Why Kanakapura Road in Bengaluru is a Promising Real Estate Investment
Kanakapura Road, located close to south Bengaluru's IT corridor, is rapidly becoming a preferred location for real estate investments. Affordability, Grade A builders, and ongoing infrastructure projects are making it an attractive option for both buyers
Bengaluru Real EstateKanakapura RoadReal Estate InvestmentAffordable FlatsInfrastructure ProjectsReal EstateJan 06, 2025
He found Kanakapura Road to be a compelling option due to its affordable flats and the presence of Grade A builders.
'I can see that Kanakapura Road has decent affordable flats with grade A builders.
We also commute easily to Hosur Road since I am an IT professional working in ORR with work-from-home and my wife works on Hosur Road,' he said.
Kanakapura Road, located around 30 minutes from south Bengaluru's IT corridor of Electronic City, is a prominent arterial route connecting major localities and extending towards the city's outskirts.
The area is home to several prominent IT companies such as Infosys, Wipro, and Tech Mahindra.
North Bengaluru is still one of the city's booming real estate micro-markets, but Kanakapura Road is expected to see significant appreciation, potentially up to 15% by 2025, according to Sunil Singh, director of Realty Corps.
One of the main reasons Kanakapura Road is appealing to investors is its relatively lower real estate prices compared to other parts of Bengaluru.
The average residential rentals in the area range from ₹25,000 to ₹35,000 per month, depending on the development type.
Land costs vary from ₹3,000 to ₹15,000 per sq ft for plots and ₹4.5 to ₹15 crore per acre for land parcels.
'The apartment cost in the area is about ₹7,000 to ₹12,000 per sq ft, with Grade A developments typically between ₹10,000 to ₹14,000 per sq ft,' Singh added.
A 2BHK apartment can be rented for ₹20,000 to ₹30,000 per month with a security deposit of typically 6 to 9 months, while a 3BHK starts from ₹40,000.
Several Grade A developers, including listed developers like the Prestige Group and Brigade Group, are operational in Kanakapura Road.
Local brokers report that prices in the area have started to surge due to the limited availability of residential inventories, especially from Grade A developers.
According to data from real estate firm Knight Frank, residential properties on Kanakapura Road increased by 3% in the first half of 2023, matching the southern IT corridor of Electronic City.
'In one of the plots in the area, the costs have jumped to ₹3,000 per sq ft from ₹2,500 last year.
And in a project close to Uttarahalli, the plots are now being sold at ₹10,000 per sq ft from ₹4,600 per sq ft last year,' Singh said.
In gated developments like Prestige Primrose, 2BHK apartments, launched about a year ago, are now sold at ₹1 crore, up from ₹75 lakhs last year.
Similarly, prices for 1BHK units have increased to ₹75 lakh from ₹60-65 lakh last year.
Several infrastructure projects have significantly boosted connectivity in the area.
The access to Kanakapura Road has been upgraded to a four-lane highway, and the NICE Road connects the area to the southern IT Hub of Electronic City.
Mysuru Road, which connects Ramanagaram to Mysuru, has also been a significant investment incentive.
In December last year, Bengaluru's municipal corporation, Bruhat Bengaluru Mahanagara Palike (BBMP), announced a 2-km flyover to decongest Kanakapura Road at a cost of ₹1,200 crore.
Due to its metro connectivity, people who work in South Bengaluru areas like JP Nagar and Jayanagar often choose to stay in Kanakapura Road.
Additionally, the area is popular among those buying land for investment purposes.
However, the area is still somewhat disconnected from the city center, making daily commutes to the city a challenge for homebuyers.
Kanakapura Road is also relatively far from the eastern IT corridor of Whitefield, which adds to its isolated real estate appeal in the city.
Frequently Asked Questions
What is the expected real estate appreciation in Kanakapura Road by 2025?
Kanakapura Road is expected to see a significant appreciation of at least 15% by 2025, according to Sunil Singh, director of Realty Corps.
What is the range of residential rentals in Kanakapura Road?
The average residential rentals in Kanakapura Road range from ₹25,000 to ₹35,000 per month, depending on the type of development.
Which Grade A developers are active in Kanakapura Road?
Grade A developers active in Kanakapura Road include the Prestige Group and Brigade Group.
What are some of the recent infrastructure projects in Kanakapura Road?
Recent infrastructure projects include the upgrade to a four-lane highway, the NICE Road, Mysuru Road, and a 2-km flyover announced by BBMP to decongest the area.
What are the challenges faced by homebuyers in Kanakapura Road?
One of the main challenges is the area's relative disconnection from the city center, making daily commutes to the city a challenge. Additionally, it is far from the eastern IT corridor of Whitefield.
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