# The Magic Faraway Tree Phase 2 — Total Environment, Kanakapura Road / Talaghattapura / Banashankari 6th, Bengaluru

Source: https://property-lens.ai/p/the-magic-faraway-tree-phase-2-000424 (PropertyLens). Analysis generated 2026-10-18 from Karnataka RERA filings, quarterly promoter updates, public ratings and dated locality evidence. Figures marked "assumed" are model estimates that visitors can edit on the page; "observed" figures come from a named source.

## Summary
- Investment score: 22/100 (50 = the average analysed Bengaluru project, 12 points = one standard deviation). Evidence confidence 55%.
- Projected price growth: 7.9% per year over 5 years (likely range 4.4%–11.3%); 7.5% per year over 10 years.
- Net-wealth CAGR: 2.1% per year over an 8-year hold with a 75% loan at 8.5%, interiors fitted. Cash-flow IRR: 3.1% (all-cash 6.2%). Gross rental yield: 2.2%.
- Status: under construction, RERA handover 2027-09-30. Type: apartment, luxury segment. Developer: Total Environment (#15 in Bengaluru by RERA registrations).
- Address: Survey no 32 part1 and 33 part 1 and 33 part 2 Kanakapura Road, Tallaghattapura. Homes: 240. Land: 2.01 acres. Launched: 2016.
- RERA registrations: PRM/KA/RERA/1251/310/PR/171015/000424.

## Homes on offer

| Home | Carpet (sq ft) | Super built-up (sq ft) | Price per sq ft | Price | Rent per month |
|---|---|---|---|---|---|
| C20A | 1,647 | 2,470 | ₹12,200 (assumed) | ₹3.01 Cr | ₹56,500 (assumed) |
| C20B | 1,658 | 2,485 | ₹12,200 (assumed) | ₹3.03 Cr | ₹57,000 (assumed) |
| C20G2 | 1,679 | 2,520 | ₹12,200 (assumed) | ₹3.07 Cr | ₹57,500 (assumed) |
| 5 BHK | 2,562 | 3,845 | ₹12,200 (assumed) | ₹4.69 Cr | ₹86,000 (assumed) |
| D35BG | 2,648 | 3,970 | ₹12,200 (assumed) | ₹4.84 Cr | ₹89,000 (assumed) |

## Score factors (this home vs the Bengaluru average)
- Price vs comparables: 5.7/10 (city average 6.2, −0.4 points), confidence 35%. ₹12,200 psf vs luxury comps ₹12,000 (2%; under-construction should price ~8% below ready). Price is a model estimate, so this factor carries a third of its normal weight until a listed price is observed.
- Rental demand & yield: 4.8/10 (city average 6.0, −2.4 points), confidence 38%. Gross yield 2.2% (₹23 psf/month); locality rental demand 8/10.
- Resale liquidity: 6.9/10 (city average 7.6, −1.2 points), confidence 60%. Locality resale depth 8/10; ticket ₹3.01 Cr narrows the buyer pool; UC resale needs builder NOC; 240-home project; RERA sales pace ratio 0.93.
- Employment access: 3.2/10 (city average 5.2, −4.1 points), confidence 85%. Drive times now (Google Maps, 2026-09-16): Koramangala (Forum) 36 min, Electronic City Ph-1 41 min, MG Road (CBD) 44 min, ORR Bellandur (Ecospace) 50 min; 0 of 7 major hubs within 30 min; 2 msf office pipeline (3 yr).
- Metro, bus, rail & airport: 6.9/10 (city average 4.8, +3.8 points), confidence 60%. Green Line Silk Institute / Vajarahalli / Talaghattapura; no planned station within 2 km; airport ~114 min by road now (Google Maps); .
- Schools, hospitals, daily needs: 7.5/10 (city average 7.0, +0.5 points), confidence 50%. Locality social-infrastructure index (interim, expert-set; POI distances pending Maps integration).
- Builder delivery & handover risk: 2.5/10 (city average 3.7, −3.1 points), confidence 50%. Total Environment: 12+ projects, on-time 45% (assumed); handover 2027-09-30 (RERA); within the RERA timeline, 3 extensions, work behind schedule (-28 pts).
- Layout, size, age, amenities, maintenance: 7.8/10 (city average 7.3, +0.6 points), confidence 55%. 119 units/acre; carpet/SBA ~72%; maintenance ~₹6 psf/month (assumed); filed construction cost ₹6,341 per sq ft (premium spec).
- Water, flooding, noise, infrastructure: 7.0/10 (city average 5.8, +2.5 points), confidence 50%. NICE road access; metro at doorstep on the corridor
- Legal, title & approvals: 3.5/10 (city average 7.4, −7.9 points), confidence 55%. RERA registered; litigation: 1 case(s) declared; approvals: RERA registered; title: not verified. Due-diligence report lists 2 red flags (−2.5 pts).
- Expected price growth (5-yr CAGR model): 3.4/10 (city average 6.0, −16.3 points), confidence 56%. Model 5-yr price CAGR 7.9% (range 4.4–11.3%).

