Mecca for Bangalore’s IT

Admin December 19, 2015, 6:49 AM Bangalore real estate and its micro markets
Bangalore is the unquestioned Silicon City of India Introduction to the Past

Electronics City is the IT center of Bangalore. The 35-year-old Electronics City Industrial Township functions independently with local governance and is maintained by the association represented by 180 units in the enclave spread over three phases. It houses more than hundred industries, including IT industry leaders such as Wipro, Hewlett-Packard, Motorola, Infosys, CGI, Siemens, ITI, Yokogawa Electric and Satyam.

In the past, during the late 1970’s The Karnataka State Electronics Development Corporation (KEONICS), foresaw Electronics as the cutting-edge technology industry of the future and recognized the huge potential for employment and industrial growth that this sector would offer. KEONICS along with Karnataka Industrial Areas Development Board (KIADB) set up India’s first ever dedicated Electronics Industrial Estate of 332 acres on the National Highway 7, which leads to the Industrial town of Hosur in Tamil Nadu, known as the Electronics city.

Turning Towards Industrialization

Electronics City has 3 phases – Phase 1, 2&3. Phase 2 is spread over 340 acres. Additional land of 122 acres was acquired in 2003 for phase 3 formation. Recently, it has been granted Industrial township status – A notification by Urban Development Department that brought 903 acres and 11 guntas under Electronics City Industrial Township Area.

The hampering growth of Electronics City due to poor infrastructure, unreliable electrical power, non-existent public transport, poor access, poor water supply and lack of sewage drainage took a turnaround with the advent of software industries in 1990’s. In 2012, Cauvery water was commissioned to many areas around Electronics City.

Electronics City being identified as the home of Software Technology Parks of India (STPI) by the GOI resurrected the growth of Electronics City and turned it into a hub of software organizations in no time. Today, Electronics City provides employment to over 2,00,000 professionals.

Infrastructure Development

Industrialization aside, the development of physical infrastructure around Electronics City contributed plenty to the rapid growth of Phase I. A notable development is the BETL Flyover connecting Silk Board Junction and the Electronics City Junction. Electronics City connects to a 9.985 km long, 6 lane mixed corridor elevated highway on NH-7, Hosur Road, between Silk Board Junction and Electronics City in India’s longest Elevated Highway. The flyover has reduced travel time between these two transit points of the city to 15 minutes.

The Hosur Road, aka the NH-7, runs parallel to Phase I and is one of the major accessible roads in this region. It connects this locality with important areas like Silk Board Junction, Madiwala, and Brigade Road. The famous NICE Ring Road, demarcating the southern border of Bangalore, runs quite close to Phase I, and is used by many to access the localities of Gottigere, Kengeri, as well as the Bangalore-Mysore Expressway.

All these factors lead to a need for Residential development in this area as well. It proved to be a boon to the professionals working in this region, which would bring down the travel time.

The Residential Offering Statistics

Electronics City as an entity had a total supply of 277 lakh sft apartment development in the beginning of 2015, out of which 82 lakh sft are unsold. The total outstanding value of the unsold inventory in this area stands at INR 3.3 thousand crore.

Areas like Bommasandra-Jigani, Gollahalli – Veerasandra and Kasavanhalli Road has the highest unsold size inventory of 14.47 lakh sq ft, 18.6 lakh sq ft and 9.58 lakh sq ft repectively.

Area Average cost of Apartment Size Range in sft
Basapura Village road 29.9 620 - 967
Doddathoguru Village 38.4 911 - 1,473
Kammasandra 39 1,014 - 1,435
Konappan Agrahara 53 943 - 1,773
Neeladri Road 76.6 1,182 - 1,992
Rayasandra 50.7 1,290 - 1,728
Shikaripalya 44 1,003 - 1,483
Singasandra 70 1,018 - 2,046
Bommasandra- Jigani 45.5 834 - 1,670
Golahalli -Veersandra* 54.5 954 - 1,862
Kasavanhalli road 96.2 1,542 - 2,640

From the above table, we infer – average cost of the apartments ranges as high as 96.2 lakh to lowest as 29.9 lakhs; Coordinating the cost, sizes would range from 1,542 – 2,640 sq ft to 620 sq ft – 967 sq ft respectively.

No equality is found in the distribution of apartment development, in the sub-localities of Electronics city. The dominator here is

  • Golahalli-Veerasandra area with a total supply of 67 lakh sft. of apartment development
  • Followed by Bommasandra-Jigani area with 62 lakh sft. of development.
  • The least development here is seen in the Basapura Village road, which stands at 1.2 lakh sft.
  • Then the Rayasandra and Singasandra which offers 9.2 lakh and 11.7 lakh sft. of development respectively.

Irrespective of the huge supply in Golahalli-Veerasandra area and Bommasandra-Jigani area, the unsold inventory stands at 18.6 lakh sft. and 14.4 lakh sft. respectively. This proves that the most preferred localities in Electronics City are these two areas, holding high demand for apartment spaces. These two areas offer a supply of 24% and 22% respectively to the total supply of Electronics city’s apartment development.

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