In the fast changing real scenario in the city , Bangalore – mysore corridor presents a rare opportunity for planned urban development in Bangalore . Whatever development had taken place in other corridor , the authorities have little choice to left with . But on Bangalore - my sore highway , there is tremendous scope for organized urban development due to availability of huge tracts of huge tracts of land , say realtors.

According to market sources most of the lands from Bangalore up to madder are dry lands and so agricultural activity not disturbed at all . The interchange will boost the economic activity at each and every stage . It is said that facility like truck terminal cold storage , warehousing facility , small hospital will become a catalyst for development of the whole area . Coca cola is setting up a plant in one of the interchanges . Toyota is likely to build a technology park within bided industrial area where they already have a plant .

Five townships are being planned on the highway with mixed development . First township will cater to the corporate sector . second township will focus on back office and BPO segment . Third will be an industrial township and earmarked for manufacturing facility . Fourth will be a heritage township focused on bio – medical facility . Negotiations are under way with a number of hospitals to promote health care industry . Eco township will focus on tourism . In all the townships , 70 per cent will be earmarked for residential property development and 30 per cent for commercial developments .

According to realtors , a number of automobiles units have sprung up in areas beyond Whitefield and the pollution levels are high on the kolar side .

The Bangalore – my sore highway has several inherent advantages in terms of urban development and corporate sector for shifting their operations , according to Ashok kheny , managing director , Nandi infrastructure corridor enterprises moreover , power plant with 400 mw capacity , water and sewerage treatment plant will enhance the quality of life for residents . A significant feature is that in terms of access , the commuting time between Bangalore and my sore will be reduced to just 1.15 hours once the 4 lane expressway is complete .

The Bangalore – my sore highway is likely to speed up the development of west Bangalore , according to R Balaji , chief operating officer of shriram propcare . A number of residential layouts have already sprung up in the area , he added . Land price are inching upward on prospects of entry of more number of players to the market . Land price are quoted at RS 20 Lakhs – 30 Lakhs per acre on the high way .

Top  

   BANGALORE IS TOP CHOICE

There has been a perceptible shift in trend among US NR is to own homes in India . Further , PIOs whose entry norms for investment in real estate in India have since been liberalized are also keen to own homes in India . The governments liberalized investment norms have put them on par with NRls holding Indian passports . They can now avail homes loans to invest in immovable properties back home.

The demand for real estate in general is substantial if the number from US Knurls for investment in strategic locations is any indications . A survey conducted among visitors to the second India property show held in Sunnyvale, CA , Chicagoan , New Jersey and New yark reveals the growing preference for Bangalore as an ideal destinations for investments in real estate . A significant development is that PIOs are keen to invest in property as they wish to make Indian as keen to invest in medium to large – scale projects in select cities .

The average home loan size ranged any where between Rs 30 Lakhs and 35 Lakhs though there are a few instances here requests were recorded at rs. 48 Lakhs. A significant development is that they are also keen to seek home loans whose investment norms have since been liberalized further . both NRI’s and PIO’s are equally surprised to see easy availability of home loans simpler and faster level of processing , said sunil Rookie , country head , mortgages , ICICI Bank .

There continues to be a huge untapped potential for home loans as US NRls and PIO’a are keen to invest back home loan has been widely spread for investment in immovable properties predominantly in cities like Bangalore , Chandigarh , Chennai , Delhi , Hyderabad , Kolkata , Mumbai , and Pune . generally US NRls prefer a repayment period of 8 to 10 years though they are keen to repay the loan much ahead of the scheduled period .

Interestingly, US media reported that 35 , 000 families had moved to India in the last one year alone . With the outsourcing gaining momentum, a number of NRls are also keen to take the opportunity and shift their base to their hometowns in India . This is yet another reason for the sudden surge in demand for Bangalore in particular and select other cities in general .

Yet another section is keen to invest in order to earn better yield on investment as they are left with a few alternate viable investment options . On the fillip side is lack of property management companies to take care of their homes and investment exercises during their absence in India . Unlike in the west and European countries , property management companies are yet to make a dent in India . International property consultants do provide similar services but they are mostly confined to corporates.

Top  

WHERE TO INVEST

From unorganized sector to HNls and investors , every one is looking for an ideal options to maximize his return on investment , with unviable alternate options , real estate is riveting the attentions and NRl investors .

The essential pre–requisites while investing in commercial property are location , quality , type of developer and the market situation . “ The fundamentals should be strong . Once they are strong, it is recommended to arbitrage between rental yield and the interest rates , says Manish Grover , associate market takes a nosedive for one reason or the other , and if the investment has been made in viable project , vacancy level will be lower thus insulating the investors against turbulent times” she added ,

Who should invest in commercial property what is the quantum of investment that will ensure competitive return on investment ?

Obviously it is not ideal for small investors . In today’s situations, tenants looking for leasing space do not want to deal with more landlords . As a result investors should look at investing in large floor plates . Moreover demand exists for large floor plates and the market continues to be predominantly driven by IT and ITES sector .

The yield on investment in retailing averages between 11 and 13 per cent . There are select areas in and around the city where retailers will stick on so that the certainty of rental income is much higher , say consultants . For office the annual yield ranges from 10 to 12 per cent depending on the location , fit outs and cold or warm shell.

For HNls who are looking for capital appreciation , large parcels land is the best bet due to growing demand for such areas for building integrated townships , says Mayans saksena , manager , land and investment sere vies , Chesterton meghraj , with sarjpura ring road defying new entrants , investors should look at areas like old madras road , Hosur road and Bellary road .

The yield can vary from as low as 20 per cent to as high as 50 -60 per cent . No doubt there is a risk factor involved but equally there is a lucrative yield for those who dare to venture .

For those keen to notch up periodical income , leased office properties would be the best bet , feels Hemang Rawal , managing director samruddhi reality Pvt . Besides annual return, escalation by 15 -20 per cent once every three years in the rental agreement would leverage the cumulative yield to 15 – 17 per cent if the tenancy extends to years.

A question that invariably emerges among investors is that will the euphoria last long . say consultants : with a continuous stream of MNCs and corporates , the garden city is witnessing an unprecedented demand . If a large MNC sets up shop in Bangalore , it brings in 2000 – 5000 people . Even assuming 50 per cent of the workforce would migrate from outside the states , there will be huge demand for housing . Established MNCs and large corporate have been gradually expanding their operation in the city . It is the over ally confidence level created by the city that will lure more such companies to Bangalore . After all , IBM entered the city with just one lakh sq ft five years ago and today it is occupying 8 lakh sq ft .

Top  

- V. NAGARAJAN