B
engaluru's northern corridor is witnessing a surge in real estate activity as Foxconn's iPhone manufacturing facility nears completion in Devanahalli. According to experts, the facility will begin production by early June, sparking increased demand for residential and commercial properties in the area and a rise in land prices. The growth is driven by expanding job opportunities and infrastructure investments.
Karnataka Industries Minister M.B. Patil shared on X that Apple CEO Tim Cook has confirmed most iPhones sold in the US will be manufactured in India by the June quarter. Foxconn's 300-acre campus will house around 30,000 workers, making it the largest of its kind in India. Construction is progressing swiftly and expected to be completed by year-end.
Real estate experts note that Foxconn's facility has already fueled demand for residential and commercial properties in Devanahalli, driven by rising employment opportunities and infrastructure development. Land prices have surged by 30-35% since Foxconn's entry, with property rates appreciating significantly.
Developers are using phrases like 'just 10 minutes from Foxconn' to market their projects, drawing investors eager to tap into the rapidly growing ecosystem around the facility. Devanahalli is emerging as a prime investment hotspot, driven by major infrastructure projects such as Kempegowda International Airport and the Satellite Town Ring Road.
Land prices in the area have surged by 30-40% in the past year alone, doubled over the last three years, and increased by 150-175% over five years. Infrastructure developments like the airport and planned IT parks are major growth drivers, making Devanahalli appealing to professionals seeking nearby housing.
Plotted developments in Devanahalli are concentrated along the STRR, a 21-kilometre corridor stretching from Hoskote to the Tamil Nadu border. Plots along this corridor are priced between ₹5,500-6,000 per sq. ft., while Grade A projects go up to ₹7,500-8,000 per sq. ft.
Inventory is limited, and due to strong demand and rapid development, land prices along this corridor are appreciating at an annual rate of 20-28%. In contrast, the IVC Road in Devanahalli is home to most luxury villa developments, with prices starting at ₹5 crore for a 2,400 sq. ft. villa.
Rental yields currently range between 1% and 3%, with average rent inflation in Bengaluru from 2024 to 2025 being about 10%. However, in the North Bangalore Devanahalli region, it is 30%. Villas are also performing well in the rental market, with entry-level rentals starting at ₹1.5 lakh per month.
The share of project launches in North Bengaluru has increased from 23% in 2023 to 31% in 2024. Apartment listings on NoBroker's platform for Devanahalli have increased by 30% this year. Due to aviation safety concerns, building height restrictions apply in the area, making it more suitable for plotted and villa developments.
Developers are typically allowed to build up to seven floors, with most upcoming Grade A townships planning to include hospitals within their developments. The area is well-served with institutions like GITAM University, Harrow International School, Amity University, and Chanakya University operating nearby.
