Bangalore: Real Estate Market Report

November 2013

Office | Residential | Retail | Hospitality

An ISO 9001:2008 Certified Company

A REPORT BY STRATEGIC ADVISORY GROUP

BANGALORE REAL ESTATE: 2013 AND BEYOND

OFFICE

112

million sqft stock

5.7 million sqft absorbed in H1 2013

Y-O-Y growth in absorption:

(including 2 million sqft of pre-committed space)

8%
Average Annual Rental Appreciation (2012 -13):

40,336

units launched in 2012

33,988
RESIDENTIAL

0 - 8%

units absorbed in 2012

Grown at a CAGR of

26,620

units launched in H1 2013

18,076

since year 2010

units absorbed in H1 2013

Annual Price Appreciation (2012-13):

BANGALORE: REAL ESTATE MARKET REPORT

31%

5% - 25%

RETAIL

7.7

0.78

million sqft expected

to enter in 2013 (of which 0.35 million
sqft is pre-committed)

million sqft stock

Grown at a CAGR of

12%

since year 2010

Average Annual Rental Appreciation (2012 -13):

5% - 20%

HOSPITALITY

9,585
total number of existing hotel rooms

5,190
rooms likely to enter by 2017

56% - 59%

average occupancy rate

BANGALORE: REAL ESTATE MARKET REPORT

EXECUTIVE SUMMARY

During the last two decades Bangalore gained prominence as a

growth corridor in India on account of rapid development of the

IT/ITeS sector. Going forward, in addition to the IT/ITeS sector
other sectors such as biotechnology, automobile, aviation and
textiles are anticipated to strengthen the citys economy.

Bangalore witnessed a decadal population growth rate of 47%

and today, the city is the fifth largest urban agglomeration in the
country with a population of 9.6 million. A growing base of young
professionals with rising disposable incomes and substantial
global exposure has provided an immense opportunity for
development across the real estate segment.

The citys infrastructure is being constantly upgraded with

In the last two decades, real estate development in Bangalore

was focussed towards the southern and eastern corridors until
the city's International Airport became operational in 2008. Since
then, the real estate development migrated towards the north
quadrant of the city. In the past two years, areas in Bangalore
West especially Tumkur Road and its neighboring locations have
gained momentum due to availability of large land parcels and
improved connectivity. Currently, the most promising areas for
real estate development are the North - West region,
Kanakapura Road towards South and Old Madras Road towards
the North - East.

The city is poised for large supply in retail sector in the coming
years. The rentals have registered an annual appreciation of 5 %
- 20% in shopping malls and 4% - 13% in high street locations.
Most of the operational space is concentrated in SBD and PBD
locations. With 5.65 million sqft of mall space under-construction,
the city will have 13.30 million sqft of operational mall space by
2016. The city lacks specialty malls focusing exclusively on sale
of themed merchandise. The most promising locations for future
development are ORR-Sarjapur stretch, Old Madras Road and
Kanakapura Road.

projects like the Metro Rail, Elevated Road to the Airport and the
Signal-free ORR. Planned projects namely PRR, High Speed
Rail to the airport and Monorail are further expected to ease the
transport within the city. Despite the above mentioned
improvements, Bangalore faces two prominent challenges provision of infrastructure to match the pace of population growth
and provision of adequate water & electricity.

Bangalores residential sector continues to remain strong in

H12013. The city witnessed fresh supply of 26,620 units in H1
2013 and 18,076 units were absorbed during the same period.
The most vibrant micro-markets include Whitefield, ORR
(Hebbal to Silk Board Junction), Sarjapur Road and Bangalore
North. The sector registered CAGR of 31% during 2010 and
2012 with national and international players like Arvind Real
Estate, Address Makers by India REIT, Phoenix Group, Bhartiya
Group and Penninsula Land Limited progressively venturing into
the sector. Further, Private Equity players are also investing in
this sector.

Hospitality sector is likely to witness entry of 3,793 rooms in next

3 years. The current inventory is dominated by the 4 and 5 star
category projects and the same is likely to continue in the
coming years. Apart from CBD- Whitefield, ORR and Bangalore
North are potential locations for development. Currently, national
and international operators are keen to operate 3 star business
hotels across the city.

Overall, Bangalore has great growth potential for real estate

development across different segments.

Bangalores non-captive office space registered an absorption of

5.7 million sqft in H1 2013 including 2 million sqft of
precommitments. According to our estimate, Bangalore will
absorb nearly 9 million sqft by end of 2013 and ORR will remain
the most attractive micro-market for the next 3 to 5 years. Post
revision of SEZ regulation, many SEZ Parks are likely to witness
mixed developments owing to high residential demand.

BANGALORE GROWTH STORY

The modern metropolis Bangalore scores over many other Indian cities for various reasons: salubrious
climate, cosmopolitanism and growing knowledge economy.

Real Estate emerged as a major player in the economic growth

of the city during the last three decades. The key reasons that
supported the rapid development of Real Estate Sector in
Bangalore are:

Table: Bangalore - Demographic Snapshot

Bangalore - Area and Population Growth

Growth in the IT/ITeS industry that led to creation of large

Area: Bangalore City Corporation (sq km)

741

number of jobs across sectors which in turn led to migration

of working population to the city.

Area: Bangalore Metropolitan Area (sq km)

1,2761

Total Population (Bangalore City Corporation)2

Today close to 2,840 IT/ITeS companies including at least

100 Fortune 500 companies operate out of Bangalore.

The city today employs nearly 0.95 million people and
creates nearly 90,0003 new jobs annually.

Total Population (Bangalore Metropolitan Area)

Decadal growth rate of population (2001 - 11)

8.5 million
2

9.6 million
47%

The multiplier effect of this has led to a real estate boom

and a flourishing retail and entertainment industry. The

city is also sufficiently supported by the hospitality
industry with accommodation ranging from budget
segment to 5 Star luxury segments.

The working population in the city is educated, multi-cultural

and young with the median age being 28 years.
The growth in the IT/ITeS sector has been well supported

by the growth in the per-capita income of the city.

Bangalores per-capita income in 2011 - 12 was INR
237,0004, much higher than Indias per capita income of
INR 5,1305 for the same period. According to McKinsey,
by 2030 the city will have highest per-capita GDP in India.
Rising income levels, education and global exposure

have contributed to the evolution in the living standards of

the city.

Figure: Growth of Bangalore City & its Population

16
800

Entry of Multi-National Corporations (MNCs) in office,

700

hospitality, retail and residential sectors.

8
600

The city witnessed entry of various MNCs like Texas

Advancements in the IT/ITeS industry led to entry of

many other national and international developers in the

city. Key examples being the Ascendas Group
developing International Tech Park Bangalore (ITPB) in
Whitefield, Sun Forest City investing in the Aerospace
Park in Devanahalli. The residential sector saw the Tata
Group, DLF, Godrej Properties and Phoenix Group
expanding their portfolio in the city while international
hotel brands like Sheraton, Hilton Group, Radisson, Ritz
Carlton, Hyatt and Marriott entered the city. Bangalore
today, is also the most sought after retail destination in
the country followed by Mumbai and Delhi.

Area (sqkm)

Instruments, IBM, Intel, Motorola, Dell and Microsoft,

which provided the required thrust for development of
the residential and business infrastructure.

500

400

5
4

300

3
200

100

0
1950

1963

1969

Area (sqkm)

1979

1995

BANGALORE: REAL ESTATE MARKET REPORT

2007

2013

Population (in millions)

Revised Master Plan - 2007and Bangalore Development Authority (BDA)

Population has been sourced from Revised Master Plan - 2007 and Census of India, 2011
Working population has been arrived at using occupant load of 100 sqft of floor area per person for commercial buildings as per National Building Code (NBC) 2005
4
Market Skyline of India 2012 - Indicus Analytics, New Delhi India
5
Central Statistics Office

10

in millions

16

ECONOMY

Currently Bangalores economy is driven by the IT/ITeS sector. Other major sectors that contribute to the
citys economy include biotechnology, automobile, aviation and textile industries.

Apart from the IT/ITeS sector, Bangalore also accounts for close

to 60% of all Biotech companies in India and 50% of the total

revenues at national level.

Automotive majors like Volvo, Toyota, Honda, Mahindra and

Bosch have their presence in Bangalore.

Bangalore is home to some of the best R&D facilities in aerospace

& defense sector like ISRO, DRDO, Airbus Engineering Center,
Boeing Research & Technology Center. Apart from being the
base for most global players, Bangalore also accounts for
production of more than 25% of Indias aircraft and space craft.

Karnataka contributes to over 20% of national garment

production and 45% of the total raw silk production in India. The
garment sector employs close to 500,0006 people in Bangalore
with leading manufacturers like Tommy Hilfiger, Marks & Spencer,
GAP, H&M, Matalan and Mothercare having their presence in the
city.

With multiple economic activities, the city has grown from a uni-nuclear structure with a Central Business
District (CBD) to a multi-nuclear structure with several Suburban Business Districts and Peripheral
Business Districts (PBD).
Table: IT/ITeS Micro-markets in Bangalore
IT/ITeS Hubs

PBD

ORR (Hebbal to Silk

CBD & SBD

Whitefield

Board Jn.)

Electronics City &

Hosur Road

Bangalore North &

Mysore Road

Type / Sector

Corporate offices,
BFSI, IT / ITeS

IT / ITeS

IT / ITeS

IT / ITeS, Electronics,
Manufacturing

IT / ITeS, Aerospace

Total Office Stock

(in million sqft)

39.6

29.5

29

10.41

3.67

Working population

400,000

250,000

275,000

175,000

35,000

Projected Growth

10%

27%

10%

5%

5%

GE, SAP Labs,

TCS, HP, Dell,
Mercedes Benz,
Huawei

Infosys, Wipro,
Siemens, Mahindra
Satyam, TCS

Shell Technologies, SLK

Software, Tyco
Electricals, Wipro

Key Operating Companies

Microsoft, Dell,
Goldman Sachs, IBM,
Target, Google, Yahoo,
Amazon

Cisco, EMC , Capgemini,

Oracle, Intel, Accenture,
IBM, Cognizant,
Honeywell

The city being an important industrial town has significant presence of manufacturing, automobile and
textile companies.
Table: Industrial Areas of Bangalore
Industrial Area

Type of Industry

Total Area
(acres)

Key Industries

Growth Plans

Verasandra, Jigani &

Bommasandra Industrial
Area

IT / Manufacturing, Biotech

1,874

OTIS, American Power, KTTM, SKF,

Maine Precision Tools, HCL, Tata
Advanced Material

Phase III - Land acquisition

in progress on Jigani Harohalli Road (~712 acres)

Peenya Industrial
Area

Engineering, Auto Components, Textile,

Electrical Goods Manufacturing

1,485

Wipro Lights, ITC, Kirloskar, Karle,

ABB

Land acquisition of 200

acres for Greater Peenya
industrial area

Narasapura & Hoskote

Industrial Area

Auto & Auto Components

Manufacturing, Warehousing, Textile

1,602

Volvo, GE India, Celebration

Apparels, Autoliv, Indo-US MIM Tech

145 acres in Narasapura

industrial area is under
development

Doddaballapur Industrial
Area

Textile, Beverages

799

Gokaldas Images, Bombay Rayon

Fashions, Gati Limited, Arviva
Industries, Mudra Textiles, Grover
Vineyards

~ 60 acres in Apparel park is

under development

Kumbalgodu Industrial
Area

Auto Components, Food Processing,

Chemical Manufacturing

250

United Breweries, Sumi Motherson,

Wirtgen India, Micro Labs

Bidadi Industrial Area

Automobile & Auto components,

General Manufacturing, Electronics &
Electrical Manufacturing

1,192

Toyota, Coco-Cola, Tata Auto Plastic

Systems, Shashi Exports

Phase III: 400 acres in

planning stage

Harohalli Industrial Area

Granite, Printing, Automobile,

Hatcheries and General Engineering

1,102

Basant Betons, Komarla Hatcheries,

Stovekraft, AO Smith, Lotus
Polymers, Saint Gobain

Phase III: 1,365 acres under

land acquisition stage

Source: Karnataka Industrial Areas Development Board (KIADB) and Vestian Research

Favourable Government regulations and improving infrastructure are expected to promote development in
medium to long term towards Bangalore North.

Government of Karnataka (GoK) has announced the following projects within Bangalore Metropolitan Region in order to promote economic
development in the city.

Table: Key Government Initiatives: Proposed Economic Hubs in Bangalore7

Particulars

Location

Devanahalli
Business Park
Devanahalli Adjacent to BIA

Aerospace
Park
South of BIA

Hardware Park

Bagalur Village

IT / BT Park

Bagalur Village

ITIR

Logistics Park

Integrated
Textile Park

Muddenhall,
Kaniverayanapura,
Chikkaballapur

Balepura (near
Devanahalli)

Doddaballapur
Road

Area (in acres) 414

1,000

941

1,028

12,000

150

469

Agency

Karnataka State
Industrial &
Infrastructure
Development
Corporation
(KSIIDC).

Department of
Commerce &
Industries, GoK

GoK - Hardware
Park,
IFCI - Financial
City

Karnataka
Industrial Areas
Development
Board (KIADB)

Karnataka State
Electronics
Development
Corporation
Limited
(KEONICS)

KSIIDC

KIADB

Status

Fresh EOI invited

in August 2011 to
develop the
project on a PPP
basis. Design for
the convention
center within the
park has been
finalized

Land has been

alloted to some
companies
already.
BEML has started
construction.

Land has been

alloted to some
companies
already.
Foundation stone
laid for the
Financial city on
50 acres to be
developed by IFIC

Application
received from
various
companies to
develop IT/ITeS
SEZs. Land yet
to be alloted.

