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Bengaluru property

Overview

Historical Backdrop

A succession of South Indian dynasties, the Western Gangas, the Cholas and the Hoysalas, ruled the present region of Bangalore until in 1537 CE. Kempe-Gowda a feudal ruler under the Vijayanagara Empire established a mud fort considered to be the foundation of modern Bangalore.After the fall of the Vijayanagara Empire in 1565 in the Battle of Talikota, Bangalore's rule changed hands several times. Gowda declared independence, in 1638. The Bangalore fort was captured by the British armies under Lord Cornwallis on 21 March 1791 during the Third Anglo-Mysore War and formed a centre for British resistance against Tipu Sultan. Following Tipu's death in the Fourth Anglo-Mysore War (1799), the British returned administrative control of Bangalore to the Maharaja of Mysore and was incorporated into the Princely State of Mysore. The British found Bangalore to be a pleasant and appropriate place to station their garrisonand therefore moved their cantonment to Bangalore in 1809 near Halsur. A town grew up around the cantonment, by absorbing several villages in the area. The new centre had its own municipal and administrative apparatus, though technically it was a British enclave within the territory of the Princely State of Mysore. Two important developments which contributed to the rapid growth of the city, include the introduction of telegraph connections to all major Indian cities in 1853 and a rail connection to Madras, in 1864.Bangalore's reputation as the "Garden City of India" began in 1927 with the Silver Jubilee celebrations of the rule of KrishnarajaWodeyar IV. After India's independence in August 1947, Bangalore remained in the newly carved Mysore State. The "City Improvement Trust" was formed in 1945, and in 1949, the "City" and the "Cantonment" merged to form the Bangalore City Corporation. The Government of Karnataka later constituted the Bangalore Development Authority in 1976 to co-ordinate the activities of these two bodies. Bangalore experienced a growth in its real estate market in the 1980s and 1990s, spurred by capital investors from other parts of the country who converted Bangalore's large plots and colonial bungalows into multi-storied apartments. In 1985, Texas Instruments became the first multinational corporation to set up base in Bangalore. Other information technology companies followed suit and by the end of the 20th century, Bangalore had established itself as the Silicon Valley of India. Today, Bangalore is India's third most populous city. Indian technological organizations ISRO, Infosys and Wipro are headquartered in the city. A demographically diverse city, Bangalore is the second-fastest growing major metropolis in India.With a gross domestic product (GDP) of $83 billion, Bangalore is ranked fourth in India by overall GDP contribution.

Urbanisation and Demography

With an estimated population of 8.5 million in 2011, Bangalore is the fifth most populous city in India and the 18th most populous city in the world. Bangalore was the fastest-growing Indian metropolis after New Delhi between 1991 and 2001, with a growth rate of 38% during the decade. According to the 2001 census of India, 79.4% of Bangalore's population is Hindu, roughly the same as the national average. Muslimscomprise 13.4% of the population. Christians and Jains account for 5.8% and 1.1% of the population, respectively, double that of their national averages. The city has a literacy rate of 89%. Roughly 10% of Bangalore's population lives in slums mostly the immigrant population from other southern states of the country, a relatively low proportion when compared to other cities in the developing world such as Mumbai (50%) and Nairobi (60%).

Bangalore's 523 billion (US$8.3 billion) economy (2006 — 07 Net District Income) makes it one of the major economic centres in India, with the value of city's exports totalling 432 billion (US$6.9 billion) in 2004 — 05. With an economic growth of 10.3%, Bangalore is the second fastest growing major metropolis in India, and is also the country's fourth largest fast-moving consumer goods market.Forbes considers Bangalore one of "The Next Decade's Fastest-Growing Cities". With a per capita income of 74709 (US$1,200) in 2006—07, the city is the third largest hub for high-net-worth individuals and is home to over 10,000-dollar millionaires and about 60,000 super-rich people who have an investable surplus of 45 million (US$714,299) and 5 million (US$79,400) respectively.

Topography and Climate

Bangalore lies in the southeast of the South Indian state of Karnataka. It is in the heart of the Mysore Plateauat an average elevation of 900 m. The topology of Bangalore is generally flat, though the western parts of the city are hilly.No major rivers run through the city.

