Escolar Documentos
Profissional Documentos
Cultura Documentos
April 2012
14 Million
Bangalore metropolitan population by 2021.1
13%
average annual price appreciation rate in residential sector for last 4 years.
20,600
residential units absorbed in 2011.
4.5%
average annual residential yield rate.
100,000+
average annual addition in IT/ITeS workforce for past 2 years; expected to grow at least at this rate for next 3 years.
44,000
residential units launched in 2011 [38,700 and 5,300 in apartment and villa/row houses category respectively].
55,400
residential units available.
15%
CAGR for residential sector during 2008-11.
1 Source: Census of India population in Bangalore of 9.6 million is projected assuming CAGR of 4.3% to arrive at a population of 14 million for 2021.
EXECUTIVE SUMMARY
For the past two decades, Bangalore has been the fastest growing city of India. Bangalore is termed as World City being established Silicon Valley of Asia; in addition it has multi-cultural population, good education & social infrastructure, and improving physical infrastructure. Bangalores residential market interests all stakeholders developers, landowners and investors on account of large, educated, young, double income household and growing migrant population. Many prominent national and international developers have entered Bangalore residential market and more are expected to join in the coming years. Currently, the most promising residential micro-markets in Bangalore are Outer Ring Road (ORR), Whitefield and Bangalore North. Old Madras Road and Mysore Road micro-markets have untapped potential for residential development. Old Madras Road is gaining traction faster due to its proximity to IT hubs Whitefield & ORR, Bangalore International Airport and City Center. In Apartment market, except budget category (less than INR 25L), residential products across other segments are under downward pressure owing to high activity levels. Even in the mid category (INR 25L 50L), developers have launched oversized apartment projects. Bangalore is one of the most promising markets for Villa projects in India. However, as per current statistics, the market has very high expectation from this product. Many under construction projects may take a longer timelines for completion. As per absorption analysis, Bangalores buyers are more sensitive compared to other southern Indian cities towards quality of the project, amenities and unit sizes.
Bangalore cannot afford to witness same number of project launches this year as 2011. If the activity level does not drop to half of 2011 then, Bangalore residential market is likely to face an oversupply situation. Last year, Bangalore witnessed entry of new residential products namely Villament and Branded Homes. Villament projects have been launched in Off Central and suburban locations by developers like Habitat Ventures, LGCL and Salarpuria. An international company Westcourt has launched a Branded Home project near Mekhri Circle, Bellary Road. Bangalores residential segment is likely to grow annually at 15% for next 3 years. In 2012, Bangalore is pegged to absorb 23,000 residential units. The capital value would appreciate between 12% to 20% across different micro-markets on account of rising construction cost and land price. South East (SE) quadrant micro-markets Whitefield, ORR and Sarjapur Road will remain active in short to medium term owing to proximity to established IT economic hubs. However, next growth direction would be North East (NE) quadrant Old Madras Road & Bangalore North (Hennur Road, Thanisandra Road and Bellary Road). Although, Bangalore North may face over supply situation in short term owing to over enthusiasm of developers towards this micro-market, the long term potential of this micro-market is very high. Economic outlook for the city remains strong in coming years as many large IT/ITeS, Engineering and Automobile MNCs have aggressive growth plans for the city. This would ensure healthy growth rate in residential segment.
Bangalore boasts of the highest growth rate among all Indian cities, with double digit annual growth rate of IT/ITeS sector. Currently population of the Bangalore Urban District is 9.6 million and is expected to grow to 14 million by 2021.
Bangalore owes its multi-fold economic growth since 1990s to IT/ITeS industry. The wealth created by the new industry has had a multiplier effect leading to a real estate boom, a flourishing retail and leisure industry. The knowledge economy of Bangalore has transformed it from a small town, peaceful, pensioners paradise to a global technology hub. Post 1991, economic liberalization led to the growth of knowledge economy thereby leading to migration of educated middle class to the city; exposure of the young urban population to global standard of living; availability of housing finance and private participation in real estate sector set the tone of social infrastructure residential, retail, education and others in the city. Bangalore is expected to continue to follow upward prosperity trajectory in coming decades as well. As per Mckinsey 2, by 2030 among all Indian cities Bangalore would have highest per capita GDP.