The Center has

Land aqusition is
approved the
underway
project. Land
acquisition
underway for 2,200
- acres of phase I.
Global tender yet to
be floated to select
the developer

Currently 41 units
are operational
across 48-acres
of land. Nearly
60-acres of land
under
development

BEML, AIMIL,
Dynamatic
Technologies,
Sunshine
Aerospace,
Starrag Seckert
Machine Tools,
Centum
Electronics

Bangalore BioSunlux
Tech labs, Shell
Technology
Technology, Moser
Baer

55 companies
including Infosys,
Wipro, TCS and
Cognizant have
signed up MOUs

Gokuldas
Images, Madura
Garments,
Raymonds,
Bombay Rayon
Fashion

Companies
that have
been alloted
land

Vestian Research

BANGALORE: REAL ESTATE MARKET REPORT

PLANNING & DEVELOPMENT

Currently majority of the real estate development

in Bangalore is within the Bangalore
Metropolitan Area (BMA 1,276 sqkm) under the
jurisdiction of Bangalore Development Authority
(BDA). However, with the development of various
under-construction and proposed infrastructure
projects in the Bangalore Metropolitan Region
(8,000 sqkm) under the jurisdiction of Bangalore
Metropolitan Regional Development Authority
(BMRDA), several new growth corridors have
emerged outside the BMA.
Some of these emerging growth corridors include:

Bangalore-Devanahalli corridor due to the development of

Bangalore International Airport (BIA) in Devanahalli.

Bangalore-Doddaballapur Corridor with the development of

Doddaballapur Industrial area and its proximity to BIA.

Bangalore-Nelemangala-Tumkur corridor in North-West with

the development of industrial areas in Peenya, Nelemangala
and Dobaspet and the announcement of Bangalore-Chennai
Industrial corridor.

KR Puram-Hoskote Corridor with the development of industrial

areas in Hoskote and Narsapura.

Hoskote-Malur-Sarjapur-Attibele corridor with industrial

development in this region; announcement of Bangalore Chennai Industrial corridor and proximity to Electronics City.

Bangalore-Mysore corridor was looked at as an emerging

corridor till 2008. However, with the Bangalore-Mysore
Expressway and the associated townships failing to take off,
this region has seen a decrease in activity levels.

BDA has currently embarked upon the process of

preparing the revised master plan for 2031. The
recommendations of the Structural Plan 2031
prepared by BMRDA will play a major role in
developing the RMP 2031 for Bangalore.
The Revised Master Plan (RMP) 2031 has faced challenges while
implementing the proposed infrastructure development & economic
plans in terms of land acquisition issues, lack of funding, water shortage
and complex institutional mechanism. Key proposals of the Structural
Plan 2031 include:

A cluster based approach for development of the region identifying 8

clusters and 4 growth nodes in order to decongest the core.

The identified clusters include Ramanagaram-Channapatna,

Bidadi-Harohalli, Nelamangala-Peenya, Dobaspete-Nelamangala,
Doddaballapur, Devanahalli-Yelahanka, Hoskote-KR Puram,
Jigani-Electronics City-Bommasandra-Attibele.

Growth Nodes include: Anekal, Kanakapura, Vijayapura, Magadi.

These clusters are connected by the Peripheral Ring Road (PRR),
Intermediate Ring Road (ITRR) and the Satellite Town Ring Road
(STRR).

Commuter Rail Services to key towns within the Bangalore

Metropolitan Region (BMR).

Figure: Key on-going and proposed infrastructure projects in Bangalore

Do

Towards
Doddaballapur
Industrial Area

dd

NH 7: To Hyderabad

ab
a lla
pu

ain
rM
Ro
ad

Bangalore International Airport

Be
ll

ar

yR

oa

Rajanukunte

ed

Pe

rip

he

ra

lR

in

Ro

ad

Yelahanka

os

Pr

Pr

op

op

os

ed

NH 4: To Mumbai

Pe

rip

Jalahalli

Tum

kur

BIEC

Ro

ad

he

Sahakara
Nagar

ra

Thannisandra

lR

in

Ro

Budigere

ad

HMT Township
Hennur
Hebbal

Hesaraghatta
Cross

ing Roa

Avalahalli

NICE R

IISC

HBR Layout
Nagawara

RMV
Extension

Out

er R

ing

Palace
Grounds

Roa

d
Roa

ras

Seegehalli

gR

ITI

Rin

Banaswadi
Krishnarajapuram

Hope Farm Circle

Ou

ter

efield

Main

Roa

Whit

Rajaji Nagar

Byppanahalli
M
M

MG Road
M

Majestic

C.V.Raman Nagar

Indiranagar

Bangalore City
Railway Station

Vijayanagar

ai

enn

Ch

Mad

Old

Magadi Road
oa

NH

o
4: T

Old Airport

Brookefield

Road

Varthur Road
Marathahalli
Varthur

Mysore Road

Jayanagar

Koramangala

r
ute

re
yso

ng

Ri

Ro

Bellandur

J.P. Nagar

d
oa

Proposed Peripheral
Ring Road

ad

Bangalore
University

HSR Layout

Silk Board

Kengeri
Puttenahalli

Sa

rja

Haralur

Jaraganahalli

IIMB

pu

rR

Hosa Road

oa

Begur

CE
NI

Dommasandra
Arkere

Kothnur

ng

Ri
M

Thalagattapura
M

Gottigere

ad

Bommasandra

Bannerghatta Road

NICE Ring Ro

Kanak
a

pura R
oad

oa

Electronics City

ur

os

ad
Ro

SH 17:
To Mysore

NH 7: To Salem

NH 209: To Coimbatore

Major Roads

Metro Rail Phase I (Operational)

Outer Ring Road

Metro Rail Phase I (Under Construction)

NICE Ring Road

Metro Rail Phase II (Proposed)

Proposed Monorail

Proposed Peripheral Ring Road

Major Landmarks

Bellary Elevated Express way

Key Residential Areas

Proposed High Speed Rail Link
M

BANGALORE: REAL ESTATE MARKET REPORT

Key Metro Stations

INFRASTRUCTURE PROJECTS

The development of urban infrastructure in Bangalore has not been able to keep pace with the rapid
population growth and economic development of the city.
Table: On-going & proposed infrastructure projects in Bangalore
Project
The proposed mass rapid system
for Bangalore 41 km of elevated
Phase 1 and underground rail network with
36 stations in Phase I
Bangalore
Metroa

Details

Timeline

Status

North-South Corridor: Hesarghatta Cross

(Peenya Industrial area) to Banashankari
via Malleswaram, Majestic and Jayanagar.
East-West Corridor: Bypanahalli - Mysore
Road via Indiranagar, M.G.Road, Majestic
and Vijayanagar.

Phase I
to be fully
operation
al by
2015.

Under
construction
(Phase I under
construction
& Reach 1
operational)

Phase II: Extension of Phase 1 lines connecting Whitefield (in the East), JP Nagar
Phase 2 (in the South), Kengeri (to the West) and Nelamangala (to the North).
In addition, two new lines, one connecting Nagawara to Gottigere and the other
connecting BTM Layout to Bommasandra has been proposed.

Monorailb

High Speed Rail

Linkc

Peripheral Ring
Roadd

Project will act as a feeder network

to the metro rail. Four corridors
have been identified covering 60
km.

Corridor I:Kanakapura Road - Mysore

Road,Kathriguppe - National College
Corridor II:Bannerghatta National Park Adugodi
Corridor III:Tumkur Road - Bellary Road
Corridor IV:Mysore Road - Tumkur Road,
Magadi Road - Toll gate

The High Speed Rail will connect

the CBD with the Bangalore
International Airport in Devenahalli.

The project will cover a distance of 34 km

starting from BRV Grounds, passing
through Cubbon Road, Raj Bhavan Road,
Hebbal and Yelahanka to the Airport

The Peripheral Ring Road is a

Public Private Partnership (PPP)
project to be executed by the BDA.
This ring road will circumnavigate
the city connecting all the major
highways.

NICE Ring Road connecting Hosur Road

and Tumkur Road has been declared as
Phase 1 of PRR.

Bellary Elevated
Expressway

A six-lane elevated expressway is

proposed to connect Hebbal to
Yelahanka. A ten-lane (6 lanes with
two services lanes on either side)
highway will connect Yelahanka to
Bangalore International Airport.

Signal Free Outer

Ring Road

Phase 2 of the Ring Road will connect

Tumkur Road, Bellary Road, Old Madras
Road, Sarjapur Road and Hosur Road.

Hebbal to Yelahanka and Yelahanka to

Bangalore International Airport

Proposed
(Geo-technical
survey is under
progress)

Impact

Better connectivity
from all parts of the
city to the CBD
Travel time
reduction

Formal
approval for
the project is
awaited

Better access to
Metrorail network
Better connectivity
from peripheral
areas to the city

Proposed

Improved
connectivity
between CBD and
International Airport

Proposed Tenders
invited for
(30
Phase 2
months
from the
start of
construction)

Diversion of truck
traffic from the city
roads will ease
traffic situation on
ORR and within the
city. Second, will
open up new areas
for development

2014 (E)

Under
Construction

Better and faster

connectivity to the
International Airport

The existing Outer Ring Road will be Hosur to Silk Board Junction
made signal free with the construction
of 7 more flyovers and an underpass

2014 (E)

Under
Construction

Traffic
decongestion and
reduced travel time
to key IT hubs

Expansion of
Bangalore
International
Airporte

Expansion of Terminal 1 to double its capacity. To be increased to over 17 million

passengers a year.

2014 (E)

Under
Construction

To increase
passenger and
aircraft handling
capacity

BMRDA Satellite
Townshipsf

Five townships proposed at Bidadi, Ramanagaram, Solur, Sathanur and Nandagudi.

Total area: 61,000 acres

Proposed

Expansion of
Bangalore city and
formation of new
peripheral locations

Proposed

Will open new

areas for Real
Estate development

Proposed

Ease traffic
congestion in
Greater Bangalore
Region and spur
Real Estate
activities

Satellite Town Ring 8 lane road connecting the proposal BMRDA satellite townships. Will connect the
satellite towns of Doddaballapur, Devanahalli, Hoskote, Anekal, Kanakapura,
Road(STRR)g
Ramanagaram and Magadi with each other and also to the Bangalore International
Airports
Intermediate Ring
Road(ITRR)h

8 lane road around the Bangalore Metropolitan region. Will come up in-between
Peripheral Ring Road and Satellite Town Ring Road. Will pass through
Nelamangala, the southern parts of Dobbspet, Doddaballapur and Devanahalli,
areas about 6 km from International Airport, the eastern parts of Hoskote and
Anekal, besides Harohalli, Bidadi and Magadi.

Expected Completion Time 0 - 3 years

Expected Completion Time 3 - 5 years

www.bmrc.co.in, www.karnataka.com, www.timesofindia.com, www.deccanhearld.com

www.timesofindia.com
www.ksiidc.com/tender.html, www.projectsmonitor.com/detailnews.asp?newsid=15665
d
www.deccanchronicle.com, 13 Feb 2013

Expected Completion Time more than 5 years

www.bengaluruairport.com
www.bmrda.kar.nic.in
www.timesofindia.com

f-g

10

REAL ESTATE MARKET SUMMARY

The real estate sector in Bangalore, one of the 8 largest Technology Innovation Clusters , will continue its
growth trajectory in future as well.

Bangalore continues to be one of the best cities for real estate

sector in the country-absorbing close to 1/3rd of the total
office space of the country. Since 2009, the city witnessed an
average annual absorption in the range of 7.5 and 9 million
sqft. With a total absorption (including pre-commitments) of
5.7 million sqft for H1 2013, the city is expected to achieve
similar statistics this year as well.

OFFICE

Citys real estate market witnessed sustained traction for SEZ

spaces in H1 2013; however, a large part of the planned supply
is not likely to materialize due to restricted time limit until March
31, 2014.

Office rentals across micro-markets largely remained unaltered

during H1 2013.

Economic outlook for the city remains strong in medium term as

many large IT/ITeS companies, Engineering and Automobile
MNCs have impending growth plans for Bangalore.

Office space take-up in Whitefield during 2012 - 13 was

mainly due to expansion and consolidation by existing
companies in this micro-market. Schneider Electric, TCS and
Societe General are prominent companies that have
expanded operations in the city.

Healthy office space absorption and on-going infrastructure

Bangalore witnessed a launch of 40,336 units in the year

2012 and absorption in the same year stood at 33,988 units.
H1 2013 witnessed a launch of nearly 26,620 units and
absorption during the same period stood at 18,076 units.

Apartments and villas are the key established residential

product types in Bangalore. 2012 saw Villaments gaining
prominence as a product type since it offers the best of both
apartments and villas. Leading developers like Habitat
Ventures, Nitesh Estates, Embassy Group have launched
villament projects in the city.

Capital Values for residential projects witnessed an increase

in the range of 5% - 25% across micro-markets. Among micromarkets- Tumkur Road, ORR-Sarjapur Stretch and Whitefield
observed the highest appreciation.

Bangalore remained one of the favoured real estate markets

for Private Equity Funds resulting in their sizeable
participation in this asset class. Besides residential asset
class, commercial asset class also witnessed large
investments by PE funds during the last one and half year.

In 2012-13, Bangalore witnessed entry of national

developers like Phoenix Group and the Address Makers by
India REIT.

Currently the most active residential micro-markets of the city

are ORR-Sarjapur stretch, Whitefield and Bangalore North.
Off-central location of Magadi Road is witnessing renewed
interest due to the availability of industrial land for
redevelopment in the inner ring city.

Sky Villas, duplex apartments with large terrace spaces, is

another new concept introduced in the luxury segment.
Although this concept was prevalent in Mumbai, it has recently
gained prominence in Bangalore with the launch of luxury
apartments in off-central regions.

projects have fuelled residential demand in the city.

