Bangalore has developed radially and within that you have sectors that have prospered for one or the other reason. One of these sectors which is up and coming right now is Kanakapura Road.
For the sake of convenience of understanding, it can be split into three main parts. The first, beginning in the heart of South Bangalore at Banashankari; but as far as potential for development goes, the area has been squeezed dry as of now.
What is considered the main section of Kanakapura Road today is from the Outer Ring Road at Banashankari going up to the Khoday's factory. The next section of the stretch starts right here and moves on to Harohalli and the Art of Living campus.
And finally, the third sector is beyond this, largely made of agricultural land which several builders have now acquired for large scale properties. Caught in the development of this area have been some periphery regions like that of Konankunte, parts of JP Nagar, Uttarahalli and a few other areas.
Connectivity
Listing out the major infrastructural developments in the area, Karun Varma, Managing Director - Bangalore & Kochi, Jones Lang LaSalle India says, "Kanakapura Road has become active on the real estate radar, especially in the residential sector, thanks to infrastructure developments such as:
The establishment of NICE (Bangalore-Mysore Infrastructure Corridor) Road which has enhanced connectivity to Electronics City, Bannerghatta Road and Mysore Road
Bangalore Metro Phase 1 (under construction) till Puttenahalli, planned to be operational by mid-2014. It is anticipated that Metro will be extended till Anjanapura Township though the alignments are to be confirmed.
Peripheral Ring Road, which will connect all the major highways - Tumkur Road, Mysore Road, Old Madras Road, and Hosur Road."
All these factors, says Karun, have contributed to the growth of Kanakapura Road as a residential destination. This micro market is also witnessing retail activity (hypermarket formats) to support the residential activity.
A number of residential projects have come up in the area as well as schools of repute, observes Meera KrishnaKumar, Director, Tandem Allied Services. "The KIADB has a massive project coming up in the area and the stretch between the Kanakapura-Bidadi-Harohalli is seeing a lot of development. Most of it is in the mid-range category with value homes to coming up. There is a lot of plotted development that is taking place here due to the availability of land."
Mahesh Khaitan, Head of Sattva Real Estate Solutions, Market Research feels that most of the activity that is happening is beyond Khoday's factory and this is the hotspot of development in the area. Iskcon has a significant amount of development planned for this area as well.
The plan is for this area to become serene and function as a purely residential area in the future." He adds that one of the features of Kanakapura Road is that the main roads are pretty well developed while the rest of the arterial roads still need to catch up.
Karun opines that affordable land prices and availability of Cauvery water are the two major factors which have prompted major residential developers like Sobha, Nitesh, Brigade, Concorde, etc to establish their projects in this micro market. It is a preferred destination by those employed in Electronics City and Bannerghatta Road.
This location is also favoured by second home buyers. New launches were pegged at approximately 450 units in H1 2012 and 560 units were absorbed in the same period. Residential prices have gone up by 5% y-o-y. The prevailing range of residential capital value is Rs. 3000-5500 per sq.ft. Commercial activity is still very nascent and is limited to academic institutions, bank branches, etc operating out of standalone buildings.
Price ranges
With commercial and residential rentals not too much in demand now, the onus is on purchase. Apartments are in the Rs 3,000 to Rs 3,500 per sq ft bracket. If you look in the first sector of Kanakapura, homes more than 15 years old that come onto the market can go for around Rs 8,000 per sq ft.
Newer apartments are around Rs 5,000 to Rs 6,000 per sq ft and those on resale Rs 5,000 per sq ft. For those looking a little ahead in the second stretch, you will find a lot of budget housing and the apartments here will be in the price range of Rs 3000 per sq ft.
Karun feels that enhanced focus on connectivity and timely completion of the on-going infrastructure projects would provide further impetus for this micro market to evolve into a residential hub.