North Bengaluru Records 28–32% Growth: See the Key Hotspots and What’s Driving the Trend

Synopsis – North Bengaluru, just after East Bengaluru, has emerged as the city’s fastest-growing zone, recording a sharp 28–32% jump in property values. This article highlights the growing areas and main causes for the uprising trend.

North Bengaluru real estate market is the most vibrant segment of Bengaluru’s market and is being driven by rapidly developing Infrastructure and the influx of many Corporate investments, all of which are concurrently reshaping the city.

Why North Bengaluru Is Positioned As The New Growth Engine

• Close proximity to Kempegowda International Airport makes North Bengaluru a premier location for the growing corporate sector.
• Growing Aerospace, EV Manufacturing and Biotechnology sectors as well as the increase in R&D parks appears to be the next generation of significant growth engines.
• The significant increase in workforce from IT and GCC’s will provide a strong employee base going forward.
• Increasing demand for premium and luxurious housing for Professionals and NRIs will contribute to North Bengaluru’s growth.

Major Investments that Will Shape North Bengaluru’s Future

1. Airport and Aviation Investments
The expansion of the T2 terminal at Kempegowda International Airport with a total investment of approximately ₹12,000–₹16,000 crore will significantly increase airport capacity. The development of the Airport City will provide a hub for integrated Business Parks, Retail Districts and Hotel developments surrounding the airport. The development of an Aerotropolis will generate demand for commercial real estate in the area and create a self-sustaining Urban Zone.

2. Tech, IT and GCC Investments
Large MNCs (multinational corporations) are establishing new GCC Campuses in North Bengaluru like Foxconn, Boeing, and SAP driving demand for office space. Technology Parks in Hebbal, Devanahalli and Yelahanka will provide a highway for growth of the IT/ITeS sectors in North Bengaluru. Co-working Spaces and the demand for Grade-A office space will increase substantially.

3. Industrial and Manufacturing Investments
The establishment of the Aerospace Special Economic Zone (SEZ) in Devanahalli will foster the Aerospace sector’s growth. The establishment of the Devanahalli Industrial Park will foster the growth of the Logistics and Manufacturing Sectors. Emerging Clusters are expected to emerge in Electric Vehicle (EV) and Semiconductor Sectors. The inclusion of North Bengaluru into the Bengaluru-Mumbai Industrial Corridor (BMIC) will support the growth of the region.

4. Infrastructure Development
Airport Metro System (Blue Line) Provides More access the city. The Satellite Town Ring Road (STRR) and Peripheral Ring Road Would Facilitate Movement throughout the Area. Widening Of Roadways And Signal-Free Corridors Should Reduce Traffic Problems. Suburban Commuter Train service adding more ways to commute.

5. New Residential And Commercial Developers Entering The Market
New Major Residential Developers like Prestige, Sobha, Puravankara, Brigade. Increase in supply of Luxury Villas, Plotted Development and Gated Community Developments. Addition of Commercial Grade A Office space to accommodate corporate demand

Effect On Real Estate Market

Growth Of Prices
Important Micro-markets Of Hebbal, Jakkur, Bagalur and Devanahalli have been Appreciating In Value At A Rate Of 15-20% Yearly.
A report by the Confederation of Indian Industry and CBRE predicts that Bengaluru will continue to be the leading city for commercial real estate in India. By 2030, it is expected to have around 330-340 million square feet of office space.

Major Ways of Creating Demand
Steady demand for housing from Airport Operational Staff, GCC employees and Aerospace Zone Employee Base will create demand for housing.
Increasing numbers of NRIs and High Net Worth Individuals (HNIs) purchasing Luxury Housing Will Create Additional Demand.

Types of Real Estate Market Subsequently Benefit
The development of Plotted Residential Development in Peri-Urban Areas, such as Bagalur, will represent a new trend in the Growth The Plotted Development of Residential Housing.
The development of Villas And Luxury Gated Residential Developments in Hebbal and Yelahanka Represents A New Product Offering.
There is Increasing Demand for Rental Housing near Technology/Industrial Hubs.

Improvements In Rental Yields
Corporate Investment and the influx of worker supply will Increase The Rental Yield for Premium Micro-Market to Above 3.5-4.5%.

Major Emerging Trends in North Bangalore

Hebbal- High density IT parks and Luxury apartments, Suitable for high net worth working professionals.
Yelahanka- Rapid residential and commercial area growth, providing many options for rental and township developments.
Jakkur- An up-and-coming residential area with increased number of Plotted Development Options and Green Space availability.
Thanisandra- Availability of Affordable Housing options and Office space leasing and Rapid growth.
Bagalur- Known for Gated Community Development Options and an increase in Plotted Developments; lower priced lots.
Devanahalli- Opposite the Airport- close proximity to the airport, Aerospace Special Economic Zones (SEZ), and other new industrial parks.

Potential Problems and Concerns
Rapid Construction and Increased Migration have caused Heavy Traffic and Issues with Existing Infrastructure due to overloading.
Speculative Purchasing of Land may cause prices to rise at Inflationary levels, causing the market to Balloon.
If there are Delays or Continued Slow Progress of the Metro System, Airport City, and Road Municipal Projects, Forecasted Development will be Slowed.
Increased Infrastructure development is needed to keep pace with Real Estate development.

Future Development of North Bangalore
North Bangalore is shaping itself to be both a Dual Economic and Residential Hub, with Airport City being a primary Economic Cluster.
Future House and Rental Price Growth to remain Compound Annual Growth Rate (CAGR) of 12% -15% over the next Five to Ten Years.
Continued Investor Interest In North Bangalore due to Continued Infrastructure Investment, Economic Diversification, and Increased Quality Lifestyle Expectation Will Drive North Bangalore’s Further Development.

Conclusion
The continued development of North Bengaluru as an economic and housing centre demonstrates its current status as an emerging region for growth. For this reason, it is a great opportunity for both investors and home purchasers.