Over the past few years, Electronic City has incredibly transformed itself into a Real Estate Hub. This article will provide you with a detailed analysis of Electronic City property market’s past, present and future.
In today’s fast-paced, tech-dependent world, the concept of urbanisation is witnessing a rapid growth.
India, being the world’s fastest growing economy has welcomed these modern and progressive growth changes with open arms. Today, four major metropolitan cities of India, endeavour to deliver high standards of living for all its citizens, Bangalore being one of them.
Featured Project: The Green Terraces, Electronic City | 13,000 sqft of Natural Green Terrace
Well known for its extravagant Real Estate Market, Bangalore remains to provide home buyers with lavish apartments along with world class amenities. The impressive real estate growth chart of north, south, east and west of Bangalore has surpassed all levels of lifestyle expectations. Whether upcoming or ready to move in, each residential project in this hi-tech city has its own uniqueness to offer.
One such flourishing region in South Bangalore is Electronic City real estate market. Situated in Anekal Taluk in Bangalore South on NH7, Electronic City spans over 800 acres in Konappana Agrahara and Doddathogur villages in Bangalore. Electronic City got its name from Karnataka State Electronics Development Corporation Limited (KEONICS), an organisation dedicated to the sole objective of promoting electronics industries in Karnataka. The locality is divided into Phase 1, Phase 2, and Phase 3. Phase 1, being far more aesthetically appealing than Phase 2 is the major reason why property rates are slightly higher in Phase 1. In 2003, additional land of 122 acres was obtained by the government to construct Phase 3. Around 150 acres of Electronic City Phase 1 consists of Neo Town – an Integrated Township with mall, office space, service apartments, tech parks, entertainment hubs and residential projects by Developers like Patel Realty, GM Infinite and Keya Homes.
Behind this ever expanding and prospering locality lies a very interesting story. Initially, Electronic City, also known as E-City was a vast area of land surrounded by villages. These endless acres of land caught the attention of esteemed companies like Infosys, Wipro, TCS, HCL Tech Mahindra, Biocon and many more who then, decided to set-up their base here.
The dawn of these hi-tech companies in E-City saw a daily footfall of thousands of young and adult population, eagerly travelling long distances to work in their dream companies. This rapidly growing workforce in tech parks located in Electronic City were the sole reason that encouraged builders to design picturesque 1 BHK, 2 BHK, 3 BHK residential apartments and villas and also plotted projects. Thus, evolved the porsche vicinity of E-City.
Some of the breathtaking projects that provide a holistic lifestyle here are The Green Terraces, GM Infinite Global Techies Town, DS Max Starline, Gopalana Lake Front, Esteem Emblem and Jains Villa Viviana.
Locational Advantages of Electronic City
1. Connectivity and Transportation
Easing the endless commute of the working professionals was the fundamental reason behind the development of residential projects in Electronic City. Hence, utmost importance was given during the planning and strategy formation of this entire area. E-City is perfectly located on NH-4, that seamlessly connects Chennai and Bangalore. An unparalleled arrangement of BMTC buses connects Electronic City to any destination in Bangalore. The area also features an expressway and 6 lane roads that increase its accessibility. Bannerghatta Road and NICE Road are major wide roadways in the vicinity. The development of The Silk Board Flyover aims to counter traffic congestion and to provide a seamless, worry-free commute to residents. The upcoming Namma Metro Line 3 will further boost the connectivity of other regions with E-City Phase 1/2, Huskur Road and Hebbagodi. The project is estimated to be completed in 2022. Diverse transportation options and strong connectivity makes residential projects in Electronic City an ideal place for youngsters and families.
2. Commercial Hub
Over the last few years, Electronic City has emerged as a commercial hub that houses numerous high rise buildings dotting the skyline. Providing base to reputed IT firms, the area allows vigorous job creation. With an investment in this area, you have the benefit of being surrounded by top IT Companies that provide excellent career opportunities. Koramangala, one of the biggest commercial areas of Bangalore is also in close proximity to the Electronic City. Other major tech parks in this region are Wipro Campus, Infosys, HP, and Velankani Tech Park.
3. Social Amenities
Electronic City, Bangalore isn’t just an ideal location for working professionals, but also a wise and profitable choice for families.
- A number of renowned educational institutions like Treamis World School, Ebenezer International School, and VIBGYOR High School are located here.
- It also homes esteemed institutions for higher education such as Institute of Finance and International Management (IFIM), Xavier’s Institute of Management and Entrepreneurship (XIME) and Azim Premji University.
- Hospitals like Fortis Hospital, Narayana Institute of Cardiac Sciences, Doctor Levine Memorial Hospital and Springleaf Hospital are also in the same vicinity.
- You can also find major banks, restaurants, fast food outlets and departmental stores like D-Mart present here in order to provide comfort and a stress-free way of living.
- Shopping malls situated here are Spencers, Hyper Mart, and Neo Mall that provide shopping as well as cinema options.
Close proximity to such facilities is always a major factor to be considered while investing in a property in Electronic City. The presence of such diverse, modern style amenities, ranging from education to entertainment, provide a well-balanced lifestyle to the home buyers.
Future Expansion in Electronic City
As per Bangalore Development Plan 2031, below are both existing and proposed landuse analysis of Electronic City. This reflects the evolving landscape of the region with distribution of residential, commercial, industrial, public, agriculture, water bodies, mining and forest area.
