Bengaluru's realty market on edge as second airport site awaits confirmation

The ongoing uncertainty over the site of Bengaluru’s second airport is creating ripples in the city’s real estate market. Three locations were shortlisted earlier this year—two on Kanakapura Road and one on Kunigal Road near Nelamangala—but the final decision remains pending. Despite the lack of official confirmation, real estate prices in these areas have surged, albeit at different rates.

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Residents and business owners along Kanakapura Road have witnessed a notable increase in interest from builders and developers in the last six to eight months. According to locals, while the area was already undergoing development post-pandemic, the news of a potential second airport has further fueled demand. Land prices, which were once at ₹2 crore per acre, have now doubled to ₹4 crore and above. A restaurant owner on the main road mentioned that although a major developer had been urging him to sell his land, he was holding out, anticipating even higher prices if the airport location is confirmed.

A prominent real estate developer with properties along Kanakapura Road and in Nelamangala noted that buyers are increasingly focusing on Kanakapura Road. They highlighted a trend where people from eastern Bengaluru are shifting to southern parts of the city, and the prospective airport is adding to the area's appeal. Property inquiries from potential buyers are often centered around the airport's potential location.

Local brokers are also seeing a surge in demand for new properties, especially in the luxury segment. Several high-end developments, priced upwards of ₹5 crore, are being built along Kanakapura Main Road. Some plots in the area are now fetching prices as high as ₹12-18 crore per acre.

In contrast, Nelamangala and surrounding areas are witnessing slower growth. While land prices have increased by 10-20% in the past year, the area remains primarily focused on plotted and industrial developments. Converted agricultural land is now priced between ₹4.5 crore and ₹5 crore per acre. Rent prices in the locality have also risen by around 30%.

Real estate experts suggest that while the airport is not the primary driver of interest in these areas, it will undoubtedly contribute to future price hikes. A leading property consultant emphasized that prices in the shortlisted areas will likely see a 30% increase once the airport’s location is finalized, with land values potentially doubling in the subsequent three to four years. If the airport is situated closer to Kanakapura Road, micro-markets in southeastern and southwestern Bengaluru are expected to benefit significantly.