Devanahalli, a suburb of Bangalore has been talk of town since opening of new International Airport. This report details development in Devanhalli and its future.

1. Devanahalli
Transformation from village to commercial and IT hub
August 2013

2. Executive Summary
•
Devanahalli is going to transform into major hub in coming years with development of
multiple Industrial and IT parks generating more than 300,000 jobs
•
We are seeing actual progress in construction. Developments are expected to be
complete in 2017
•
Such scale of job creation is going to generate huge demand for real estate making it
attractive investment opportunity
•
Currently supply is dominated by plots which are available at affordable price of Rs 900 –
1,100 per sq ft. Very few Tier A townships also exist but are mostly sold out with limited
options
•
We recommend to invest in plots around Aerospace park and look out for upcoming
launches/inventory in apartment projects at range of Rs 3,000 – 3,500 per sq ft
•
Prices are expected to rise 2 – 3x in next 5 years with completion of infrastructure
projects
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
1

3. Agenda
Devanahalli – Background and proposed developments
Devanahalli – Progress status of proposed developments
Residential Real Estate in Devanahalli
Our view on future of Devanahalli
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
2

4. Devanahalli is located in North Bangalore and is reachable by
NH7 from city centre
•
•
It is located on National Highway 7 which is
also known as Bellary Road or Bangalore
Hyderabad Highway
•
Stretch on NH7 from Hebbal to Devanahalli
is being expanded to six lanes as well as 7
flyovers are being constructed to reduce the
travel time to airport from current one hour to
less than 20 minutes
•
Source: Proptiger Research July 2013
Devanahalli is 35 kms to the north east of
Bangalore City
Bangalore Metro is also planned to have
connection to Devanahalli Airport in its
phase-2
Confidential and for Private Circulation Only
3

5. Before International Airport, Devanahalli was famous for
Nandi Hills, Devanahalli Fort and Tipu Sultan
View of Nandi Hills
Source: Proptiger Research July 2013
Entrance of Devanahalli Fort
This fort belonged to Tipu Sultan (Tiger of Mysore)
Confidential and for Private Circulation Only
4

6. Opening of International airport in 2008 made it an important
part of Bangalore City…
Key Milestones
1999 – MOU was signed between
KSIIDC and AAI for construction of
new Airport in Devanahalli
2004 – Concession agreement
signed between Government and
BIAL
2005 – Airport construction started
2008 – Phase 1 of Airport became
operational
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
5

7. …And gave impetus to multiple important projects around it
1
2
Aerospace SEZ, IT
and Hardware Park
- Touching southern
boundary of airport
3
IFCI Finance City –
5 kms from airport
4
1
BIAL IT Investment
region (ITIR) – 9
kms from Airport
Devanahalli
Business Park –
Touching northern
boundary of airport
4
Airport
3
Source: Proptiger Research July 2013
2
Confidential and for Private Circulation Only
6

8. BIAL IT Investment region (ITIR) will house marquee names of
IT industry and will create 4 million jobs
•
BIAL IT Investment region to be located at the Nandi foothills between Doddaballapur and
Chikballapur
•
Total area under development - 10,000 to 12,000 acres
•
Project to be developed in phased approach
•
1st phase – 2,072 acres and expected to complete by 2020
•
2nd phase – 10,000 acres and expected to complete by 2032
•
Karnataka State Electronics Development Corporation issued EOI in 2012 for development of
ITIR for which it received interest from 55 MNCs including TCS, Infosys, Wipro etc.
•
Once developed it will create total 4 million jobs1
•
1.2 million direct (employees working in these companies)
•
2.8 million indirect (people supporting these employees)
Even if 10% direct employees choose to live close by, it will result in demand
of 120,000 dwelling units
1. CCEA Defers Decision on ITIR project in Bangalore, Deccan Herald, May 2013
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
7

9. Aerospace SEZ, IT and Hardware Park will occupy 3,000 acres
and house Boeing, Airbus and many more
•
Aerospace Park and SEZ, IT and Hardware Park are being developed in 2,991 acres close
to southern boundary of BIAL
•
•
Hardware Park – 850 acres
•
•
IT Park – 1,156 acres
Aerospace Park and SEZ – 984 acres (732 acres + 252 acres)
Aerospace SEZ and Park
•
•
56 large and mid sized companies have signed up for operations in Aerospace Park
•
•
Boeing, Airbus and Bombardier have agreed to setup shop in Aerospace Park
StarragHeckert and Wipro have already initiated operations in Aerospace Park
Hardware Park
•
•
•
Shell,Tata Elxi and many other hardware companies will occupy space in Hardware Park
IFCI is also building 50 acres Global Financial District with cost of Rs 1,000 crores in Park
IT Park
•
TCS is planning a 100 acre campus in IT Park
As per government estimates 250,0001 direct jobs will be generated by
Aerospace Park only
1. 27 Aug 2012 statement of Principal Secretary M.N. Vidyashankar
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
8

