2016 was a dynamic year for the real estate market where policies like the Real Estate Regulatory Act (RERA), Goods and Services Tax (GST) and Real Estate Investment Trusts (REITs) paved the way for transparency and better investor sentiment in the market. 2017, is expected to be a year of fructification of these policies. Core cities are expected to witness an uptick in terms of real estate projects, lease and rent figures but the limelight this year, is on peripheral regions of these cities that are expected to emerge as new hubs for commercial and residential development.
A case in point is Bengaluru which, for decades, has lived by the name of the Garden City of India. Bestowed with a multicultural landscape, flourishing industry, a conducive weather cycle and extensive green cover, the city has been one of India’s most favourable living and working destinations. However, with the city’s increasing population density, it is an urgent need to diversify its development to nearby areas. Latest trends seem to substantiate this observation – that focused expansion into peripheral Bengaluru will help decongest Bengaluru of the pollution, infrastructure roadblocks and steer holistic growth in the state.
One of the fastest developing peripheries has been the Tumkur (Road) also known as New West Bengaluru on Bangalore’s Western Corridor. Acting as a gateway to North Karnataka and situated 70 km (43 mi) northwest of Bengaluru, Tumkur (Road) is on its way to being developed as a satellite city that will play a significant role in decongesting the Garden City. It is witnessing substantial growth in terms of new residential and industrious projects. Additionally, collaboration between city councils, governing bodies, real estate developers and industry has been ongoing to develop the region into a planned city, offering world class facilities, great connectivity and greener surroundings.
New West Bengaluru is set to witness major infrastructural developments like the proposed Mumbai-Bangalore Industrial Corridor that will allow connectivity to Bengaluru while maintaining exclusivity in living standards and comfort. Other initiatives like the Metro Rail – Phase 1 and Phase 2, and Peripheral Ring Road, which will form a half circle around the city from Tumkur Road to Hosur Road, are expected to significantly boost real estate development in the region. World-class facilities like Alur Cricket Stadium, Bengaluru International Exhibition Centre and Namma Metro, will further propel the development of New West Bengaluru as an international engagement hub with strong residential and commercial opportunities. Our latest report on the market outlook for real-estate, cites Tumkur (Road) as one of growth drivers for real estate in the state. With growing rents and better infrastructure, Tumkur is expected to set an example for the rest of Karnataka to follow. Investors, too, can capitalize on the location that forms a gateway between the old city and its upcoming smart regions.
Our report has projected an increase in end-user demand in Bengaluru. It also expects 2017 to witness more quality supply for retail real estate with an addition of almost 7 million sq. ft. of Grade A supply – a trend expected to be led by the southern cities of Hyderabad and Bangalore, with global and national brands entering and executing their expansions strategies to uniformly develop retail spaces across these cities. While these projections will drive the demand for quality and affordable living in Bengaluru, the effects are likely to also rub off on the peripheral areas.
The development of the New West Bengaluru is an indication of its growing importance as the next big location for the state of Karnataka. Upcoming residential projects in the region complemented with large scale infrastructural growth, will offer residents a peaceful existence while remaining connected to the bustling city of Bengaluru. Regions like Tumkur (Road) in the periphery of Bengaluru, with better planning, better technology, better governance and better design, can offer a picture-perfect option to meet the increased demand for housing amongst the city’s rapidly growing, working population. For residents and investors, this is a perfect time to be part of an international residential hub that is gearing towards sustainable and smart living.