Thriving mid-end residential location

Hotspot: Kadugodi Belt, Bengaluru

Bengaluru's eastern region has emerged as a self-sustaining area with excellent spread of commercial, residential, manufacturing and retail development. The IT/ITeS sector has triggered real estate activity, and new areas are constantly receiving the benefits of rapid development. The government in Bengaluru is constantly working on improving connectivity with various infrastructure initiatives, which in fact has acted as a major driver in fuelling demand for residential real estate in the suburbs around the business districts.

Whitefield has emerged as a major nerve centre with the establishment of IT and the subsequent mushrooming of residential options and commercial establishments along with required social infrastructure. Whitefield has a Grade A office stock of about more than 25 million sq ft. The new supply in Whitefield is slowly thinning down and is likely to see about another 3.5 million sq ft of supply in next five years based on the projects already planned.

Consequently the Whitefield sub-market will gradually saturate, and this will reduce the number of residential launches in the medium to long term. Kadugodi on the eastern side of Whitefield is receiving the fruits of being an adjoining suburb to Whitefield. Since Whitefield is a key office space hub, nearby Kadugodi is seeing steady demand for residential spaces.

As a result, Kadugodi has emerged as a thriving mid-end residential location near Whitefield. NH35 and the road connecting Hoodi Circle to Kodegahalli Road are the key stretches witnessing residential activity with more mid-segment housing developments.

Over the years, Kadugodi and surrounding areas like Channasandra have witnessed increased interest from both real estate developers and home buyers, largely due to the development of Whitefield. Although Whitefield is witnessing large volumes of residential project development along with office and retail space development, Kadugodi is seeing considerable spin-off demand.

Improving connectivity is an important market driver in Kadugodi. The Whitefield Railway Station is located in Kadugodi, which is also well-connected through the ITPL Road and NH 35. Moreover, the portion of Namma Metro-Phase II which is an extension of the East-West Line connecting Baiyyappanahalli to Whitefield - currently under proposal - is likely to improve connectivity at Kadugodi even further - land acquisition for this infrastructure project is in progress.

Meanwhile, a signal-free corridor is proposed from Old Madras Road to Hope Farm Junction by BBMP. Though it is still awaiting approval, this project is likely to ease the traffic flow towards Kadugodi. These infrastructure projects will drive development at Kadugodi and its surrounding locations significantly over the next 5-10 years. The price range for properties in this location is Rs 3,500-4,200/sq.ft.

The writer is AVP - Research & Real Estate Intelligence Service, JLL India