Land Prices Shift Ahead of Second Airport Finalisation in Bengaluru

The ongoing deliberations over the location of Bengaluru’s proposed second international airport have led to visible shifts in buyer behavior across key real estate corridors. Developers, landowners, and property investors are closely tracking the government’s site selection process, which is down to three shortlisted options—two near Kanakapura Road and one along the Nelamangala–Kunigal stretch.

While a final decision is pending from the Union Ministry of Civil Aviation and the Airports Authority of India (AAI), the real estate market has already started showing early signs of realignment, particularly in south Bengaluru.

Kanakapura Road Sees Early Buyer Interest

Developers active along Kanakapura Road have reported a sharp rise in property enquiries and plot-level transactions over the past few months. A prominent builder with projects along both Kanakapura Road and in Nelamangala observed that buyers are leaning more toward the southern corridor.

As per Deccan Herald, Broker networks around Kaggalipura and nearby areas off Kanakapura Road confirm this trend.The  land values in interior zones have increased significantly—moving from ₹2 crore per acre in past years to upwards of ₹8 crore in recent transactions. Plots on or near the main Kanakapura Road are being quoted at almost double that value. Although some of this rise is attributed to general appreciation in southern Bengaluru, the prospect of airport connectivity has added a speculative layer.

Recent infrastructure developments—such as the expansion of NH-209, the operational Metro line up to Silk Institute, and proximity to educational institutions and healthcare facilities—are factors supporting price resilience in the region. Buyers are reportedly taking positions in anticipation of a government announcement that may favor Kanakapura Road.

Nelamangala–Kunigal Road Retains Strategic Value

In contrast, while Nelamangala and its adjoining areas along the Kunigal Road continue to attract logistical interest due to their proximity to NH-48 and existing freight corridors, buyer momentum has not picked up at the same pace. Developers with land banks in the area have acknowledged that investor interest has remained moderate despite its potential connectivity to central and northern Karnataka.

Real estate firms working in both corridors note that the presence of two shortlisted sites near Kanakapura Road gives it a comparative edge. Nevertheless, the landholding size near Nelamangala—reportedly around 5,200 acres—meets the criteria for long-term aviation infrastructure, and the site is still under active evaluation by the authorities.

Government and AAI Timeline

Karnataka Infrastructure Minister M.B. Patil has confirmed that three site proposals—two in Kanakapura Road (around Harohalli) and one in Nelamangala–Kunigal—have been submitted to the Union Ministry of Civil Aviation. The shortlisted sites were inspected by AAI teams in April 2025. A feasibility report is expected to be submitted in the second half of the year, after which a final decision will be taken at the central level.

Until then, land prices in both corridors are likely to remain sensitive to speculation and news leaks. Some developers are cautiously holding back launches, while others are quietly acquiring land parcels through joint development agreements or direct purchase.

Comparative Growth Pattern

Analysts point to the land value escalation seen in North Bengaluru following the establishment of Kempegowda International Airport. Over a ten-year span, properties in that region witnessed appreciation between 40% and 86%, depending on proximity and access to arterial roads.

Kanakapura Road has shown signs of following a similar trajectory. A buyer who purchased plots near Kaggalipura at ₹4,000 per square foot just six months ago recently received new quotes of ₹5,000 per square foot for comparable parcels. Broader data suggests that residential plot rates in the area have reached ₹8,000–8,500 per square foot, with an annual appreciation rate of around 9%.

From 2017 to 2022, Kanakapura Road logged a 28% price increase. The speculation surrounding the second airport appears to have accelerated this trend.

Until the feasibility report is released and the Ministry makes an official declaration, the real estate activity in both Nelamangala and Kanakapura Road corridors will likely remain speculative. However, stakeholders agree that once the site is confirmed, the selected region will undergo significant development, with infrastructure, commercial investments, and housing projects gaining traction.

For now, investors are treading carefully, watching for signals from the government and infrastructure agencies. If Kanakapura Road is finalized, a fresh wave of development may unfold, reshaping Bengaluru’s southern periphery in the coming decade.