A report by global real estate intelligence firm, Jones Lang LaSalle, India, says north and east Bangalore will benefit the most next year.
According to the report, the best performing residential areas in 2012 were Hebbal, Sahakarnagar and RT Nagar in north Bangalore.
“These locations saw the highest demand and appreciation this year. Improved infrastructure, its proximity to Bangalore International Airport and enhanced connectivity helped north Bangalore crystallise into a much sought-after residential destination,” said Karun Varma, MD, Bangalore and Kochi, Jones Lang LaSalle India.
The top emerging destinations in 2012 were Tumkur Road, Vijayanagar and Magadi Road in West Bangalore, with capital value appreciation to the tune of 12-15 per cent.
“This region saw stable demand because of the Metro line,” Varma added. The report pointed out that Kanakapura Road was also grabbing attention with its Metro connectivity, NICE Road, availability of Cauvery water and affordable prices.
In the commercial sector, the best performing areas were Outer Ring Road (ORR) (specifically K R Puram-Marathahalli-Sarjapur Road stretch) and Whitefield. Outer Ring Road, being a predominant IT growth corridor, benefited from office space supply which ensured low vacancy levels, good absorption rate and rental appreciation.
“Corporate houses continued to prefer ORR for its accessibility to employee residential catchments and connectivity to SEZs and IT parks. Whitefield had a lot of demand, thanks to its healthy inventory of ready-to-occupy Grade A office space supply. Affordable rentals also worked in its favour,” said the report.
Indiranagar Top Performer
In terms of retail space absorption, Bangalore’s top performer was Indiranagar, whose high leasing activity was due to its proximity to established residential catchments. Kammanahalli in north Bangalore and Brigade Orion Mall in Rajajinagar were the emerging retail locations of the year.