Spanning over 1,800 acres across eight blocks, the area previously plagued by mosquito issues and mangroves was once known to locals as 'Sollemangala' (where 'Solle' refers to mosquitoes in Kannada). During the 80s and 90s, it was perceived as an unappealing location for Bangaloreans.
Fast forward to today, and Koramangala has emerged as one of the most coveted real estate locales in India's Silicon Valley. "I would kill to get a place in Koramangala," chuckled MR Jagannathan, a 60-year-old retiree residing near the area. "Back then, it was on the city's outskirts, somewhere I could afford. Now, unfortunately, I can’t buy there anymore." This statement captures the dramatic transformation and growing aspirations surrounding Koramangala.
Jagannathan expressed regret over a missed opportunity, saying, "You won’t believe it. I once had an offer to buy a plot in Koramangala for a few lakhs in the 90s. If I had stretched my budget just a bit, I could have owned something there, but it didn't seem appealing then. This remains a pivotal decision I regret."
Much of the credit for reshaping Koramangala goes to the Raheja Group, renowned real estate developers responsible for the mixed-use project, Raheja Arcade. This development attracted numerous businesses from different parts of Bangalore, marking a significant turning point for the neighborhood. Subsequently, the construction of Forum Mall only bolstered local property values. Notably, Forum Mall stands as one of the earliest malls in India, built to international standards, and continues to be among the most successful in the country.
Currently, rental prices for mid-segment residential properties in Koramangala are projected to rise by 5-10 percent over the coming months. "This increase is attributed to robust social and physical infrastructure, excellent connectivity to various business districts, and the presence of premium developments," commented Naveen Nadwani, Director for South India at Cushman & Wakefield, a real estate consultancy.
“Rental rates for high-end residential properties are expected to stabilize, but mid-segment rentals are likely to see further growth due to sustained demand. Meanwhile, commercial office spaces and retail segment rentals could maintain stability in the short to medium term,” Mr. Nadwani further elaborated.
As for land prices, they currently range between Rs 13,000-15,000 per square foot, but commercial space availability is minimal. "Right now, there's a lack of major land parcels suitable for development in Koramangala; only a handful of small plots, up to 3,500 square feet, owned by individuals can be found," he stated. Residents are snapping up whatever opportunities arise; recently, a well-known businessman purchased two adjacent plots nearby.