by THO
In a bid to boost industrial and real estate growth, chief minister Siddaramaiah-led Cabinet in Karnataka recently approved the renaming of Ramanagara district in the state as Bengaluru South district. This may lead to developers and investors eyeing new projects and developments in the area and help fuel property prices in the area, say experts.
Deputy Chief Minister DK Shivakumar, who had submitted a proposal to CM Siddaramaiah to rename the district earlier this month, said that the proposal had been made “taking into account the development and future growth of Ramanagara.” He emphasised that the move will help the people of the district to retain their identity as Bengalureans, adding that the IT capital has scope to grow only towards Tumakuru and Ramanagara, as other sides border Tamil Nadu and Andhra Pradesh.
Ramanagara town, 50 km from Bengaluru, will continue to serve as the district headquarters, the state government reaffirmed.
The decision, which comes ahead of the Channapatna bypolls, has sparked mixed reactions from stakeholders across industries.
Here are five things you should know about the district, and the likely impact of the move on real estate in and around the region.
1. Development so far
Ramanagara district was carved out of the erstwhile Bengaluru Rural district by the then Chief Minister H D Kumaraswamy in August 2007. The district included the taluks of Ramanagara, Channapatna, Harohalli, Kanakapura and Magadi.
The original Bengaluru district was created by merging Doddaballapura, Devanahalli, Yelahanka, Nelamangala, Anekal, Bengaluru East, Bengaluru South, Hosakote, Ramanagara, Magadi, Kanakapura and Channapatna taluks.
In 1986, Doddaballapura, Devanahalli, Nelamangala, Hosakote, Ramanagara, Magadi, Kanakapura and Channapatna taluks were brought under Bengaluru rural district while the remaining became Bengaluru urban district.
2. Residential property prices expected to rise
Residential real estate prices in Ramanagara district have witnessed a 10-15% jump in the last 3-4 months, especially on Kanakapura Road and Magadi Road, according to local brokers who spoke to HT.com.
Kanakapura Road already enjoys the presence of well-known brands such as Puravankara Ltd, Prestige Estates, Total Environment and the Sattva Group, among others.
“A customer who was earlier quoting ₹8,000 per square feet for a residential property in a gated society on Kanakapura Road has now increased the rate to ₹10,000 per square feet,” said a local broker, adding that since the issue has been in the news for a while, localites have begun quoting higher prices for their properties.
Similarly, a small 1,200-square feet plot, which was earlier available at ₹1,050 per square feet has now seen prices shoot up to ₹1,250 per square feet, the real estate agent added.
According to data sourced from proptech firm Square Yards, average residential property prices on Magadi Road have grown 4% year-on-year to range between ₹9,500 – 10,000 a square feet presently.
3. Bright prospects for industrial real estate
According to local property consultancies, large land parcels in the district have witnessed a price jump of around 10% in the last 3-4 months. Kiran Kumar, vice president of Hanu Reddy Realty has observed a 20% jump in the number of queries for property deals in Ramanagara district during the same timeframe.
He foresees bright prospects for industrial development, followed by a boom in the region’s residential segment in coming times.
4. Infrastructure improvement to usher price growth
As infrastructure such as road connectivity and water supply in Ramanagara district improves with time, prices are expected to easily surge by another 30%, local brokers said. Industrial development, alongside housing, will lead the anticipated growth, followed by offices, they added.
“Large builders have already begun taking up land parcels along the road connecting Bengaluru to Ramanagara,” Kumar said.
5. Stakeholders welcome the decision
The move has largely received a positive response from stakeholders across the real estate and urban planning industry in light of the heft attached with ‘Brand Bengaluru’. Moreover, with the right direction of planning, the district stands a chance to avoid the traffic and water issues that plague Bengaluru, they said.
“Branding of any product makes an effect in terms of the positioning of the product. It will have a rub off effect on the particular district in question with respect to carrying the Bengaluru brand legacy forward,” said a spokesperson of Bengaluru-headquartered real estate firm. The builder drew a parallel with several districts in the National Capital Region benefiting from the brand Delhi-NCR.
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