Bagalur, North Bangalore: The Emerging Real Estate Hub

In the ever-evolving narrative of Bangalore's real estate, North Bangalore has been akin to a constantly maturing child. This region's journey, particularly from the era of Bellary Road (the present-day International Airport Road) as a modest two-lane road, through the days of waiting at Yelahanka's railway crossing, to its current state, is nothing short of remarkable. The transformation has been so profound that North Bangalore, once speculated to be the 'next big thing' due to the planned new airport, has indeed lived up to those expectations and more.

The last decade has witnessed a metamorphosis in North Bangalore, catalyzed by infrastructural developments like the elevated expressway from Hebbal to the Trumpet flyover, the Yelahanka flyover, and the 8-lane expressway ensuring signal-less connectivity to the city center. A pivotal moment in this growth saga was the establishment of the Embassy Manyata Tech Park, a significant employment hub, on the Outer Ring Road at Nagawara. This development spurred rapid real estate growth along Thanisandra and Hennur roads. However, this growth story hit a roadblock due to the inadequate infrastructure, especially the piecemeal road development and prolonged construction projects adding to the congestion and chaos in these areas.

Just when the prospects along Thanisandra and Hennur roads seemed dim, a quiet revolution was brewing in a village named Bagalur. The government initiated the development of a sprawling 3000+ acre Economic Development Zone, comprising an Aerospace Park, a Hardware Park, and an IT/ITES Park, with KIADB spearheading the land acquisition. This initiative carved out a new market for industrial growth, soon followed by real estate development.

Shell set the precedent in 2015 by acquiring a 53-acre land parcel from KIADB, marking the beginning of industrial and warehousing establishments in the area. Notably, Amazon leased a 1 million sqft warehouse here, building a state-of-the-art facility.

Residential developers also got on board, developing affordable housing for future employees of these workplaces. These developments were quickly snapped up by top Bangalore developers and business houses.In the wake of the industrial expansion, residential developers have also started to secure allotments for developing affordable housing, catering to the future workforce of these industries. The allotments, attractively priced between 2 to 2.5 crores per acre, have been eagerly acquired by some of Bangalore's top developers and business conglomerates. The land allocated for residential development is approximately 200 acres, highlighting a significant shift towards enhancing the housing landscape in this region.

The prominent developers who have purchased land in this area include:

- Brigade Group:  50 acres
-Prestige Group: 25 acres
- Godrej Properties and Universal Builders: 22 acres
- Provident by Purvankara: 11 acres
- Assetz and Local Partners: 10 acres

The affordability factor was a game-changer. Developers introduced compact homes, ranging from 400 to 1500 sqft, with studios, 2BHKs, and 3BHKs being the primary offerings. Initial launches saw prices between INR 4500-5000 per sqft, a rare find in Bangalore at the time. This pricing strategy led to massive sales, with the site-to-sales ratio reaching an astonishing 3:1, far surpassing the typical 6:1 ratio in other parts of Bangalore. This success led to the launch of additional phases and a steady price increase, with current rates nearing INR 9000 per sqft, yielding a remarkable 2X return for early investors!

The most exciting aspect of Bagalur's story is its ongoing development. The recent inauguration of the Boeing India Engineering and Technology Centre (BIETC) by Prime Minister Narendra Modi has put Baglur on the national real estate spotlight.

The new Collins India Operations Center, encompassing a sprawling 26-acre expanse within the Hi-Tech Defense and Aerospace Park, is on track to become fully operational by 2026. This state-of-the-art facility is poised to bolster employment opportunities in the region, with a projection of over 1500 jobs.

Further enhancing the area's economic landscape, SAP has made a significant move by initiating the groundbreaking ceremony for their new 41-acre campus in May 2023. This development is set to be a major job creator, potentially offering 15,000 new employment opportunities, marking a substantial boost to the local job market.
Bagalur's infrastructure, with wide, grid-patterned roads and robust power transmission systems, positions it as a prime real estate destination, reminiscent of the transformations witnessed in Electronic City and Whitefield in the 90s and 2000s.

At Propsoch, we are a team of real estate researchers with a mission to change how homes are purchased in India.

We've delved deep into each residential project in Bagalur, identifying the best options for end-users and investors. For expert consultation and insights, connect with us at club@propsoch.com.