadugodi Industrial Area in between, will link this region to the rest of the city. Whitefield railway station, located on the Bangalore-Chennai route, is in the Kadugodi area. The station is slated to become a junction with a new Whitefield-Kolar line being laid. All this will only further improve connectivity to this region. Development Bangalore East is home to many IT Hubs with resident firms like HCL, Accenture, IBM, Capgemini, Tesco, TCS, Society General, GE and SAP etc. Following the success of the IT hubs in this region, several large retail establishments, educational institutions, healthcare facilities and other varied service providers have established base in this region. Some of the shopping malls and


department stores in this area are Big Bazaar, Cosmos Shopping Mall, Hyper City, More, Forum Value Mall, Inorbit, Phoenix Market City and Park Square. Premium educational institutes and play schools such as Gopalan National School Ryan International School, Vibgyor, The International School of Bangalore, Indus Valley Residential School, New Baldwin International School, Neev, Euro Kids are just some of the options available for children residing in this area. Some of the best healthcare institutions of the city such as Shankar Eye Hospital, Sai Baba Hospital, Vydehi Hospital and Columbia Asia hospital have facilities here. Best of hospitality properties such as Taj Vivanta, Zuri, Marriott, Oakwood Premiere, etc. have already marked their presence in this neighborhood. Over the last five years, these substantial infrastructure and social developments have enhanced the land value of the region, attracting developers to plan extensive residential projects. Target Segment and Demand According to recent studies, the IT and ITeS sectors' bull grip on Bangalore's residential real estate market has dramatically loosened over the past five years. The sales contribution from non-IT sectors has surged past the halfway mark for most city-based developers. For Mantri Developers, non-IT professionals contribute 60% of its sales. Likewise for Shriram Properties the revenue contribution of the non-IT sectors stands at about 55% now. Five years ago, the revenue contribution from the IT sector stood at 70%, which now stands at around 45%. Sectors such as manufacturing, banking and financial services, automobile and aerospace are propelling the growth share of the non-IT segment. The changing consumer profile of the city's real estate market, which clocks average residential sales of 35,000 units a year, is also reflected in the share of office space absorption by the non-IT sectors. Previously IT/ITes professionals largely drove demand for residential property in Bangalore East locations, as proximity to work place was a key decision making factor. It is also expected that the IT sector in Bangalore alone will continue to add over 100,000 employees annually over the next few years, so this large and affluent segment cannot be ignored. That said, with several high quality residential projects on offer from new and brand named developers and vast improvements in the social infrastructure, these areas are witnessing renewed interest from buyers from all walks of life. Homebuyers in Bangalore are opting for well maintained gated communities that provide various amenities and facilities required for a high quality way of living and breathing space with an enhanced green cover. This region continues to be attractive to the NRI community, especially for the high-‐end apartments and villa units. The depreciation in rupee rate over the last several quarters has ensured investments in the new properties. And given that prices in NCR and Mumbai have sky rocketed and out of reach for many investors, Bangalore also presents a unique investment opportunity for these and other Indian investors. Pricing Trend and Appreciation Potential A PE research note, shared by international property consultants Vestian Global, showed that Bangalore accounted for five out of a total of nine investor exits in the April to September period, giving them an average internal rate of return (IRR) of 23.5%. Interestingly, all exits pertained to residential developments, indicating a stable end user driven market in Bangalore. Some of the new properties launched in Bangalore East have already sold out 35%-60% units within six months of launch. This shows demand and propensity to consume. The demand and supply equilibrium indicates steady price growth and rental returns. This will only lead to an increase in the end user occupation of new projects, which meanwhile provides an attractive investing opportunity to individuals. Some of the under construction projects in this vicinity have seen rates increase by 10% to 48% since launch. Just to give an example, Prestige Tranquility was pre-launched in December 2011 at Rs. 2600 per sq ft is now selling at Rs. 4000 per sq ft. That is a 48% jump in price over 24 months. Pashmina Waterfront, located on Old Madras Road, was pre-launched in June 2012 at Rs. 2950 per sq ft and is now selling at Rs 4400 per sq ft, an increment of almost 50% in 1.5 years. It is expected that the average annual capital appreciation in this region will be around 13 per cent for the next 3-5 years, while the average yield on rental rate is expected to hover around 4%-6%. Upcoming Projects The upcoming projects offer residential units of all categories suiting various budgets giving the buyer a variety of options to choose from thus meeting various ticket sizes. Premium villas to one bedroom and studio apartments, there is something for everyone. The average entry price today at Rs. 4100 per sq ft is slightly higher as compared to some of the other locations in South Bangalore, however one can expect a good return on investment in 36-48 months.


We at Kin Housing have highlighted ten key new and under construction projects for your quick reference and highlighted our recommendation as the showcase project of this region. We have made an effort to cover projects at various budgets and type of dwelling. We have largely chosen to cover projects by branded developers for the following reasons:

-‐ Projects eventually command a premium price over competition

-‐ Enjoy better liquidity

-‐ Assurance of developer's good track record of transfer of clean title

-‐ Timely project completion

-‐ Safety of booking advance

Note: Rates are indicative of transactions recorded and available for the micro market. Individual properties may witness transactions at higher or lower rates as there are several variables influencing rates. We advise clients to make their own analysis before taking a decision.


