As Hosur, an industrial hub in Tamil Nadu, is expected to witness its airport, the prices of real estate in the town are expected to go up to 25% to 40% in the next 2 to 3 years. The Rs 19,000 crore airport project is expected to handle 300 lakh passengers annually. Speculative buying near Berigai and Bagalur in Shoolagiri taluk of Krishnagiri district has led to rise in land prices up to Rs 1,500 and Rs 3,500 per square foot.
Dr Prashant Thakur, executive director & head - research & advisory, ANAROCK Group, said, “It is likely to cause an increase in property values in Krishnagiri district, which can be anywhere between 25-40% depending on exact location and project. It will improve connectivity along Bengaluru's south-eastern corridor and increase demand for industrial and commercial spaces. This market is advantageously located near Electronic City and the border between Karnataka and Tamil Nadu. We can expect the announcement of more integrated townships as well as logistics hubs and warehouses all over the region.”
Bala Ramajayam, founder and MD at G Square, a prominent real estate developer, said, “We are already seeing a significant surge in property prices and customer inquiries in Hosur, based on market activity following the announcement. Customer inquiries have notably increased from two key groups: investors and professionals from nearby Bengaluru's Electronic City, who see the airport as a major connectivity advantage and a chance for strong, high-yield capital appreciation.”
Ramajayam adds that overall, the Hosur airport is expected to attract Rs 80,000–1,05,000 crore in sectoral investments and generate 3.65–4.55 lakh jobs over the next decade, positioning Hosur as India’s next major integrated industrial and aviation hub. With the airport announcement, industries are intending to establishing warehouses and third-party logistics as the airport would give better access to global market from Hosur, which already has a strong base of manufacturing electronic and EV products. The town being the manufacturing hub, coupled with airport announcement closer Tier 1 city Bengaluru, the real estate prices shot up by nearly three times.
Rajesh Gurumurthy, senior director – strategic consulting and risk advisory, JLL Chennai, said, “The prices are already shot up. Some places like Bagalur, the prices have gone up to 3x. Lot of warehouses and third-party logistics players are coming and setting up their facilities in Hosur.”
Thakur says that there are steady enquiries from NRI investors and IT professionals in Bengaluru looking for plots and villas. There has been a big increase in demand for RERA-approved plots and storage spaces. Last month, KSH INFRA, an industrial and logistics park developer, and WSB Real Estate Partners announced that they will invest Rs 450 crore to develop industrial park in Hosur.
Anarock Group believes that Attibele-Bagalur and other strategic corridors could see their real estate values to go up by up to 40%. Plotted developments could see values go up by between 80% and 110% over the next 8-10 years, while apartments in Electronic City and Sarjapur can potentially increase by 25-40% over the next 5-7 years. Premium villas will also see values rise by 30–50%. It must be noted that Electronic City and Sarjapur to Hosur town distance is nearly 25km.
Experts also said that it is important to enhance the road infrastructure and rail connectivity to leverage the demand Hosur has generated through airport announcement. Recently the Bangalore Metro Rail Corporation Limited (BMRCL) said that direct link to Hosur is not feasible. Gurumurthy said, “Both the State governments should find solutions to connect Bengaluru and Hosur through metro connectivity. There is also urgent to speed up the repair work on national highway between Kancheepuram and Vellore.”