Uttarahalli: An affordable alternative to JP Nagar in Bangalore

Located in proximity to the various IT hubs in Electronic City, Marathahalli and Bellandur; Uttarahalli has seen decent residential growth over the years. Both end-users and investors favour it for a multitude of aspects, including its impeccable road connectivity and competitive property prices.

Close to the Information Technology (IT) parks located nearby and having great social infrastructure, Uttarahalli in South Bangalore provides an excellent residential avenue, fit for both investors and end-users. Situated close to the Outer Ring Road, Kanakapura Road, and NICE Bangalore-Mysore Expressway which intersects ahead with NICE Ring Road, Uttarahalli is well connected with major roads which go towards the eastern areas of Bangalore such as Bellandur, Marathahalli, and Whitefield. Moreover, it offers homes at competitive prices in comparison to its neighbouring JP Nagar, which is considered an affluent locale in the city.

Homebuyers, investors and tenants deliberating over Uttarahalli to buy/rent a property must consider multiple facets about this residential locale, before finalising their move.

Types of properties available

Investors and end-users can choose from a variety of properties, which are constituted majorly by residential apartments, followed by a significant number of land parcels/plots ranging in size between 800 sq ft and 2,400 sq ft. There are a few options for people interested in villas as well. According to data from 99acres.com, 84 percent of residential units are ready-to-move-in, while the other 16 percent is under-construction and stand at varying levels of completion.

Configuration-wise supply

Residential apartments in the 2 BHK and 3 BHK configurations make up the majority of the total available inventory in Uttarahalli, comprising 42 percent and 50 percent of the share, respectively. There is a small share of 1 BHK and 4 BHK housing units in the area.

Capital and rental rates

According to the

, the average weighted capital ‘asks’ in Uttarahalli hover around Rs 4,700 per sq ft. Uttarahalli is relatively affordable than some neighbouring localities such as Jayanagar (Rs 10,720 per sq ft), Banashankari (Rs 6,500 per sq ft), JP Nagar (Rs 6,000 per sq ft), and HSR Layout (Rs 6,100 per sq ft).

The average rental ‘asks’ for a 1,000 sq ft apartment range around Rs 13,000 per month; also relatively cheaper than Jayanagar (Rs 23,000 per month), Banashankari (Rs 18,000 per month), JP Nagar (Rs 18,000 per month) and HSR Layout (Rs 21,000 per month).

Uttarahalli has a variety of affordable projects with almost 40 percent of its total supply being priced between Rs 20 lakh and Rs 60 lakh, constituting mainly 2 BHK and a few 3 BHK units. Within this price range, home buyers can find several ready-to-move-in projects such as Akshaya Regalia and Sai Varaha Enclave.

However, owing to a few premium projects, the presence of several independent houses and residential land parcels; a larger share of the supply (almost 50 percent) falls in the Rs 60 lakh to Rs 2 crore price bracket. Some of the prominent ready-to-move-in projects within this price range include Balaji Lakeside Marvel and Roshan Gardenia.

Returns on Investment

As per data from the historical Bangalore Real Estate Market Reports, the average buy rates in Uttarahalli have increased by 16 percent between Apr-Jun 2017 and Apr-Jun 2020.

Disclaimer: The capital and rental ‘asks’ are the weighted averages recorded in the Apr-Jun quarter every year. The rental rates are the average ‘asks’ for a 1,000 sq ft apartment.

Uttarahalli, primarily being a residential locality, has seen a decent price hike over the years owing to its proximity to IT and commercial parks in nearby areas such as Electronic City (40 minutes by car), Koramangala (30 minutes by car), Adarsh Palm Retreat in Bellandur (40 minutes by car) and the Outer Ring Road stretch going up till Old Madras Road (45 minutes by car). Akhil Deekshith, Owner, Anugraha Real Estate, shares, "A significant amount of commercial real estate supply is coming up in these areas, and it is naturally reflecting in property prices. However, there is not as much residential supply in Uttarahalli as there is in

, with the latter being more strategically located between Kanakapura Road and Bannerghatta Road.”

Nevertheless, as per the Bangalore Real Estate Market Report Apr-Jun 2020, East and South Bangalore, of which this locality is a part of, saw the maximum sale inquiries during the said quarter. In addition to this fact, investors can expect properties in Uttarahalli to register a decent price increase within the next two to four years as several transport infrastructure projects in the locality’s surroundings take shape.

One such project is the upcoming yellow line of

(RV Road - Electronic City - Bommasandra) with a deadline of mid-2021. The Jaya Prakash Nagar Metro Station (around 13 minutes of car drive from Uttarahalli) is just one station before the interchange metro station of RV Road which provides connectivity with both Green and Yellow lines of Namma Metro.

Further, the planned Bangalore Elevated Corridor shall have a North-South Expressway (having four to six lanes) between Bellary Road in Hebbal and Silk Board Flyover (nearly 30 minutes of car drive from Uttarahalli). The Silk Board Junction is majorly used to commute towards Marathahalli and KR Puram and improvements there will massively reduce congestion and be a relief for commuters coming from Uttarahalli.

Even though there have been issues of traffic and potholes on the nearby arterial Kanakapura Road, the Bruhat Bengaluru Mahanagara Palike (BBMP) is working to rebuild the same. A few roads in the area had also been dug up owing to water pipelines being laid down as per the Cauvery Water Supply Stage – V plan and that had led to traffic snarls; however, BBMP is working to rebuild all such roads in the region.

In addition to the above, the Bangalore government and BBMP have planned many infrastructural projects to reduce congestion along Sarjapur Road and the Outer Ring Road (ORR) - a chief complaint among commuters - so end-users living in Uttarahalli who might be employed in an office located along the ORR will benefit from the same.

Having said that, Uttarahalli is a relatively quiet residential locale, has excellent social amenities in terms of parks and restaurants, and offers affordable rental options to working professionals looking to stay near their offices in East Bangalore. According to experts, the locality, being relatively cheaper than some other neighbouring localities in terms of buy rates, also offers an excellent opportunity to investors who are looking for economically priced options.