2 Source: McKinsey Global Institute India's Urban Awakening: Building Inclusive Cities, Sustaining Economic Growth, published in April 2010. 3 Bruhat Bangalore Mahanagara Palike (BBMP) was formed in 2007 and it includes 100 wards of the erstwhile Bangalore Mahanagara Palike, with seven neighboring City Municipal Councils, one Town Municipal Council and 110 villages around the city. 4 Census of India 2011, Provisional Population for States 2011. 5 With urban population of 9.6 million in the year 2011, Bangalore is the third most populous city and fifth largest urban agglomerations in India. Population in the city grew at an annual growth rate of 4.7% during 2001 2011; population for the year 2021 assuming the same growth rate could be pegged at 14 million.
Bangalores emergence as a world city is closely tied with growth of IT sector. Currently, City has over 800,000 IT/ITeS workforce and adding over 100,000 workforces every year.
As of now, 2,840 IT/ITeS companies including more than 100 Fortune 500 companies have established their operations in Bangalore. Key reasons of Bangalores emergence as an IT hub of India are: Access to Talent Pool on account of : a) Availability of education institutions, during early 20th Century British Government developed excellent education infrastructure in Bangalore City. This resulted high penetration of English language in local population. b) Today Bangalore has over 5400 schools and 620 colleges. Colleges offering general degree are about 350, engineering colleges account for 80, medical seven, Law - 72 and Management-120. c) Karnataka was the first Indian State to recognize the importance of technical and engineering education and therefore encouraged the setting-up of privately-owned engineering colleges. d) Bangalore has nationally renowned professional institutes such as IISc, ISI, IIMB, NLSUI, NID, IIITB and many more. e) Presence of PSU and Research institutions. Until 1990s growth of Bangalore was largely driven by public sector companies and research organizations. Post-independence, the city evolved as an engineering hub with establishments of large Public Sector Undertakings (PSUs) namely HAL, ITI, ISRO, HMT, BEML, BEL and more. Multi-Cultural Environment: Bangalore is home to diverse groups of people. Bangalore attracts a large number of immigrants from across the state and country. As per Bangalore City Development Plan for JNNURM (2006), immigrants from other parts of Karnataka constitute 53%, Tamil Nadu 19%, Andhra Pradesh 9%, Kerala 7% and Others 19% of the population. In addition, the city also attracts a large number of expats from other nations. Good Social Infrastructure: Bangalore has well developed business and social infrastructure including renowned health institutes, modern format retail malls, entertainment options and star category hotels. Moderate Climate: Due to its high elevation, Bangalore enjoys a more moderate climate throughout the year. Bangalore experiences a tropical wet and dry climate with summer temperatures ranging between 34C35C and winter temperatures between 15 C 18 C.
Bangalore also called Bengaluru, is the capital of the Indian state of Karnataka. Located on the Deccan Plateau in the south-eastern part of Karnataka, Bangalore is India's third most populous city and fifthmost populous urban agglomeration. Bangalore is well known as a hub for India's information technology sector. It is among the top 10 preferred entrepreneurial locations in the world. A succession of South Indian dynasties ruled the region of Bangalore until in 1537 AD Kempe Gowdaa feudatory ruler under the Vijayanagara Empireestablished a mud fort considered to be the foundation of modern Bangalore. Following transitory occupation by Maratha and Mughal, the city remained under the Mysore kingdom. Bangalore continued to be a cantonment of the British and a major city of the Princely State of Mysore which existed as a nominally sovereign entity of the British Raj. Following the independence of India in 1947, Bangalore became the capital of Mysore state, and later Karnataka. Today as a large city and growing metropolis, Bangalore is home to numerous public sector heavy industries, software companies, aerospace, telecommunications, and defence organisations. Bangalore is known as the Silicon Valley of India because of its position as the nation's leading IT exporter. A demographically diverse city, Bangalore is a major economic and cultural hub and the second fastest growing major metropolis in India.