Absorption of residential units has grown at a CAGR of 31%
since the year 2010.

RESIDENTIAL

Bangalore North witnessed increased momentum during H1

2013 with manufacturing and aerospace companies like Wipro
Systems & Controls and Starrag Heckert commencing
operations in this region.

Among all the micro-markets, ORR continues to remain the

most preferred market for expansion by IT/ITeS companies
mainly due to availability of Grade A office spaces and
support infrastructure. Honeywell Technologies, Volvo,
Goldman Sachs and Adobe have expanded and / or
consolidated their operations along ORR in the last two
years.

As per Massachusetts Institute of Technology (MIT), Technology Review

BANGALORE: REAL ESTATE MARKET REPORT

Strong economic outlook is likely to propel healthy growth rate

in residential segment.

Favourable demographics, opening up of FDI in single and

multi-brand retail and availability of large land parcels have

not only led to increase in mall space over the years but have
also facilitated development of larger malls.

one year. UB City on Vittal Mallya Road witnessed highest

appreciation in rentals due to lack of luxury spaces in the city.
The Forum at Koramangala and Garuda Mall at Magrath
Road also witnessed significant appreciation in the last one
year.

Bangalore with 7.7 million sqft of operational mall space will

see completion of 5.7 million sqft of mall space by the year
2016.

Based on the existing, under-construction and planned malls,

RETAIL

Some of the national and international brands that entered

Due to relaxation of FDI norms for both single and multi-brand

retail, the retail sector in Bangalore is posed to grow in the
coming years.

Continuous expansion of the city limits have led to availability

of large mills / industrial land for redevelopment.
Development of mixed-use integrated townships
encompassing office, retail, residential and hotels has gained
prominence over the years.

Bangalores hospitality sector is primarily driven by the

IT/ITeS sector with business travelers accounting for majority
of the room occupancy as compared to MICE and leisure
travelers. The city today has 9,585 rooms and 1,157 rooms
are expected to enter by Q1 2014.

HOSPITALITY

Bangalore in 2012 - 13 are Krispy Kreme, Promod, Aldo,

Charles and Keith and Debenhams.

High-street locations over the last one year witnessed lesser

appreciation as compared to shopping malls. Rentals across
the locations grew in the range of 5 - 12%. Among the highstreet locations, Vittal Mallya Road, which is a key high street
location for luxury brands, witnessed a significant increase in
rental value over H1 2012 due to limited supply of retail space
for luxury spaces. Other high-street locations that witnessed
growth in rental values included Kammanahalli Main Road
and M.G. Road.

Kanakapura Road, Bannerghatta Road, Mysore Road, Hosur

Road and Tumkur Road are in a balanced state in terms of
mall development vis--vis residential activity. ORR-Sarjapur
stretch is one of the most promising locations for
development of a shopping mall in short term while Whitefield
due to high under trading mall spaces offers less advantage.

Mall rentals have appreciated in the range of 5 - 20% in last

Occupancy levels in the city range between 56% and 59%.

Bangalore is increasingly witnessing development of hotels

as a part of mixed use developments with residential,
commercial, retail and hospitality in the same project.

The city today has potential for development of serviced

apartments and branded 3 Star category hotels.

Whitefield, ORR-Sarjapur Stretch, Bangalore North and

Tumkur Road are among the most preferred locations by
hotel operators.

Bangalore will continue to see entry of 4 and 5 Star Category

hotels as most of the under-construction hotels expected to
be operational in medium term are positioned in these
categories.

Currently the most sought after development model in

Bangalore is the management contract, wherein the landlord
undertakes the land acquisition, construction and fit-out of the
hotel and the hotel operator manages the operations.

Currently the hotel industry is dominated by 5 Star Category

Hotels. Nearly 42% of the total operational rooms fall under
this category. After 2008, the city started witnessing entry of
many branded budget hotel operators. Some of the key
operators in the city are IBIS by Accor Group, Keys Hotel by
Berggruen Hotels and Ginger by Tata Group.

In light of the upcoming developments in the IT/ITeS sector

and under-construction rooms, demand for hotels is
expected to remain unchanged in the short to medium term.

Room rates for the 5 Star category ranges between INR

7,000 - 8,500 per night while they range between inr 45005500 per night for the 4star category.

12

OFFICE MARKET OVERVIEW

112 million sqft

Total office stock in Bangalore

7.13 million sqft

Supply in 2012 out of which 3.3 million sqft was SEZ

8.39 million sqft

office space absorption in 2012 out of which
2.25 million sqft was SEZ

4.2 million sqft

of fresh supply in H1 2013

5.7 million sqft of absorption in H1 2013 including

2.0 million sqft of pre-commitment

16% overall vacancy level in Bangalore

Source: Vestian Research, 2012

BANGALORE: REAL ESTATE MARKET REPORT

OFFICE MARKET OVERVIEW

Bangalore continues to witness steady office space demand since 2009 and absorption exceeded supply
for the third consecutive year since 2010.

Figure: Bangalore's Office Space Supply and Absorption

Since 2009, Bangalore witnessed an average annual

absorption in the range of 7.5 and 9.0 million sqft.

16
16

H1 2013 witnessed absorption of 5.7 million sqft of office

space while fresh supply stood at 4.2 million sqft. Of the total
absorption in H1 2013, 2.0 million sqft of the space was precommitted.

14

Absorption in the city has exceeded for the third consecutive

10

year since 2010. Cautious approach adopted by the

developers has led to controlled supply and precommitment activities have helped to maintain demandsupply equilibrium in Bangalores office space market in
2012.

Vestian Estimate

12

million sqft

8
6
4
2
0
2009

2010

2011

Fresh supply

2012

2013(E)

2014(E)

Absorption

14

Table: Bangalore Office Space Statistics H1 2013

Non-Captive Space (in million Sqft/Month)

Micro-Location

Non SEZ
Grade A

SEZ
Grade A

Non SEZ
Grade B

Captive Space (in million Sqft)

Total

Non SEZ

Total

SEZ

CBD
Operational Space

7.52

4.35

11.87

0.70

0.70

Under-Construction Space

134

0.1

1.44

0.00

Pre-committed Space
Available Space

0.70

0.92

1.62

Planned Space

0.10

0.10

SBD
Operational Space

22.2

5.56

27.76

1.3

1.3

Under-Construction Space

1.68

1.68

Pre-committed Space

0.03

0.03

Available Space

1.20

1.3

2.50

Planned Space

0.70

0.70

1.7

1.7

ORR
Operational Space

12.84

16.40

0.25

29.49

2.25

2.25

Under-Construction Space

8.94

5.50

14.44

0.45

0.45

Pre-committed Space

0.24

0.84

1.08

Available Space

2.51

0.78

0.06

3.35

Planned Space

37.33

10.36

47.69

1.0

2.5

3.5

Operational Space

17.77

4.66

6.61

29.04

10.5

0.2

10.7

0.71

0.96

1.67

4.1

4.1

PBD
Whitefield

Under-Construction Space
Pre-committed Space

0.20

0.20

Available Space

4.46

1.04

1.89

7.39

Planned Space

5.41

15.22

20.63

2.5

1.1

3.6

Hosur Road & Electronic

City
Operational Space

8.00

2.41

10.41

13.1

5.1

18.2

Under-Construction Space

1.70

1.70

Available Space

2.37

1.09

3.46

Planned Space

0.40

3.0

3.40

1.1

5.1

3.20

0.08

3.28

Pre-committed Space

Mysore Road
Operational Space

Under-Construction Space

Pre-committed Space

Available Space

0.13

0.05

0.18

Planned Space

3.50

3.50

Bangalore North
Operational Space

0.35

0.04

0.39

Under-Construction Space

2.04

2.04

Pre-committed Space

0.10

0.10

Available Space

0.02

0.09

0.11

Planned Space

19.20

3.80

23.03

BANGALORE: REAL ESTATE MARKET REPORT

OFFICE MARKET OVERVIEW

ORR, for the next 3 - 5 years is expected to remain a preferred destination among IT / ITeS occupiers while
Bangalore North is anticipated to gain momentum by 2015.

The city accounts for 112 million sqft of operational non-captive

office space. The micro-markets Outer Ring Road (ORR) and
Whitefield in PBD dominate the office space market with almost
an equal share of 30% each amongst all others. Though,
Electronics City in PBD accounts for a mere 8% of non-captive
office space, this micro-market has significant presence of
captive campuses. CBD and SBD locations continue to attract
occupiers however availability of land is a deterrent.

Vacancy levels in the city range between 9% and 14%. However,

ORR today accounts for nearly 30 million sqft of operational

IT/ITeS spaces. ORR witnessed the largest supply of office

space in Bangalore accounting for nearly 56% of the city's new
supply for 2012. Further, this micro-market also witnessed 42%
of absorption during 2012 and H1 2013.

Shell Technologies is developing its Research and

Development (R&D) unit in Bangalore Hardware Park. The
40-acre campus will have built-up area of nearly 2.5 million
sqft.
Tyco Electronics is setting-up a manufacturing unit spread
across 25-acres in Aerospace Park, Devanahalli.

ORR will continue to remain a preferred destination by IT/ITeS

Bangalore North witnessed first major office space transaction in

H1 2013; SLK Software leased 0.2 million sqft of office space in
RMZ Latitude on Bellary Road. The region is likely to see
completion of nearly 2 million sqft of office space by the end of
2014. Key developers with presence in this location include
Assetz, RMZ Corp, Embassy Group, Salapuria Sattva, Brigade
Group, Hinduja Developers and Gokaldas Images.

Bangalore West is likely to see development of mixed use

townships. Apart from existing project by Brigade World Trade
Centre, Tata Realty & Infrastructure Limited is expected to
develop one of its flagship projects in this area. The integrated
township is spread over 1.7 million sq ft in Yeshwantpur.

Today, Whitefield has 29 million sqft of operational IT/ITeS office

(non-captive) space of which nearly 7.4 million sqft is vacant.
Existing companies in Whitefield are consolidating and
expanding their operations within the region. Some of the
companies that have expanded their operations are Schneider
Electric (0.5 million sqft) and TCS (0.3 million sqft).

Figure: Stock Vs Absorption and Vacancy Levels across Bangalore

micro-markets

Electronics City, a 680-acre electronics park is phased in three

50

phases. Phase I (332-acre) and Phase II (148-acre) in total

account for 8.6 million sqft of non-captive office spaces. Both
these phases have IT/ITeS, electronics and hardware
manufacturing companies. Infosys, TCS, HCL and Wipro have
their captive campuses in this region. Electronics City Phase III
(100-acres) is anticipated to be established as Biotech Hub.

30%

45
26%
16

16
40
35

25%

20%

30
million sqft

Bangalore North has seen a higher preference for a built-to-suit

campuses over leased office spaces. Some of the prominent
companies developing their facility are:

companies in medium term mainly because of availability of

Grade A office space, land for expansion and required support
infrastructure. Some of the prominent IT occupiers namely
Goldman Sachs (1.6 million sqft), Adobe (1.43 million sqft),
Honeywell Technologies (1.0 million sqft) and Samsung (0.45
million sqft) have expanded their base in this micro-market.
Volvo is developing its captive campus in this micro-market; the
company has bought 1 million sqft of office space in Bagmane
World Technology Centre. Apart from Volvo, Intel and Cisco are
also expanding their captive campuses along ORR.

Bangalore North, until 2013, witnessed activity from

manufacturing and aerospace companies. Wipro Systems and
Controls (SEZ) and Starrag Heckert have commenced their
operations in Bangalore Hardware Park.

PBD locations account for a high vacancy level of 26%. This may
be attributed to the presence of large number of Grade B / B+
developments in these micro-markets with limited amenities as
compared to Grade A developments.

Office space in Mysore Road is restricted to Global Village Tech

Park. The IT/ITeS SEZ has close to 3.2 million sqft of operational
IT space. Accenture (0.9 million sqft) and Mindtree Technologies
(0.5 million sqft) are among the key companies that have
expanded their operations in this region.

15%

25
14%

20

11%

10%

9%

15

Vacancy (%)

10

5%

5
0

0
CBD

SBD
Stock

ORR
Absorption

PBD
Vacancy

16

The city continued to witness sustained traction for IT SEZ spaces mainly along ORR and Whitefield in PBD.

Figure: SEZ Supply and Absorption in Bangalore

Bangalore has 24.3 million sqft of operational multi-tenanted

IT/ITeS Special Economic Zones (SEZs) space. Of this, ORR
accounts for nearly 16.4 million sqft while PBD locations of
Whitefield and Mysore Road account for the remaining 7.9
million sqft of SEZ spaces.

35
30

Year 2012 and H1 2013 witnessed absorption of 2.35 and 2.1

million sqft respectively of SEZ spaces. ORR and Whitefield
are the two micro-markets, which have witnessed
considerable SEZ absorption during the last one year. ORR
accounted for nearly 75% of total SEZ absorption and PBD
locations of Whitefield and Mysore Road collectively
accounted for 25%.

million sqft

16
40

25

24.26
35.88

20
15
22.31
10

Some of the major occupiers that leased out space in last two
years are Honeywell Technologies (1.0 million sqft),
Accenture (0.5 million sqft), TCS (0.3 million sqft), Societe
General (0.07), Cognizant Technologies (0.75 million sqft)
and Mu Sigma (0.33 million sqft).

6.46

The Government of India (GoI) has relaxed norms for key

criteria such as minimum land requirement. As a result of the
above revisions, it will be possible for smaller IT companies
to develop their own SEZ units. Also, developers who have
already constructed 100,000 sqm are allowed to utilize the
remaining land for residential purpose.

