Airports, megaprojects drive up land prices in micro markets, Bengaluru Rural's Doddaballapur among them

Bengaluru: Doddaballapur in Karnataka features amongst the top eight upcoming micro-markets for the next five years, based on the infrastructure and mega-project announcements across India, according to a report by professional services and investment management company Colliers out on Monday.

Doddaballapur, located in the northwest outskirts of Bengaluru, is the headquarters of the rural parts of the city, and is less than 40 km from the Kempegowda International Airport. Also going in its favour is its proximity to the Devanahalli Business Park, Satellite Town Ring Rod, BIAL IT Investment Region (which is located between Doddaballapur-Chikballapur and has attracted major IT development and residential projects), Aerotropolis Airport City and other business parks.

According to the report, Doddaballapur will witness a land price appreciation growth of 1.5 times, from Rs 3,800 per square foot (sf) in 2024 to Rs 5,726.

Khopoli, 45 minutes from Navi Mumbai, ranks first among these micro-markets, due to the upcoming Navi Mumbai International Airport, which will be operational by April-June 2025.  The area is expected to witness a land price appreciation of nearly 3.9 times from Rs 4,200 to Rs 16,200 per sf in the next five years.

This is followed by Sanand in Gujarat, where the Tata Motors’ Nano factory is located and Sonipat in Haryana, where Maruti Suzuki has its plant. Both will witness a growth of above 3 times between 2024 and 2030.

The other four in this count of eight include the GIFT City (Gujarat International Finance Tec-City), Oragadam - the industrial suburb of Chennai in Tamil Nadu, where the realty development is fuelled by the Chennai Peripheral Ring Road and Chennai-Bengaluru Industrial corridor, Jewar in Uttar Pradesh, where the Noida International Airport is coming up and Mucherla, near Hyderabad, Telangana, which is being developed as a “future city” by the state government.

The increase in property values has facilitated the rapid development of 15 to 20 satellite townships, located within 2 hours of major cities.

Key infrastructure projects impacting urbanisation in India include the Bangalore Kempegowda International Airport. Operationalisation of this airport has led to faster expansion of North Bengaluru.

New infrastructure projects around the area have contributed to a nearly 2.5 times land price appreciation, from Rs 1,800 to Rs 4,500 per sf between 2020 to 2024, most pronounced around the micro-markets like Devanahalli, Chikkaballapur, Hebbal and Yelahanka.

In Mumbai, the Mumbai Trans-Harbour Link, (operational since 2024) has increased land prices in Uran, Talegaon, Panvel, and Kharghar, by nearly 2.3 times to Rs 2,250 per sf between 2020 and 2024.

NCR’s Jewar Airport (to be completed by 2025) and other infrastructure initiatives in the area have contributed to a land price appreciation of 1.4 times to Rs 7,000 per sf.

Chennai’s Peripheral Ring Road (to be completed by 2025) is expected to drive the growth of satellite towns like Sriperumbudur and Singaperumalkoil. These areas have witnessed a land price appreciation of 1.5 times to Rs 3,800 per sf.