The recent renaming of Ramanagara district to Bengaluru South by the Karnataka government has sparked discussions about its impact on the region’s real estate market. Experts predict this move could be a catalyst for growth, attracting developers and investors, and ultimately leading to rising property prices.
Rebranding for Development: The Government’s Rationale
Under the direction of Chief Minister Siddaramaiah, the Karnataka government wants to use the “Bengaluru” brand to promote Ramanagara’s industrial and real estate growth. Due to geographical restrictions on Bengaluru’s growth, Deputy Chief Minister DK Shivakumar highlights the potential for growth, especially in Tumakuru and Ramanagara. He thinks that the residents of Ramanagara will now firmly identify as Bengalureans as a result of this name change.
While Ramanagara town remains the district headquarters, the decision has garnered mixed reactions. Here’s a closer look at what this renaming might mean for the district’s real estate landscape.
A Look Back: Ramanagara’s Development Trajectory
Carved out of the Bengaluru Rural district in 2007, Ramanagara has witnessed its own development journey. Initially comprising the taluks of Ramanagara, Channapatna, Harohalli, Kanakapura, and Magadi, it has seen a shift in its administrative structure over the years.
Rising Residential Property Prices: An Early Sign?
In the last few months, local brokers have reported a 10-15% increase in the value of residential properties in Ramanagara, especially along Kanakapura Road and Magadi Road. There is clearly a need for this location as evidenced by the presence of well-known developers like Puravankara Ltd, Prestige Estates, and Total Environment.
“Customers are quoting higher prices now,” says a local broker, attributing it to the news coverage surrounding the renaming. This trend suggests that residents are factoring in the potential future value of their properties.
Data from proptech firm Square Yards reveals a similar trend on Magadi Road, with average residential property prices hovering between ₹9,500 – 10,000 per square foot, reflecting a 4% year-on-year increase.
A Bright Future for Industrial Real Estate?
Potential industrial purchasers are showing a lot of interest, according to local property advisors, and large land parcels have seen a price increase of about 10% in the last few months. Hanu Reddy Realty’s Kiran Kumar has noticed a 20% rise in enquiries concerning real estate transactions in Ramanagara. He expects the industrial sector to grow rapidly, and then the residential sector to boom.
Infrastructure Development: Key to Unlocking Price Growth
Experts believe that improvements in infrastructure, such as road connectivity and water supply, will be crucial for further price escalation. Local brokers predict a potential 30% increase in property values as infrastructure strengthens. Industrial and residential development are expected to spearhead this growth, potentially followed by office spaces.
Large builders have already started acquiring land parcels along the Bengaluru-Ramanagara road, says Kumar, highlighting the early signs of development activity.
Stakeholders Welcome the Renaming
The real estate and urban planning sectors have largely welcomed the decision. Stakeholders acknowledge the positive impact of associating with the “Brand Bengaluru.” They believe that with proper planning, Ramanagara can avoid the infrastructure challenges currently plaguing Bengaluru.
A spokesperson from a Bengaluru-based real estate firm draws a parallel with the growth witnessed by districts in the National Capital Region (NCR) due to their association with the “Delhi-NCR” brand.
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