## Why prices should grow about 7.9% a year
- + 6.0%: Start with 6.0% a year: the normal long-run growth of Bengaluru home prices.
- + 0.7%: Add 0.7%: prices here rose 10.8% a year recently (2023-06 to 2026-06). Some of that pace continues, but it fades each year.
- + 0.0%: Prices are still affordable enough that this does not slow growth.
- + 1.4%: Add 1.4%: 2 million sq ft of new offices nearby means more people wanting homes here.
- − 0.7%: Subtract 0.7%: many new homes are being built here (20 months of unsold stock), which keeps prices in check.
- + 0.2%: Add 0.2% for new roads, metro and water lines, weighted by how likely they are to actually finish: Phase 3 (Orange/Red lines: JP Nagar–Kempapura, Hosahalli–Kadabagere) (construction, 2029); Satellite Town Ring Road (construction, 2028).
- + 0.3%: Add 0.3% for this project itself: unfinished homes are worth more once they are complete.
- = 7.9%: Result: about 7.9% a year, so a home worth ₹3.12 Cr today would be worth about ₹4.56 Cr in 5 years. We are 56% confident in the evidence behind this.

## Returns over 8 years
- Cash put in: ₹2.80 Cr. Exit value in year 8: ₹5.61 Cr. Net sale after loan and costs: ₹3.53 Cr. Net rent after running costs: ₹22.2 L. Loan: ₹2.46 Cr (EMI ₹2.1 L per month). All-in cost: ₹3.78 Cr (other charges ₹10.5 L, GST ₹15.6 L, stamp duty and registration ₹20.6 L, interiors ₹29.6 L).

## Exit plans compared
- Sell at handover, no interiors (1 years): IRR -83.5%, net-wealth CAGR -83.5%, cash in ₹30.0 L, net rent ₹-1.2 L, net sale ₹91.4 L.
- Hold bare, rent unfurnished (8 years): IRR 4.8%, net-wealth CAGR 3.2%, cash in ₹2.55 Cr, net rent ₹17.2 L, net sale ₹3.49 Cr. Best IRR.
- Hold, do interiors, rent & sell fitted (8 years): IRR 3.1%, net-wealth CAGR 2.1%, cash in ₹2.80 Cr, net rent ₹22.2 L, net sale ₹3.53 Cr.

## Financial and legal due diligence (public record)
Automated from the Karnataka RERA file PRM/KA/RERA/1251/310/PR/171015/000424 and 3 quarterly filings. Prices and rents are locality estimates, not verified listings.