Operational Space

Annual Supplement 2013 14 to the Foreign Trade Policy 2009 14, released on March 18, 2013
Refers to Delhi NCR, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad and Pune

BANGALORE: REAL ESTATE MARKET REPORT

3.83
Planned Space

Supply

Absorption / Pre-committed Space

Table: Key Revisions in norms for IT / ITeS SEZ9

Particulars

w.e.f April 2013

Before April 2013

Minimum Land
Requirement

10 Hectares

None

Minimum
Built-up Area

100,000 sqm

100,000 sqm for 710 major

cities
50,000 sqm for category B
cities
25,000 sqm for other cities

Exit Policy for

SEZ units

10

1.04
Under-Construction
Space

Currently about 5.15 million sqft of non-captive SEZ space is

under-construction and expected to enter the market before
2014. However, a large part of the planned supply - nearly 31
million sqft of SEZ space is not likely to materialize due to
limited time frame. (As per the draft Direct Tax Code 2010,
units in SEZ spaces have to be operational before March 31,
2014).

None

Transfer of ownership of SEZ

units including sale permitted

OFFICE MARKET OVERVIEW

2012 - 13 witnessed expansion by major IT/ITeS companies

Year 2012 witnessed absorption 8.39 million sqft of which

Figure: Occupancy Strategy 2012 - H1 2013

nearly 65% was a result of expansion by major companies.

Amazon.com, Intel Technologies, Caterpillar, Capgemini
and Samsung were among the prominent companies that
expanded their operations in the city.

14%
10%

9%

Of the total deals reported during 2012, nearly 20% were

consolidation and relocation deals and 15% were new
entrants to the market. Canadian High Commission, Wells
Fargo were some of the companies that commenced
operations in the city during 2012.

As of H1 2013, IT/ITeS companies continue to expand their

operations in the city. Of the total absorption (including precommitments), 70% of the deals were due to expansion by
major companies and 25% of the transacted space was for
re-location and consolidation of operations. Linkedin
started its operations in Bangalore during H1 2013.

67%

Consolidation

Relocation

Expansion

New Entry

Table: Key Lease Transactions in Bangalore during 2012 & H1 2013

Tenant

Name of the Building

Area Leased (Sqft)

Micro Location

Year of Transaction

Pritech Park

400,000

ORR

2012

Intel Technology

RMZ Ecospace

204,000

ORR

2012

In Mobi

Embassy Tech Square

121,000

ORR

2012

Atos Origin

Gopalan Millenium Towers

125,000

Whitefield

2012

Infosys

JP IT Park

175,000

Eletronics city

2012

Honeywell

RMZ Ecoworld

1,000,000

ORR

2013

Cerner India

Manyata Embassy Business Park

356,000

ORR

2013

Alti Source

Pritech Park

120,000

ORR

2013

Amazon

Brigade WTC

294,000

SBD

2013

Texas Instruments

Bagmane Tech Park

100,000

SBD

2013

NDS

18

Bangalore witnessed limited investments by Private Equity (PE) funds for office space compared to
Mumbai and Delhi NCR since land for development of commercial spaces in the city is allotted by KIADB at
low prices and the availability of pre-commitment loans at low interest rates.

Bangalore witnessed one of the countrys biggest commercial

real estate acquisition deals by the US based Private Equity
fund Blackstone Group. As a part of the deal, Blackstone
purchased stake in a SPV comprising of three commercial
properties (2 in Bangalore and 1 in Pune) totaling over 10
million sqft.

Qatar Investment Authority, a sovereign fund invested in RMZ

Corp with a focus of investing in commercial properties in
Bangalore, Hyderabad, Chennai and Pune.

Table: Key PE deals for office space in Bangalore during 2012 - YTD

Fund

Amount
(INR Cr)

Project

Owner

Blackstone

Embassy
Group

Manyata Embassy
Business Park SEZ

875

Blackstone, GIC
Singapore and
HDFC Property
Fund

Vikas
Telecom

Vrindavan Tech Village

1,951

Baring Private
Equity Partners

RMZ Corp

6 million sqft of office

space

500

Source: www.vccircle.com

Office rental values remained unchanged in most micro-markets during 2012 - H1 2013 owing to controlled
supply and healthy absorption levels. Investors are capitalizing Grade A office spaces between 11% and
13% whereas developers are capitalizing it at 8% to 10%.

Majority of the available Grade A spaces in CBD locations are

fully-furnished mainly due to limited availability of fresh supply in
this micro-market.

Despite healthy absorption and pre-commitment levels, rentals in

the ORR remained unchanged which is a result of huge planned
inventory and large built-to-suit transactions in this micro-market.

Table: Bangalore - Office Rental and Capital Values

Warm Shell Rental Value (INR/sqft/month)
Micro-Location

Grade A

Capital Values (INR/Sqft)

Grade B
Grade A

Non SEZ

SEZ

Non SEZ

80 - 100

60 - 70

9,000 - 12,000

Koranmangala
Indiranagar
Bannerghatta Road
Intermediate Ring Road
Old Airport

50 - 55
45 - 50
35 - 45
70 - 80

6,500 - 8,000

45 - 50

40 - 45
40 - 45
30 - 35
50 - 60
32 - 36

Electronics city
Whitefield
Mysore Road
Bangalore North

26 - 28
26 - 30
24 - 26

32 - 34

18 - 20
20 - 25

25 - 26

45 - 55

35 - 38

3,200 - 3,700
4,500 - 5,000
-

46 - 48

50

38 - 40

5,000 - 6,200

CBD
SBD

PBD

ORR

BANGALORE: REAL ESTATE MARKET REPORT

OUTLOOK - OFFICE

H1 2013 has witnessed entry of 4.2 million sqft of office space.

Another 4.9 million sqft of office space is likely to enter in H2
2013, totaling the fresh supply for 2013 to 9.1 million sqft.

Absorption in 2013 is pegged between 8.5 and 9.0 million sqft.

ORR, for the coming three years is expected to remain a
preferred destination among IT/ITeS occupiers. The micromarket has witnessed substantial activity in the past three
years and is expected to continue the trend with significant
planned supply.

With companies initiating development of their campuses in

Bangalore North, this micro-market is anticipated to gain
momentum by 2015.

Rental and capital values in Bangalore are expected to remain

unchanged in short term. Besides, increase in rentals is
expected in prominent Grade A IT Parks due to controlled
supply and healthy leasing activity.

20

RESIDENTIAL MARKET OVERVIEW

40,336 units

33,988 units

launched during 2012

absorbed in 2012

31% CAGR
of residential absorption

5% - 25% annual capital appreciation range

3% - 7% range of annual average rental yield

18,076
units absorbed in H1 2013

BANGALORE: REAL ESTATE MARKET REPORT

26,620
units launched
during H1 2013

RESIDENTIAL MARKET OVERVIEW

Bangalore residential market witnessed a launch of 40,336

units including both Class A and Class B projects in 2012. This

was a drop by 8% compared to the number of launches in 2011.

Total absorption in Bangalore during the year 2012 was 33,988

units in Class A and B categories. Absorption of residential units

in Bangalore is growing at a CAGR of 31% over the last 3 years.

H1 2013 witnessed launch of 26,620 units and absorption for

Majority of these new launches have a ticket size in the range of

Annual capital appreciation ranges between 5% - 25% with

maximum appreciation of 25% observed in Tumkur Road, due
to Metro connectivity. Other locations that witnessed high
capital appreciation include ORR-Sarjapur Road and
Whitefield.

93% of the new launches were apartments and 7% were villas.

Absorption also followed a similar trend with apartments
accounting for 94% and villas accounting for 6% of the total
absorption witnessed in H1 2013.

Annual average rental yield in Bangalore ranges between 3% 7% with Bangalore North and Whitefield offering the best
returns of upto 7% and 6% respectively.

Among micro-markets, Bangalore North witnessed highest

number of launches accounting to 20% of the total units
launched. Whitefield and ORR-Sarjapur with 18% and 17% of
total launches respectively were among the other micromarkets to see high activity.

Figure: Supply and Absorption as per ticket size in Bangalore,

H1 2013
35,000
30,000

16

25,000
Number of Units

Unit sizes ranged between 3,000 - 6,000 sqft in Central and Offcentral locations. In peripheral locations like Whitefield, ORRSarjapur Road, Bangalore North and Bannerghatta Road- the
average unit size ranges between 1,250 - 2,500 sqft for
apartments and 2,500 - 4,500 sqft for villas. In micro-locations
like Tumkur Road and Hosur Road where target audience is
predominantly industrial workers, the unit size range between
900 - 1,800 sqft for apartments and 1,500 - 3,000 sqft for villas.

Analyzing new launches, absorption and availability across the

various segments- there is a demand for units in budget, midsegment and super-luxury categories. However, if the launches
continue at the same levels, there will be an oversupply
situation in the premium and luxury segments by 2014.

Bannerghatta Road, Mysore Road and Kanakapura Road

witnessed subdued activity in terms of new launches.

INR 50L to 1Cr (Premium segment). The remaining were in the

INR 25L to 50L (Mid-segment); INR 1Cr to 5Cr (Luxury
segment). Launches in the < INR 25L (Budget segment) and >
INR 5Cr (Super-luxury segment) were less than 1% of the total
number of units launched.

Off-central location of Magadi Road is witnessing renewed

interest due to the availability of industrial land for
redevelopment in the inner ring city.

corresponding year stood at 18,076 units.

Again Bangalore North, ORR-Sarjapur Road and Whitefield

micro-markets witnessed highest absorption; accounting for
29%, 16% and 14% of total absorption respectively.

20,000
15,000
10,000
5,000
0
< 25L

25L-50L

50L-1Cr

1Cr-5Cr

>5Cr

Segments in INR
Supply

Absorption

Supply includes fresh supply for H1 2013. Absorption includes sale of fresh and unsold stock of
previous years.

22

PE funds have invested close to INR 1,386 Cr in Bangalores residential market during 2012.

Residential sector is the most preferred Real Estate segment for

investment in Bangalore. Among the prominent channels available
for funding real estate projects are construction finance from
banks, private equity (FDI compliant & domestic funds) and NonBanking Financial Corporations (NBFCs). Apart from these,
overseas funding for Real Estate sector include External
Commercial Borrowings (ECB). However, ECBs can be used to
fund only low-cost affordable housing projects.

NBFC finance through structured debt / mezzanine finance

offer guaranteed returns and fixed timelines for exit. In addition,
provision of collateral including land and / or corporate
guarantees are a pre-requisite to avail funding through NBFCs.
Coupon rates for NBFC ranges between 18% - 24% depending
upon the reputation of the developer and project attributes.

Exit timelines for both PE funds and NBFCs range between 3 - 5

years.

Despite availability of construction finance from banks at a low

cost, developers are evaluating alternate sources for financing the

project mainly due to end-use restrictions. While selecting an
investment partner, sought after parameters for the developer
include availability of funding at land aggregation stage, lesser
end-use restrictions and lower monitoring of the funds.

Launch of Real Estate Investment Trust (REIT) on the

Alternative Investment Fund (AIF) platform is expected to
positively impact the industry.

PE funds and NBFCs are the major channels available for

financing large-scale residential developments in the city. Opening
of Real Estate sector in the year 2005 to FDI led to entry of Private
Equity (PE) funds in this sector. Until 2008 access to PE funds was
less challenging and funding was available at land aggregation
stage. However post 2009, funds prefer to evaluate projects post
land aggregation stage. PE funds today evaluate preferred /
promote return structure with Grade A developers. Also, minimum
IRR evaluated is 25%, although a few funds have exited with a
return as high as 35%.

Table: Key PE investments in Bangalore residential market during 2011-12

PE Firm

Developer

Madison India
RE Fund Ltd.

Shriram Land
Developers India Ltd.

GIC (Singapore
Soveriegn Fund)

Brigade Enterprises

Ask Property Fund

Shriram Properties

Ask Property Fund

Building
Residential Plotted
Development

Location

Amount
(in million USD)

