Sarjapur ORR is a good place for Investment

A long-term investment in this belt will yield high rental returns and capital appreciation, and acts as a hedge against inflation.

The IT boom ushered in demand for residential property in localities close to the areas where IT development was happening. Improved connectivity, expansion of existing facilities, and further demand led to capital appreciation and growth in rentals. This fuelled demand and price rise in the belts where IT was the primary driver of demand for spaces.
 
IT belts in the city are Whitefield, Electronic City, Outer Ring Road (from Marathahalli towards Old Madras Road), parts of the CBD, and Bellary Road (towards Hebbal). Sandeep Trivedi, Director (Development Consulting), Cushman & Wakefield, says, “Whitefield and Outer Ring Road (Marathalli-Sarjapur stretch) are the key IT belts in the city that have witnessed significant commercial development in the last three to four years. North Bangalore and areas in close proximity to Hebbal are the emerging micro markets with potential for future commercial development over three to five years.” This is largely due to the improved connectivity as well as potential for development of social infrastructure and residential development.
 
When it comes to investing in an IT belt, a leased commercial IT space garners a yield of around 9-12 percent. This acts as a hedge against inflation. Zahed Mahmood, Director, Silverline Realty, says, “The capital appreciation seen in the IT belts over the last two years was around 25-30 percent. A rental return of 9-12 percent can be expected depending on the quantum of investment.”
According to him, nowadays, investors who want to invest in commercial spaces are bringing in lesser capital, pooling it into a large facility and leasing it out to quality tenants. “An investor has the option to bring in as low as Rs 50 lakhs for a 1,000 sqft space in a tech park. The entire space can be owned by say, 10-20 owners and can be leased out to one or more companies. This will give you assured returns along with a quality tenant”, he adds.
 
According to a report by Jones Lang LaSalle Meghraj, the Whitefield and Sarjapur-ORR belts have been the fastest-growing belts in the last few years.

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