Monday, November 29, 1999

A town that has emerged from the shadows of Bangalore

News posted by www.newsinfoline.com

Till the other day, Hosur, the border town between Karnataka and Tamil Nadu was basking in Bangalore's glory. But today, it's a business destination in its own right and that's eminently reflected in the spiraling real estate costs.There are several reasons for Hosur becoming as a prime residential destination for the people working in Bangalore, primarily South Bangalore. Electronic city, an IT industrial park set up by the Karnataka government in Bangalore city is a stone's throw away from Hosur, which is located on the border of Tamil Nadu but only 40-km away from the centre of Bangalore city. The Electronic city, where India's IT majors Infosys, Wipro and more than 1,000 tech companies have their units, is just a half an hour drive from Hosur.To be precise, Hosur is just 10 km away from the outskirts of Bangalore. Hence, people who cannot afford skyrocketing real estate prices in Bangalore have started looking at nearby Hosur. The land prices in Hosur also have increased by three to four times in the past five years but it is still cheaper when compared to Bangalore, said J Manjunath of Sivadarsh Exporters, who like many others lives in Hosur but carries out multiple business activities in Bangalore.Hosur today is connected by an expressway to Bangalore on the one side and Chennai and Salem, major cities in Tamil Nadu, on the other side. The Bangalore International Airport is one and a half hour drive from Hosur. Most importantly, Hosur, which is located at 2,920 feet above the see level, has a salubrious climatic condition around the year much like Bangalore. The town also has broad-gauge rail connectivity to major cities like Bangalore and Mumbai.Moreover Hosur itself is an industrial town housing more than 1,500 large and medium scale industries including Ashok Leyland, TVS Motors, Titan, Taneja Aeronautics, Asia Tobacco, Hindustan Motors and heavy vehicle manufacturers like Tatra Udyog and Kamaz Vectra. Tamil Nadu government has already established two industrial estates in Hosur, where State Industries Promotion Corporation of Tamil Nadu (SIPCOT) has set up its first industrial estate 35 years ago.Now in a bid to woo IT investors across the country, Bangalore in particular, the Tamil Nadu government through Electronics Corporation of Tamil Nadu Ltd (ELCOT), has proposed to set up an IT park covering 200 acres in Hosur. With a majority of IT companies in Bangalore worried over inadequate infrastructure facility in the 'Garden City', they would choose Hosur for their future expansions, an ELCOT official said. Already the ELCOT has conducted couple of road shows in Bangalore to woo IT investments to Tamil Nadu, particularly to proposed IT Park in Hosur.In addition, the government is also in the process of setting up a massive multi-purpose special economic zone (SEZ) covering around 2,600 acres in Hosur region. Tamil Nadu Industrial Development Corporation Ltd (TIDCO), a Tamil Nadu government enterprise, has chosen Bangalore-based GMR Infrastructure as its joint venture partner to promote the SEZ in Hosur. According to TIDCO, the SEZ would be set up at a cost of Rs 2,600 crore. Once the SEZ and IT park projects were completed, it is expected that thousands of new job opportunities would be created in the town and that would lead to huge demand for commercial and residential properties in Hosur.Hence, not surprisingly, real estate majors have started foraying in to Hosur since last two years. "Hosur town is emerging as a promising tier III destination for real estate sector" said Mohammed Ali Vakil, director of Bangalore-based real estate major Vakil Housing Development Corporation (VHDC). To cash in on the opportunity, VHDC has launched a Rs 150 crore residential project covering 330 super luxury villas in Hosur. The villas are in the range of 1,500 sq ft to 2,400 sq ft and priced at Rs 35 lakhs to Rs 60 lakhs, which are much cheaper compared to the villa prices in Bangalore and its outskirts."Hosur is among a few places in the country where the land prices have not declined even during recession," he said. He said the land prices in Hosur are expected to double in the next 3-4 years. Following VHDC, some of the major real estate players are looking to purchase lands to promote their projects in Hosur, industry sources said. Already several small and medium-category real estate companies have started promoting their projects in Hosur.More over, the floriculture industry is also supporting the real estate industry in Hosur.

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