Showcase Project: Prestige Lakeside Habitat

About the Project Prestige Group has pre-launched it's talked about Lakeside Habitat project in Gunjur on the Varthur-Sarjapur main road. The upcoming project is spread over 8.4 million sq ft on a 120-acre site and comprises of apartments and villas of various sizes.

This Disney themed township has 3426 Apartment Units and 271 English Villas. Prestige has obtained copyrights from Disney to theme this project. Club houses, fountains, road names will be named after Disney brands. Children rooms can be furthur customized on Disney theme. The pre-launch price offer starts at Rs. 4770 per sqft for an apartment and Rs. 7650/sqft for a villa. About the Developer One of South India’s leading property developers, Prestige has under its belt about 168 completed projects and 59 ongoing projects. It's a publicly listed and professionally managed company with a strong balance sheet. Generally most Prestige properties are low risk and are usually completed on time. Project Schedule The project was pre-launched on 20th October 2013. The official launch is expected on 18th January 2014 and the project is expected to be ready for possession by mid 2018.


Location

The project is located on the Sarjapur-Whitefield Main (SH-35) road at Gunjur, about 2.5kms from the Varthur junction. It is right opposite the Chrysalis High School. It is less than 20 minutes drive to all major IT parks in the area. It is also located close to several international schools in the vicinity. It is also about 4kms away from White field Forum Value Mall, 6.5kms from Wipro corporate office, 4kms to Sigma Tech Park, 20kms to Electronic City, 8 kms from ITPL and 7 Kms from Outer Ring road. Prime educational institutions within 5 kms range are Greenwood High, Chrysalis High School, Inventure Academy, Global Indian International School, Greenwood High International and India International School. Schools within the 10kms radius include Delhi Public School, Ryan International, Euro School and Neev. Hospitals like Vydehi hospital, Whitefield Saibaba hospital, Apollo Hospital, Yashomati, upcoming Columbia Asia hospital, etc. are easily accessible and make this location the most preferred area for residents. The project is accessible by a two-lane road, which is in fairly good condition. Though being a state highway it is also the route that is utilized by heavy goods vehicles. Future plans by the BDA include widening this road, as it will be key to providing accessibility to the peripheral road proposed. The location also has the advantage of being situated close to two lakes thus ensuring that the ground water table will remain favorable. There are some smaller projects started by local developers in the vicinity but nothing in the scale and scope of the Prestige Lakeside Habitat. And as such Prestige enjoys a first mover advantage in this area. It is only expected that other branded developers will soon follow suit depending on the land availability situation. Layout Plan


This project will have 80% open space. Given the size and scope of the property, one can expect magnificent views of the proposed Disney themed landscaping and gardens or the surrounding natural habitat including the majestic Varthur Lake. Apartment and Villa Configuration and Layout - Apartment types - 2BR, 2BR+Study, 3BR, 4BHK - Size

2 BHK : 1100-1350, 2000 sqft 2.5 BHK : 1350 sq ft 3 BHK : 1650-2321 sq ft 3 BHK DUPLEX : 2210 sq ft 3 BHK with Family : 2485,2538 sq ft 4 BHK : 2830,2882 sq ft

- Villas -type and size

Arista : Type1: 3130 sq ft , Type2: 3117 sq ft


Baylene: Type1: 4003 sq ft , Type2: 4033 sq ft

Clara: Type1: 4934 sq ft , Type2: 4827 sq ft

The model flat is under construction and as such it is difficult to review the quality of finishing and overall layout of the proposed flats. From the plans it is evident that the room sizes are fairly large and positioning of the various rooms are appropriate. Ceiling heights of 11 feet is proposed. Amenities and Facilities The project has 5 Swimming pools and 5 clubhouses. Disney themed landscaped gardens with water features are a highlight of this project. Besides this it has the usual kids play area, multipurpose hall, ample car parking space and round the clock security. An artist rendition of the proposed layout of the club facilities on site

Appreciation Potential Bangalore East micro markets have witness real estate price increase due to advantages listed in the report above. Compared to other projects in Whitefield the pricing of Prestige Lakeside Habitat is competitive and according to market conditions. The average price of projects in the immediate vicinity is Rs. 3675/-‐ per square feet. Most of them are still under construction and the highest number of units on offer in any single project is less than 200. Most of these are low to mid housing projects with none or few amenities. None of these builders have the experience, professionalism or brand strength parallel to that of the Prestige group. The average pricing of comparable projects in Bangalore East, including recently launched projects by Prestige, Brigade, Adarsh Developers and Pashmina Developers, is about Rs. 5800/-‐ per square feet. It is expected that at


the time of project completion, the pricing, at minimum, would have escalated to at least Rs. 6500/-‐ to Rs. 6700/-‐ per square feet, given that Brigade Cosmopolis, located 4.5 kms away is presently selling at Rs. 6100 per square feet. This will provide investors with a minimum return of 35-‐40% on completion of the project. Key factors to consider:

-‐ Exit options in the early stages will be limited due to the size of the project and the number of apartments on offer.

