Introduction to Nelamangala Nelamangala is a town in the Bangalore Rural district
Introduction to Nelamangala
Nelamangala is a town in the Bangalore Rural district (taluk headquarters) around 27 km from the north of Bangalore city. It is a junction which lies between two National Highways, NH-48 (Bangalore – Mangalore) and NH-4 (Mumbai – Chennai).
Nelamangala Town is spread over 14.1 km² with around 2.85 km2 (1.10 sq mi) of area at an altitude of 882 meters above mean sea level. It has a population of about 37,232 out of which 14,600 are employed or work or run a business.
Introduction to Kolar
Kolar also known as the golden city of India is a city located at a distance of about 70 kilometers from Bangalore, 50 km from Bangalore International Airport and 32 kilometers from Kolar Gold Fields. It is the headquarters of Kolar District and is known for the production of Milk, which recently surpassed Denmark, and gold mining.
Kolar is popularly known as the land of silk, milk, mango, (National fruit of India) and gold. The city is famous for the Someshwara temple and the Kolaramma temple. Kolaramma is considered as goddess of city of Kolar. Kolar has APMC market which is 2nd largest in Asia and largest in South India. Kolar is the leader in production of mangos, tomato and milk which is exported to various countries like UK, USA, and UAE etc.
Industrial hub of Kolar
• Narasapura industrial area
• Vemagal industrial area
Narasapura name translates to Praiseworthy dwelling place. Narasapura is an industrial area in Kolar district which contributes about 1.25% to the GDP of India. Kolar is one of the only 16 Districts established under the national investment and manufacturing zones (NIMZs) policy. It aims at enhancing the share of manufacturing sector and its contribution to GDP to 25 per cent and creating 100 million jobs over a decade starting from 2011.
An area of about 660 acres was developed in the first phase and later due to expansion of industries a further area of 520 acres were acquired under Section 28(1) of KIADB Act for the second phase.
There are many Realtors from Bangalore offering Plots in Gated Community, flats and Villas such as Paratus BuildCon Pvt.Ltd and Adisesh Projects which are aggressively developing residential properties.
Vemagal is around 10 km from Narasapura and 58 km from Bangalore city it was developed mainly for the purpose of alleviating the land pressure in Narasapura industrial area which is entering its third phase.
History of real estate market of Kolar (the Golden city of India)
In 1995 Kolar’s real estate market took a leap forward in terms of industrial development. Kolar being a largely agrarian district depended on agriculture but now has developed beyond agriculture by setting up the Tamaka industrial area.
With the recent development of Tamaka industrial area a large amount of small scale industries were established. Consisting mainly of polymer, plastic pickles etc which did not require a large amount of labor and hence growth was limited. And ultimately over a period of time the industrial area developed did not have the intended development that was expected in terms of real estate market. A large number of layouts were developed by KIAD which were left unused. Since the employment opportunities were not up to the mark.
In 2011 the Karnataka industrial area development board (KIAD) notified land for the purpose of setting up an industrial area near the town of Narasapura called as Narasapura industrial area. About 660 acres of land was notified under the first phase and about 520 in the second phase with a third phase also being proposed.
In Narasapura industrial area the first big player to enter the local market was Honda motorcycles and scooters PVT.LTD which set up its largest manufacturing plant in Asia on 96 acres of land.
Following this many ancillary industries to support Honda were established namely Indo auto tech, Advic and many more were established to strengthen the growth of the region. Further companies like Mahindra Aerospace manufactures 2, 4 and 6 seated family ; commercial planes for the Indian and international markets. Triumph manufacturing of Cruise Bikes was the first such plant in India. Volvo bus manufactures which became immediate competition of Scania.
Scania a Volkswagen Company manufacturing luxury passenger bus (Volvo bus) competitor, and high end trucks. Bando manufactures of engines belts, high strength rubber products. Exedy Clutch India Pvt ltd manufactures of clutch systems. Lumax manufactures of automotive spares. Indo manufactures of electrical and electronics.
And now after all these establishments successfully creating employment the frequent travel between Bangalore and Narasapura industrial area were at an all time high. The six lane express way from Bangalore connecting to the industrial area further commemorated its successful growth.
