Bengaluru, India – In a strategic move to alleviate congestion in Bengaluru, the Karnataka state government has approved the Greater Bengaluru Integrated Suburban Project, as published by Hindustan Times.
This initiative aims to develop Devanahalli, Nelamangala, Hoskote, Doddaballapur, Magadi, and Bidadi as satellite townships, enhancing road and rail connectivity to improve accessibility.
Real estate experts anticipate that this project will lead to the emergence of satellite towns on Bengaluru’s outskirts, alleviating infrastructure stress and unlocking opportunities in peripheral locations where land remains relatively affordable.
Vimal Nadar, Senior Director and Head of Research at Colliers India, noted that integrating satellite towns with urban and suburban areas aligns with long-term growth, particularly in residential, industrial, and warehousing sectors.
The suburban project will connect key areas across Bengaluru:
- North Bengaluru: Devanahalli, Nelamangala, and Doddaballapur
- East Bengaluru: Hoskote
- Southwest Bengaluru: Magadi and Bidadi
Property prices in areas like Devanahalli and Doddaballapur have already shown an upward trend. Sunil Singh, Director of Realty Corps, observed a surge in plotted developments and villa projects, with plot prices ranging from ₹2,000 to ₹6,000 per square foot. Nelamangala is yet to see significant real estate interest, but the suburban project is expected to unlock its potential.
Kiran Kumar, Vice President of Hanu Reddy Realty, highlighted that previous developments in areas like Kengeri and Yelahanka led to significant real estate appreciation. With the new suburban project, a 15-20% increase in real estate values is anticipated in the designated areas.
Brokers point to the Hoskote-Devanahalli belt as an emerging corridor benefiting from expressway connectivity between Mumbai and Chennai and the presence of Karnataka Industrial Area Development Board (KIADB) industrial parks. Rental rates in Hoskote have also been on the rise, with a 2BHK apartment now fetching ₹25,000 to ₹28,000 per month, up from ₹22,000 to ₹24,000 six months ago.
Bidadi remains an industrial hub, and Magadi retains its agricultural identity. Plots in Bidadi are now priced between ₹1,200 to ₹2,000 per square foot. While these areas haven’t seen substantial real estate growth yet, the announcement of satellite towns is expected to change that.
The Greater Bengaluru Integrated Suburban Project is expected to drive heightened real estate development in peripheral areas such as Nelamangala, Hoskote, Doddaballapur, Magadi, and Bidadi. Satellite towns are self-contained urban clusters outside major metropolitan areas but well-connected to the city center, offering mixed-use development, job creation, and residential facilities, reducing the need for daily commutes into the city.
The project is anticipated to primarily drive demand for plotted developments. However, improved infrastructure and commercial activity are essential for apartment projects to gain momentum. Real estate experts predict a 15-20% increase in real estate prices in these outskirts over the coming years. With enhanced rail and road connectivity, commercial and industrial activity is expected to grow, attracting more residents and eventually leading to the expansion of apartment developments.
The Bengaluru Suburban Railway Project, an under-construction network, aims to improve connectivity in the region. The project is expected to be completed by December 2027, with all four corridors operational by then. The Karnataka government has also signed a memorandum of understanding with Germany’s KfW Development Bank to fund the project, securing a loan of ₹4,561 crore at an annual interest rate of four percent for 20 years.
These developments are poised to transform Bengaluru’s outskirts, making them attractive destinations for real estate investment and contributing to the city’s balanced growth.