### At a glance
- [RED FLAG] Registration extended 3× — from 2023-12-31 to 2027-09-30
- 72% built per the latest filing; 223/240 homes booked
- [WATCH] 3 RERA complaints on this project; 14 on the promoter overall
- [WATCH] 1 court case declared in RERA filings (no stay recorded)

### Risk meters (rule-based)
- Delivery timeline: 3/10. 3 extensions on the registration (−6)
- Legal & complaints: 6/10. 1 court case declared in filings (−1.5); 3 RERA complaints on the project (−1.5)
- Money to finish: 7/10. finance cost is 0% of the registered budget; last quarter: collected ₹3.38 cr, withdrew ₹3.38 cr; 93% of homes booked (+1); registration-time status shows spend above collections (₹-1.00 cr) (−2)
- Developer strength: 5/10. CRISIL BBB-/Stable (Total Environment Building Systems)

### Red flags to resolve in writing
1. Registration extended 3 times: original completion 2023-12-31, now 2027-09-30.
2. 1 court case declared in RERA filings (OS No 1562/2014/2014); check for stays and title impact.

### Complaints and disputes
- 3 complaints on this project at K-RERA (null open); 14 on the promoter entity across projects.

### Credit ratings
- Total Environment Building Systems: CRISIL BBB- / Stable (2026-05)

### Questions to put to the developer
1. Share the latest CA Form 4 and architect Form 5 with the escrow deposit ratio.
2. Confirm the price list, floor-rise and other charges for the exact unit.
3. Which date is contractual — 2027-09-30 — and what is the per-month delay compensation?
4. What do the declared cases (OS No 1562/2014/2014) concern and is any stay in force?
5. Is the land freehold with the developer, and is any part mortgaged?

### Filed record
**RERA file · Registration**
- Registration: PRM/KA/RERA/1251/310/PR/171015/000424 · promoter Total Environment Building Systems Pvt Ltd (Company) · EX/PRM/KA/RERA/1251/310/PR/241128/000424
- Dates: Start 2016-03-02 · original completion 2023-12-31 · 3 extensions: Covid Extension → 2024-09-30, Section 6 Extension → 2025-09-30, Further Extension → 2027-09-30 [red]
- Progress: 72% complete per quarterly filing Q1 2026-27 (submitted 2026-07-15) · 223 of 240 homes booked (17 available)
- Registered cost: Total ₹444 cr · land ₹10.32 cr · construction ₹434 cr
- RERA bank account: RATNAKAR BANK, Residency Road (70% construction account)
- Money at registration: collected ₹20.00 cr · used ₹21.00 cr · balance ₹-1.00 cr · delay declared: No [amber]
- Land & towers: 2.01 acres (8,149 sq m) · Tower 03 (B2-as per sanction) 120 homes, 29 floors; Tower 04 (B3-as per sanction) 120 homes, 30 floors
- Litigation declared: Civil OS No 1562/2014/2014, III Additional Senior Civil Judge, Bangalore Rural — no stay [amber]
- K-RERA complaints: 3 on this registration · 14 on the promoter entity across all its projects [amber]
- Owners’ association: Not yet formed
- Completion applied: 19/12/2020

### Sources and caveats
- Karnataka RERA project record PRM/KA/RERA/1251/310/PR/171015/000424 (registration file, quarterly updates, complaint register), fetched 2026-09-15
- PropertyLens locality model (market-level estimates)
- Caveats: Automated analysis: prices, rents and travel times are estimates until listings and Maps data are verified. RERA figures are the promoter’s own filings. Nothing here is legal, tax or investment advice.

## Assumptions used
- Price ₹12,200 per sq ft × 2,470 sq ft; other charges 3.5%; GST 5%; stamp duty + registration 6.6%; loan 75% at 8.5% for 20 years; rent ₹56,500 per month growing 5.0% a year with 5% vacancy; maintenance ₹6 per sq ft per month; hold 8 years; selling costs 1.5%.

Related: index of all analysed projects at https://property-lens.ai/llms.txt; JSON for this project at https://property-lens.ai/data/p/the-magic-faraway-tree-phase-2-000424.json; printable due-diligence report at https://property-lens.ai/dd/the-magic-faraway-tree-phase-2-000424.

PropertyLens scores and projections are model outputs built from dated public evidence and stated assumptions; they are not investment advice.