Due to the impact of these industries the need for investments has increased and people started looking for good investment opportunities in land and assets. And in 2012 Paratus Buildcon Pvt Ltd started developing layouts in and around these industries. They are the first to develop layouts in this particular region.
“What we do is all around you”.
Paratus Buildcon strives hard to leave a mark on the construction and engineering projects of Karnataka state which alter the lives of millions of people and aims for the betterment and improvement of the economy of the entire region while at the same time protecting and conserving the environment.
The company has handpicked specific projects that dealt with infrastructure and development that improve the socio-economic index of the state and is proud to have played a part in building the nation.
Paratus Sunshine at Narasapura Industrial Area presents exclusive spacious villa plots conceived for affluent and abundant living for all who want a more space and little more privacy. The Villa Plots at Paratus Sunshine are located within an established one of a kind gated community.
This was the first project that started around Narasapura industrial area.
Paratus Sunshine also offers a harmonious blend of independent homes and a thriving neighborhood with all amenities. It is located
• Just 6kms away from the Narasapura Industrial Area which is spread across 3000acres of land and entering its third phase.
• It is only 3kms away from the proposed Indian railway coach factory which is spread over 1000 Acres of land.
• It is also only 3kms away from NH-4.
• It is just 4kms to Narasapura Main Town.
• It is connected by 4 lanes express Highway.
• Just 38kms from the K.R.Puram Toll Gate.
• Easy accessibility to Bangalore city.
• It is Eco-Friendly and has all amenities while in the midst of nature.
With lush greenery, all modern amenities, major manufacturing and companies being setup the perfect stage has been set to boost real-estate market and perfect chance for one to buy their dream home.
The success of the project inspired the company to develop more layouts around the region; interest of people in terms of investment in the region had increased and various other developers had entered the real estate market to compete with Paratus Buildcon but the company still remains on the top position in terms of developing layouts as well as enhancing the growth of the region.
Paratus Buildcon started a subsidiary named as RJK developers to meet the requirements. The company has a decent amount of competition been provided by Kadam group, MCB assets and other small time developers.
Adisesh Projects Is A Premium Project Situated At Narsapura, A Fast Growing 4000 Acres Kiadb Industrial Suburb, Which Hosts Premium Industries Such As Honda, Scania, Gsk, Mahindra Aerospace, Volvo Etc.
What makes Adisesh Projects very special is that you can walk to work as it is attached to this industrial hub. Affordable villa plots designed to perfection that suits your budget, with various options starting from 1000sqft to 2500sqft are on offer.
The major attraction of Adisesh Projects is the world class amenities that are being dished out, starting from a clubhouse with an attached swimming pool, Barbeque area, Party hall, fully equipped gym (indoor and outdoor) , senior citizen park, children’s play area, manicured gardens, and lots more.
Not to mention basic amenities like, 24/7 security, grand entrance arch, cctv surveillance at every nook and corner, box type drainage, ugd cabling, overhead tank, STP, tree lined avenues, asphalted roads, etc.
Pricing strategy and market price
325 per sq feet sunshine
1100 per sq feet ELA
900 per sq feet green
It is located approximately 27 km from Bangalore city, Nelamangala is known for its industries. Growth of the region in terms of industrial development started off with Parle Biscuits Factory.
Nelamangala industrial area had industries mostly of food and beverage and distilleries in fact Nelamangala have some of the largest distilleries of India.
Nelamangala was chosen by these industries mainly because of the water resource that the region had and it was close to Bangalore city.