10. Devanahalli Business Park will provide another 309 acres of
infrastructure for hospitals, retail and hospitality
•
Devanahalli Business Park will come up in 309 acres of land adjacent to northern
boundary of BIAL
•
It will be multi use business park
•
2 IT parks in 50 acres
•
Central Business District in area of 35 acres
•
3 hospitals in 26 acres
•
Retail and hospitality in 22 acres
•
Finance District in 25 acres
•
Goods assembly unit in 25 acres
•
Office complex in ~21.5 acres
•
Aviation academy in 10 acres
•
Expected investment in the park is ~Rs 9,5001 crores as per government estimates of
2008
•
International Convention Centre and Hotel is also planned in 35 acres, adjacent to
Devanahalli Business Park
1. Deccan Herald, Aug 2008
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
9

11. Agenda
Devanahalli – Background and proposed developments
Devanahalli – Progress status of proposed developments
Residential Real Estate in Devanahalli
Our view on future of Devanahalli
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
10

12. Aerospace, IT & HW park has seen most progress on ground
Hardware Park
• Contract for construction of 300 acres of Hardware Park given to Ascendas in June 2012
• Construction of Shell Technology Centre in Hardware park began in June 2012
• Construction of IFCI Global Financial District of 50 acres began in Apr 2012
• 5 acres land has been allocated to Siliconhub Techology Solutions in Hardware park
Aerospace SEZ
• BEML began work on constructing its unit in Aero SEZ in April 2012
• Wipro inaugurated its 7.2 acres campus in Aero SEZ in Feb 2013
Aerospace Park
• Aerospace park (Vayu) contracted to Sun Forest City Ventures Ltd. in June 2012
• Starrag inaugurated its 8 acres campus in Jan 2013
• Dynamatic Technologies ground breaking ceremony happened in Feb 2011
IT Park
• TCS has acquired 100 acres land in IT park
• Bhima Soft Private Limited and Alpine Hospitality has also been allocated land in IT park
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
11

13. Whereas limited progress on IT Investment Region (ITIR) and
Devenahalli Business Park
•
ITIR stuck at
land
acquisition
stage
No progress
on DBP;
Contract
awarded for
convention
centre
•
•
ITIR was mooted in 2009 by state government and received centre approval in
2010
Preliminary notification for land acquisition was issued in 2012
Final notification for land acquisition expected to be issued very soon this year
as per July 19, 2013 statement of State Industry Secretary
Devanahalli Business Park
• EOI issued by KSIIDC in 2008 and a partner was chosen for development on BOT
basis
• Chosen partner backed out in 2009 due to recession as well as delay in approvals
• Registration of Interest again issued for construction on PPP basis in June 2012
• No progress made in choosing the Project Company
International Convention Centre and Hotel
• Soma-Suncon-SunCity chosen to construct on PPP basis
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
12

14. Progress pictures of current construction – Aerospace SEZ
•
Aerospace SEZ - 252 acres
•
Aerospace park - 732 acres
•
StarragHeckert and Wipro
premises are ready
•
Dynamatic Technologies, BEML
have already started
construction
•
Other expected occupants –
HAL, Jupiter Aviation, Centum
Electronics, AMADA, Tyco,
Dynatech, System Controls,
Mistral etc.
•
Internal roads are already
constructed as visible in picture
Note: All pictures are taken in July 2013
Pictures also available at http://www.bangaloreaerospacepark.com/bengaluru-aerospace-park-construction-stages.html
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
13

15. Progress pictures of current construction – Aerospace Park
Ayappa CNC Site
Esco Aerospace site
Source: Proptiger Research July 2013
Note: All pictures are taken in July 2013
EFD Aerospace site
MADA Aerospace site
Confidential and for Private Circulation Only
14

16. Picture of StarragHeckert premises in Aerospace park
•
•
Inaugurated in Jan 2013
•
Rs 60 crores invested in first
phase of development
•
Note: All pictures are taken in July 2013
Source: Proptiger Research July 2013
Built on 8 acres Land
10,000 sq mt (~1 Lakh sq ft) of
manufacturing plant is
operational
Confidential and for Private Circulation Only
15