Sarjapur and
Meesaganahalli

5.5

Whitefield

19

Land Acquisition

Bangalore

18.2

Mantri Developers

Residential

Lal Bagh Road

Redfort Capital

Prestige Estates

Residential

36

APG and Group of

investors

Godrej Properties

138

Portman Holdings

Tata Housing

Promont

Banashankari

12

Sun Apollo

Sobha Developers

Residential

Bangalore East

9.2

Pragnya

Habitat Ventures

Residential

Bannerghatta Road

Source: www.vccircle.com

BANGALORE: REAL ESTATE MARKET REPORT

14

RESIDENTIAL MARKET OVERVIEW

Figure: Bangalore's Residential micro-markets
Do

Towards
Doddaballapur
Industrial Area

dd

NH 7: To Hyderabad

ab
a lla
pu

ain
rM
Ro

Doddaballapur Industrial Area

ad

Bangalore International Airport

ar

yR

oa

Rajanukunte

Be
ll

BANGALORE NORTH

ed

Pe

rip

he

ra

lR

in

Ro

ad

Yelahanka

Pr

os

TUMKUR
ROAD

Pr

op

op

os

ed

Pe

rip

NH 4: To Mumbai

Jalahalli

Tum

kur

BIEC

Ro

ad

he

Sahakara
Nagar

lR

in

Ro

d
ing Roa

i
nna
Che
: To s Road
4
H
a

Avalahalli

IISC

HBR Layout
Nagawara

RMV
Extension

Peenya Industrial Area

OLD MADRAS
ROAD

Hennur

Hebbal

Hesaraghatta
Cross

Budigere

ad

HMT Township
Manyata Embassy
Business Park

NICE R

Hoskote Industrial Area

ra

Thannisandra

er R

ing

Palace
Grounds

Roa

Seegehalli
ITI

gR

oa

Mad

Old

Out

Magadi Road

WHITEFIELD
d
Roa

Rin

Banaswadi
Krishnarajapuram

Hope Farm Circle

Ou

ter

efield

Main

Whit

Rajaji Nagar

Byppanahalli
M
M

MG Road
M

Majestic

C.V.Raman Nagar

ITPB

Indiranagar
Bagmane Tech Park

Bangalore City
Railway Station

Vijayanagar

CBD

Old Airport

Brookefield

Road

Varthur Road
Marathahalli

OFF-CENTRAL
Mysore Road

Jayanagar

ore

s
My

Global Village
Technology Park

i
rR

Wipro
HSR Layout

Silk Board

Kengeri

Kumbalgodu
Industrail Area

SARJAPUR ROAD

Haralur

Puttenahalli

Bellandur

te

Ou

J.P. Nagar

a
Ro

Ro

Jaraganahalli

IIMB

Sa

rja

pu

rR

Hosa Road

oa

Begur
Dommasandra

CE

NI

Arkere

Kothnur

ng
Ri
a
Ro
d

Thalagattapura
M

Gottigere

Kanak
a

KANAKAPURA
ROAD

NICE Ring Ro

ad

Bannerghatta Road

pura R

oad

oa

rR

Electronic City

u
os

SH 17:
To Mysore

Proposed Peripheral
Ring Road

ng

Cessna Business Park

ad

Bangalore
University

MYSORE
ROAD

Varthur

Koramangala

BANNERGHATTA
ROAD

Bommasandra

Bommasandra & Jigani

Industrial Area

NH 7: To Salem

HOSUR
ROAD

NH 209: To Coimbatore

Major Roads

Major Rail Phase I Under Construction

Proposed Peripheral Ring Road

Outer Ring Road

Proposed Metro Rail Phase II

Elevated Express Highway Under Construction

NICE Ring Road

Proposed Monorail

Metro Rail Operational

Proposed High Speed Rail Link

Major Industrial Areas

Major Landmarks
Key Residential Areas

IT/ITeS Clusters

Key Metro Stations

24

RESIDENTIAL MARKET OVERVIEW

Central

19
units launched in H1 2013

Target Segment: Mixed

Key projects launched in H1 2013: Legacy Mycon Vuv, Total
Environments Lost in the Greens

Type of developments: High end luxury homes

Social Infrastructure Maturity Status: High

33
units absorbed in H1 2013
190
units available as on H1 2013
INR 7,000 - 25,000
per sqft Capital value for each class A apartments
11%
Average Annual price Appreciation
3% - 4%
Average Annual Rental Yield

Off Central

1,505
units launched in H1 2013
1,116
units absorbed in H1 2013
3,340
units available as on H1 2013

Type of developments: This micro-location mostly comprises of

This micro-location has witnessed the development of not just

apartments, but has come up with newer concepts like sky villas
(duplex apartments with large terrace spaces) in Divyasrees 77
East; Doublements (Twin units) Divyasrees 77 East, row
houses and villas.

Social Infrastructure Maturity Status: High

ORR - Sarjapur Road (Marathahalli to Silk Board Junction)

4,485
launched in H1 2013

Target Segment: Predominantly IT/ITeS employees

2,841
units absorbed in H1 2013

Demand for residential segment is highest in this micro-market

11,011
units available as on H1 2013

due to its proximity to Outer Ring Road (ORR) one of the most
sought after IT/ITeS hubs in India.

Key projects: Prestige Ivy Terraces, KMB La Palazzo, SJR

Parkway Homes, VBD Azure, LGCL Puevlo.

Social Infrastructure Maturity Status: Medium

INR 4,000 - 9,000

per sqft Capital value for class A apartments
INR 4,790 - 11,350
per sqft Capital value for class A villas / row-houses
15% - 20%
Average Annual price Appreciation
3% - 4%
Average Annual Rental Yield

BANGALORE: REAL ESTATE MARKET REPORT

and

first ring suburbs with industrial areas that are now open for
redevelopment thereby making large land parcels available for
mixed use development.

11%
Average Annual price Appreciation
3% - 4%
Average Annual Rental Yield

Key Projects: Sobha Indraprastha, Prestige Westwood, Purva

Sunflower, Total Environments Here comes the Sun
Assetz Lumos.

INR 5,000 - 11,000

per sqft Capital value for class A apartments
INR 11,500 - 13,000
per sqft Capital value for class A villas / row-houses

Target Segment: Mixed

RESIDENTIAL MARKET OVERVIEW

Whitefield

5,338
units launched in H1 2013
2,479
units absorbed in H1 2013

Target Segment: Predominantly IT/ITeS employees

Key projects launched in 2013 include: Skylark Ithaca, Brigade
Begonia, Rohan Avrithi

Social Infrastructure Maturity Status: High

Class B project launches were higher than Class A.

9,886
units available as on H1 2013
INR 4,200 - 8,000
per sqft Capital value for class A apartments
INR 7,500 - 11,300
per sqft Capital value for class A villas / row-houses
11% - 21%
Average Annual price Appreciation
4% - 6%
Average Annual Rental Yield

Old Madras Road

3,281
units launched in H1 2013
1,387
units absorbed in H1 2013
3,940
units available as on H1 2013
INR 3,300 - 5,950
per sqft Capital value for class A apartments
INR 4,000 - 5,250
per sqft Capital value for class A villas / row-houses
11% - 21%
Average Annual price Appreciation
4% - 6%
Average Annual Rental Yield

Target Segment: Industrial workers

Key Projects launched in 2013: Brigade Golden Triangle and
Prestige Glenwood.

Social Infrastructure Maturity Status: Low

Infrastructure:

This location is strategically located between Bangalore

International Airport, Whitefield and Outer Ring Road, the three
economic magnets that will lead the economic growth in the next
5 -10 years.
The announcement of the Chennai-Bangalore expressway
connecting Hoskote will also lead to the growth of automobile,
aerospace and manufacturing sectors around Hoskote.
Currently, this location lacks water supply and social
infrastructure which is the key reason for low absorption by end
users. Absorption is mostly investor driven.

26

RESIDENTIAL MARKET OVERVIEW

Bangalore North

Target Segment: Mixed

4,730
units launched in H1 2013

Key projects: Ashed Properties Regency La Majada,

5,170
units absorbed in H1 2013

Prestige Augusta Golf Village, Samruddhi Rhythm, Bhartiya

City - Phase II and Equinox Waters Edge - Phase II.

Social Infrastructure Maturity Status: Low

Infrastructure: This micro-location has the advantage of
availability of large land parcels. The completion of physical
infrastructure projects like Elevated Expressway to BIAL,
High Speed Rail Link and operationalization of government
promoted & private industrial and / or business parks in
Devanahalli are likely to improve the long term potential for
residential growth in this market.

14,011
units available as on H1 2013
INR 3,800 - 11,500
per sqft Capital value for class A apartments
INR 4,800 - 9,000
per sqft Capital value for class A villas / row-houses
11% - 18%
Average Annual price Appreciation
4% - 7%
Average Annual Rental Yield

Bannerghatta Road

No
units launched in H1 2013
552
units absorbed in H1 2013
800
units available as on H1 2013
INR 2,100 - 6,300
per sqft Capital value for Class A apartments
INR 8,500
per sqft Capital value for class A villas / row-houses
6% - 8%
Average Annual price Appreciation
3% - 4%
Average Annual Rental Yield

BANGALORE: REAL ESTATE MARKET REPORT

Target Segment: IT/ITeS employees

Key Projects launched in 2012: DLF Bella Greens was the only
Class A project launched in this micro-market in 2012.

No new projects launched in H1 2013

Social Infrastructure Maturity: High. However, travel time is an
issue during peak hours.

Infrastructure: Proposed new line of Metro connecting

Nagawara to Gottigere

RESIDENTIAL MARKET OVERVIEW

Hosur Road

3,875
units launched in H1 2013
2,367
units absorbed in H1 2013
7,494
units available as on H1 2013

15% - 18%
Average Annual price Appreciation

Type of development: Class A developments are limited.

Absorption was high in this micro-market and was next only to
Bangalore North and Sarjapur Road due to the availability of
lower priced apartment and villa projects as compared to prices
in other nearby micro-markets.

INR 3,000 - 5,000

per sqft Capital value for class A apartments
INR 3,500 - 6,400
per sqft Capital value for class A villas / row-houses

Target Segment: IT/ITeS employees, Industrial workers

Key projects launched include Prestige Sunrise Park, Sattva

Greenage - Phase II, Godrej E City - Phase II, Indya Estates - The
Greens.

Social Infrastructure Maturity Status: Medium

4% - 5%
Average Annual Rental Yield

Kanakapura Road

728
units launched in H1 2013

610
units absorbed in H1 2013

Target Segment: Mixed

Key Projects launched in H1 2013 are Golden Panorama and
Mahaveer Carnation

Social Infrastructure Maturity Status: High

4,523
units available as on H1 2013

INR 2,100 - 6,300

per sqft Capital value for class A apartments

Infrastructure: Ongoing construction of Metro Rail Project

INR 8,500

Phase I.

per sqft Capital value for class A villas / row-houses

10% - 11%
Average Annual price Appreciation

3% - 4%
Average Annual Rental Yield

28

RESIDENTIAL MARKET OVERVIEW

Mysore Road

2,385
units launched in H1 2013

Target Segment: Predominantly industrial

This micro-market witnessed limited supply. Absorption was
witnessed mostly in Grade A projects before NICE corridor.

Key projects launched include Provident Sunworth, VBHC

Vaibhava, Gopalan Sanskriti and Kumar Properties
Princeville

1,768
units available as on H1 2013
INR 2,900 - 4,300
per sqft Capital value for class A apartments
INR 4,200 - 6,600
per sqft Capital value for class A villas / row-houses

Social Infrastructure Maturity Status: High

Infrastructure Projects: Metro Rail Phase I

1,079
units absorbed in H1 2013

will improve

connectivity to this micro-location.

5% - 6%
Average Annual price Appreciation
3% - 4%
Average Annual Rental Yield

Tumkur Road

274
units launched in H1 2013

442
units absorbed in H1 2013

INR 2,800 - 5,000

per sqft Capital value for class A apartments

INR 8,000
per sqft Capital value for class A villas / row-houses

20% - 25%
Average Annual price Appreciation

3% - 5%
Average Annual Rental Yield

BANGALORE: REAL ESTATE MARKET REPORT

Majority of the projects launched in 2012 were in the midsegment. However, this location also witnessed the launch of its
first luxury villa project by Godrej Properties.

4,111
units available as on H1 2013

Target Segment: Industrial workers

Key projects launched in H1 2013 include Tata Riva

Social Infrastructure Maturity Status: High
Infrastructure: This micro-market was previously looked at as an
industrial location, and is now undergoing a shift with metro
connectivity. However, in the long term, the proposal to shift units
within Peenya Industrial area and the micro-locations proximity
to Bangalore International Airport will unlock land for commercial
Grade A developments, thereby making this location suitable for
the development of a range of residential projects.

New project launches are likely to be in the range of 40,000 45,000 units whereas absorption is likely to be in the range of
33,000 - 35,000 units.

Since the announcement of additional interest benefits at the

Union Budget 2013-14 on home loans up to INR 25L for
projects within a ticket size of INR 40L, developers are likely to
come up with projects in the 25L - 40L bracket.

New project launches are expected to increase especially in

the budget and mid-segment category; however will be
subdued in the premium and luxury categories due to
availability of large number of under construction units.

OUTLOOK - RESIDENTIAL

Meanwhile, super-luxury projects are likely to do well in 2013.

Bangalore North, ORR-Sarjapur Road and Whitefield will

continue to witness major activity in the residential segment
with several projects already lined up for launch.

Key upcoming micro-locations include Tumkur Road and

Kanakapura Road due to improvement in infrastructure and
Old Madras Road for its strategic location and announcement
of new infrastructure projects. This will result in capital value
appreciation in these micro-locations.

Strong demand for office space in ORR and Sarjapur Road is

expected to appreciate the rental values in these micromarkets.

The success of Integrated Townships like Brigade Gateway

and Prestige Shantiniketan, and availability of industrial land
for redevelopment in off-central locations (inner ring city)developers are likely to announce many more mixed-use
integrated township projects.

In terms of residential products, there exists a huge scope for

innovation in the budget and mid-segment housing. Increasing
use of technology in various aspects like design, construction,
project management, marketing and customer service is
necessary to arrive at newer products.

New brands likely to enter Bangalore residential market in

2013 include India REITs The Address Makers, Olympia
Group, Supertech and Sahara Group.

30

RETAIL MARKET OVERVIEW

7.65 million sqft

Total Mall space
operational in Bangalore

0.5 million sqft

vacancy in operational malls

5.65 million sqft

of mall space under-construction

0.78 million sqft is likely to enter in H2 2013

2.50 million sqft is pre-leased in
under construction malls

13.79 million sqft

is under planning stage

BANGALORE: REAL ESTATE MARKET REPORT

RETAIL MARKET OVERVIEW

Bangalore will add of 5.65 million sqft of shopping mall space by 2016

Bangalore witnessed completion of 1.29 million sqft11 of mall

space during 2012; higher than Tier I cities of NCR and Mumbai.
As of H1 2013, operational shopping mall space in the city totaled
to 7.65 million sqft.

Between 2004 and 2008, shopping mall space in the city grew at a
CAGR of 8%; however, last four years 2009 - 12 witnessed
significant mall completions and the citys mall space grew at a
CAGR of 20%.

The city reported no new completion of malls during H1 2013.

However, with three malls under construction, completion of 0.78
million sqft of mall space is anticipated by year end. Shopping
malls expected to enter the market during 2013 are Vaishnavi
Sapphire (0.25 million sqft) on Tumkur Road, World Market Phase I (0.18 million sqft) on Old Madras Road and MSR Regalia Elements Mall (0.33 million sqft) on Thanisandra Road.