Food and beverage industry
1. Cadbury India Pvt. Ltd., Sy. No.247, Joddi Hanumanapalya, Kunigal Road, Kasaba Hobli, Nelamangala, Bangalore Rural – 562123
2. PepsiCo (I) Holding Ltd., 34th Km, T.Begur Village, Tumkur Road, Kasaba Hobli, Nelamangala, Bangalore Rural – 562123
Distilleries and breweries
1. United Breweries Ltd., Sy No.15/3, Gangadharapalya, Nelamangala Tq
2. Karnataka Breweries And Distilleries, 20 Th Mile Tumkur Road, Vishweshwara Pura, Kasaba Hobli, Nelamangala, Bangalore Rural
3. KBD Sugar & distilleries Ltd., Sy No 12/2, 20th Mile Bangalore Tumkur road, Nelamangala Bangalore
1. Sri Ramco Biotech, Ramco Biotech, Sy.No.12/2, Mylanahalli, Nelamangala, Bangalore Rural
2. Tejkamal Pharmaceuticals (P) Ltd., Sy No 6/2, Aladahalli Village, Sompura Hobli, Nelamangala Tq, Bangalore
3. Kemwell Ltd. (Bio-Pharma), Sy. No.37/2, 3,4,5, 36/1,2, T-Begur Nelamangala Taluk
4. Kemwell International Pvt. Ltd., -, Sy.No.86/1, T Begur Village, Tumkur Road, Nelamangala, Bangalore Rural
1. Venkateshwara Hatcheries (P) Ltd. Venkateshwara Hatcheries Pvt. Ltd., , Budihal Village, Nelamangala tq
2. Venkateshwara Hatcheries (P) Ltd, Sy.No.67, Bommanahalli Village, Kasaba Hobli, Nelamangala, Bangalore Rural
3. Wintac Ltd. (Recon Ltd.,), Sy.No.54/1,Budhihaal Village, Tumkur Road, Kasaba Hobli, Nelamangala, Bangalore Rural – 562123
Emmvee Solar Systems Pvt. Ltd., Sy No 66, Pemmanahalli Village, Simpur Hobli, Dabaspet, Nelamangala Tq, Bangalore Rural dist
Cimotech Hydro Machines Pvt. Ltd., No 149/1A, 151/2, Budhihal Village, Kasaba Hobli, nelamangala Tq
Kurlon Ltd. No. 22& 23, KIADB Industrial Area, Dabapet, Nelamangala, Bangalore Rural District.
Developer in the area
Factors influencing the sale of plots
1. Sales rate
It takes about one month in Kolar to sell one plot of land and a lot depends upon the marketing strategy – as the company’s primary task is to promote and then sell.
Paratus Buildcon took about 2 years to sell a land area of about 3 crores (53 plots).
Why two years?
Because once the land is notified following the agreement between the owner and the developer once the land is sold by the owner to the developers the developers has to do a lot of paper work in terms of plan approvals then dc conversion which takes about nine months and needs some signatures of 18 different public authorities and by the time this process is complete it takes over a year and further it takes around 6 months for the development of the layout and depending upon the sales it takes at an average of 6 months to sell the entire layout.
In comparison in nelamangala the sales rate is much better because people look at it as a short term investment whereas in kolar it is a long term investment and takes 1 or 2 years for the entire layout to be sold with all the paper work and registration to be done.
Rs.800 to 900 per sq feet in kolar and in nelmangala it is about Rs.1200 to 2000 per sq feet mainly due to the proximity from Bangalore and people usually look forward to constructing a farmhouse whereas in kolar it is a long term investment.
The climatic conditions of kolar region are quite hot and humid because of its mountainous terrain. Even after improvement of land at kolar people rarely opt to construct a house. Whereas in nelamangala it has a typical Bangalorian weather which is quite good leading to nelamangala region having lots of houses been built in various layouts that are being sold.
Kolar has bus and rail connectivity as well as a 4 lane expressway connecting to Bangalore. Nelmangala similarly has a 4 lane expressway, train station and bus connectivity and plans are there to connect it with a metro line.
5. Water resource
Water is a scare resource in kolar region they depend on treated water for agriculture and some of the water bodies in the region which periodically dry up and some water is supplied from the municipality.
In nelamangala the water resource is comparatively better and the region has good water capacity and sources like ground water, few water bodies, and supply from civic body.
Kolar has connectivity to two states that is Tamil Nadu and Telangana it is about 65km from Bangalore city and it is also close to religious centers like Thirupathi.
Nelamangala being in Bangalore rural district neighbors urban district which is an important reason why people look forward to invest in this particular region
Kolar town has a population of about 1.83lakhs with demography of 51.13% of Hindus, 46.5% Islam, 1.98% Christianity, 0.25% Jainism, 0.02% of Sikhs and Buddhist, about 0.10% have not stated any religion. Languages spoken are Kannada, Telugu, Urdu and Tamil. Few of the people (indigenous population) of the region are conservative and backward and don’t like outsiders to come to their land.