Bangalore has a tropical savanna climate with distinct wet and dry seasons. Due to its high elevation, Bangalore usually enjoys a more moderate climate throughout the year, although occasional heat waves can make summer somewhat uncomfortable. The coolest month is December with an average low temperature of 15.4 ° C and the hottest month is April with an average high temperature of 36 ° C. The highest temperature ever recorded in Bangalore is 38.9 ° C (recorded in March 1931). However, the suburbs of bangalore recorded temperatures as high as 41 ° C which are now part of present day Bangalore. The lowest ever recorded is 7.8 °C (recorded in January 1884).Winter temperatures rarely drop below 12 °C, and summer temperatures seldom exceed 37 °C. Bangalore receives rainfall from both the northeast and the southwest monsoons and the wettest months are September, October and August, in that order.

General Understanding

Understanding Bengaluru

Bengaluru happens to be the IT Capital of India and accordingly its infrastructure in terms of real estate has come up in that manner, to include office space and IT Parks alongwith living apartments in vicinity. Bengaluru is encircled by the Outer Ring Road (ORR), which used to be the outer most edge of the city till few years back. However, with the city bulging due to the exceptional IT infrastructure growth it has expanded on all fronts and the ORR has infact become the ‘inner circle’ of the city. The City now gets classified into North, East, South and West Bengaluru with the central part being the heart. There are a number of arterial roads and highways which originate from ORR and extend outwards.

Central Bengaluru

Central Bengaluru represents the heart of the city and is bisected North-South by Tumkur&Magadi roads in the west and Old Madras, Old Airport roads in the east. It also gets bisected east-west with the Hosur, Bannerghatta and Kanakpura roads which run from north to south. It has segments of the most expensive residential areas like, Indra Nagar, Richmond town, MG Road etc. It has the main railway station, Bengaluru University and IIM. It has an extensive metro connectivity, with the two metro junctions of MG Road and railway station being the start point for all the existing lines and the planned routes. A number of residential projects are coming up along the ORR as well as within exclusive pockets.

North Bengaluru

A number of arterial roads originate from the ORR and Old Madras road and go towards north. These include the Bellary road, Thanisandra Road, Hennur Road and Budigree road. The Bellary road leads to the Kempegowda International Airport. All these arterial roads have a number of residential as well commercial projects coming up. This sector also has some luxury projects under construction in the general area of Hebbal and along the Bellary Road. The metro connectivity in this area is to come up to the International Airport and to Nagavara, from MG Road.

West Bengaluru

West Bengaluru is segmented between the Tumkur road in the north and Mysore road in the south, with the NICE Ring Road running right across it. The NICE Ring Road which is the main feeder, originates from the Tumkur road in the north and terminates at the Hosur road in the south. A number of residential projects are coming up along the Tumkur road, Hessarghatta road, Magadi road, Mysore road and the NICE Ring Road. However except for the Magadi Road this area is slightly disconnected from the main city.

South Bengaluru

This Sector is bound between the Mysore road and the Hosur road. A number arterial roads traverse from north to south, to include, the Mysore-Banglores Highway, Kanakpura Road, Bannerghatta Road and Hosur Road. The NICE Ring Road runs from west to east. A number of residential projects are in the pipeline here in the localities of JP Nagar, Begur Lake, Electronic City PH I and II. The Electronic Cities are the major IT hubs and attract the maximum work force from all across the country. The area is well developed and has metro connectivity planned on all three axes i.e. Hosur, Bannerghatta and Kanakpura roads. The end points for the metro being, EC Ph II, Gottigere and Anjanapura respectively. The area has a huge potential in terms of real estate.

Market Analysis

Sr. No. Locality/Sector Status Market Rates Advantages Disadvantages
1. Central Bengaluru A No. of exclusive Projects coming up 8000/- 20000/- #Good connectivity and infrastructure.
#Extensive road and metro connectivity.
#High Costs.
#Congested city limits.
2. North Bengaluru A No. of projects coming up. 3000/- 15000/- #Well connected to ORR.
#Has the Airport.
#Real Estate Costs will escalate.
#Certain areas lack basic infrastructure.
3. West Bengaluru Limited existing and planned infrastructure 2700/- 8000/- #Low costs. #Limited infrastructure.
#No metro connectivity planned.
4. South Bengaluru Well developed, with the IT hub of Electronic Cities. 3000/- 13000/- #Excellent location. Well connected.
Metro connectivity under construction.
#Real Estate escalations likely.
#Certain areas have poor infrastructure.
#Certain areas have poor infrastructure.
5. East Bengaluru A No. of projects coming up. 3000/- 12000/- #Metro connectivity is planned.
#Ideal for residential projects.
#Cost escalations predicted.
#Congestion problems and narrow roads in certain segments.