Favourable demographics, opening-up of FDI in single and multibrand retail and availability of large land parcels have not only led
to increase in mall space over the years but have also facilitated
development of larger malls. Until 2008, the malls were
predominantly neighbourhood and community malls with sizes
restricted between 0.35 and 0.60 million sqft while today the city
has witnessed completion of regional malls ranging between 0.75
and 0.90 million sqft.

Figure: Year-on-year increase in mall space in Bangalore

3.50
2.90

3.00

Vestian Estimate
GLA in million sqft

2.50
2.30
2.00
1.50
1.30
0.93

1.00
0.50

1.19

1.35

0.78

0.55
0.46

0.40

0.36

0.35

0.30

2004

2005

2006

2007

2008

2009

2010

2011

2012

0.00

Total number of malls operational in the respective year

11

2013(E) 2014(E) 2015(E) 2016(E)

3

Total number of malls expected to be completed in the respective year

Mall space statistics in the report are indicated in Gross Leasable Area (GLA) unless mentioned otherwise

32

SBD and PBD locations are likely to be focus areas for developments of shopping malls in next three to five
years.

The Forum (0.36 million sqft) in Koramangala, Garuda Mall (0.35

million sqft) at Magrath Road and Sigma Mall (0.18 million sqft) at
Cunningham Road are situated in Central Business District
(CBD)12 and Secondary Business District (SBD)13 locations.

Growth in citys population coupled with infrastructure projects like

completion of Outer Ring Road (ORR), NICE Ring Road and ongoing metro rail project have provided impetus for development of
retail spaces in Peripheral Business District (PBD)14 locations of
the city.

PBD location of Whitefield has witnessed highest mall space

activity in the past few years. The micro-market accounts for 33%
of total operational mall space in the city. The micro-location is also
expected to see completion of 0.87 million sqft of mall space in
next three years. As a consequence of this large under trading
supply, the potential for retail development in this micro-location is
low. Under-construction malls in this location include Forum
Shantiniketan Mall (0.45 million sqft) and Xander Mall (0.42 million
sqft).

ORR Sarjapur Road is one of the most promising locations for

development of a shopping mall due to high residential activity, low
existing mall space and no malls under construction.

Bangalore North and Old Madras Road have high potential for
mall development in long term due to proposed developments in
commercial and residential sectors.

Further lack of availability of large land parcels in CBD of the city

has fuelled development of shopping malls towards SBD and PBD
locations. Currently 4.5 million sqft of shopping mall space is
under-construction in these locations.

Based on existing, under-construction and planned malls

Kanakapura Road, Bannerghatta Road, Mysore Road, Hosur
Road and Tumkur Road are in a balanced state in terms of mall
development vis--vis residential activity.

Currently, CBD, SBD and PBD locations respectively account for

10%, 42% and 48% of existing mall space and this ratio is
expected to remain the same in next three to five years. Although
PBD locations are expected to witness completions of more
number of malls than SBD locations, the latter is anticipated to
house larger malls designed mostly as regional or community
malls.

Today, shopping malls are being developed as an

integral part of a mixed-use development having an
appropriate mix of office spaces, residences and
hotels.

Continuous expansion of the city limits have led to availability of

large mills / industrial land for redevelopment. These sick mills land
have facilitated development of mixed-use integrated townships
and over the years have emerged as preferred destinations for
development of shopping malls. Some of the key examples being
Brigade Orion (0.75 million sqft) on Kirloskar Factory land in
Rajajinagar, Mantri Square (0.93 million sqft) on Raja Mills land in
Malleshwaram and Salarpuria World Market (1.0 million sqft) on
BPL Factory land in Old Madras Road.

12

CBD covers areas around MG Road, Brigade Road, Magrath Road, Richmond Road, Lavelle Road, Vittal Mallya Road, Cunningham Road, Langford Town, Brunton Road and Residency Road.
SBD Locations include areas of Indiranagar, CMH Road, Old Madras Road (till KR Puram), Banaswadi, Bellary Road, Koramangala, Kanakapura Road (till ORR), Jayanagar, JP Nagar,
VijaynagarSadashivnagar, New BEL Road, Sanjaynagar, Malleshwaram and few locations of Bannerghatta Road, Hosur Road Rajajinagar and Yeshwantpur.
14
Locations of Whitefield, ORR-Sarjapur, Electronics City and Hosur Road, Bannerghatta Road, Kanakapura Road, Mysore Road, Old Madras Road, Tumkur Road and Bangalore North.
13

BANGALORE: REAL ESTATE MARKET REPORT

RETAIL MARKET OVERVIEW

Bangalore mainly has shopping malls anchored around a department store / hyper-market chain and / or a
multiplex. The city offers an opportunity for development of specialty shopping malls revolving around a
theme.

Although Bangalore has the third largest High Net-worth Individual

(HNI) population in the country, next only to Delhi and Mumbai, the
city has limited luxury mall space. The Collection Mall in UB City
and Leela Galleria in Hotel Leela Palace are the only available
luxury mall spaces in the city. The upcoming Galaxy Mall on
Residency Road, the luxury mall in West Courts City View on
Bellary Road and luxury retail space within Ritz Carlton on
Residency Road are likely to add some luxury mall space in the
coming years.

The city lacks specialty malls focusing exclusively on sale of home

& furnishing products, cars &auto-accessories, jewelry, electronics
& white goods. No such malls have been planned presently, but with
the Government opening FDI in multi-brand retail the city is likely to
witness entry of retail giants that will provide necessary impetus for
development of themed malls

Currently mall spaces are largely anchored around departmental

stores or hypermarket chains. Until recent past, entertainment in
the malls was limited to multiplexes however; today it is growing to
a status of an important anchor.

High-street locations currently face traffic congestion, crunch in availability of parking space and lack of
unobstructed pedestrian walkways.

High-street, synonymous with a market, offers better brand visibility

and rental advantage as compared to a shopping mall.

Brigade Road and Commercial Street in CBD and Indiranagar 100

feet Road, Malleshwaram 8th Cross, New BEL Road, Jayanagar 4th
Block and Koramangala 80 feet Road in Koramangala in SBD are
among the prominent illustrations of evolved high-streets of the city.

Regardless of increasing mall space; Bangalores high-street

locations are preferred by Apparel & Footwear, Electronic goods
and Food & Beverage (F&B) retailers.

Among the recently developing high-street locations are

Kamanahalli Main Road, Sahakar Nagar and Marenahalli Road
towards the PBD locations.

High-street expansions during 2012-13 included Delsey

(Indiranagar), Baileys (Koramangala), Krispy Crme (Church
Street), Choki Dhani (Intermediate Ring Road) and Me n Moms
(Banashankari). Further, some of the entrant retailers namely
Starbucks coffee is currently evaluating high-street locations for
setting-up their stores in the city.

34

Legend: List of existing, under-construction and planned malls in Bangalore

Malls in CBD
Operational

Under Construction

G Corp 1 MG Road

Suraj Cambridge Mall

EVA Mall

Embassy Galaxy Mall

Garuda Mall

The Collection

Sigma Mall

Planned

Malls in SBD
Operational

Under Construction

Planned

Salarpuria Oasis Mall

17

Vega Mall

21

Sobha Grand Mall

The Forum

18

City View

22

Karle Mall

10

Swagath Garuda

19

Orion Mall - 2

23

Nitesh Mall

11

Gopalan Innovation Mall

20

World GT Mall

12

Mantri Junction

13

Mantri Square

14

Orion Mall

15

Gopalan Signature Mall

16

Leela Galleria

Malls in PBD
Operational

Under Construction

Planned

24 Soul Space Arena

35

Grand Mall & Towers

44

Gopalan Destination Mall

25 Phoenix Market City

36

Virtuous Xander Mall

45

Prestige Technostar

26 Inorbit Mall

37

Forum Shantiniketan Mall

46

MBD Zephyr

27 Park Square

38

Salarpuria World Market

47

Mantri Mall, Agara

28

The Forum Value Mall

39

Neo Mall

48

Raheja INXS Mall

29

Cosmos Mall

40

Gardens Galleria

49

Perk In Mall

30 Soul Space Spirit

41

Vaishnavi Sapphire

50

Prestige Falcon City

31 Royal Meenakshi Mall

42

MSR Regallia Elements

51

Mantri Mall, Kanakpura

32 Gopalan Arcade Mall

43

RMZ Galleria

52

Puravankara Mall

33 Gopalan Legacy Mall

53

Lotus Mall

34 Esteem Mall

54

Karle Town Center

55

Monarch Celestial

56

Century Istana High Street

BANGALORE: REAL ESTATE MARKET REPORT

RETAIL MARKET OVERVIEW

Figure: Map of existing, under-construction and planned malls in Bangalore
Do

Towards
Doddaballapur
Industrial Area

dd

NH 7: To Hyderabad

ab

56

a lla
pu
ain
rM
Ro
ad

Bangalore International Airport

Rajanukunte

Be
ll

ar

yR

oa

55

in

Ro

ad

Yelahanka

ed

Pe

rip

he

ra

lR

43

os

Pr

Pr

op

op

os

ed

NH 4: To Mumbai

Pe

rip

Jalahalli

Tum

kur

BIEC

Ro

ad

he

Sahakara
Nagar

in

Ro

Budigere

34
42

Hebbal
54

Hesaraghatta
Cross

ing Roa

lR

ad

HMT Township

ra

Thannisandra

Hennur

Avalahalli

22
HBR Layout

NICE R

41

Nagawara

Out

er R

18

gR

oa

RMV
Extension

ing

Roa

13

Krishnarajapuram
36
M
25

Rin
Ou

ter

19

Hope Farm Circle

37

Byppanahalli

20
M

Bangalore City
Railway Station

MG Road
M

Majestic
4

44

15
Indiranagar

ras

efield

Main

Roa

Whit

27

45
24

23

d
Roa

38

ITI

Banaswadi

Rajaji Nagar

21
Vijayanagar

Palace
Grounds

ai

enn

Ch

Mad

Old

14

Magadi Road

NH

o
4: T

46

26

35
3

Old Airport

29

Road

Brookefield
28

Varthur Road

re
yso

30

10

12

HSR Layout

Silk Board

11
M

Puttenahalli

40
CE
NI

Sa

rja

Haralur

Jaraganahalli 17

50

IIMB

pu

rR

Hosa Road

oa

Begur
Dommasandra

51
Arkere

Kothnur

ng

Ri

31

52
M

49

Thalagattapura
M

os

ad
Ro

SH 17:
To Mysore

Bellandur

48
M

Kengeri

Varthur

47

J.P. Nagar

d
oa

16

Koramangala

Proposed Peripheral
Ring Road

Bangalore
University
53
32

Jayanagar

r Rin
g Ro

8
Mysore Road

Oute

33

ad

Marathahalli

ur

Gottigere

ad

39
Bannerghatta Road

NICE Ring Ro

Kanak
a

pura R
oad

oa

Electronics City

Bommasandra
NH 7: To Salem

NH 209: To Coimbatore

Major Roads

Metro Rail Phase I (Operational)

Outer Ring Road

Metro Rail Phase I (Under Construction)

NICE Ring Road

Metro Rail Phase II (Proposed)

Proposed Monorail

Proposed Peripheral Ring Road

Major Landmarks

Bellary Elevated Express way

Key Residential Areas

Proposed High Speed Rail Link
M

Key Metro Stations

36

Since last year, shopping mall rentals have appreciated between 5% and 20% while high-street rentals have
appreciated between 5% and 12%.

Mall rentals have appreciated in the range of 5 - 20% in last one

year. UB City on Vittal Mallya Road witnessed highest

appreciation in rentals due to lack of luxury space in the city. The
Forum in Koramangala and Garuda Mall on Magrath Road
witnessed significant appreciation in the last one year.

High-street locations over the last one year witnessed lesser

appreciation compared to shopping malls. Rentals across the
locations grew in the range of 5-12%. Vittal Mallya Road, a key
high street location for luxury brands, witnessed significant
increase in rental value during H1 2012 due to limited supply of
retail space in the luxury category. Other high-street locations that
witnessed growth in rental values include Kammanahalli Main
Road and M.G. Road.

Table: Malls and High-street Rental Value (INR/sqft/month)15

Micro-Location

Mall Rentals

Rentals on UCA
H1 2012

H2 2013

Rentals on SBA
H1 2012

% Change

H2 2013

CBD
Magrath Road

300

350

195

228

17%

Cunningham Road

165

185

107

120

12%

Vittal Mallya Road

330

395

215

260

20%

SBD
Koramangala

400

450

260

292

13%

Malleshwaram

210

225

137

146

7%

13%

PBD
Whitefield

150

170

98

110

Bannerghatta Road

180

200

117

130

11%

Mysore Road

100

105

65

68

5%

Rajarajeshwari Nagar

110

115

72

75

5%

High-Street Locations
CBD
Brigade Road

450

480

360

384

7%

Commercial Street

300

320

240

256

7%

Church Street

160

175

128

140

9%

Vittal Mallaya Road

200

225

160

180

13%

M. G. Road

300

330

240

264

10%

Koramangala 80 Feet Road

130

130

104

104

0%

Indiranagar 100 Feet Road

210

225

168

180

7%

Jayanagar 11th Main Road

245

255

196

204

4%

Malleshwaram - Sampige Road

120

125

96

100

4%

New BEL Road

130

140

104

112

8%

Kammanahalli Main Road

125

140

100

112

12%

ORR (Marathahalli - Sarjapur Road)

SBD

PBD
100

100

80

80

0%

Bannerghatta Road

95

100

76

80

5%

Yelahanka Main Road

90

90

72

72

0%

15
Shopping Mall rentals indicated on UCA are for a 1,000 sqft vanilla store on Ground Floor with an efficiency of 65%. High-street rentals indicated on UCA are for 1,000 sqft store on Ground Floor with an
efficiency of 85%.