-‐ Delays in road widening and peripheral road development may limit accessibility initially. -‐ Competitive pricing with bigger upside as compared to other similar projects in Bangalore East is the

biggest advantage offered by this project. -‐ Very few large developments will be possible in this region in the future as there are very few large land

parcels left and prices are escalating rapidly. -‐ Direct connection to Sarjapur and ITPL. Proposed peripheral road is also close by. -‐ Large parcel of land opposite to the project is marked for commercial use. -‐ Residential and international schools in this vicinity will attract the higher income segment group

towards residential developments in Varthur. -‐ Recommended unit size is 3BHK as it is the most easily saleable. -‐ The scale of this project will ensure great community living and a high quality of life.

Project wise details

Project Name Location Project StatusSumadhura Silver Ripples Borewell Road, Whitefield Apartments Under Construction 12/16 4300Prestige Mayberry Whitefield Villas Under Construction 08/15 8500Mera homes - MRKR Construction Whitefield Main Road Apartments Under Construction 09/14 3699Prestige Lakeside Habitat Varthur Villas & Apts. Soft Launch 01/18 4770 - 7650Brigade Cosmopolis Whitefield Main Road Apartments Under Construction 06/16 6300The Five Summit - Address Homemakers ITPL, Whitefield Apartments Launch 04/16 4990Pashmina Waterfront Old Madras Road Apartments Under Construction 12/14 4200Brigade Golden Triangle Old Madras Road Apartments Launch 12/15 4140Prestige Tranquility Old Madras Road Apartments Under Construction 06/15 4000Adarsh Serenity Kannamangala Main Road Villas Under Construction 03/15 6490Raffles Park Whitefield Villas Soft Launch 12/15 7900Skylark Ithaca Old Madras Road Apartments Soft Launch 05/17 3500Mantri Global Heights Kannamangala Main Road Apartments Ready for Possession 4990Nitesh Flushing Meadows Whitefield Apartments Under Construction 03/14 4200Divyasree Whitefield Whitefield Apartments Launch 4200

Type of Dwelling

Completion Date

Base Rate per sq ft


Project wise scores

Evaluation Criterias

• Key factors to consider: Determined based on connectivity, accessibility, proximity to city center and IT hubs, availability of Social infrastructure,availability of public transport, supply of essential services such as water, neighborhood community, etc.

• Amenities/Facilities: Determined based on type, quality and size of amenities as relevant.

• Family friendly quotient: Determined based on the number and proximitiy of facilities and services (such as parks, schools, healthcare, activity areas etc) for families in the vicinity of the project

• Floor plan: Determined based on privacy screening from other flats, vastu compliance, size of rooms, layout of rooms in the overall apartment, quality of materials used, etc

• Appreciation potential: Determined based on recent trends as evident from the vicinity,appreciation of other recently completed projects by the same/other builder in the area, forecasts provided in recent publications and appreciation since pre-‐launch/launch (as relevant)

• Others: Determined based on developers estimated charges for maintenance, per floor increment, club house charges, etc.

Kin Housing is an investment management and professional services company with a focus on the real estate market. We help people identify and acquire properties that are most suitable for their residential and investment needs along with helping select the best avail financing and insurance requirements. Given the vast choice of real estate developers and variety of properties, picking the right property is not always easy – we are in the business of making it easy! Our team of experts has been built keeping the consumers’ investment and residential needs in mind. They understand the property business intricately and have detailed knowledge of local market conditions. They are backed by deep market research that equips them with the best tools to help you make informed decisions.

Project Name Floor plan Other Costs Overall scoreSumadhura Silver Ripples 3 2 2 3 4 2 16Prestige Mayberry 3 4 3 4 3 3 20Mera homes - MRKR Construction 3 2 3 2 3 4 17Prestige Lakeside Habitat 4 4 3 4 4 4 23Brigade Cosmopolis 4 4 3 2 3 3 19The Five Summit - Address Homemakers 4 4 3 3 4 4 22Pashmina Waterfront 4 3 3 4 4 4 22Brigade Golden Triangle 2 4 3 2 3 4 18Prestige Tranquility 2 4 2 2 4 3 17Adarsh Serenity 3 3 3 4 3 4 20Raffles Park 3 4 4 4 4 3 22Skylark Ithaca 4 3 3 3 4 4 21Mantri Global Heights 3 3 3 3 3 3 18Nitesh Flushing Meadows 3 3 3 3 2 3 17Divyasree Whitefield 3 3 3 NA 2 3 14

Location Advantage

Amenities/Facilities on offer

Family friendly quotient

Appreciation Potential

Real Estate

Real estate in Bangalore East