17. Progress pictures of current construction – IFCI Finance City
•
•
Foundation stone laid on Apr
8, 2012
•
Expected to complete by 2015
•
Abutted by 45mt and 30 mt
arterial road
•
Rs 12,000 crores to be
invested by 16 financial
services companies such as
SBI, PNB, Corporation Bank,
Vijaya Bank, Indian Overseas
Bank
•
Note: All pictures are taken in July 2013
Source: Proptiger Research July 2013
Being developed on 50 acres
of land
Expected to initially house IT
centres of these financial
services company and later
can be expanded to backend
operations
Confidential and for Private Circulation Only
16

18. Progress pictures of current construction – Shell Technology
Centre
•
•
Expected project cost of Rs
1,375 crores
•
It will be an integrated campus
combining engineering/
technology offices,
experimental R&D units and IT
enabled services directed at
Oil and Gas Industry
•
Note: All pictures are taken in July 2013
Source: Proptiger Research July 2013
Being developed on 40 acres
of land with built up area of
~12 Lakh sq ft
It will have 45 mt road on one
side and 24 mt on other side
Confidential and for Private Circulation Only
17

19. Current status of IT Park - KIADB board outside IT park
Note: All pictures are taken in July 2013
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
18

20. Agenda
Devanahalli – Background and proposed developments
Devanahalli – Progress status of proposed developments
Residential Real Estate in Devanahalli
Our view on future of Devanahalli
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
19

21. Current residential real estate is dominated by plots
Project Type Distribution
17%
Plot
Villa
Apartment
17%
66%
Reflecting investment nature as well as time to maturity (4 – 5 years) of the market
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
20

22. Very few projects are being built by Tier A builders
# of Projects
70
65
Key townships in Devanahalli by Tier A builders are
•
Brigade Orchards
•
Prestige Golf Shire
•
Divyasree Valley of Wind, Nandi Belle Vue and
The Nest
•
Ozone Urbana
•
Nitesh Long Island
•
40
Sobha Lifestyle and Sobha Lifestyle Legacy
•
50
House of Hiranandani – Upscale
•
60
Century Istana
•
QVC The Hills
30
20
10
7
4
3
3
2
1
1
1
0
Legend
Tier A
Builders
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
21

23. Most Tier A projects are located close to airport
Divyasree
Valley of Wind
Prestige
Golfshire
Brigade Oak
Tree Palace
Hiranandani
Upscale
Divyasree Nest
Sobha Lifestyle
Airport
Brigade
Orchards
Ozone Urbana
Century Istana
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
22

24. Limited Tier A options for apartment buyers
Four upcoming projects to look out for prospective investors
Project Name
Builder Name
Status
Towers
Expected
Current/
Completion Last Sale
Total Units Launch Date
Date
BSP*
Chancery
House of Hiranadani Under Construction
4
140
May-11
May-14
4,200*
Cypress
House of Hiranadani Under Construction
4
140
Oct-10
Dec-15
4,050
Crossgate
House of Hiranadani Under Construction
3
98
Sep-10
Dec-14
3,975*
Clover
House of Hiranadani Under Construction
4
90
Jun-13
Jun-17
3,975
Calgary
House of Hiranadani Under Construction
8
266
Oct-10
Dec-16
3,975*
Urbana Aqua
Ozone Group
Corpus
Orchards Value
Homes
5
312
Jan-12
Mar-15
3,540
Hoysala Projects
Under Construction
Ready for
Possession
2
40
Jun-10
Jun-13
3,250
Brigade
Under Construction
14
528
Oct-10
Mar-17
3,140
Divyasree Nest
Divya Sree
1
47
May-12
Feb-14
3,000
Broxia
Hoysala Projects
Under Construction
Ready for
Possession
2
115
Oct-10
Mar-13
3,000
Jeevan Keerthi
Commanders
Aeroview
SkyGold Properties Under Construction
2
114
Dec-10
Apr-14
2,800
Jupiter Infrastructure Under Construction
2
114
Nov-12
Jun-14
2,750
Upcoming
NA
NA
NA
NA
NA
Upcoming
Upcoming
Upcoming
NA
NA
1
NA
NA
50
NA
NA
NA
NA
NA
NA
NA
NA
NA
Prasiddhi Boulevard Prasiddhi Properties
Zaffars Sterling
Sterling Hyde Park Estates
West Winds
Nambiar Builders
The Nest
Artha
Source: Proptiger Research July 2013
Legend
Upcoming
projects
Confidential and for Private Circulation Only
23

