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2 Bangalore City Real Estate – Key Demand Drivers
Real estate development has evolved from the centre of the city, with the core business district (MG Road) located at the
centre of the city. The development pattern of the city is undergoing a significant shift with development shifting from
the central areas to the peripheral areas, mainly along the south eastern corridor owing to the IT/ITES companies and the
northern corridor due to the international airport at Devanahalli. These corridors have witnessed large scale commercial as
well as residential developments.
Eastern corridor comprising Whitefield, Outer Ring Road (Sarjapur – Marathahalli) and south eastern corridor comprising
Hosur Road represents the largest clusters of IT/ITES companies in Bangalore. These peripheral areas have accounted for
approximately 70-80% of the aggregate leasing in the city. The Central Business District (“CBD”) and Off-CBD locations lose
out to the suburban and peripheral locations because of the lack of large contiguous spaces. The subject property is located
in the eastern corridor of the city.
The international airport at Devanahalli has led to a spurt in development along the northern quadrant of Bangalore. Numerous
residential and commercial projects are under development in this micro-market.
The western and north western corridors of Bangalore city have been concentrated with industries. The major industrial
presence is represented by Peenya Industrial Area along Bangalore – Tumkur Road (NH 4). The south western corridor has
been a trading and residential hub with industrial presence being mainly represented by the Bidadi Industrial Development
Area along the Bangalore-Mysore State Highway.
The development of Ring Roads is expected to boost real estate developments in the city. The development of the
Outer Ring Road has contributed to the connectivity of the peripheral areas of the city. Further, a Peripheral Ring Road
(“PRR”) of about 110 km is proposed around Bangalore at a radial distance between 3-12 km from the existing Outer
Ring Road (“ORR”) and 14-22 km from the city centre. The south west corridor of the PRR of about 41 km is already
operational. The PRR will link major highways at Tumkur Road, Mysore Road, Old Madras Road and the Hosur Road.
The proposed development of the Intermediate Ring Road and the Satellite Town Ring Road is expected to further improve
the connectivity of the peripheral locations to the other parts of the city.