BANGALORE: REAL ESTATE MARKET REPORT

The city is slated to add 0.78 million sqft of mall space by the
end of 2013. Total operational mall space shall account to 8.45
million sqft by the year end.

SBD and PBD locations are expected to witness significant

entry of new malls in the next three years. Close to 4.5 million
sqft of mall space is under-construction across these
locations.

Among the PBD locations ORR-Sarjapur has high potential for

development of malls in near future while Whitefield due to
high penetration of shopping malls remains less attractive.

The city offers an opportunity for development of specialty

malls that concentrate on a particular merchandise like
furniture, automobile and its accessories, entertainment and
jewelry to name a few. No such malls have been planned

OUTLOOK - RETAIL

presently, but with the Government opening FDI in multi-brand

retail, the city is likely to witness entry of retail giants that will
provide necessary impetus for development of themed malls.

Retail demand in high-street locations of Brigade Road and

Commercial Street is expected to strengthen with completion
of Bangalore Metro Rail. Indiranagar 100 feet Road and
Koramangala 80 feet Road will continue to be a preferred
location with F&B retailers while Jayanagar 4th Block and
Malleshwaram will be preferred by retailers focusing on
womens apparel and jewelry.

Mall Rentals in SBD locations are likely to increase in short

term while rentals in PBD locations are expected to remain at
current levels in coming one year.

High-street rentals are anticipated to contain past growth trend

in coming one year.

With Karnataka Government easing FDI norms for both single

brand and multi-brand retail, the retail sector in Bangalore is
poised to grow in the coming years.

38

HOSPITALITY MARKET OVERVIEW

557 rooms
added in Bangalore in 2012

9,585 rooms
at the end of 2012

5,190 rooms
under-construction

324 rooms entered in H1 2013

1,157 rooms likely to enter by
Q1 2014

BANGALORE: REAL ESTATE MARKET REPORT

HOSPITALITY MARKET OVERVIEW

The citys hospitality market is dominated by upscale hotels; 42% of the existing room inventory is under 5
Star Category. In medium term, the city will continue to see addition of 5 Star category hotels over other
formats.
Bangalores hospitality sector is driven by business travelers that contributes close to 75 - 80% of the citys hospitality demand. Leisure travelers
and Meetings, Incentives, Conferencing & Exhibitions (MICE) travelers contribute to a mere 20% - 25% of the citys hospitality demand.

Figure: Distribution of Existing

Inventory

Figure: Distribution of
Under-construction Inventory

6%

Figure: Distribution of Planned

Inventory

7%

10%
6%
18%

23%
42%

17%

0%

69%
82%
29%

Serviced Apartment

3 Star

Serviced Apartment

3 Star

Serviced Apartment

3 Star

5 Star

4 Star

5 Star

4 Star

5 Star

4 Star

Existing Inventory:

Bangalores hospitality market is dominated by upscale 5

Star category hotels. Nearly 42% of the total existing room
inventory falls under this category. Mid-segment hotels
have started penetrating the market only post 2008 and
currently accounts for a mere 23% of the existing inventory.
Branded serviced apartments contribute to 6% of the
existing inventory.

Upcoming and Planned inventory:

Going forward, the hospitality market will continue to be

dominated by 5 Star category hotels as of the 5,524 rooms,
nearly 4,000 rooms are under this category.

By Q1 2014 Bangalore is likely to witness entry of 1,157

rooms, of which 65% are in 5 Star Category.

In the year 2012, 557 rooms entered the citys market.

Sheraton (230 rooms) at Rajajjnagar and Vivanta by Taj
(327 rooms) at Yeshwantpur commenced operations in
2012. However, this is only 30% of the rooms that were
slated to enter the market in 2012. Ritz Carlton on
Residency Road, JW Marriott in UB City deferred their
construction schedules. H1 2013 witnessed completion of
Hotel Marriott (324 rooms) in Whitefield.

Table: List of Hotels likely to enter Bangalore market in 2013-14

Hotel Name

Location

Micro-market

No. of Rooms

Category

Fairfield by Marriott

Rajaji Nagar

SBD

140

Business

Hilton Residences

Inner Ring Road

SBD

251

4 Star Serviced Apartments

Taj Gateway

Bannerghatta Road

SBD

210

4 Star

Marriott

Devanahalli

PBD

307

5 Star

Double Tree Suites by Hilton

ORR - Sarjapur

PBD

172

5 Star Serviced Apartments

40

PBD locations account for nearly 48% of the total room inventory. Currently of the total 5,190 rooms underconstruction, PBD is expected to see an entry of 3,471 rooms.

Based on the micro-markets, CBD accounts for 3,582

operational hotel rooms. The location, due to its proximity to the
city center and high land prices is preferred for development of 5
Star category hotels. Currently, nearly 70% of the existing
inventory is under 4 and 5 Star category hotels. In medium term,
this micro-market will continue to see entry of 5 Star category
hotels; 1,098 rooms under this category are expected to enter
the market by 2015 - 16. Ritz Carlton (267 rooms), JW Marriott
(318 rooms) commenced operations while Hilton (285 rooms) is
presently under-construction in this region.

PBD tops the chart with 5,144 operational hotel rooms. Proximity
to IT micro-markets of ORR, Whitefield and Electronics City has
led to development of branded 3 Star category / business hotels
and branded serviced apartments as compared to CBD or SBD
locations. Some of the prominent national and international
operators with presence in this area include Novotel and IBIS by
Accor, Marriott by Marriott Group, Lemon Tree Hotel by Lemon
Tree Group of Hotels, Premier Inn by Premier Inn Group and Aloft
by Starwood Group of Hotels. With 3,471 rooms in various stages
of construction, PBD is likely to have the highest inventory in the
city in the near future.

SBD locations account for a mere 1,923 rooms. This location has
witnessed development of a hotel as a part of mixed-use
development having an office, residential and / or a shopping
mall within a development. Key illustrations being Sheraton in
Brigade World Trade Center, upcoming serviced apartments Hilton Residences by Hilton Group in Embassy Golf Links and
upcoming 5 Star hotel in Mantri Groups proposed integrated
township at Agara.

Table: Bangalore's Existing, Under-construction and Planned Hotel Room Inventory

CBD
Category

SBD

PBD
Total

Existing

U/C

Planned

Existing

U/C

Planned

Existing

U/C

Planned

3 Star

807

30

179

140

1,455

194

125

2,930

4 Star

1,192

186

1,734

988

4,100

5 Star

1,289

1,068

1,404

230

1,727

2,117

1,412

9,246

294

154

251

228

172

175

1,274

3,582

1,098

1,923

621

5,144

3,471

1,712

17,551

Serviced Apartment
Total

BANGALORE: REAL ESTATE MARKET REPORT

HOSPITALITY MARKET OVERVIEW

Among the PBD locations, ORR-Sarjapur Stretch and Whitefield are preferred locations by hotel operators
mainly due to its proximity to IT clusters while Tumkur Road and Bangalore North have gained prominence
owing to its proximity to Bangalore International Airport.

Table: Bangalore's Hotel Room Inventory in PBD locations

No. of Hotel Rooms
Location

3,471

1,712

Whitefield

2,129

1,160

502

ORR-Sarjapur

1,058

984

700

215

Tumkur Road

662

Bangalore North

31

1,112

510

1,264

ORR-Sarjapur Road accounts for nearly 30% of the total

operational IT/ITeS space in the city. This location has witnessed

increased penetration by hotel operators in the last two years
due to high commercial activity across this corridor. Some of the
prominent hotels in this location are Novotel and IBIS by Accor
and Park Plaza by Carlson Rezidor Group. Apart from the
operational hotels, Aloft by Starwood Group, Courtyard by
Marriott and Double Tree Suites by Hilton are among the
upcoming hotels in this micro-market. However, room inventory
in this micro-market is not sufficient to cater to the demand of this
micro-market.
Whitefield currently accounts for more than 40% of the
operational rooms in PBD locations. This micro-location also has
a significant under-construction and planned inventory, which is
likely to enter in medium term.

Planned

5,144

Hosur Road

U/C

PBD

Bannerghatta Road

Existing

Hosur Road has sufficient existing inventory to cater to the

demand. With office development in Electronics City almost
nearing saturation, the potential for developing hotels in this
micro-location is low.

Tumkur Road is emerging as a preferred location for hotels due

to its proximity to Bangalore International Airport and CBD
locations. Further, proximity to business hubs like Brigade
World Trade Center, Manyata Embassy Business Park,
Bangalore International Exhibition Center (BIEC) and industrial
areas of Peenya and Nelamangalais are make this an attractive
location. Vivanta by Taj and Golden Beach Palm Resorts are
among the major operational hotels in this location. However,
almost all hotels that are operational in this micro-location are in
the upscale categories. The micro-market has an opportunity
for development of branded 3 Star category hotels.

With Bangalore International Airport commencing operation in

2008, several hotel projects have been announced in the
Bangalore North micro-market. Currently 1,112 rooms are
under construction and are likely to enter the market in the next
24 months. However, this location has high potential for hotel
development in the long-term due to the proposed economic
hubs. Leela Ventures is coming up with a 300 room 5 Star hotel
in Bhartiya City on Thanisandra Road.

42

Legend: List of existing, under-construction and planned hotels in Bangalore

List of Key Hotels in Bangalore

Royal Orchid Central

29

The Wyndham Grand

Lemon Tree Premier

30

Marriott

The Hilton

31

Hotel Trident Hilton

Hyatt

32

Howard Johnson

Taj Vivanta

33

Hyatt Place

The Oberoi

34

Swissotel

Royal Orchid

35

Zuri

The Leela Palace

36

MBD Zephyr

Matthan

37

Keys Hotel

10

Hilton Residences

38

Ginger

11

Ginger

39

Sheraton

12

Ritz Carlton

40

Aloft

13

JW Marriott

41

Marriott

14

ITC Gardenia

42

Taj Vivanta

15

JNR IBIS Citi Centre

43

Royal Orchid

16

The Atria

44

Alila

17

The Taj West End

45

Park Plaza

18

Viceroys

46

Aloft

19

Shangri-La

47

Novotel and IBIS

20

Le Meridien

48

Citrus

21

ITC Windsor

49

Double Tree Suites by Hilton

22

The Lalit Ashok

50

Planned Hotel (Mantri Group)

23

Sarovar Portico

51

Davanam Sarovar Portico

24

Fairfield by Marriott

52

Courtyard by Marriott

25

Sheraton

53

The Gateway by Taj

26

Movenpick

54

Keys Hotel

27

Taj Vivanta

55

Crowne Plaza

28

Ascott

56

Lemon Tree Hotel

Operational Hotels

Under-Construction Hotels

BANGALORE: REAL ESTATE MARKET REPORT

Planned Hotels

HOSPITALITY MARKET OVERVIEW

Figure: Map of existing, under-construction and planned hotels in Bangalore

30

Do

Towards
Doddaballapur
Industrial Area

dd

NH 7: To Hyderabad

ab
a lla
pu

ain
rM
Ro
ad

Bangalore International Airport

31

Be

llar

yR

oa

Rajanukunte

29

Ro

ad

Yelahanka

ed

Pe

rip

he

ra

lR

in

28

os

Pr

Pr

op

op

os

ed

NH 4: To Mumbai

Pe

rip

Tum

kur

BIEC

he

Sahakara
Nagar

Jalahalli

ra

Thannisandra

lR

in

32

Ro

ad

Ro

Budigere

ad

HMT Township
Hennur
Hebbal

Hesaraghatta
Cross

ing Roa

26
Avalahalli

IISC

HBR Layout

NICE R

27
Nagawara

RMV
Extension
25

Magadi Road

er R

d
oa
gR

ing

20 Palace
Grounds
19

22

Roa

Rin
ter
Ou

Rajaji Nagar

18
17

35

Bangalore City
Railway Station

efield

Hope Farm Circle

39

33

5 Byppanahalli
M
4
C.V.Raman Nagar
MG
Road
8
13
M
Indiranagar
Majestic
12
14
15
9 Old Airport Ro
11
ad
6

24

Vijayanagar

Krishnarajapuram

16

ras

40

34

d
Roa

Seegehalli
ITI

Banaswadi

23

ai

enn

Ch

Mad

Old

Out

21

NH

o
4: T

37

Main

Roa

Whit

42

41
43

36

38
Brookefield
Varthur Road

Marathahalli 44

10

45
Varthur

Mysore Road

Jayanagar

51

r
ute

J.P. Nagar

Ro

ad
48

Ro

Silk Board

Sa

rja

Haralur

Puttenahalli

Bellandur

49

HSR Layout

53

Kengeri

ng

Ri

52 O

ad

47
50

Proposed Peripheral
Ring Road

Bangalore
University

re
yso

46

Koramangala

Begur

Jaraganahalli

pu

rR

Hosa Road

IIMB

oa

54
CE
NI

Dommasandra
Arkere

Kothnur

ng
Ri
M

Thalagattapura
M

os

ad
Ro

SH 17:
To Mysore

ur

Gottigere

d
oa

Electronics City

56
ad

Bannerghatta Road

Kanak
a

pura R
oad

55
NICE Ring Ro

Bommasandra

NH 7: To Salem

NH 209: To Coimbatore

Major Roads

Metro Rail Phase I (Operational)

Proposed High Speed Rail Link

Outer Ring Road

Metro Rail Phase I (Under Construction)

Proposed Peripheral Ring Road

NICE Ring Road

Metro Rail Phase II (Proposed)

Bellary Elevated Express way

Proposed Monorail

Operational Hotels
Under-Construction Hotels

Major Landmarks
Key Residential Areas

Planned Hotels
M

Key Metro Stations

44

Average occupancy rate in branded hotels across Bangalore ranges between 56% and 59%.
Figure: Average Occupancy Levels and Room Rates (INR/night) in Bangalore

75%

10,000

70%

16

16

8,000
65%
6,000
60%
4,000

59%

58%

56%

2,000
7,867

4,883

3,833

5 Star

4 Star

3 Star

55%

50%

Room Rate

Occupancy Levels

Room Rate (INR / Room / Night)

12,000

Average Occupancy Levels

Occupancy rates for 5 Star category hotels in the city range

between 55% and 60%. Further, occupancy rates in 5 Star
category hotels are higher in CBD and SBD locations as
compared to PBD locations.

