RESIDENTIAL MARKET TAKE-OFF
If infrastructure is good, it doesn’t matter where you live since commute time will be shortened considerably.This is precisely what has led to development in and around the NICE Corridor.
Trivita Roy, AVP Research and Real Estate Intelligence Service, JLL India, points out, “The NICE Road stretches from the Chikka Togur Lake in south-east part of the city to Anchepalaya Lake in the north-west part, encircling a portion of the south-east, south, west and north-west quadrants of the city. It intersects with key roads such as Bannerghatta Road at Gottigere, Kanakapura Road at Uttarahalli, Mysore Road at Kengeri and Tumkur Road close to Nagasandra. Most of these locations are witnessing middle and affordable seg ment residential developments. Some of these also have also witnessed plot developments.“
According to Satish, “The south-west corridor touching Bannerghatta Road, the Kanakapura belt, Mysore Road junction, close to Kengeri and Magadi Road has picked up well. Many residential projects are being launched and have been planned here. The stretch from the Tumkur Road belt going towards Electronics City is also witnessing demand, mainly due to the quick travel facilitated between the IT hub at Electronics City and locations towards the west which benefit from comparatively lower land rates.“
LOCATIONS AND PRICING
According to research by JLL India, the per-unit pricing in projects in Gottigere ranges between Rs 30-75 lakhs; Uttarahallii Rs 30-65 lakhs; Banashankari 6th Stage Rs 30 lakhs to Rs three crores; Kengeri Rs 30-85 lakhs; and Nagasandra Rs 30 lakhs and Rs 1.50 crores.
Satish has a picture of how the NICE Corridor has led to a marked impact on land rates in locations along the route. “In the late 1990s, before the NICE Corridor took shape, the going land rates in locations along this corridor were around Rs 50-80 lakhs per acre. Rates quoted in and around the corridor now range between Rs 4,5006,000 per sqft, depending on the frontage, usage, and the junction where the landproject is located. If it is located around a busy junction where future commercial development is possible, the project will command a higher price.“
With many locations in the peripheral areas set to benefit from Metro connectivity in Phase II and Phase III of the project, locations along the NICE Corridor will receive a double advantage.“By road, it takes more than an hour to reach Kanakapura Road from Majestic.Thanks to the Metro, travel time will be reduced to 2030 minutes,“ says Satish Trivita Roy adds, “Metro connectivity will improve the accessibility to most of these locations, especially those located in the southern and western quadrants of the city.
As such, development is likely to strengthen along the southern areas followed by the western parts of the city. As the north-west region is already connected by the Metro, it is likely to see improved demand“.