The Kempegowda International Airport in Bengaluru.
Credit: DH Photo
Bengaluru: Property prices in North Bengaluru leading up to Kempegowda international airport have witnessed a sharp rise between 69% and 118% since the outbreak of Covid-19 pandemic owing to an increased economic activity and improved connectivity.
While the average prices of apartments have gone up by 69% to Rs 11,000 to Rs 13,000 per square feet, the prices of residential plots have gone up by 118% to Rs 7,500 to Rs 8,000 per square feet across various residential areas in North Bengaluru such as Thanisandra, Yelahanka, Devanahalli, and Bagalur, according to a research conducted by Square Yards, an online real estate marketplace.
In contrast, the apartment prices in the rest of the city saw a growth of 48% between Rs 13,000–15,000 per sq ft in the last four years starting FY21. The prices of residential plots in the rest of the city went up by an average 93% during the same period.
Tanuj Shori, CEO & Founder, Square Yards, said, “Airports are among the most influential enablers of economic growth, urban transformation, and real estate development. In India, cities anchored by major airports, such as Delhi, Mumbai, Bengaluru, and Hyderabad, have demonstrated sustained residential growth, driven by improved connectivity, increase in employment hubs, and large-scale infrastructure investment."
As of FY25, annual passenger traffic reached 41.55 million, according to data from the Airports Authority of India. The upcoming Terminal 3 (T3) at Bengaluru is expected to raise the total capacity to over 100 million passengers annually.
Since FY21, North Bengaluru has been consistently taking 25–27% share in the overall residential registered transactions in both primary and secondary markets, the data from Square Yards show.
"Kempegowda international airport in Bengaluru is the third-busiest airport in the country after Delhi and Mumbai. Whenever airports come up they attract international companies in the vicinity. The improved connectivity between Devanahalli and Bengaluru has led to a huge growth in the development of properties surrounding the airport because people want to stay closer to the workplace," Renuka Kulkarni, Head of Research, Square Yards told DH.
Among the key micro-markets, Devanahalli witnessed 133% rise in the prices of residential plots between Rs 6,500 to Rs 8,000 per sq ft in FY25 compared to Rs 2,900 to Rs 4,000 per sq ft in FY21. Similarly, the prices of plots in Bagalur went up by 127% to Rs 5,800 to Rs 7,800 per sq ft, Thanisandra witnessed a rise of 113% at Rs 10,500 to Rs 12,500 per sq ft, and Yelahanka saw prices going up by 116% to Rs 5,900 to Rs 7,000 per sq ft in FY25.