Large-scale infrastructure projects such as airports, expressways and highways, and real estate development go hand in hand. As connectivity improves, organizations gravitate towards these emerging well-connected corridors, thereby generating employment and thereby creating long-term housing demand. This growth cycle has resulted in the emergence of major commercial and residential micro-markets across the country. The progress that North Bengaluru has seen in recent years is in line with this trend.The development of Kempegowda International Airport has made North Bengaluru one of the fastest growing real estate corridors in the country. Its growth has brought about a multiplier effect, resulting in clustering of logistics parks, warehousing and industrial activity, thus expanding the employment base across locations. This employment activity, coupled with the momentum of residential demand, is evident in several belts, particularly the one extending from Hebbal to Yelahanka, from Yelahanka to the airport and further to Devanahalli, Nandi Hills and Doddaballapur. Over the next two to four years, more than 20 technology parks are expected to come up in North Bengaluru. Many are already operational in the Yelahanka belt. The region already has large office occupiers in several Global Capability Centers (GCCs) and major technology parks. Bhavesh Kothari, Founder and CEO, Property First Realty, explains how North Bengaluru has an edge compared to other regions.Additionally, major investments such as the Foxconn manufacturing facility and the SAP Innovation Park near Devanahalli add to the growing prominence of the region as an IT destination. The land allocation of about 3000-4000 acres by the Karnataka Industrial Area Development Board (KIADB) has also attracted global manufacturers, thereby strengthening the employment base of the area. This is not all. Planned developments such as the Aerocity project with upcoming metro connectivity towards Devanahalli are expected to improve access to these micro markets of North Bengaluru and boost the growth potential of the area by strengthening the linkages between employment and residential sectors.

Infrastructure as a development stimulusSeveral infrastructure projects are underway to improve access to the northern corridor. All the projects are in various stages of development and have started influencing how home buyers and investors assess distance and connectivity. The change in pricing trends underlines the change in sentiment among investors and buyers. For example, Devanahalli and Hebbal have recorded annual growth of 15%-20% and 8%-12% respectively, while the broader market has recorded 7%-9% annual growth. These variations make it clear that locations with infrastructure connectivity and proximity to employment hubs are seeing faster gains, with the broader region moving up. Interest from developers and home buyers is increasingAvailability of large land parcels and sustained buyer interest has drawn encouraging response from developers who are building large projects. Many of these developments have been set up as integrated townships with homes, shops and open spaces. The price range ranging from Rs 70 lakh to Rs 5 crore is flexible enough to attract different income groups including end users, investors and non-resident buyers. Along with the 5% rental growth, rental demand is also increasing, driven by the office, airport and industrial workforce. Although capital values ​​have increased by 6%–7% annually, they remain comparatively low compared to central areas. The favorable price-rent equation means that the upfront cost of buying a house and renting it out is lower than the cost of a comparably sized house in central Bengaluru. This difference helps buyers make a profit even if the fare is lower in absolute terms. Overall, North Bengaluru sees rental yields of 3% to 5%, allowing income stability and long-term appreciation.Central Bengaluru’s micro markets are still ahead in terms of valuations, but they are more likely to have reached maturity, limiting further appreciation. In this context, North Bengaluru. Rapidly growing as a high-growth corridor, and presents promising home buying and investment options due to its airport-led and transit development-driven progress. Over the next four to five years, the value and returns offered by commercial and residential assets in North Bengaluru may approach the value and returns offered by properties in Central and East Bengaluru, making it an attractive and significantly more affordable region for investment than at present.