North Bengaluru Emerges as Real Estate Hotspot

North Bengaluru has seen an unprecedented hike in property prices, with prices sky-rocketing between 69 percent and 133 percent since the pandemic began, as per new research from Square Yards. The meteoric rise is linked to infrastructure improvements, increased connectivity, and the catalytic development of Kempegowda International Airport.

Flat rates in major micro-markets like Thanisandra, Yelahanka, Devanahalli, and Bagalur surged by an average 69 percent to Rs.11,000 - Rs.13,000 per sq ft. Plot rates for residential properties saw even higher increases, with a 118 percent average rise. 

Devanahalli was the leader with 133 percent growth, touching Rs.6,500 - Rs 8,000 per sq ft in FY25 from Rs. 2,900 – Rs. 4,000 in FY21. Bagalur was next with 127 percent growth, Thanisandra grew by 113 percent, and Yelahanka by 116 percent.

Key Highlights-

• Property prices in North Bengaluru have surged by 69 percent to 133 percent since the pandemic
• Devanahalli recorded the highest growth with a 133 percent increase in plot rates
• North Bengaluru now accounts for 25 to 27 percent of all residential transactions in the city

Conversely, the remaining areas of Bengaluru experienced more measured appreciation, 48 percent in apartment costs and 93 percent in plot costs during the same duration.

Industry experts point to the area being close to the airport as a key growth driver. "Airports rank among the most impactful drivers of economic growth and real estate development. Bengaluru, with its anchor Kempegowda airport, is a classic case in point." Tanuj Shori, CEO & Founder, Square Yards, explained.

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Passenger traffic at the airport increased to 41.55 million in FY25, and the new Terminal 3 in the offing will increase capacity to more than 100 million passengers per annum.

Renuka Kulkarni, Head of Research in Square Yards noted, "Increased connectivity between Devanahalli and Bengaluru has fueled the growth. Residents want to stay closer to nascent employment centers."

North Bengaluru currently holds 25 to 27 percent of the city's residential deals, cementing its position as a real estate hub.