25. But many villa options from Tier A builders
Project
Size
(acres)
Total
Units
Prestige
Under Construction
Sobha Developers Under Construction
275
55*
228
165
Oct-10
Jul-10
Dec-13
Jan-15
12,780
9,750
House of
Hiranadani
Sobha Developers
Century Group
Confident Group
Ozone Group
Under Construction
Under Construction
Under Construction
Upcoming
Under Construction
NA
55
68
30
158
96
109
119
147
175
Aug-11
May-08
Aug-10
Apr-13
Jun-13
Jul-15
Feb-14
Jun-16
Nov-14
May-15
9,500
7,500
7460
6500
6490
Brigade
Kent Projects
House of
Hiranandani The Cottages Hiranadani
The Hills
QVC Realty
Under Construction
Under Construction
130
0
120
106
Nov-10
Apr-12
May-15
May-15
6,390
6300
Under Construction
Under Construction
NA
26
105
95
Jan-10
Jan-09
Jun-14
Dec-14
5250
4500
Valley of Wind
Divya Sree
Under Construction
0
28
Apr-12
Dec-13
4190
Sri Satya Sai
Constructions
Benchmark
Property
Brigade
Ready for
Possession
Ready for
Possession
Upcoming
40
174
Nov-11
May-13
2750
3
NA
29
NA
NA
NA
Sep-08
NA
NA
NA
Project Name
Prestige Golfshire
Lifestyle Legacy**
Signature Villas
Lifestyle**
Century Istana
Gold Coast
Urbana Arcadia
Brigade Orchards (Pavilion
Villas)
Novella
Retreat
Benchmark Sunshine
Oak Tree Place
Builder Name
Status
Expected
Current/
Launch Completion Last Sale
Date
Date
BSP*
Legend
Tier A
*BSP in Rs/sq ft
builders
**Sobha Lifestyle and Sobha Lifestyle Legacy are part of single township with size of 55 acres
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
24

26. Select ready for construction plot projects in Devanahalli
Project Name Developer Name
Canvas
Tulips Garden
Sobha Developers
Dhammanagi
Jansons Investments
Downtown Park
Pvt Ltd
North Star
Ferns Builders
Saffron Valley
Dhammanagi
Aero grand
Aishwarya Homes
Chartered Windsong Chartered Housing
Daksa Mallika
Surabhi Estates
Sriven Serenity
Venus Homes
Aero Royal
Aishwarya Homes
Aero Springs
Aashrayaa Projects
Nandi View
Sitrus Group
Green City
Bhumi Construction
AeroPride
Aishwarya Homes
Happy Home
Airport County
Construction
EPI Heritage Plot
Hiland Group
Max Sri Vishnu
Residency
Maxworth Realty
Prestige Greenfields Prestige Group
Project
Size
(acres)
Total
Units
Launch
date
Ready for Construction
Ready for Construction
10
60
77
420
May-12
NA
Feb-13
Mar-10
3200
2600
Ready for Construction
Under Development
Ready for Construction
Ready for Construction
Ready for Construction
Ready for Construction
Ready for Construction
Ready for Construction
Ready for Construction
Ready for Construction
Ready for Construction
Ready for Construction
NA
NA
NA
NA
10
23
8.5
NA
22
20
NA
40
48
78
111
500
67
264
118
289
284
121
82
303
Oct-09
Jul-09
May-12
May-08
Jun-12
Nov-08
Feb-12
NA
Jun-10
Dec-12
Dec-11
NA
Jul-12
Jul-12
May-13
May-12
Oct-12
Feb-13
Feb-13
Sep-12
Dec-12
Feb-13
May-12
Dec-11
2300
2000
1900
1500
1400
1400
1300
1200
750
750
500
NA
Ready for Construction
Ready for Construction
NA
10
242
98
Jan-11
Jan-06
Apr-13
Dec-10
NA
NA
Ready for Construction
Ready for Construction
NA
NA
500
NA
Feb-10
NA
Feb-11
Dec-05
NA
NA
Project Status
Expected
Current/
Completion Last Sale
Date
BSP*
*BSP in Rs/sq ft
Legend
Note: Ready for Construction implies developer has completed development of township and handed over plots for
Tier A
builders
further development by buyers
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
25

