Thanisandra, Whitefield and Kanakapura Road are Bengaluru’s top three residential hotspots: JLL study
The existing and proposed social infrastructure and promised connectivity via the Namma Metro lines have resulted in high residential demand across these key micro-markets.
Thanisandra, Whitefield and Kanakapura Road have over the past year emerged as the strongest residential hotspots in Bengaluru according to JLL’s latest report titled JLL’s Tour of India’s Top Residential Hotspots: Bengaluru Edition.
All three localities, according to the report, are likely to witness robust residential demand in the near future. The three micro-markets have some common drivers that make them prime. Here’s a look at these factors:
A) Good developed social infrastructure
Thanisandra and its neighbourhood locations, Jakkur, Baglur and Begur have seen a rise in residential demand due to the influx of a large number of young workforce in the business parks located in Nagawara and Hebbal. In addition to these, Manyata Business Park and other neighbouring business parks have many operational office buildings. Comprising mostly Grade-A office spaces, these collectively have more than 10 mn sq ft of built space. Thanisandra’s proximity to the international airport and well-developed retail markets make the place a sought-after residential locality.
Whitefield and its neighbourhood locations form one of the key IT hubs in the city. It is for this reason the region has several IT parks and standalone office buildings. These all together comprise more 28 mn sq ft of office stock. The presence of offices has resulted in high housing demand in this location. Being self-sufficient in terms of its social infrastructure with schools, hospitals, shopping and other requisite facilities Whitefield is now an attractive region for homebuyers.
Known for affordable, low cost housing options, Kanakapura Road has a well-developed social infrastructure in terms of good schools, hospitals, shopping and market places. A number of youth-centric amenities such as fitness centers, spas, restaurants and cafes continue to attract people in large numbers. Located close to Grade-A commercial offices on Bannerghatta Road and offices in JP Nagar and Jaya Nagar, the area continues to witness a huge influx of people looking for housing options.
B) The connectivity advantage
The proposed and under-construction Namma Metro is already having its impact on the three localities. The green line of Namma Metro that started partial operations along Kanakapura Road has already led to a surge in demand for housing from all income groups in Kanakapura Road. Starting from JP Nagar to Nice Road, the entire stretch has witnessed a number of residential developments because of the promised connectivity.
On similar lines, areas such as Hope Farm, Varthur Road and Gunjur are some of the key neighbourhoods of Whitefield that continue to witness good residential development due to the extension of the purple line of Namma Metro up to Whitefield. The proposed red line of the Metro has been an important demand driver for residential projects in Thanisandra. The other international airport road – SH 104 passes through Thanisandra, Begur and Baglur Road. This road is planned to be developed further. The proposed metro line and international airport road surged up the residential demand in this location in last couple of years.
Other than the metro, these localities are well-served by public transport services such as buses and other modes of transport. Well connected to rest of the city through Thanisandra Main Road and to the Outer Ring Road and Kogilu Main Road and Jakkur Road, the locality enjoys good connectivity with rest of the city.
C) Supply snapshot and price arbitrage
- Because of the huge influx of reputed developers, Thanisandra has been catering to the mid-income group. In recent past, there have been launches in the upper-mid income group segment too.
- Whitefield localities cater to a diverse mix of mid-income and high-income group projects.
- Kanakapura Road has a good mix of low-income, mid-income and high-income group projects.
Buoyant launches & sales in 2018 directing to strong growth story across the three hotspots:
Units launched in the top 3 residential hotspots in 2018 jumped substantially by 2.5 times over 2017 as developers see a strong potential for growth in these markets. These hotspots will benefit from higher job creation in the key IT hub as well as improving connectivity driven by Namma metro. This is clearly seen from the 17% rise in units sold in 2018 over previous year. Residents of these region enjoy well developed social infrastructure that improves the quality of life and will also attract more home buyers in these hotspots.
High housing demand has kept the price appreciation scenario healthy and the trend is likely to continue in coming quarters too.
Emerging locations in Bengaluru such as Thanisandra and Varthur Road will mature faster as they have the support of matured locations of Hebbal and Whitefield, respectively. Thanisandra is located within 5 km distance from Hebbal. As such, very soon due to low supply in Hebbal, the housing demand of Hebbal is likely to spill over to Thanisandra. Moreover, being located so closely, most of the social infrastructure can be shared between these two locations. As such the current price arbitrage will work in favour of homebuyers. These locations are likely to witness increased demand.
However, this price arbitrage is likely to narrow down eventually due to the increased demand. Varthur also is experiencing the same phenomenon as being close to Whitefield. It is observed that these locations are already witnessing that the price difference is slowly narrowing over the years.
For more details, please download JLL’s Tour of India’s Top Residential Hotspots – Bengaluru Edition.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.