LEGISLATION STRUCTURE
1889-1945
1945-1976
1976-1991
1991-2007
2011 - PRESENT
Bangalore had two regions: Pette (a native settlement) and Cantonment (army settlement) with their respective administrative bodies namely Bangalore City Municipality and Civil & Military Station Municipality Constitution of Town Planning Committee in 1889 City Improvement Trust Board (CITB) was constituted in 1945
City Improvement Trust Board (CITB) was constituted in 1945 and in1949 Bangalore City Municipality and Civil & Military Station Municipality merged under Bangalore City Corporation (BCC) Constitution of Metropolitan Planning Board in 1961 Town and Planning Act in 1964 Constitution of City Planning Authority to prepare Outline Development Plan (ODP) The first ODP, master plan for the city was prepared & approved in 1972
In 1976, CITB and ? other planning bodies ? were transformed in to ? Bangalore Development ? Authority (BDA) Publication of first Comprehensive Development Plan (CDP) for Bangalore in 1985 Government established Bangalore Metropolitan Region Development Authority (BMRDA) in 1985
In 1991, Economic liberalization in India In 1994, 74th Constitutional Amendment came into existence Revised Bangalore CDP in 1995 In 2005, FDI permission in real estate sector
Bangalore developed as two different settlements: - Pette was an organic development, with narrow streets and mixed land use. Between 1898 and 1920, Bangalore City Municipality developed new extensions Chamrajpet, Malleshwaram and Basavanagudi - The cantonment witnessed the adoption of the British model broader streets with avenue tress, sidewalks for pedestrians and zoning regulations that segregated residences and workplaces. Towns like Richmond Town, Cleveland Town, Frazer Town, Cox Town, Langford Town were developed in this part of the development
Integration of Pette and Cantonment regions While BCC concentrated its efforts on maintaining the city clean and beautiful, the CITB paid attention to develop new extensions to meet the housing demand. Between 1945 and 1976, CITB acquired 1,411 hectares of land and distributed 68,300 sites. It developed new locations including Jayanagar, Indiranagar, Rajajinagar and Koramangala The Metropolitan Planning Board and Town & Country Planning Act gave institutional framework for city development The ODP provided the vision for planned growth of the city
BDA led allotment of residential sites to individuals. Key BDA layouts include BTM and HSR layout towards south-east, HRBR and OMBR Layout towards north-east of the city and RMV and Sadashivnagar towards north-west BMRDA provided framework for the organized growth of towns surrounding Bangalore City
74th Constitutional Amendment transformed the role of BDA from provider to enabler. This amendment also encouraged participation of private developers in real estate developments Rise of IT/ITeS sector created new economic magnets Electronics City, Whitefield and ORR led growth of large scale residential development across different regions of Bangalore especially along South and Eastern suburban and peripheral regions FDI in real estate paved way for entry of international developers and investors
In 2008, Bangalore
International Airport commenced its services thereby strengthening real estate activities
Responsive zoning
regulations by promoting mixed land uses along the commercial axes and mutation corridors which have led to the development of selfsustaining neighbourhoods
Integrating urban
infrastructure and transportation networks by developing a multimodal public transport system in order to control sprawl
Bangalore has 31 industrial hubs across the city. It houses different PSUs and private companies across IT/ITeS, Bio-technology, Engineering, Aviation, Textile and others sectors.
Key IT/ITeS Hubs Whitefield Electronics City, Hosur Road Outer Ring Road Bannerghatta Road Old Airport Road.