Developers usually face this problem during purchasing of land even after the land being sold; few people who are completely not related to the sale of the land oppose the sale and declare it as their land.
Nelamangala has a population of 37,230 and demographic structure of 88.32% of Hindus, 10.13% of Muslims, 1.25% of Christians, 0.06% of Sikhs and about 0.16% have not stated any particular religion.
People of Nelamangala are often been scammed by the elites of the city where farmers are inadequately compensated for selling their land; apart from this they have also had many cases of illegal land encroachments which is one of the factors for the industrial area to boom in price of the land and the people in the region are wary about selling their land.
Usually the people are progressive and willing to sell their land for the right price.
8. Investment pattern and planning
People look forward to investing in and around the city and for ones looking for long term investments prospectively buy land in Kolar (narasapura industrial area).
People rarely look for constructing a house on the plot they purchase due to the above mentioned factors like climate, transport, water resources and connectivity etc. so the plot is kept as a fixed investment or fixed asset for a period of time.
Investment in Nelamangala is usually for a short term as it is close to the city with people looking to construct farm houses and spend quality time with their family away from the busy city life.
There are also factors like good connectivity, electricity, water and sewage treatment which influences people’s decisions to purchase a plot.
Literacy rate of Kolar region is around 74.33 percent according to the 2011 census of India. Literacy rate of Nelamangala region is comparatively higher 78.91% according to the 2011 census of India.
Health care and sanitation is basic with a government general hospital in nelamangala but due to proximity to Bangalore city access to specialty and super specialty hospitals is available. In kolar there is both government general hospital and many private medical institutes/hospitals such as R.LJalappa hospital and research centre which is the biggest in the region.
Nelmangala due to proximity to the Bangalore city and its own development and industries has a few supermarkets and grocery stores such as SSM mega mart, Shiva Ganga organics and green super mart etc.
Kolar on the other hand is only recently developing with large industries being setup but few supermarkets like SLV supermarket is present for consumer shopping with provision stores and other small shops.
Nelmangala has some good hotels and eateries such as Pizza hut, Shri Kamadhenu vegetarian restaurant, Oliver’s pizza’s, KFC, Madurai idly shop which are famous in Bangalore with branches in and around the region of nelamangala.
Kolar is a district and a large town so it has quite a few establishments of eateries, hotels and food joints such as Maiyas restaurant, Vasudev Adigas, Panchavati hotel Woody’s restaurant, Empire restaurant, Café coffee day, Dominos pizza etc.
Due to the setting up of the industrial areas and a large number of big industries being setup and more people starting to live in and around the area the boom in growth of the area is seen with many facilities and infrastructure like health, education, communication, transport train, bus, 4 lane expressways etc coming up.
Pros and cons
Pros of investing in kolar (narasapura, vemagal, tamaka and malur industrial area)
1. All industrial area are in the 2nd or 3rd phase due to the immense demand from the investors, which has created an environment well suited for people who are looking for a fixed asset.
2. Kolar city/town has started expanding from where it was as more and more people have started visiting the locality and a majority of famous eateries of Bangalore have started their branches in the locality.
3. There are plans to reopen the kolar gold mines which had about 37,000 employees in the 1960’s and if they are reopened it will boost job opportunities and value to the locality.
4. The upcoming railway coach factory with an investment of about 1,460 crore is also being eagerly awaited by the people as it will boost the entire market.
5. The region is also a good investment option in terms of setting up of industries; mainly automotive ancillary units as the industrial area consists of international player like Honda, Scania etc.
6. It can also be a good option for people looking forward to a retired life where they can enjoy the lower cost of living in the city and avoid the high prices of the metropolis of Bangalore.
7. Kolar is known for sericulture and people can lease or rent their plots out for the purpose of silk worm rearing which will bring revenue to them and the seri-cuturists. Other people who are not intending to settle down in the area can keep it as a fixed asset.
Cons of investing in kolar
1. The biggest factor which comes to mind when we talk about kolar is the water crisis as it is a very scarce resource in the region. The government through various projects has only been able to provide treated sewage water (recycled) from Bangalore for the district.
