Despite new launches decline, property prices in Yelahanka did not correct significantly and actually appreciated by 9% in the past 2 years
Existing since the 12th century, Yelahanka is closely linked with the origin of Bengaluru. The book ‘Bengaluru to Bangalore’ by T.V. Annaswamy mentions that the word ‘Yelahanka’ is derived from ‘Valipakka’, meaning ‘along the highway.’ Over a period of time, Valipakka (during Chola reign) transformed into Illaipakka (during Hoyasala reign) and finally into Yelahanka.
The construction of the Kempegowda international airport was a game changer for the region and initiated Yelahanka’s metamorphosis from a sleepy little settlement on the outskirts of Bengaluru into a buzzing residential investment destination.
Yelahanka, which is divided into Old Yelahanka and Yelahanka New Town, is home to many defence establishments such as CRPF training school, Indian Air Force’s Air Force Station and BSF Training Centre. This micro-market also houses the largest facility of Mother Dairy in Karnataka, as well as the rail wheel factory (India’s largest manufacturer of railway wheels and axles).
Yelahanka enjoys excellent social infrastructure including educational institutions, healthcare facilities and entertainment options - and Kere Lake, Allalasandra Lake and Puttenahalli Lake (also a bird sanctuary) scale up the aesthetic value of the region. These factors have combined to attract investors and homebuyers to Yelahanka in droves.
Yelahanka has an excellent connectivity quotient as it is accessible from various parts of Bengaluru through a well-established road and rail network.
• The arterial roads that connect Yelahanka with other prominent areas of the city are NH 9 towards Doddaballapur and NH 44, which provides access to Devanahalli and the city.
• The elevated expressway between Hebbal and Yelahanka provides swift connectivity to the international airport.
Rail & Metro Rail
• The nearest railway station to Yelahanka is Yelahanka Junction which connects Bengaluru with the central, northern and western parts of the country via Guntakal Junction.
• Under phase III, a 32 km metro corridor has been proposed between Carmelam and Yelahanka. It is currently in the planning stage - construction is slated to commence in 2025 and conclude in the mid-2030s.
• Yelahanka provides easy access to the Kempegowda International Airport, which is located 20 km away via NH 44.
Supply & Absorption
• Between 2013 and Q1 2018, a total of 8,700 units have been launched in Yelahanka.
• The highest supply comprising 2,500 units was registered in 2015, after which the new launch supply has been declining marginally till date. This could be due to the implementation of the rule requiring any construction within a 10 km radius of Yelahanka to have a No Objection Certificate (NOC) from the Indian Air Force.
• Of the 3,300 units which are stacked in the unsold inventory, around 2,900 units are currently under construction.
• Yelahanka has around 3,600 ready-to-move-in units, offering a plethora of options to the homebuyers and investors. While 2,300 units will be infused into the market in less than a year, another 2,800 units are likely to take more than a year for completion of the projects.
• Yelahanka's residential market is dominated by mid-segment properties (?40-80 lakh) accounting for 70% of the new launch supply since 2015, followed by 15% of properties in the ?80 lakh-1.5 crore budget range.
Property prices in Yelahanka have been on a constant rise constantly till Q1 2018. Interestingly, despite the impact of the economic reforms in 2016 and the decline in new launches, prices in Yelahanka have not seen any major corrections. In fact, property prices in Yelahanka have appreciated by around 9% in the past two years, with the average price as of Q1 2018 being ?5,100/sq.ft.
Apart from its immense historical importance, Yelahanka is now one of the most prominent residential hotspots in Bengaluru. Replete with well-developed social and physical infrastructure, this micro market is likely to witness increasing in tandem with the deployment of the proposed infrastructural developments in and around it.
With maximum supply in the mid-segment housing category and availability of large land parcels, Yelahanka is one of the most promising real estate investment destinations in North Bengaluru. Moreover, leading builders have built several villa developments in Yelahanka, resulting in it also becoming a preferred weekend home destination.