A view of the Kempegowda International Airport in Bengaluru (file photo)

Even before the Karnataka government finalises the location for Bengaluru’s proposed second international airport, speculation around the project has already triggered a sharp spike in land activity across the city’s southern and western outskirts.

From Kanakapura Road and Harohalli to Nelamangala and Kunigal, investors, land aggregators and developers are rushing, drawing comparisons with the early Devanahalli boom before Kempegowda International Airport (KIA) became operational.

However, property consultants caution that the current momentum is largely sentiment-driven. Most activity is concentrated in farmland deals, plotted developments and land banking rather than large-scale residential launches.

Which areas are seeing traction?

Among the emerging corridors, the Kanakapura Road–Harohalli belt has witnessed the sharpest movement so far, aided by stronger residential infrastructure, metro connectivity and proximity to established catchments.

“In the last six to eight months, land prices along Kanakapura Road have effectively doubled, said Ram Chandnani, Managing Director-Leasing, CBRE India.

Areas such as Chudahalli, Somanahalli, and Kaggalipura are witnessing strong investor interest due to lower entry prices and the availability of larger land parcels. NRIs and HNIs are actively buying land here, viewing it as a long-term infrastructure-led investment.

Plotted developments and farmland conversions currently remain the most active segments, while developers are quietly building land banks through acquisitions and joint development agreements, a pattern similar to North Bengaluru during KIA’s early years.

Villa and weekend-home projects are simultaneously gaining traction across the Kanakapura–Ramanagara belt, leveraging both the airport narrative and the region’s natural landscape.

“According to ANAROCK Group, the Kanakapura Road micro-market has recorded around 3,400 new residential launches since Q1 2024, while the Nelamangala market has seen minimal launches so far.

The Nelamangala–Kunigal corridor, meanwhile, is witnessing a more measured rise in activity. Unlike Kanakapura, whose momentum is backed by residential infrastructure and metro expansion, Nelamangala’s appeal has historically been linked to logistics and warehousing.

Industrial land demand in the belt has strengthened as connectivity through the Satellite Town Ring Road (STRR) improves access to freight corridors. Institutional buyers are also evaluating industrial and logistics opportunities around Harohalli and Nelamangala due to the presence of existing manufacturing clusters and KIADB industrial zones.

Consultants say the divergence between the two corridors reflects differing investment theses. While Kanakapura is increasingly viewed as a near- to medium-term residential growth corridor; Nelamangala-Kunigal is seen as a longer-gestation infrastructure and logistics play with potentially higher upside if the airport eventually materialises there.

Repeating Devanahalli template?

The speculation surrounding Bengaluru’s second airport has inevitably drawn comparisons with Devanahalli, where land prices rose sharply after KIA was announced in 2005 and operationalised in 2008. Industry estimates suggest land values in North Bengaluru appreciated 40–86 per cent during the first decade after the airport announcement.

However, consultants warn that South and West Bengaluru may not replicate the Devanahalli story so easily. Unlike North Bengaluru’s relatively unified growth corridor, the new airport regions are more fragmented and lack equally mature social infrastructure.

They also point out that today’s organised broker ecosystem has accelerated price discovery, reducing the advantage for early investors.

Importantly, the second airport remains a long-term proposition, with the site yet to be finalised and approvals likely to take years. Consultants advise investors to treat it as a seven-to-10-year holding opportunity rather than a short-term speculative play.

Published on May 17, 2026