Lower occupancy rates in 3 Star category hotels is due to two

main reasons; firstly not all the 3 Star hotels are managed by
branded operators and secondly most of 5 Star & 4 Star hotels
have long-term corporate tie-ups that impact the demand
supply dynamics.

Table: Hotel Rack Rates in Bangalore

CBD
Category

Rack Rate

SBD

Discount Offered

PBD

Discount Offered

Rack Rate

Rack Rate

Discount Offered

3 Star

4,200

28%

3,700

36%

3,600

25%

4 Star

5,000

20%

5,650

20%

4,000

24%

5 Star

7,900

11%

8,000

14%

7,700

20%

Serviced Apartment

4,000

16%

5,350

14%

2,000

30%

Management Contract is the most preferred model by International and National Hotel Operators.

Currently, management contract is the most preferred model by

the international and national hotel operators. In this model, the

landlord / developer undertakes the land acquisition,
construction and fit-out of the hotel and the hotel operator
manages the operation of the hotel, in return paying a
management fee on top-line and bottom-line revenues.

Bangalore is also witnessing the development of hotels as part of

mixed use developments with residential, commercial, retail and
hospitality in the same project. Key examples include the
Sheraton Hotel in Brigade Gateway (Rajajinagar), JW Marriott in
UB City (Vittal Mallya Road), Four Seasons Hotel in City View
(Bellary Road) and Fairfield by Marriott in Sumangala Golden
Heights (Rajkumar Road).

Hotels are bringing in external brands of restaurants, spas and

lounges on leases or management contracts in order to increase
revenue generation.

BANGALORE: REAL ESTATE MARKET REPORT

International Hotel operators today are also exploring

opportunities to acquire existing hotels and re-brand these under
their parent companies. Hyatt Hotels Corporation signed
management agreement with Indian Hotels and Health Resorts
(IHHR) and rebranded five Ista Hotels in India including Ista in
CBD location of Bangalore.

OUTLOOK - HOSPITALITY

Majority of the under-construction and planned projects are

under the 4 Star and above categories. However, there is still a
demand for 3 Star and business category hotels in PBD
locations in and around economic hubs.

Occupancy levels and average room rates are likely to fall with
an addition of 1,157 rooms by Q1 2014. However, in the long
run economic growth is likely to increase demand for hotel
rooms.

Active micro-markets in the short to medium terms are CBD

and ORR, whereas Bangalore North has potential for hotels in
the long term.

Management contract will be the preferred development model

for hotels in the short to medium term.

Serviced apartments and company hotels or guest houses

have immense potential to grow.

46

Opportunities across Real Estate Sector in Bangalore in the short term

OFFICE

RESIDENTIAL

RETAIL

HOSPITALITY

BANGALORE: REAL ESTATE MARKET REPORT

ORR being one of the most preferred micro-market will remain a promising
location for development of office space in short to medium term. Further,
with availability of land for redevelopment in CBD and SBD locations, there is
a scope for development of office spaces in these locations.

Bangalore has witnessed significant launches in the ticket size of INR 1 crore
and above. Demand for mid segment (ticket size of INR 25L - INR 50L)
continues to remain buoyant across the city. Some of the locations that have
an opportunity for development of this product type include Kanakapura
Road, Sarjapur Road (after Railway Crossing), Hosur Road and
Bannerghatta Road.

The citys hospitality sector is currently dominated by the 4 and 5 Star

category hotels. There is scope for development of branded 3 Star hotels. In
coming years, integrated township projects would be preferred development
spheres instead of single-use projects.

OPPORTUNITIES

With most of the malls being anchored around a department store and / or a
hyper-market / super-market chain, the city has opportunity for development
of a specialty mall focusing exclusively on sale of home & furnishing products,
cars & auto-accessories, jewelry, electronics & white goods.

48

LOCATION MASTER

Micro-Markets

Areas covered within the micro-markets

OFFICE
CBD

M.G. Road, Kasturba Road, Lavelle Road, V.M. Road, Ulsoor Road, Residency Road, Infantry Road.

SBD

Indiranagar, Koramangala, Inner Ring Road, Old Airport Road, Bannerghatta Road.

ORR

Stretch from Hebbal to Silk Board junction.

PBD

Whitefield, Electronics City, Mysore Road, Bellary Road, Sarjapur Road.

Bangalore North

Bellary Road (Hebbal to BIAL).

RESIDENTIAL
Central

MG Road, Kasturba Road, Brunton Road, Lavelle Road, Richmond Road, Residency Road, Frazer
Road, Cox Town and Hanes Road.

Off-Central

Indiranagar, Koramangala, Jayanagar, JP Nagar, Malleswaram, RMV Extension, Sanjay Nagar, RT

Nagar.

ORR

HSR Layout, ORR (Marathalli - Silk Board Junction), Sarjapur Road, Haralur Main Road,
Kasavanahalli Main Road.

Whitefield

Whitefield, Brookefield, Mahadevpura, ORR (K.R.Puram to Marathahalli), Varthur Road

Old Madras Road

K.R. Puram, Ramamurthy Nagar, Battarahalli, Sonnenahalli, Hirandahalli, Budigere, DevanahalliHoskote Road

Bangalore North

Banaswadi, HRBR Layout, Hennur Road, Thanisandra Main Road, Bellary Road, Yelahanka, Kogilu,
Chokkanahalli, Bagalur Road, Doddaballapur Road, New Town Yelahanka, Jakkur

Hosur Road

Hosur Main Road, Electronics City, Neeladri, Chandapura, Anekal

Bannerghatta
Road

Bannerghatta Road, Begur, BTM Extention

Mysore Road

Mysore Road, Kengeri Satellite Town, Vijayanagar, Magadi Road, RR Nagar

Kanakapura Road

Kanakapura Main Road, Banashankari Extension and Uttarahalli

Tumkur Road

Tumkur Road, Rajajinagar, Hesarghatta, Jalhalli, HMT Township, Yeshwantpur

RETAIL & HOSPITALITY

CBD

M.G. Road, Brigade Road, Magrath Road, Richmond Road, Lavelle Road, Cunningham Road,
Langford Town, Brunton Road and Residency Road.

SBD

Indiranagar, CMH Road, Old Madras Road (till K.R.Puram Bridge), Banaswadi, Bellary Road (till
ORR), Koramangala, few locations on Bannerghatta Road and Hosur Road (till Silk Board Junction),
Kanakapura Road (till ORR), Jayanagar, JP Nagar, Vijayanagar, Sadashiv Nagar, New BEL Road,
Sanjay Nagar, Malleswaram, Rajajinagar and Yeshwanthpur.

PBD

Peripheral locations of Whitefield, ORR - Sarjapur, Electronics City and Hosur Road, Bannerghatta
Road, Kanakapura Road, Mysore Road, Old Madras Road, Tumkur Road and Bangalore North.

BANGALORE: REAL ESTATE MARKET REPORT

ABOUT VESTIAN

Vestian Global Workplace Services, an ISO 9001:2008 certified workplace services firm, specializes in providing
occupier-focused solutions for commercial, residential, industrial, retail and hospitality sectors. Our service portfolio
includes Strategic Advisory, Retail Business Solutions, Transaction Advisory, Integrated Service Delivery, Project
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achieve excellence and consistency in our service delivery models has helped us attain high standards of quality and
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standard.

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of the future as well. We primarily cater to Developers, Builders, Investors and Occupiers.
Our studies span a spectrum of sectors:
Commercial, Residential, Industrial, Institutional, Hospitality.

Retail Business Solutions

Vestian Retail Business Solutions is the full-service retail arm of Vestian. We work with each client to understand their
objectives, keep them informed of associated risks, establish achievable goals, develop and implement effective
solutions. Vestian Retail Business Solutions provides end-to-end services such as Retailer Expansion Strategy, Real
Estate Services, Occupier Representation, Retail Concept Development & Consulting and Retail Project
Management.
Transaction Advisory
Vestians competent Transaction team provides an array of services focused on optimizing workplace solutions that
enhance the clients workplace services portfolio. We handle varied workplace related transactions such as
purchase, lease, disposal, lease management, lease renegotiations and restructuring. We provide solutions that are
aligned to the business objectives of our clients.
Project Services
The Vestian Project Services team is a one-stop solution for clients opting for Project Management solutions. We are
focused on delivering functional facilities that meet the clients space requirements. We provides supervisory &
coordination services to the client. We deliver consistent, reliable and viable solutions for local and international
markets. Our delivery process involves Preparation of Design documents, Co-ordination with Architects &
Consultants on design, Finalization of Vendors, Supervision of the project, Project Closure
Facilities Management Services
Vestians Facilities Management Services team helps clients focus on their core business activities while supporting
the entire facility. We act on behalf of the client to preserve the value of the property, while generating income. We
effectively oversee property performance and maintenance following international best practices, using high end
technology and precision processes. We manage &supervise the administration of residential, commercial, retail
and/or industrial real estate.

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MANAGEMENT

Michael Silver
Chairman, Vestian
Michael serves as Chairman and is responsible for strategic oversight. He is a recognized
leader in the field of workplace services. He has established and led the growth of a large
occupier focused services corporation.
In 2006, he received the Ernst & Young "Entrepreneur of the Year" Award. He is also an
active member of the YPO (Young Presidents' Organization) and WPO (World
Presidents' Organization).

Shrinivas Rao, MRICS

CEO - Asia Pacific, Vestian
Shrinivas serves as Chief Executive Officer for Asia Pacific arm of Vestian. With over 20
years of experience in working with global clients throughout India, he is well-versed in
delivering solutions that work in India's very challenging workplace services markets.
Amongst the pioneers of professional workplace consulting services in India, he
successfully established and led operations of three multinational corporations in India.
He is widely recognized as a "change leader", known for his keen insights into workplace
services trends and innovative structuring services.

BANGALORE: REAL ESTATE MARKET REPORT

AUTHORS

Gorakh Jhunjhunwala, MRICS

VP, Strategic Advisory Group
gorakh @ vestianglobal.com, +91 80 40620100
Gorakh serves as Vice President and heads the Strategic Advisory Group. He guides the
team and is responsible for research output as well as client assignments. With over 10
years of work experience in investments, consulting and advisory domain, he has
executed and delivered assignments across asset classes. Gorakh pursued his masters
degree from Indian Institute of Technology, Delhi and holds a bachelors degree in
Architecture.

Shwetha H Pai
Associate Director, Strategic Advisory Group
shwetha @ vestianglobal.com +91 80 40620100
Shwetha has over 8 years of experience in real estate research and consultancy. As an
account manager for key residential focus clients at Vestian, she is responsible for
developing and implementing customized research, corporate strategy and project
conceptualization. A qualified urban planner from the School of Planning & Architecture
(SPA), New Delhi, she has worked in both Indian and US markets.

Dhara Dalal
Sr. Manager, Strategic Advisory Group
dhara@ vestianglobal.com +91 80 40620100
As a part of Strategic Advisory Group, Dhara contributes to property market reports,
research papers as well as client assignments. She has 6 years of experience and has
worked on investments and consultancy assignments across commercial, residential,
hospitality, retail and industrial sector. She holds an engineering degree with M. Tech in
planning from CEPT University, Ahmedabad.

Acknowledgment
The Vestian Strategic Advisory team would like to take this opportunity to extend our
gratitude towards all those who have helped us in our endeavor to produce this report.
We would like to especially thank the developers in Bangalore who have extended their
valuable support and market information to help us ensure authenticity of this report. A
special mention for our Corporate Communications Team, as well as Shailendra H C,
Sneha Sharma, Chandra Mohan Reddy and Manoj Joseph for their continued support &
cooperation. Our sincere thanks to Ramalekshman - Asst.Manager, Corporate
Communications for designing the report.

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USA
India
China
UAE
Srilanka

BANGALORE: REAL ESTATE MARKET REPORT

OFFICES

INDIA
Bangalore (Corporate Office)
First Floor, West Wing,
DuParc Trinty,
#17, MG Road,
Bangalore 560 001
T: +91 80 4062 0100

Mumbai
Acme Plaza
Unit No.501, 5th floor
Andheri Kurla Road
Andheri (East)
Mumbai - 400059
T: 022 42153060

Chennai
Suite No # 403
MLS Business Center
Kuppu Arcade
4, Venkatanarayana Road
T. Nagar, Chennai- 600017
T: +91 44 39159351/ 66659351
Hyderabad
2nd Floor, N.N.R Arcade,
Plot 13, Road No. 10, Banjara Hills
Hyderabad - 500034
Telephone: +91 40 33782100

USA
Chicago (Head Office)
300 N. LaSalle Street
Suite 1850
Chicago, IL 60654
Telephone: +1 312 920 0290
Telephone: +86 21 3255 6366
CHINA
CHINA (Regional Office)
Unit 1207, No.546
Changning Road,
Changning District,
Shanghai 200 042
Telephone: +86 21 3255 6366

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DISCLAIMER: This report contains information available to the public and has been relied upon by Vestian Global Workplace Services on the basis that it is accurate. Vestian
accepts no responsibility if this should prove not to be the case. No warranty or representation, expressed or implied, is made to the accuracy or completeness of the information
contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions and withdrawal without notice.