27. Select under development plot projects
Project Name
Landscape
Urbana Meadows
Rose
Long Island
Aero City
Nandi Belle Vue
Adonis
North Citi
Royal Claire
The Preserve
Habitat
Green County
LG Green City
Green Valley
Keertana
Green Orchid
Aero Vista
Gateway Meadows
NN Homes
Developer Name
Sobha Developers
Ozone Group
Elite Properties
Nitesh
VRP Developers
Divya Sree
Confident Group
Aishwarya Homes
Sv Ventures
SRR Homes
Sri Arvind
LG Builder
LG Builder
Margadarshi Builders And
Developers
Maxworth Realty
Maxworth Realty
North East Properties
Gateway Shelters
Nava Nakshatra
*BSP in Rs/sq ft
Source: Proptiger Research July 2013
Project
Size
(acres)
Total
Units
Launch
date
Under Development
Under Development
Under Development
Under Development
Under Development
Under Development
Under Development
Under Development
Under Development
Under Development
Under Development
Under Development
Under Development
9.3
158
NA
NA
9
40
27
40
NA
23
NA
100
NA
117
500
116
321
250
143
408
450
87
265
58
391
410
May-13
Dec-11
Feb-12
Apr-13
Oct-12
Jun-12
Feb-13
Apr-11
Apr-13
Jun-12
Oct-12
Mar-12
Mar-12
Jun-14
Sep-13
Jul-13
Mar-15
Aug-13
Dec-13
Feb-14
Oct-13
Jan-14
Feb-14
Jun-13
Oct-13
Sep-13
3671
3390
2300
2000
1800
1700
1499
1300
1300
1195
1000
900
900
Under Development
Under Development
Under Development
Under Development
Under Development
Under Development
18
NA
NA
40
30
NA
241
326
674
800
215
182
Jan-11
Oct-12
Oct-11
Jan-13
Dec-12
Jun-11
Jul-13
Aug-13
Nov-13
Sep-13
Aug-13
Oct-13
800
800
700
699
600
500
Project Status
Expected
Current/
Completion Last Sale
Date
BSP*
Legend
Tier A
builders
Confidential and for Private Circulation Only
26

28. New launches increased in Jan – May 2013 period
Feb -12
Apr -12 May -12
Source: Proptiger Research July 2013
Sep -12 Oct -12
Dec -12 Jan -13
Mar -13 Apr -13
Jun -13
Confidential and for Private Circulation Only
27

29. Plots and Apartments are available at affordable price
BSP (Rs/sq ft) as on July 2013
Mean
Median
Low
High
Apartment
3,263
3,000
2,750
4,200
Villa
7,000
6,500
2,750
12,800
Plot
1,300
1,195
500
3,671
Villa options are costly due to premium specifications and Tier A builders
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
28

30. Sobha and Hiranandani townships are at advanced stage of
construction
Sobha Lifestyle entrance
Hiranandani Upscale
Note: All pictures are taken in July 2013
Source: Proptiger Research July 2013
Sobha Lifestyle villa
Hiranandani Upscale
Confidential and for Private Circulation Only
29

31. Hoysala projects are ready to move
Hoysala Broxia – Picture as taken in Jan 2013
Source: Proptiger Research July 2013
Hoysala Corpus– Picture as taken in May 2013
Confidential and for Private Circulation Only
30

32. Agenda
Devanahalli – Background and proposed developments
Devanahalli – Progress status of proposed developments
Residential Real Estate in Devanahalli
Our view on future of Devanahalli
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
31

33. Infrastructure development will generate jobs in coming years
•
Devanahalli is expected to become major commercial and office hub by 2016 - 17
•
Aerospace Park and SEZ to be fully occupied by 2017
•
Shell, Ascendas and IFCI campus will be ready by 2016
•
International Convention Centre will be ready by 2016
•
ITIR Phase 1 should be ready by 2020 - many IT companies will move to ITIR to save
cost as well as to reduce current commute time to Airport
•
Resulting in at least 300,000 white collar job creation Devanahalli by 2017
•
Job creation can be anywhere between 1 – 1.5 mn by 2020 once ITIR Phase1 is operational
•
Planned Metro Rail connectivity in phase-2 will further improve accessibility of this region
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
32

34. Which will fuel real estate demand making it an attractive real
estate investment opportunity
•
Real estate demand which is highly correlated to job creation is expected to grow as
employees move closer to their workplace
•
Limited supply from Tier A builder has already resulted in high price for such projects
•
Opportunity exists in investing in plots at Rs 900 – 1,100 per sq ft and apartments at Rs
3,000 – 3,500 in locations close to Aerospace park. We expect prices to grow 2 – 3x in
next 5 years
•
Investors should also look out for upcoming pre launches by Tier A developers (expected
new tower launches in Brigade and Ozone township)
Source: Proptiger Research July 2013
Confidential and for Private Circulation Only
33