It is very interesting to see from above data that residential area in Electronic City is proposed to be more than doubled from 232.09 hectares to 490.25 hectares by 2031. However, there is only marginal increase in industrial area from 241.5 hectares to 258.66 hectares owing to the industrial belt tag which the locality already had since its inception.
Featured Project: The Green Terraces, Electronic City | Future Ready Homes With Solar Panels and Water Treatment Plant
Downside of Electronic City Property Market
Though this area is well developed it still has its own set of shortcomings such as:
1. Distance from significant locations
In spite of being surrounded by top-notch IT Giants and a meticulous arrangement and execution transportation, certain important locations still remain at a long distance. For instance, Bangalore’s Central Business District (CBD) is 20 km away whereas Kempegowda International Airport is 70 km away.
2. Water Supply
Water being of the basic necessities might not be available in abundance in Bangalore. This progressing area is no exception. Over the past 2 years, this area has witnessed depleting ground water levels. Without any government supply, the only option available with residents is to opt for private suppliers. This becomes a major drawback where people mainly depend on water tankers for their requirements.
While location, connectivity, facilities, and surrounding developments are a few essential factors that contribute to making an investment, property rates always top the list.
No matter, how big or small the investment is, a buyer’s prime objective is to gain maximum returns. With spectacular infrastructure facilities, E-City not only provides luxurious apartments at affordable rates, but also promises a massive return on investment. Buyers who have already made investments in this region have experienced increasing profits over the span of a few years.
Price Trend of Residential Apartments in Electronic City
Here’s a graph representing property price trend in Electronic City (in rate/sqft) from 2016-2019.
Starting from Rs 3,574/sqft for Electronic City Phase 1 and Rs 3,274/sqft for Phase 2 in 2016, the apartment prices have seen a steady appreciation over the years. The only exception being year 2017, where demonetization affected the real estate market.
The below graphs show property rates of 1 BHK, 2 BHK, and 3 BHK apartments in Electronic City from 2016 to 2019 respectively.
In 2019, the avg. rate/sqft for Ready To Move apartments in Electronic City Phase 1 is Rs 4,400/sqft. Based on the current rate, the sale of a 1 BHK flat starts at Rs 26.40 lakh. 2 BHK starts at Rs 44 lakh, and 3 BHK starts at Rs 66 lakh.
Similarly, the avg. rate/sqft for Ready To Move apartments in Electronic City Phase 2 is Rs 4,100. Thus, a 1 BHK flat starts at Rs 24.60 lakh, 2 BHK at Rs 41 lakh, and 3 BHK at Rs 61.50 lakh.
For Under Construction projects, the rates in Electronic City Phase 1 is Rs 4000/sqft and Phase 2 is Rs 3800/sqft for possession in 2020 or later. 1 BHK flat would start from Rs 24 lakh in Phase 1 and Rs 22.80 lakh in Phase 2. For a 2 BHK flat, this would increase to Rs 40 lakh in Phase 1 and Rs 38 lakh in Phase 2. While a 3 BHK flat for sale in Electronic City is Rs 60 lakh in Phase 1 and Rs 57 lakh in Phase 2. 4 BHK residential flat in the area is available for approximately Rs 1.67 crore.
There are also luxurious villas in Electronic City for sale that start with Rs 2.10 crore onwards whereas residential plots are available at a reasonable cost of Rs 47.22 lakh for a 100 sqft plot. Independent houses in Electronic City are available for sale in the range of Rs 5000-8000/sqft.
1 BHK, 2 BHK, 3 BHK rental properties in Electronic City, Bangalore are extremely economical. People from different income groups can find a home in Electronic City to suit their budget and preferences. The rental yield of 2 BHK in the area differs from 3.3 to 6.8 percent with the average at 3.8%. The rental return for 2 BHK flats in 2017 was 4-5%. Thus, this locality is not only known for a good investment opportunity, but also stands out for its outstanding rental market. 57 percent of 2 BHK apartments in Electronic City are available on rent, followed by 3 BHK with 30% availability.
Another feature that gives a boost to the rental market are the plethora of companies that provide employment in this region, which make tenants readily available for your property.
In this constantly evolving world, the race to find the best buy in the real estate market can be overwhelming. We are always looking for more. More space, more facilities, more returns, the list never ends.
What makes Electronic City an ideal location for real-estate investment?
Blanketed with an excellent infrastructure including numerous skyscrapers, multinational companies, schools, institutions, entertainment options, and phenomenal sports and other recreational facilities, Electronic City is proving to be a hot investment opportunity.
Presently, the distribution of apartments in Electronic City is on an average 30% 1 BHK flats, 50% 2 BHK flats and 20% 3 BHK flats. Given that the demand for 2 BHK is the highest and is available at affordable rates, it should be the best buy to benefit you.
Based on the current scenario, investing in apartments in Electronic City will not only reap you benefits in the short run but also in the long run. Buyers can find many 1 BHK, 2 BHK, 3 BHK affordable projects in South Bangalore.
Property prices here follow an upward trend which isn’t likely to change soon. In the previous years, real estate market of Electronic City has witnessed an increase of 13-14%. By investing in a home in Electronic City, you are assured of great returns in the future.
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