Agriculture use of the ground water has led to rapid decline in the water table/level and currently a minimum depth of at least 1400 sq feet is needed to find water and even these don’t last long and bore wells dry up within a year or two.
Sand mining has also played its part, as frequent excavations of sand from lakes has damaged the natural lake bed causing water to flow away than accumulate/percolate into the soil when it rains. Also the rain is not pure water as effluents from factories get mixed with the water and as these pollutants are not treated before being released by the industries the water becomes unfit for use by people.
Another reason cited for the depletion of ground water is the eucalyptus trees which grow in the area which absorb/consume a lot of water.
2. Land encroachment also plays a when it comes to investment and many of the people who invest in the properties live in the city and in their absence people set their claims for the piece of land leading to property disputes and legal action which can be costly and time consuming with no guarantee of claiming the land. Hence people should preferably invest in layouts which are usually gated and well equipped.
3. Lack of proper tourism infrastructure in the region coupled with government negligence to develop the area has led to nominal growth in tourism.
4. Lack of high tech private hospital and hardly a few government medical universities and hospitals in the area is a major concern as health care is one of the most important elements of life which the area lacks.
5. Very few reputed educational institutes are present in the area leading to migration of population (especially youth) which slows the development of the area in the long run.
6. People in the city are used to supermarkets; malls etc (everything under one roof) which is not possible in the town where there are hardly any shops. People from the city also do not understand the local language and find it difficult to communicate with the locals.
7. Apathetic attitude of the government authorities in terms of infrastructural development of the city and lack of investments has resulted in poor growth – the sewage system is poor and below average creating issues especially with health concerns.
Pros of investing in Nelamangala
1. The accessibility to Bangalore city is the biggest factor that impacts the benefits in terms of investment. People of the city can invest and build a house to spend leisurely weekends and family time away from the city.
2. The growth of the region is at its peak and nelamangala has achieved immense success due to growth of industrial area. Investing in an area with all basic amenities is always a motive or factor in an investor’s mind.
3. The region of nelamangala has constant supply of electricity and water from the local authorities.
4. The locality is very well planned and segregated and has access to all basic essentials and amenities like hotels, supermarkets, hospitals and health care centers.
Cons of investing in nelamangala
1. Due to the rapid industrialization and growth the environment and atmosphere is quite polluted.
2. The area is quite prone to land encroachment and people should always be sure of investing in proper plots or property (well developed layouts).
There are very few cons as the locality is in close proximity to Bangalore city and is well administered by government authorities.
Interview with the owners of the plot in kolar
Q1. What was the need for investing in real estate?
Land is something that is always considered to be better than any other fixed asset as its value is constant and appreciates over time and never depreciates/fluctuates.
Q2. Why did they choose the kolar region for investments?
Being a public sector employee I understand the value that an industry brings to a particular location that it is situated at with the setting up of narasapura and vemagal industrial areas the understanding is that the land value will appreciate as more investments come in towards the industries and people start settling around the locality.
Q3. What profit accrued to you due to the investment in kolar region?
2 years after investing in the region to purchase a plot which at that time cost around Rs.550 per sq feet and now it has appreciated to about Rs700-800 per sq feet. Due to this rise in prices I further decided to invest again in the region and bought 3 plots of 1200 sq feet each from Paratus Buildcon Pvt ltd. who are the most reputed developers in the region.
Q4. Why did you choose kolar over Nelamangala region?
Nelamangala even though having close proximity to the city, is a region which was developed much before the kolar region and the prices were steep and there is also lots of congestion since a lot of people have already invested in the region. Hence I decided to invest in kolar since it was in the starting phase and the growth is projected very highly for the region. I was looking for a long term investment so the distance from the city did not matter much.
Q5. What are you planning to do with the investment?
I have two children a son and daughter and my son is employed in a MNC and my daughter is studying for a doctorate and I wish to provide one plot for each of them and keep the other two plots myself for future use.
Q6. Why would you suggest investing in kolar region?
Apart from the industrial factor, with distance from the city it is best suited for fresh investments where people are looking for a long term investment with the growth of the industries boosting the value of the land for future prospects. Hence I suggest investing in kolar region for the first time buyers/investors.
