Sarjapur - A good place for Investments.....

Good connectivity, worthy properties, fine location – you name it, Sarjapur has it, Know more about this popular residential hub.

Sarjapur is a fast-developing part of Bengaluru with good connectivity to key IT cluster areas like Whitefield, Electronic City, Outer Ring Road, Marathahalli and Koramangala. As a micro-market, Sarjapur is booming, thanks to rapid development in terms of commercial and residential spaces.

Plus factor

Sarjapur’s connectivity to IT hubs and its location along the Outer Ring Road (ORR) is what makes it an excellent destination for residential and commercial developments. “There are about two lakh employees working in the Outer Ring Road stretch making Sarjapur Road a busy IT corridor. Home buyers enjoy the convenience of living close to their work place. Another good reason is that real estate prices on Sarjapur Road have been more affordable compared with certain  similar upmarket counterparts.

Sarjapur is emerging as one of the most promising markets for villa projects in Bengaluru. “The density of population in the Sarjapur area is high vis-a-vis other well-developed areas. However, this can also be advantageous, as any investments will lead to sharper price appreciation, spurred by robust demand in the local market.

“The primary advantage of the region is that land is available at a cheaper price and primary work has been done by IT companies already,”adds J C Sharma, vice chairman and managing director, Sobha Limited.

Price talk

Availability of large land parcels for both commercial and residential development makes Sarjapur an attractive proposition. “This location has about eight multi-storey apartment projects, which are actively selling with around 2,400 units and another 1700 units yet to be sold. Residential prices have appreciated by about five to ten per cent in this location, depending upon the type and quality of the projects,” says Trivita Roy, assistant vice president, Research and REIS, JLL India. In addition to this, the residential market in the locality is primarily driven by the end-user demand, especially from the IT sector employees.

“The capital values range between Rs 4,500 and 6,300 per sq ft, and the rental values range between Rs 20,000 and 35,000 for a two-BHK configuration and Rs 30,000 and 45,000 for a three-BHK configuration. This micro-market has witnessed a capital and rental value appreciation of five to seven per cent in the last one year,” avers Sanjay Dutt, executive managing director of Cushman & Wakefield, South Asia.

With significant Grade A office space supply in the pipeline and a rise in affluent employee base in this part of the city, the demand for housing is likely to sustain in the years to come. “A good portion of the demand is expected to drive sales in the mid-segment housing category in this sub-market in the near term. There are more than 40 apartment projects across categories of developers available in this market, with prices ranging from Rs 2500 per sq ft to Rs 7000 per sq ft.p.

Pros & cons

If you look at the growth thrust, it has been towards South and East Bangalore in the recent past and while saturation is being witnessed in other areas, this region is still seeing huge development and new project launches at a rapid pace. This is because of the potential in the area and the ample space available for development.” In last one year, average prices in Sarjapur Road have increased from Rs 4,281 per sq ft to 4,545 per sq ft, thereby registering six per cent annual growth.

Accessibility and availability of social and physical infrastructure are Sarjapur’s strongest attractions. “The Infosys SEZ Tech Park is located in Sarjapur. Also the locality is known for its greenery and Billapura Lake. It is also an educational hub and houses Bangalore Technological Institute, ITM Institute of Hotel Management, Bangalore College of Engineering and Technology.

While the ORR itself is a significant civic infrastructure project that connects Bengaluru laterally, connectivity was further heightened with the signal-free corridor initiative, cutting travel time considerably. Most of the high traffic junctions now have flyovers or underpasses. Kumar A, senior manager - sales & marketing, Soul Space Projects Limited adds, “This area allows the residents to travel to different parts of the city with ease and speed, as this locality provides an easy connectivity to NH-207 (towards Hoskote/Kolar) and NH-4 (towards Hosur), which makes commuting to offices and schools easier.”

Traffic congestions at a few major intersections and poor development of internal roads and issues with water supply are major constraints. The infrastructure in the area has aided in boosting office space demand.

“Despite being such a high-end market, one of the major drawbacks in the area is the lack of traffic management. Given that the area is densely populated with residential and commercial properties, there has to be efficient road network and traffic management that is the need of the hour.