Over the years, Bengaluru has earned several sobriquets, namely India’s Silicon Valley, Electronic City of India, and Science City of India. The city’s nicknames underline the progress and development it has achieved, attracting entrepreneurs and tech giants alike. While Bengaluru’s eastern and southern corridors have been the focal points of Bengaluru’s growth, North Bengaluru is not far behind. Emerging as the new real estate development hub, North Bengaluru is witnessing a surge in demand for residential and commercial properties. North Bengaluru rose by 9.8%, which was more than the city’s average growth of 9.3% in January-March 2023. Similarly, The Airport Road Corridor’s vicinity to the Kempegowda International Airport has piqued strong investor interest, resulting in a flourishing economic ecosystem in the region. Further, tech and real estate companies are shifting offices and setting up business parks in Bagalur, Hebbal, Jakkur, Thanisandra, and Yelahanka.
Causes behind the upward trend
This quantum leap in North Bengaluru’s real estate scenario has several reasons—
1. Connectivity and location: North Bengaluru’s strategic location near Kempegowda International Airport and excellent connectivity through major highways like Bellary Road, Outer Ring Road, and Tumkur Road make it an ideal choice for residents. The area’s accessibility to key employment hubs and the city centre has further contributed to its appeal. Magadi Road has grown substantially, with numerous upscale projects offering beautiful apartments, enhancing the area’s desirability. Additionally, rapid infrastructural development through Namma Metro and the Bengaluru Suburban Railway and a lower cost of land than that in Bengaluru’s other regions have been growth catalysts. Likewise, phase 2B of the Airport Line, connecting Kasturi Nagar to KIA, will establish a direct route between the airport and North Bangalore, making it a favourable location for business, employment prospects, and housing.
2. A plethora of employment opportunities: The region is fast emerging as a tech and IT hub, attracting major players such as Boeing, L&T, and Foxconn. Several tech parks here are expected to be completed in 2024 and 2025. Recently, IT major Infosys secured a tenancy of five lakh sq ft of office space at Northgate, Philips Innovation Campus relocated to Yelahanka, and SAP Labs India initiated building its second office in Devanahalli. This influx of companies has led to an increase in employment opportunities, particularly for technology professionals. These developments in North Bengaluru are likely to add 3.5 lakh new jobs, accounting for nearly 30% of the city’s overall office absorption by 2025, and their ripple effect may create a requirement of over 1 lakh residential units by 2025.
Governmental initiatives are also driving the change in North Bengaluru’s real estate landscape. The development of hi-tech, aerospace, and defence parks exemplifies the state government’s focus on boosting innovation and investment in Bengaluru’s Northern part. Correspondingly, Bengaluru International Airport Area Planning Authority (BIAAPA) is slated to complete Aerotropolis (a metropolis built around an airport) between 2030-2032, adding 2,50,000 jobs to the city’s economy.
3. Northward property rates, higher rental yield: Real estate costs in North Bengaluru have steadily gone up, with over 20% appreciation in luxury and mid-segment projects. Construction and demand for property units are also soaring. The area offers diverse residential options, from contemporary apartments to spacious villas catering to varied preferences. In terms of rental yield, North Bengaluru has outpaced Whitefield’s eastern IT corridor. The rental yield in the last quarter of 2023 was 4.48%, 32.54% more than what it was four years ago.
4. Reliable social infrastructure: North Bengaluru is home to esteemed educational institutions like the Kendriya Vidyalaya and BMS Institute of Technology and Management. Additionally, the area offers quality healthcare facilities, making it a worthy choice for families looking for a holistic living experience. Developers in the region are focusing on contemporary aesthetics and modern infrastructure, making it well-suited to individuals who value convenience and modern living standards.
5. Issues to be heeded: Nothing is perfect, and so is the real estate scenario in North Bengaluru. Challenges such as last-mile connectivity, traffic congestion at some points, and occasional water logging during rains remain a few concerning issues. Infrastructure projects like the Peripheral Ring Road and Satellite Town Ring Road are in the pipeline to improve connectivity, prevent traffic snarls, and create alternate routes that can be taken to avoid water-logged areas during rainfall.
Although still developing, North Bengaluru has emerged as a preferred choice of homebuyers and investors alike. The region is anticipated to see greater rates of return and liveability through the state government’s promotion of it as the next prime business hub in Bengaluru and sanctioning the development of IT, business and industrial parks, infrastructure, and residential real estate. North Bengaluru’s connectivity to the airport and city, various real estate options, ample employment opportunities, and bright growth prospects will leave a long-term positive impact on Bengaluru’s realty industry.