Farmland investments gain popularity among Bengaluru buyers
Farmland around Bengaluru is emerging as an attractive alternative for buyers looking beyond apartments and plotted developments. Rising urban congestion, demand for weekend retreats and growing interest in nature-led living are driving interest in agricultural land on the city’s outskirts. For working professionals and NRIs, projects that offer support for cultivation, irrigation, fencing, security and maintenance provide the convenience of land ownership without the need for daily supervision.
Plantation options such as sandalwood, teak, mahogany and fruit trees are also adding to the appeal, while farmhouse plots with leisure amenities are being explored for both personal use and rental income.
Infrastructure expansion across Bengaluru’s peripheral corridors, particularly along the Bengaluru-Mysuru route, is further supporting demand. Developers say buyers are increasingly looking at farmland not just as a lifestyle purchase but as a long-term real estate investment with potential for appreciation and recurring income. “Sandalwood remains a preferred plantation, while mahogany, teak and fruit plantations are also gaining interest. Farmhouses can provide an additional rental income opportunity,” said a developer. With the city’s expansion pushing development into newer locations, farmland is gaining traction as a blend of land investment, recreation and potential returns.
‘Buyer as Developer’ model finds buyers
A new real estate model that allows homebuyers to become active participants in the development process, rather than just end customers, is gaining traction.
Under the ‘Buyer as Developer’ concept, customers collectively fund the purchase of land through instalments. After this, the land is acquired, converted, approved and developed before individual plots are registered in their names.
By reducing dependence on traditional developers, the model aims to make residential plots more affordable while giving buyers greater transparency over the development process.
A developer said, “The concept has generated strong interest not only in Tumakuru but also in Bengaluru, Devanahalli, Doddaballapur, Heggadadevanapura, Nelamangala, Kunigal and Mysuru. Payments are collected in four instalments, with the first two used for land acquisition, the third for land conversion and the
fourth for infrastructure development before registration.”
Industry stakeholders say the model is attracting investors looking for premium plots in high-growth corridors, particularly around Devanahalli, where infrastructure projects, the international airport, IT and aerospace hubs, and upcoming commercial developments are driving demand.
Similar interest is being seen in Doddaballapur and Heggadadevanapura due to their improving connectivity and proximity to industrial and recreational hubs.
Devanahalli fast becoming North Bengaluru’s next real estate hub
Devanahalli is undergoing a major transformation, evolving from an area primarily associated with Bengaluru’s international airport into a prominent real estate and infrastructure destination. A combination of large-scale infrastructure development, industrial expansion and enhanced connectivity is attracting increasing attention from homebuyers, investors and property developers.
The region’s growth story is being fuelled by several major projects, including the Satellite Town Ring Road (STRR), proposed suburban rail links, aerospace and industrial parks, emerging IT investment zones and the continued expansion of Kempegowda International Airport. These developments are accelerating urbanisation across North Bengaluru and creating opportunities for a wide range of real estate projects.
Residential activity in Devanahalli has also gathered momentum, with developers launching expansive townships, plotted communities and high-end apartment projects. As planned development extends across the region, the area is gradually developing a more urban character and moving beyond its earlier identity as an airport-centric locality.
“Devanahalli has moved well beyond being simply an airport-adjacent location. Its infrastructure pipeline and long-term development potential have made it an attractive destination for property investment,” said real estate developer Raje Gowda.
Market observers point out that property and land values in and around Devanahalli have recorded substantial growth in recent years. Investors are increasingly exploring locations outside Bengaluru’s established central and eastern markets in search of larger parcels, future appreciation and better development potential.
The region is also drawing interest from NRIs and professionals employed in sectors such as aviation, logistics, aerospace and technology.
Developers believe the combination of employment opportunities, infrastructure and availability of large land parcels could help Devanahalli evolve into a more self-contained urban centre.
Housing prices rise 59% as land costs fuel inflation
Housing prices in India’s top seven cities have risen nearly twice as fast as construction costs over the past five years, according to Anarock Research. The average cost of constructing a standard-plus residential project increased 34% from `2,681 per sq ft in 2021 to `3,604 in 2025, while average residential capital values jumped 59% from `5,826 to `9,260 per sq ft. Anarock said 66% of the price rise was linked to construction costs, with the remaining increase driven mainly by soaring land prices, developer margins and demand-supply pressures.
Land values across the top seven cities rose 50-120% between 2021 and the first half of 2026, with the sharpest increases recorded in the NCR and Bengaluru. Infrastructure-led appreciation has pushed up land prices even before project launches, particularly in established corridors. Construction costs have also come under fresh pressure, with steel prices rising around 20%, fuel-linked logistics by 15-20%, finishing materials by 8-12% and MEP costs by 9-13%. Developers of already-launched projects face margin pressure, while new projects may see calibrated price hikes.
Bengaluru among top destinations as real estate investments surge
Bengaluru continued to strengthen its position as one of India’s leading real estate investment destinations. The city, along with Chennai, attracted nearly USD 1.2 billion in institutional investments during the first half of 2026, accounting for around 27 per cent of total inflows, according to a Colliers report.
The office sector remained the biggest draw in Bengaluru, contributing nearly 85-95 per cent of investments. Overall institutional inflows into Indian real estate jumped 70 per cent year-on-year to USD 2.9 billion in the April-June quarter.
The report attributed the growth to robust domestic and foreign investor participation, backed by large transactions and sustained confidence in India’s long-term economic outlook despite global uncertainties.
Masterplan for Bengaluru region targets $400 bn economy by 2037
Adraft Economic Master Plan presented to Chief Minister D K Shivakumar on September 2 aims to transform the Bengaluru Metropolitan Region (BMR) into a global growth hub, expanding its economy from the current $149 billion to $400 billion by 2037 and creating 2-2.5 million jobs.
Covering three districts and nearly 16 million people, Bengaluru Metropolitan Region contributes around 40% of Karnataka’s GSDP despite accounting for a quarter of the state’s population.
With a strong focus on real estate and urban development, the plan proposes international-standard planned cities, services-led business districts, integrated private townships and transit-oriented development.
It also envisages affordable and shared rental housing for industrial, gig and service workers, along with a slum rehabilitation programme aimed at making the region slum-free.
The plan includes expanded Metro, suburban rail and RRTS networks, a second airport, improved road connectivity, multi-modal hubs and measures to bridge the projected water-supply gap. The recommendations will now be discussed with relevant departments before an actionable plan is finalised.
