Bengaluru, June 23, 2025 — Bengaluru’s thriving real estate sector is currently navigating a phase of caution, primarily due to the ongoing delay in finalizing the location for the city’s much-anticipated second international airport. While the state government has acknowledged the need for a new airport to reduce the load on Kempegowda International Airport (KIA), the lack of clarity over the project’s site has cast a shadow over property investments, particularly in northern Bengaluru.
Two Contenders, No Decision Yet
The proposed second airport is likely to be developed under the UDAN regional connectivity scheme and has been under consideration since 2023. Two primary sites—Bethamangala in Kolar district and a location in the Tumakuru region—have been floated, but a formal government notification is still awaited. The Karnataka Industrial Area Development Board (KIADB) has been tasked with identifying and acquiring land for the project.
Due to this uncertainty, investors and developers have been reluctant to proceed with confidence. The lack of official communication is also impacting landowners, many of whom are unsure whether to sell, wait, or expect government acquisition.
Kanakapura Road vs. Nelamangala: A Tale of Two Corridors
One prominent developer active in both Kanakapura Road and Nelamangala has reported a marked increase in buyer interest in projects on Kanakapura Road, driven by several tangible advantages.
Why Kanakapura Road is Gaining Ground
- Operational Metro (Green Line) connectivity up to Anjanapura, with plans for further extension
- Direct access to NICE Road, linking it to key hubs like Mysore Road, Electronic City, and Bannerghatta Road
- Well-developed social infrastructure including reputed schools (Delhi Public School, Kumarans), hospitals (Apollo, Fortis), and retail outlets (Metro Cash & Carry, Vega City Mall)
- Presence of mid to high-end residential projects from reputed developers
- Proximity to IT corridors in JP Nagar, Banashankari, and Electronic City
As a result, end-users and investors view Kanakapura Road as a low-risk, high-return zone backed by real-time development.
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Nelamangala Losing Momentum
In contrast, Nelamangala, which had seen speculative investment due to its possible proximity to the new airport, is experiencing sluggish demand. Reasons include:
- Absence of metro connectivity
- Over-reliance on NH 75 and Tumakuru Road, which often witness traffic congestion
- Limited social and retail infrastructure
- Lack of clarity on airport development has halted investor sentiment
Developers in Nelamangala are now deferring launches or slowing project phases, awaiting government action or shifting focus to other high-potential micro-markets.
What Developers and Experts Are Saying
Real estate consultants suggest that buyer psychology is shifting post-COVID, with a preference for well-connected, ready-to-live or under-construction zones. “Today’s buyer is cautious but informed. Areas with visible progress—like metro connectivity, schools, and wide roads—win. Kanakapura Road checks all those boxes,” said a Bengaluru-based property analyst.
Developers echo this. “The uncertainty around the second airport has made it harder to sell in Nelamangala. Buyers don’t want to wait 8–10 years for returns, especially when there are liveable, appreciating areas available,” said the marketing head of a reputed real estate firm operating in both corridors.
Outlook for Bengaluru’s Real Estate Market
Experts say the announcement of the second airport’s final location could unlock huge value in surrounding zones—but the timeline remains critical. If delayed further, speculative markets like Tumakuru Road and Kolar risk stagnation.
In contrast, Kanakapura Road is seeing real-time absorption, price appreciation, and infrastructure upgrades—making it the preferred residential investment corridor in South Bengaluru in 2025.
Conclusion: Clarity Is Key
While the second airport has the potential to reshape Bengaluru’s real estate dynamics, the absence of an official site announcement is creating a trust deficit. For now, areas like Kanakapura Road, with proven livability and infrastructure, are emerging as clear winners in the eyes of both investors and homebuyers.
Until a formal notification is released, developers and stakeholders in the northern belts will have to navigate a period of cautious optimism and strategic repositioning.
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