Case study and report
Investors are mostly looking for long term investments and for future landfall gains due to appreciation in land value due to the expected growth and development of the area due to the industries being setup. The distance from Bangalore city is also a benefit as it is less congested or polluted and is a well planned locality with access to all basic amenities and utilities for a city life. As people move away from traditional investments in and around the city to more lucrative investments that are away from the city. The prices of the land is quite cheap and for first time or limited budget investors it is a great choice of investment with potential future gains. Also the land is sold as well planned plots which can be used to build houses or flats which appreciate in value and can be used by the investors for various purposes.
Interview with the owners of the plot in Nelamangala
Q1. Why did they choose the Nelamangala region for investments?
Being a Bangalorian I always wanted to invest within the city but due to the rising prices it was not economic to buy a plot in Bangalore and not affordable to me. So when I heard from a friend that investing in nelamangala would be best suited for my budget and the biggest factor was that it was only about 27 km away from Bangalore city I immediately invested in nelamangala.
Q2. What profit accrued to you due to the investment in Nelamangala region?
I bought the land for about Rs.1200 per sq feet and now after two years the price is about Rs.1350-1400 per sq feet which is a good incentive for my investment. And since I was looking for a long term investment in close proximity to the city it is the best return to me.
Q3. Why did you choose Nelamangala over kolar region?
Since I said I wanted to invest closer to the city I opted for nelamangala over kolar as at that point in time I had not heard about the economic development in kolar region but knew of nelamangala industrialized economy which was established a long time ago which prompted me to choose nelamangala.
Q4. What are you planning to do with the investment?
I own a property in the city which I inherited but in the future after retirement I would like to construct a house in nelamangala as it is close to my ancestral village.
Q5. Why would you suggest investing in Nelamangala region? If you are living in Bangalore and looking for a good real estate investment with minimal budget (Rs.7-10 lakh) and plots in proximity to the city, I would suggest nelamangala as it has all the basic amenities and good water resource which is a problem in many other places like kolar. Hence I would suggest people to invest in nelamangala.
Case study and Report
Investors who are looking for long term investments in plots which are close to the city and ready to spend a modest budget (10 lakh) can invest in nelamangala as it has all the basic amenities and good infrastructure and water supply which is a problem in many other areas. It is a well established industrial area with planned development which is a good area to invest in and a good place to spend long weekends or recreational time with family away from the bustling city life.
Savings are an essential part of people’s income and investment of these savings in real estate would be the best because it is an immoveable asset and no matter what the circumstances the principle amount of the land would remain the same. The returns after a successful investment would always be higher than any other form of investment like in capital or share market (share, bond debentures etc) which are subject to market risks. Investment in gold (in-centric value) is also risky and also a dead end investment as it cannot generate revenue. Investment in real estate can be considered as a good source of investment because it does not have a huge impact even if the market conditions fluctuate. People invest in land as it is a very stable fixed asset (assured return on initial investment) and has multiple purposes/uses or can be mortgaged/sold for quick cash.
Why choose between nelamangala and kolar?
Considering all the facts water is a scarce resource and it is very much needed by people. Kolar region which has seen development since the British era and before that as well under the Mysore maharaja with the gold mines strengthening the economic growth of the region and also agriculture – kolar is world renowned for its tomatoes and mangoes and it is also one of the largest milk producing districts. But over time due to the eucalyptus plantations and other environmental factors the water resource started becoming scarce and it is now to an extent where the sewage treated water from Bangalore is being pumped into the tanks for agricultural use. Considering this fact Kolar has to develop a portable water supply for all its residents. And only then they will fulfill the criteria of providing basic water resource to the people. Once that is done a vast majority of the investors will be looking forward to make the long term and short term investments in terms of constructing apartments to facilitate the industries. But for now kolar region is a good option for people who are looking for long term investments.
I would suggest people to invest in nelamangala because it is locality with all basic facilities and necessary infrastructure. The biggest factor for me to suggest nelamangala to first time investors is the proximity to the city due to which people are secure and comfortable in the knowledge they can visit it anytime. Keeping these factors in mind nelamangala is best for first time investors and kolar would be better for people who have the knowledge of the real estate market or seasoned investors as the region can provide great long time returns.